Wood flooring Will the bull r market continue?

By Ken Schurnacher

HAT has spurred the tremendous growth of wood flooring? Without a doubt, the answer is a good economy. Rising personal incomes, along with lower mortgage interest rates, have created a demand for larger and more expensive homes. In 2005, the average single-family home included just less than 2,5fi) sq. ft. of living space. and sold for an average ofjust less than $300,000.

Along with these larger, more-expensive homes comes a demand for what previously might have been considered luxury items, such as custom floor plans, state-of-the-art appliances, and custom flooring. In addition to demanding high-end flooring, homeowners are increasingly expressing a desire for custom flooring as well.

Wood flooring has become a fashion statement, representing beauty and elegance. It no longer is viewed as a utilitarian item. like it was in the 1950s when Federal Housing Authority regulations required wood flooring in new home construction.

As a result, today's homeowners often want more than the traditional 2-114" strip oak floors that were common in years past. Many want something that is totally unique, totally unlike anything their neighbor down the street might have-and they don't mind paying top dollan for it. And that's good for everyone in our industry.

So how does it all add up? What does all this mean in terms of dollars and cents? Last year, retail sales in the wood flooring industry reached $2.6 billion-an ll.29o increase over the previous year. Some 1.2 billion sq. ft. of wood flooring was sold during the same perid, an increase of 9Vo from the previous year.

Specialty floorcovering retailers continue to dominate sales, but large home centers continue to gain market share. The two largest home center chains-Home Depot and Lowe's-are estimated to have accounted for 2O-5% of total 2004 hardwood flooring retail sales in the U.S.

Looking ahead, wood flooring is expected to remain a growing sector of the U.S. floorcovering industry. Experts predict that projected dollar market sales will increase at a 7.7Vo compound annual rate during the next five years, to reach $3.8 billion. Unit sales are predicted to nse 5.7Vc annually during this same perid, to 1.5 billion sq. ft. By all accounts, wood flooring is positioned to continue its growth trend, but how will that growth be maintained? Imports will play a big role. Exotic species are the answer to increasing consumer demand. They offer more options. more colors, and more cost competitiveness. The market currently is flooded with a wide variety of choices never before seen in our industry. African species like bubinga and wenge, South American species like Brazilian cherry and santos mahogany, Australian species like sponed gum and jarrah, and Asian species like bamboo and merbau, are now as much a part of the wood flooring market as oak.

Items such as borders, medallions, inlays, and mixed media like stone, granite, and even leather offer the home- owner previously unheard of custom options-and are often quite affordable. What's even more appealing is that these items often can be retrofitted into existing wood floors, making them even more desirable.

Another big trend is wood reclaimed from a variety of sources, including old barns, abandoned factories, out-of-date warehouses, and river bottoms where century-old relics of the logging industry lie at rest. These floors offer a totally unique look because the wood comes from a variety of sources, locations, and time periods. Each individual board is rich with character, color, and mineral variations that can't be duplicated.

Reclaimed wood products also are environmentally friendly. Rather than discarding this used wood in a landfill, it is carefully recovered to minimize environmental distress, all nails and other metal objects are removed bY hand, and the wood then is meticulously milled to yield the most usable flooring material.

For homeowners who like the look of reclaimed wood, but not the Price tag, distressed floors are another hot flooring trend. Hand scraping is the most common distressing technique. Using tools such as chisels, planes and grinders, the installer works the wood to achieve a worn and distressed look. The end result is a new floor that looks beautifully antiqued.

Consumers also increasingly are demanding the use of sustainable and renewable building products in their homes and businesses. Sustainable forest management makes it possible to harvest wood without any serious environmental impact. When forests are managed properly, trees are a renewable resource that can be replaced time and time again.

Wood is the only flooring considered both renewable and sustainable. As such, it earns points under the Leadership in Energy & Environmental Design program that was developed and introduced by the U.S. Green Building Council in the spring of 2000, to promote the development and implementation of environmentally friendly building projects.

Wood floors also promote healthier indoor air quality, a big plus for allergy sufferers. An EPA study found that wood floors do not harbor allergens, microorganisms, or harmful pesticides that can be tracked in from outdoors. In addition, dust, mold, and animal dander contamination is mini-

It's Hip To Be Oak

A coalition of hardwood lumber manufacturers has unveiled a strategy to reinvent their primary species for architects and designers around the world as "the new oak.o'

The New Oak PartnershiP reports that increasingly designers are turning to venerable oak to create handsome flooring, cabinetrY and furniture that complements contemporarY environments and active lifestyles.

"The new oak lends itself beautifully to a wide variety of hues and finishes, suiting a variety of styles and tastes," says group co-chairman Victor Barringer. "Oak is highlY adaptable to a range of looks-from the sleekness of European-influenced contemporary interiors or the formal elegance of traditional design to the rediscoverY of Amedca's rustic legacy."

Barringer said, "We are helping architects and designers to rediscover these characteristics in their design. We have develoPed new finishes for oak in traditional and contemporary designs so consumers can see this potential." mal in homes with wood floors.

In order to shelter ourselves from the harsh realities of the world, our homes have become our sanctuaries, our safe havens. We spend more time in them than ever before, and increasingly, our homes are a reflection of our values, our lifestyles, and our unique personalities.

Many of us are trying to recreate the comfort and security we remember from our own carefree childhoods- family time spent together, watching movies, playing games, and just plain talking. This return to traditional family values has spurred the return to the traditional family home-one in which wood products are abundant.

"Oak is one of the most aburtdant trees growing in the eastern hardwood forests, almost 40Va of. the growing stock," said co-chairman Ed Ramsey. "Architects and designers can be assured that oak is truly a sustainable resource from our American hardwood forests, which cover more than 275 million acres."

Industry members and homeowners can promote their work in oak on the group's Web site, www. thenewoak.com. The site features individual showcases for each category where designs and Products can be uploaded and promoted around the globe.

"We are seeing exciting designs added to the showcases each day," Barringer said. "As more architects and designers learn about this, we expect it to only increase."

Partnership members include Gilco Lumber, Kitchens Brothers Lumber, Taylor-RamseY, Coastal Lumber, Linden Lumber, Coastal Timberlands, AlleghenY Wood Products, Dunaway Timber, and National Hardwood Lumber Assn.

- Ken Schumacher is vice chairman of the National Wood Flooring Association and president of Schumacher & Co., Newport, Ky. This article was adapted ftom a speech given at the 4lst annual meeting oJ the Kentuclcy Forest Industries Assn.