Contract Dealers' Survey 2007 - December 2007

By Darius Helm

The commercial economy is far different today than it was two years ago, when we last took our survey of the nation’s top contract dealers. It’s fully rebounded since then, yet many challenges the contract dealers faced two years ago haven’t changed much. According to this year’s survey, they still have to grapple daily with general contractors, they still struggle to build relationships with designers and flooring reps, and perhaps most importantly, they still have to fight for the recognition they feel they deserve. Not only that, but they now have two new challenges to deal with: the burgeoning green movement and rising costs driven by skyrocketing oil prices.

Back in 2005, the Contract Dealer Survey revealed a collective newfound focus in this entrepreneurial group of people, a drive to not only express their frustrations, but more importantly, to seek solutions, improve communication and build stronger relationships with virtually every segment of the business they work with—general contractors, facility managers, flooring manufacturers, reps and the A&D community. They began looking beyond their own businesses and at the big picture, focusing on the health of the industry in general. This new perspective developed during the lean years leading up to the market turnaround in late 2005, when everyone in the commercial industry was busy re-examining their business models in an effort to turn a profit.

It was gratifying to see that this year’s survey suggests that the top contract dealers have retained that focus, even in a stronger business environment. Despite the strong commercial economy, rising petroleum costs and the pressing call for environmentally sustainable products and practices have presented some of the same challenges as a weak economy—the need to increase profits and build up business.

This year’s survey reveals an undercurrent of that old frustration, reflected in comments suggesting that some players in the commercial flooring world, from manufacturers’ reps to general contractors, still have not embraced the team approach. But there were plenty of positive comments from the dealers about significant improvements in both their working relationships—most particularly with their suppliers and their A&D customers—and in the new directions they’ve put in place for their businesses.

One good example of a new direction for commercial flooring contractors can be seen in the StarNet Worldwide Commercial Flooring Partnership. StarNet is a cooperative of over 165 independent contract dealers with total revenues closing in on $2 billion. In addition to raising the profile and stature of contract dealers, StarNet has also been a leader in the drive toward green, partnering with CARE (Carpet America Recovery Effort) to reclaim nearly 18 million square feet of carpet since 2006. That’s about two and a half million pounds of carpet that didn’t get landfilled, averting, among other things, the release of over 16 million pounds of carbon dioxide.

It’s not just StarNet dealers who feel compelled to go beyond the green programs offered by their suppliers. Contract dealers all over the country are proving instrumental in the development of a national reclamation network. And they’re very vocal about it. One survey respondent felt that the mills needed to step it up, asking for “more reclamation sold at the manufacturer’s rep level. For instance, sell two yards and you must return at least one yard before your order will ship, or some other program that lets the rep be more in touch with this key program called recycling.”

For complete survey results, see the December 2007 issue of Floor Focus Magazine.