Diversification is necessary for your continued growth and financial health. We have watched the evolution of our industry take place over the past 10 years or so. Many changes have been made to the product offerings of manufacturers, distributors and retailers.

The channels linking manufacturers to retailers have been transformed. And we’ve seen the retail segment of the industry become more national in scope due to the emergence of franchise groups, buying groups, etc. Manufacturers have continued to consolidate through mergers and acquisitions. Every element of our industry has evolved.

Among the most noticeable changes is the rapid diversification that has occurred. The game has changed. In today’s business environment, it seems diversification is a must; a requirement for just keeping up with the rapid pace of change.

Today, even the floor covering installer must learn to install more products. Not too many years ago, installers were specialists. A retailer or contractor needed a different installer to install each different type of flooring. It was not unusual, on any given job, to see one crew installing carpet, another installing sheet vinyl and yet another installing wood flooring.

Today, most installers are called upon to provide installation on at least two or more types of flooring material. The more diversified they become, the more they are in demand and, generally, the more money they make.

Similarly, a carpet store used to be just that — it sold only carpet. Today, it’s hard to find a store that sells carpet and nothing else. The same is true of the vinyl flooring retail segment.

Today’s flooring distributors also have to diversify if they hope to continue to provide the products and services their customers want. The customers at all levels are changing. They want more and they want it now.

As we rush toward tomorrow, the supersonic speed of cyberspace is creating the need to develop faster methods of getting product to the customer. The flooring industry will meet this challenge, just as it has answered the challenges of the past.

So prepare your company for a faster ride than you’ve ever taken before. Hook on to the future! It will be a great ride for those who are ready.

Business on the Internet? I don’t understand it. But if I were still running a company, I’d sure start trying to get a grip on this cyberspace thing and I would be looking at ways to offer my customers whatever they wanted. Obviously, that would require DIVERSIFICATION AND EDUCATION for my employees and me. How about you?