Our exclusive year-end survey of 310 dealers and contractors shows the effects of the severe real estate slump. The result: 70% of retailers surveyed say their builder and new construction business was down last year. The average fall off was nearly 40%.

Having weathered an avalanche of bad financial news and witnessed a sharp drop in sales, people in the flooring business will have plenty on their minds during our industry’s most important event. But, as the show begins, I want to make a modest proposal: Let’s try and keep Surfaces--the entire show floor, the workshops and meeting rooms--free from needless griping and complaining (or kvetching as they say in Yiddish). A dour mood is contagious and it accomplishes nothing; and believe me, there is much to be done at Surfaces ‘09. 

The assessment was dead on: “We can’t cut or save our way out of a recession,” said Manny Llerena, Mohawk’s vp retail marketing during a meeting with the press last month at the company’s Floorscapes convention. He maintained that a much better approach is to inspire consumers and tap into the passion they feel for their homes. People are staying in (or cocooning). Also, thanks in large part to the bevy of home improvement shows now seen on cable TV, they are far more aware of their interior design options. Marry those two unmistakable trends and a savvy retailer can move to higher ground. The focus shifts from cutting prices to creating someone’s dream house.

In a move that combines the resources of hardwood flooring’s top two trade groups, the National Wood Flooring Association has absorbed the Wood Flooring Manufacturers Association, (NOFMA). Ed Korczak, executive director and CEO of the 4,000-member NWFA, will oversee the newly expanded St. Louis-based organization. He noted that NOFMA, which was founded nearly 100 years ago and was based in Memphis, Tenn., has been officially dissolved as a corporate entity. The group’s certification program will retain the NOFMA name and be continued under the direction of the NWFA, he added.

Greetings.

First off:  Happy Holidays from the staff of National Floor Trends.

With only a couple of weeks left in the year, many in the flooring industry are eager to say good riddance to 2008. We are all looking forward to a new year that will bring a new outlook and new opportunities. I think it is safe to say we all have had enough of the gloomy economic news that will forever be associated with the year now drawing to a close.

Armstrong Flooring’s CEO Frank Ready called the other day to chat about his company’s decision to participate in Surfaces early next year. After sitting out the Las Vegas show for the past four years, Armstrong has agreed to set up a product showroom in the Venetian Hotel, a short walk from the show floor. While Ready told me a traditional booth “still does not make sense for us,” the decision to have an official presence at our industry’s most important gathering is very welcome news. It also reflects the company’s determination to battle back against challenges that beset the floor covering business. And Armstrong is not alone. In ways large and small we continue to see key players in this industry take decisive action.

The typical floor covering retailer is selling less carpet, but is bringing in more money on each transaction. In our new survey, dealers said they average about 60 carpet transactions a month. While the figure is a decline from two years ago when the average was 69, during the same time frame the price per carpet transaction climbed from $2,400 to $3,509. Meanwhile, the number of retailers who reported annual carpet sales in excess of $1 million rose from 28% of those in the survey two years ago to 37% today 

You know what I like most about flooring? It is the very definition of grace under pressure. The vast array of products sold by our industry are designed to withstand years of daily pounding, spills, dropped items, extreme temperatures…whatever you got, sooner or later it hits the floor. Also, considering its prominence in any décor, a top quality floor has to do all this and still look good, day-after-day, year-after-year. These are qualities that serve our industry well-especially now. We all know business has been sluggish so maybe now is a good time remember there are a great many things to be thankful for in the flooring industry. So in the spirit of Thanksgiving…

That is the way a top exec at USG described the current environment last week during a conference call with reporters. Of course we are all aware of the sour economy, but "unprecedented" is still a mighty powerful word. It suggests we have entered uncharted territory.

The good news for those working in the tile and stone segment is that even in the face of a challenging environment, there are clear signs that the category is strong and poised for increased sales in the near future. The 242 retailers participating in our exclusive survey confirm that the wide assortment of tile and stone products remains a core element of their merchandise mix and an area they frequently pitch to their customers.