Distribution Report: Flooring distributors needs to evolve with the market – Oct 2025
By Jessica Chevalier
Across many industries, the distribution business is in a period of transition, and the flooring industry is no exception. The way in which distribution worked historically-with independent operations serving identified regions with exclusive product categories and products for which they had exclusive rights-is often no longer the case.
“Years ago, distributors relied on territory and distribution rights-being there and having inventory-but today, it’s a little bit different,” explains Dub Newell, CEO of Louisville Tile, which serves both residential and commercial customers. “Distribution rights aren’t what they once were. Sometimes we have dual distribution or the same products as another distributor. There are a lot more products to compete with. It’s a much messier situation. And our customers are occasionally bigger than we are. They wield a lot more control over what they buy and how than they once did.”
Today, as we also see in manufacturing, commercial contractor and retailer businesses, consolidation is creating mega-firms with arms reaching across both regions and products. “Flooring distribution has experienced significant consolidation in the past 30 years,” says Gene Corvino, president of William M. Bird. “There are fewer players, and those that are thriving have built the scale to compete regionally while continuing to foster deep relationships with flooring dealers and sub-contractors.”
These changes alter the very essence of the distribution business to some degree, challenging not just how business is done but the way in which distributors serve the supply chain. What it does not change is the fact that distributors are agents essentially tasked with greasing the rails between the manufacturer or importer and the retailer or commercial contractor. Greasing those rails, while once more a function of what they were providing, is now more about how they are providing it, and that is very much wrapped up in customer service and relationships.
The reality today is that there are so many products to choose from and, as the flooring industry is not brand-driven-like it was in the Armstrong days of 20 years ago-the value of having a particular collection from a specific manufacturer pales to some degree compared to having distribution partners that are at the ready with regard to support, advice and problem-solving.
“Distribution is about adding value,” says Newell. “As the middleman, if you can’t do that, there is no need for you. We work closely with suppliers and customers to make sure we are adding value along the way, generally in the form of service.”
Brian Green, president of the North American Association of Floor Covering Distributors (NAFCD) and chief sales and marketing officer for UCX, sees that the value the distributor brings to its customers is unmatched, and that value is based on the “power of the product portfolio,” he says. “Most distributors deliver a wide breadth of great products, so they are a one-stop-shop. The bulk of the customer base, regardless of the segment, sells many different products, and having one truck come in carrying a host of different products is very beneficial.”
Above all, Green believes, distributors must be adaptable. “Every year, business changes,” he notes. “When I got into flooring, it was sheet vinyl and carpet, then wood came onto the scene, then LVT. We want NAFCD members to adapt to market conditions. Today’s dealers are very informed, a different customer than we used to sell to, and we have to adapt.”
Market view
As president of the NAFCD, Green has a unique understanding of the current landscape. Overall, he reports, the distribution segment “didn’t expect a banner year but thought the second half would improve, though it has remained flat. We hoped to build on the stronger months, but often they were followed by weaker ones,” he explains. “However, the second half of last year was very weak for a lot of folks, so the comps make it easier.”
Green points to the pause in activity caused by tariff discussions as an unexpected factor in 2025 and reports that many distributors are “hunkering down” through this period of sluggishness. However, he notes that the NAFCD has good expectations for 2025 and beyond.
“As much as anything, the tariffs have created uncertainty in the market,” says Newell. “They have probably been good for some U.S. factories, but I think the uncertainty they caused has hurt others.” Around 85% of Louisville Tile’s products are domestically made.
There are other large-scale hurdles impacting the distribution business, as well. “The current housing market impacts the entire flooring industry,” says Maybank Hagood, chairman and CEO of Southern Diversified Distributors and CEO of William M. Bird. “Combine that with global trade uncertainty, and it makes for a difficult market. Despite those headwinds, distributors that create an unquestioned value proposition for their customers are more than holding their own.” Southern Diversified Distributors is comprised of four subsidiaries: William M. Bird, TranSouth Logistics, East Bay Supply Co., and Twenty & Oak.
Of the three market segments that distributors serve-builder, commercial and residential remodel-Green reports that commercial is the current bright spot in the market, with project spending over the last 18 to 24 months now trickling down to flooring, which is installed at the end of the commercial construction process.
Residential remodel is still in recovery mode, says Green, adding, “What distributors serving that market are facing is inconsistency. The retail side gets a little momentum just to have it fizzle out the next month. The bit of positive news around existing home sales has not correlated to people making big flooring purchases, and 2021 and 2022 were great, so demand was pulled forward.”
The builder market is a challenge in regard to both high interest rates and entry-home cost. There are bright spots in certain regions, notes Green, but, overall, builder business is spotty.
Adds Newell, “The residential housing market has been a lot softer nationally. There is pent-up demand and a housing shortage, but ultimately, the government will have to get interest rates down to a level where we can get more people buying homes again. And that will help remodel business, as well.”
Amid the current downturn, Green advises distributors to utilize their tools, stay prudent and understand their true profit and expense base.
While the referenced “tools” aren’t necessarily NAFCD-only, Green does point to benchmarking data as a good means for distributors to measure their current performance against others in the market.
Serving the comeback
Staging for the return of business is one of the most important tasks for a distributor amid a slow period. The active years of the pandemic followed by the freight crisis of 2022 and 2023 revealed the importance of diversified sourcing as well as strong supplier-distributor relationships.
While long-term partnerships are the bedrock of a distributor’s success, it may be necessary to establish relationships with new suppliers in additional countries in order to ensure consistent supply should an event-environmental, political or social-compromise one area of the world. This is something that UCX has been working on. “We try to have a nice blend of onshore and offshore partners,” says Green.
In addition, it’s crucial to have strong team expertise in compliance and regulation. In an era in which tariffs are being use as a political tool, this has become an even more significant need.
“Our sourcing strategy has always depended on partnering with suppliers that provide exceptional quality and value for the money, recognizable beauty and fashion, and reliability of supply chain,” says Hagood. “The current tariffs are a factor in that equation, and we are fortunate to have excellent domestic and international suppliers that meet our criteria.”
Diversification is also important in regard to product portfolios and geographies. “When you are in one product segment or serving customers in only one area, it can be very challenging,” says Green.
One of the ways distributors continue to set themselves apart product-wise in the marketplace is through the development of their own distinctive brands and lines, which they can sell without the handcuffs of distribution rights or territories. Secondarily, these offer the opportunity for retailers and commercial contractors to carry a product unique in their marketplace.
Louisville Tile has recently revamped its entire private label offering. “Private label allows us to go into any market we want to go into,” Newell explains. “We aren’t limited because we own the brand. There is more flexibility for us.”
But product portfolio diversification can also come in the form of diverse product offerings like large-format tile, or countertops or sundries. The most successful of these are true to the distributors’ expertise and distribution system.
“The other thing we have spent more time and energy around is large-format panels,” says Newell. “I believe, regarding acceptance, the U.S. is a little behind, and these will be embraced here in the next few years.” Many of Louisville Tile’s key partners offer large panels, so diversification into the category made sense. However, it does necessitate that the company invest in training the market about the uses of and means of installing and handling the unique product.
Corvino reports that his operation has focused on growing its East Bay flooring supply business. “Our goal is to be known for providing solutions to our customers,” he says. “Flooring installation can present a thousand different challenges: wet or unlevel sub-floors, sound issues, the right adhesive for various conditions. Our sales team helps our customers every day with finding the right product for their specific situation.”
Geographical diversification is another means of strengthening. Through acquisition, UCX has expanded into western Indiana, Kentucky and Ohio, and reports that it now covers 50% of the U.S. population and feels hopeful about growth areas like the Southeast where populations are increasing.
Hagood notes that his operation has expanded its territory into Florida and is “committed to serving it for the long term. We have nine sales representatives throughout the state and invest in local inventories at our Orlando branch. We represent most of our suppliers in the state of Florida and believe that it is a great market to serve.”
Looking ahead
“I feel better than I did a year ago,” says Newell, who asserts the construction industry has been in a mild recession.
Both he and Green believe that consolidation will continue to be the story of the coming years in all levels of the flooring buying chain.
“Look at UCX,” says Green. “We were probably 25 different NAFCD members 40 years ago. That will continue. There will be fewer folks that make up the members of our organization, and we are preparing for that.”
Newell also believes that industry needs to prepare itself for increased online purchase of flooring products. “As you get younger architects and designers, they will be more online-first, so more will be driven online than in the past,” he notes.
“The more things change, the more they stay the same,” says Hagood. “Reliability and relationships are the most important pillars for distribution in the flooring industry. That has always been the case. We believe that over the next ten years that will continue to be true, and we anticipate that how we achieve reliability and nurture relationships will continue to change. Technology will be a critical tool for distribution to achieve reliability. Anticipating and responding to changes in our customer needs and expectations will be essential.”