Executive Outlook 2026: Strategy, discipline and the signals flooring leaders are watching now – Dec 2025
By Meg Scarbrough
Forecasting has not been kind to the flooring industry. For three consecutive years, leaders entered January expecting the elusive “strong second half”-only to see higher-for-longer rates, flat remodeling activity and a historically weak existing-home market keep demand muted. But 2025 also marked a turning point. As interest rates began easing and supply chains stabilized, companies shifted from defensive postures to strategic investment: expanding domestic capacity, accelerating digital transformation, simplifying product portfolios and sharpening innovation stories that resonate with a value-driven consumer. For this year’s Executive Outlook, industry leaders share how they have navigated the prolonged downturn, where they see opportunity emerging in 2026 and why-despite the noise-they remain confident in the long-term strength and resilience of the flooring market due to pent-up demand, home equity wealth and evolving styles.
TIM BAUCOM
Shaw Industries
President & CEO
“Flooring connects people to the spaces that matter most, and that gives our industry a lasting purpose.”
Q: Looking back at 2025, what defined the year for your business-and for the flooring market overall? Were there turning points or lessons that will influence your 2026 strategy?
Baucom: 2025 was a year defined by discipline, resilience and readiness. While the housing market remained under pressure, Shaw focused on what we could control-improving execution, investing in innovation and strengthening partnerships across every business unit. We saw encouraging signs in commercial and turf and continued to gain share in residential despite the challenges. This year reinforced that when we stay focused, do what we say we’ll do and keep investing in quality, service, and innovation, we position Shaw to control our own destiny and lead when the market turns.
Q: How would you describe current demand as we enter 2026 across residential, commercial and builder channels?
Baucom: Demand remains mixed but stable, and we’re seeing encouraging momentum in several areas, even as consumer confidence and housing affordability continue to weigh on the market.
In residential, homeowners are cautious but continue to invest selectively in renovation and replacement projects, areas where Shaw’s focus on design, performance and trusted brands creates advantage. We see the builder segment pulling back and managing starts carefully to avoid oversupply, but Shaw continues to outperform by focusing on reliability, service and partnership.
Commercial demand remains steady, supported by healthy backlogs and strong activity in healthcare, education and corporate environments. Across our businesses, our focused and connected teams are building momentum by delivering on our commitments.
Q: What product categories or innovations are you betting on to drive growth in 2026? Which segments or performance stories are resonating most with consumers and retailers?
Baucom: Our strategy is grounded in market-back innovation-creating differentiated solutions and consumer focused brands (Shaw Floors, Coretec and Anderson Tuftex) that deliver real value to customers. In residential, our PET carpet programs, waterproof hard surfaces, and performance-driven collections like LifeGuard and PetPerfect continue to resonate. In commercial, EcoWorx resilient and modular carpet tile are expanding our leadership in sustainability and performance. And in turf, our patented Game On technology is helping us grow in sports while new partnerships are creating opportunity in landscape.
Our goal is simple: focus our innovation where it creates the most value for customers and execute with discipline.
Q: What long-term investments are you prioritizing right now to position your company for the next market cycle?
Baucom: We’re investing with confidence in what will matter most long term: manufacturing excellence, digital transformation and customer experience.
Our continued investments in U.S. manufacturing-including advancements at our Aiken, Andalusia and Dalton fiber facilities, carpet and turf production across North Georgia, and resilient production in Ringgold, Georgia-strengthen quality, service and supply assurance.
At the same time, our strategic sourcing partnerships expand choice and capacity, allowing us to meet customer needs across product categories and price points.
We’re also modernizing our enterprise systems to simplify processes, improve visibility, and make it easier for customers to do business with Shaw.
Q: From a leadership perspective, what has been your biggest challenge or learning moment in the past year?
Baucom: Leading through uncertainty has tested all of us, but it has also reinforced what makes Shaw strong-our people and our leadership. One of the things I’m most proud of this year is promoting three exceptional leaders to serve as presidents of our residential, commercial and turf businesses. Each brings deep experience, customer focus and a shared commitment to Shaw’s values.
The biggest lesson this year is that consistency and accountability matter most when conditions are tough. Our leaders and associates have stayed focused, communicated clearly and done what they said they would do.
Q: What is your overall outlook for 2026?
Baucom: We expect 2026 to be a year of stabilization and preparation for growth. Housing affordability will continue to influence the pace of recovery, but Shaw is positioned to outperform. We’re entering 2026 with momentum, a stronger portfolio and a clear sense of purpose. Our goal isn’t just to participate in the next market upturn-it’s to lead it, with the confidence that comes from being prepared and focused on what we can control.
KEN WALMA
Mohawk Industries
President of Flooring North America
“Technology continues to change how we look at numerous parts of our business and the industry.”
Q: What have been your biggest priorities since taking on your role a year ago, and what stands out to you about the organization and its culture?
Walma: Since taking this role, my main priority has been to get out and see our team in action, meet with customers, learn about the industry, understand how our business creates value and identify what needs improvement. Another top priority has been to address and pivot the business, given the changing macroeconomic conditions with trade policies, evolving consumer sentiment and some of our internal systems challenges from earlier in the year.
A few things stand out, namely the Mohawk culture, which is uniquely distinctive. It’s full of a deep sense of pride and purpose, coupled with an entrepreneurial spirit. We are an impressive organization, rich in talent, where team members are committed to supporting one another, our customers and the company.
Q: During your first year at Mohawk, what’s been your biggest challenge or learning? What’s been most rewarding?
Walma: The biggest challenge has been the initial systems issues and then working together to improve our capabilities with our retail customers, all while managing the end-market dynamics. What has been rewarding is seeing that our relationships with our customers are truly exceptional. They go beyond business transactions and are built on mutual trust and respect.
Additionally, a very rewarding aspect of my first year has been the opportunity to meet and connect with team members across the globe and get a view of the vast capabilities of our company.
Q: How are tariffs and trade disputes influencing your strategies for producing and sourcing-both now and in the long run?
Walma: An America-first trade policy is going to favor Mohawk, given we are positioned with the largest operational capability for flooring within the USA, and it has not had a significant impact on our strategy. However, the impact on consumer sentiment has taken its toll on the industry itself, as renovations or home purchases are being pushed out. This has enabled us to seek out areas of the market that are less affected.
Q: What product categories or innovations are you betting on to drive growth in 2026?
Walma: There is still room to drive growth in carpet, LVT, laminate and hybrid categories. These segments remain central to Mohawk’s strategy for the coming year. Mohawk will continue to disrupt the industry with new introductions across its portfolio, including product lines like SmartStrand, RevWood, SolidTech R and PureTech. Innovative technologies such as WetProtect, Signature and All Pet are also highlighted as differentiators. We are also excited to share an all-new offering with our customers during the Mohawk Momentum Roadshow in Q1.
Q: How is your company helping retailers protect profitability and differentiate on value rather than price?
Walma: We know retailers continue to face price sensitivity and margin pressure, and we have continued to enable viable alternatives with American Made RevWood and PureTech that are priced lower than imported hard surface with improved performance. With affordable price points, these high-quality products are in stock and ready to ship. Along with our innovative product offerings, Mohawk’s Edge loyalty program will help retailers make more money.
Q: Looking further ahead, what gives you the most optimism about the flooring industry?
Walma: There is a $23 billion flooring market out there despite being at historic lows of home sales, new construction and consumer sentiment. Flooring is a significant investment by the consumer. There is even more opportunity to elevate those places through beauty, performance and sustainability of flooring products. The flooring industry can take cues from other industries that have elevated their value proposition beyond product features and functions, and we think Mohawk can play a big role in enabling this together with our customers.
DAN FRIERSON
The Dixie Group
Chairman & CEO
“After every downturn, there’s an upturn-and I believe we’re poised for a prolonged one.”
Q: How does the current downturn compare to the cycles you’ve seen across your career?
Frierson: The past three years have been among the most prolonged downturns I’ve experienced in nearly six decades in the industry. While past contractions-such as 2008/09 or the early Covid period-were sharper, they were also shorter. This one has been uniquely persistent.
For flooring, the real drag has been the collapse in existing home sales, which drive most upper-end residential replacement. We’ve dropped from over six million annual resales to roughly four million-a decline of more than 30%. For businesses like ours, tied closely to remodel activity, that creates a sustained contraction you simply must manage through.
Despite these challenges, the upper end of the market has held up better than the broader industry. That has helped support our share position, but there’s no question: 2025 was another year of disciplined adjustment. We’ve cut nearly $60 million in costs over this period, rationalized capacity and improved productivity-moves no company enjoys making but ones required to remain healthy.
Q: What lessons from past cycles helped guide how you navigated this period?
Frierson: Long downturns teach you to tighten your belt and focus on the health of the whole enterprise. You must be willing to make difficult decisions-including reducing capacity, exiting non-strategic parts of the business and managing headcount carefully-to ensure long-term viability.
Cash discipline is essential. So is the ability to look beyond the immediate moment and maintain focus on what the business needs to look like when the recovery comes.
This period was complicated further by structural shifts, most notably the transition from nylon to polyester and the departure of major nylon suppliers like Invista and Ascend. That forced dramatic changes in our raw material mix and required us to replicate products, adjust manufacturing and rebuild supply chains-all while operating in a declining market. Today, with our own extrusion capacity and a more stable raw-material foundation, our operations are far stronger than they were at the onset of the downturn.
Q: When do you expect the market to truly turn, and what signals are you watching most closely?
Frierson: The three indicators that matter most for our business are existing home sales, consumer confidence and interest rates. The stock market-another key signal for upper-end purchasing-has been very strong, and that’s encouraging. But affordability and confidence still need to improve before homeowners re-engage in large-scale remodeling.
I believed we might see recovery in 2024 or 2025, and those expectations proved premature. With mortgage rates expected to continue trending down, I think 2026 is more likely to show meaningful improvement-particularly in the back half of the year.
The underlying fundamentals are there: home values remain high, the wealth effect is strong, and there’s a multi-year shortage of housing relative to family formation. When affordability aligns with those fundamentals, pent-up remodeling demand will release, and I believe it will fuel several years of positive comps.
Q: How are you positioning Dixie for 2026 and beyond?
Frierson: Our strategy remains focused on the luxury and high-end market, where demand has been comparatively resilient and where we believe the best opportunities lie as the industry recovers. Higher-end consumers tend to resume activity ahead of the broader market, and we’ve gained share throughout the downturn because that segment has continued to perform better.
We are aligning our brands with that opportunity-differentiating between premium and ultra-premium segments and ensuring our mix reflects what those consumers value most. With internal operations more stable, raw-material challenges behind us and a tighter portfolio focused on design and performance, we’re in a strong position to benefit early when demand returns.
Q: What gives you the most optimism about the flooring industry?
Frierson: First, the structural shortage of housing in the U.S. is real. We’ve underbuilt for years, and Americans overwhelmingly still want to own homes. When affordability improves-through lower rates, stronger confidence or easing construction costs-that demand will translate into both new-home activity and robust remodeling. Historically, when we come out of downturns, we see three to five years of sustained positive growth, and I expect a similar pattern this time.
Second, soft surface has reached a point of equilibrium in its share balance with hard surface. After a decade of significant shifts, we don’t anticipate further large swings, which stabilizes a category core to our business.
Finally, I remain fundamentally optimistic. This industry has been through many cycles, and each downturn has been followed by a healthy, extended recovery. Companies that focus on quality, service and disciplined execution will be well-positioned-and I believe Dixie is among them.
BRENT EMORE
AHF Products
CEO
“The only thing any of the manufacturers and distribu-tors can do is control the factors that they can-staff appropriately, excite your customers with innovative new products and serve them.”
Q: You’ve said the Wellmade acquisition this fall was a major strategic turning point. What made this the right move now?
Emore: It became an excellent opportunity for us to acquire a very unique asset and change our lot in life. When you don’t manufacture SPC-when you’re not driving the innovation in visuals, performance, locking mechanisms-you don’t control as much of your destiny. Now we have the opportunity to sell out 200 million square feet of domestic capacity instead of selling on someone else’s behalf. It’s a silver bullet for us.
Q: How much did tariffs and sourcing uncertainty influence that decision?
Emore: Under the current administration, domestic production provides an advantage. While I don’t know what the Supreme Court will ultimately decide, my guess is tariffs are here to stay-maybe through a different mechanism, but they’re not going away. That makes domestic capability absolutely essential to our strategy. Cartersville complements our entire footprint and allows us to play seriously in channels we couldn’t before. It reduces risk, strengthens service, and lets us innovate faster with our key customers.
Q: What does integration of the Cartersville plant look like as you head into 2026?
Emore: We actually took the plant down for about ten days to convert the existing system to our system and to focus on hiring the right talent for the future of that plant. Because it’s a plant-not a standalone business-we could leverage our resources and our footprint immediately. That’s part of what made the transaction so attractive. We’ve already integrated Cartersville into our network, and we’re using our manufacturing know-how and the strength of our brand portfolio to accelerate what this facility can deliver.
Q: Beyond integration, how are you thinking about investment and growth opportunities?
Emore: My job is to strategically overlay any acquisition that complements our portfolio. There’s a right time for everything. First, we’re optimizing the investments we’ve already made-tens of millions of dollars in productivity, capacity initiatives within porcelain tile, vinyl and wood. Second, we’re successfully integrating and optimizing past acquisitions-sawmills, Crossville and now Cartersville. Only then do we look at new opportunities. So yes, there are things I’m studying, but they must be timed with the right financial resources and without putting stress on the organization.
Q: You stepped into the CEO role during a tough period for the industry. What has this year taught you about leadership?
Emore: I’ve always been a problem-solver at heart, but this role is different. It requires me to focus on people, process and strategy-and rely deeply on the strength and talent of the organization. That’s been fun. The biggest lesson this year is the power of simplification. It’s about finding the right product categories, driving the highest gross margin throughput and executing with discipline. That’s what brings outperformance.
Q: There has been a lot of talk about the first half versus the second half of the year. What are you not willing to assume heading into 2026?
Emore: Everybody keeps saying the first half will be okay and the second half will be better. But we just haven’t seen much of that for three years. So, I’m not willing to make an aggressive call on the back half. We’ll remain cautiously optimistic, but realistic. The only thing manufacturers can do is control what they can-staff appropriately, excite customers with innovative new products and serve extremely well.
Q: Despite the headwinds, what gives you optimism about the future?
Emore: I’m excited about what we’re doing. Our commercial business is gaining traction with stronger portfolios and national account partnerships. Our entry into new wood categories is creating real growth. And SPC remains an enormous untapped opportunity for us. We can’t control competitors, but we can control AHF-and if we do that well, we’ll be stronger exiting 2026 and moving into 2027. Economists are finally calling for a more predictable growth pattern in 2027, and I agree.
TOM PENDLEY
Mannington Mills
CEO & President
“You earn the right to grow. You don’t force growth.”
Q: When you look at the past five years, what has shaped your strategy going into 2026?
Pendley: We began our strategy about three years ago, very hardcore-business simplification and business execution. We’ve been diligent about simplifying the business, focusing on execution and improving the customer experience. We’re now moving into year three of that strategy, and it’s working.
Q: What does “simplification” actually look like?
Pendley: We sold a non-flooring rubber business in San Jose. Good little business-but it pulled our resources away from what matters. We exited rigid core manufacturing because the complexity added far more cost than value. We consolidated distribution centers. We’re examining every single thing we do and asking “Why?” Chaos doesn’t allow you to do that. Simplification has allowed us to run better, faster, and with purpose.
Q: Companies across the industry seem to be reevaluating scope. Did Mannington reach a point of trying to be “everything to everyone”?
Pendley: For Mannington-yes. We had tried to be too much to too many. We stepped back and asked, “What do we do well? Where do customers see us doing well? Where can we add value?” And then do those things extremely well. The last five years showed everyone the cost of chaos. We decided we can’t afford that chaos anymore. Simplify. Execute. Invest where we’re winning-and do not invest where we’re not. That’s probably more important than where we are investing.
Q: You also made the decision to exit carpet manufacturing. What made the timing right?
Pendley: We spent 2024 giving carpet a fair shot. We fixed the things we hadn’t executed well, got the right people in the right seats, and the nylon portion started growing. But it still wasn’t translating into the P&L. Nylon was growing, but pricing pressure from polyester more than offset it.
So, we asked, “Is there a path to turn this around?” Maybe. But the energy required would pull us away from areas where we are clearly winning. Once we reframed it as an opportunity-cost question, the answer was obvious. We needed to move, and move quickly.
Q: What does investment look like heading into 2026?
Pendley: This is a heavy investment period for us. We’re implementing a new ERP system to drive efficiency and give us a platform for growth. We’re investing heavily in manufacturing automation and productivity-because workforce availability will be a challenge when the market returns. We’re investing in distribution. And we’re investing in leadership development, so our entire organization understands our strategy and is aligned to execute it.
Q: With so much uncertainty, how do you lead through times like these?
Pendley: Transparency. I operate on the belief that we’re all adults in the room and we all want the same thing. Communicate when things aren’t working, and communicate when things are working. Spend extra time explaining the “why.” And keep residential, commercial and international aligned around the total company-MMI-not in silos. Alignment is everything.
LAUREL HURD
Interface
President & CEO
“The flooring industry has demonstrated its resilience time and again, and that should inspire confidence as we look to the future.”
Q: Looking back at 2025, what defined the year for your business-and for the flooring market overall? Were there turning points or lessons that will influence your 2026 strategy?
Hurd: We’re now a couple of years into activating our One Interface strategy. In 2025, we’re seeing good momentum, especially in our Americas business, where we have combined our Nora and Interface selling teams. This has helped us better serve our customers and contributed to our success.
With our focus on serving our customers, we’re also now offering more products at approachable price points, which gives our customers more flexibility in their projects. And we continue to build on our legacy of sustainability. We’re ‘all in’ on our goal to be carbon negative by 2040 without the use of carbon offsets. Earlier this year, we announced two important milestones: a carbon negative rubber prototype and the use of captured carbon in our U.S. and European carpet tile manufacturing.
Overall, 2025 has shown that we are moving in the right direction with our One Interface strategy. Looking ahead, we’ll keep investing in our business to support operational excellence and deliver value to our customers.
Q: Where are you seeing strength or softness in the commercial sector, and what’s driving it?
Hurd: The market continues to be dynamic and unpredictable. But Interface ended Q3 2025 in a strong position that reflects solid underlying demand. We’re focused on several core market segments where we see opportunities to grow.
For example, healthcare remains a strong segment for us. Trends driving growth include aging populations, technological innovation and an increased focus on preventative care. We’re also preparing for the launch of a new rubber flooring innovation in early 2026 that we believe will offer our healthcare customers additional choices that meet their requirements in these spaces.
We are also well positioned in both K-12 and higher education where modernization initiatives and regional migration continue to create meaningful growth opportunities.
Corporate office continues to be an important segment, as well. Companies are moving to Class A spaces where our customers appreciate our brand strength, design leadership and broad product portfolio. Our portfolio aligns well with workplace trends as companies invest in refreshes and adapt environments to meet the needs of a hybrid workforce.
Q: From a leadership perspective, what has been your biggest challenge or learning moment in the past year?
Hurd: Over the past year, we’ve managed through a dynamic market that has reinforced the importance of our global footprint and the benefits of bringing together our exceptional talent from around the world. Our people make the difference, and we have invested more than ever in our talent and capabilities around the world. Combine that with delivering for our customers and staying committed to our carbon negative by 2040 goal, and we know we can be successful.
Our One Interface strategy has created new opportunities for collaboration, innovation and productivity. While we’re still early in this multi-year transition, our progress so far has been encouraging. I’m proud of the way our teams have navigated market shifts while staying focused on our long-term goals.
Q: Looking further ahead, what gives you the most optimism about the flooring industry? What trends or developments make you confident about the years beyond 2026?
Hurd: We are proud of our growth in what has been a challenging market. Healthcare, education and corporate office all remain strong segments for us, and we’re optimistic they will continue to provide compelling opportunities moving forward.
On a macro level, it can be hard to predict what the future looks like just a few months from now, much less years ahead. However, the flooring industry has demonstrated its resilience time and again, and this should inspire confidence as we look to 2026 and beyond.
JAMES LESSLIE
Engineered Floors
President & COO
“In a down economy, you have to be measured in your expense control-but you can still weather the storm by staying true to your strategies.”
Q: Looking back at 2025, what defined the year for your business-and for the flooring market overall?
Lesslie: 2025, ’24, ’23-sure, all the same. It’s what I call the post-Covid hangover, and this was a big hangover because we’re still in it. Existing home sales are 4 million. Normal-before Covid, 2016 to 2020-was 5 million. Then they went up to five-and-a-half and six during Covid when everybody was buying houses, and now we’re at four, and we’ve been at four for three years.
This reduced level of housing turnover is the defining variable that’s keeping a damper on our market. Existing-home sales drive renovations, and they are at depressed levels-as low as they were during the banking crisis. Until that changes, I think we’re going to have the same relatively weak market. We’ve been saying for three or four years that the second half will be better. I don’t see anything to say next year is going to be better than this year.
Q: Are you seeing any bright spots in consumer behavior?
Lesslie: Existing-home inventory is over 40 years old. The bulk of houses in the U.S. are approaching 40 years, so there’s going to have to be maintenance and upkeep. That will drive some renovation. Home Depot and Lowe’s feel positive about that long-term.
Q: How do you view residential versus commercial heading into 2026?
Lesslie: Residential and commercial rarely move together. I see commercial as an okay market-not robust. Outside of technology, companies are just trying to weather through. State and local governments have been anemic. I don’t see a robust commercial environment; maybe down 2%. Residential is tied to existing homes, and until that changes, I don’t see dramatic improvement.
Q: What learning moments have shaped your approach this past year?
Lesslie: For us, we have to stay with our basic value proposition: quality, service and innovation. We’ve never stopped innovating. We’re coming out with some of the most innovative carpet styles we’ve ever done-using technology and proprietary yarn processes nobody else has. In a down economy, you have to be measured in your expense control, but you can still weather the storm by staying true to your strategies.
Q: What advice would you give retailers right now?
Lesslie: Make the buying process as simple as you can. You have an advantage over the boxes because you have a personalized sales associate who is familiar with flooring.
Keep an ear to the customer. It’s really hard, but they need to. People on the floor hear great intel if you listen to them. Make the process non-threatening. Don’t tackle customers the minute they walk in-let them look around, then help them make confident choices.
Q: What gives you optimism for 2026 and beyond?
Lesslie: I think we finally have some movement coming in interest rates. If inflation is under control-and I believe it is-the Fed can continue to bring rates down. Each move helps. Interest rates and affordability are the big barriers to flooring. People still want the American dream, and at some point the government will have to address affordability.
There are also Sunbelt and mid-Atlantic markets that are outperforming. There are definitely hot spots. You’ve got to find the next hot spot before it becomes the hot spot.
THOMAS BAERT
CFL
President
“The market responds quickly when innovation adds meaningful value.”
Q: Looking back at 2025, what defined the year for your business-and for the flooring market overall? Were there turning points or lessons that will influence your 2026 strategy?
Baert: 2025 reinforced the importance of diversification-both in manufacturing location and in product mix. We saw clearly that there is no completely “safe” geography, and operations must be able to adapt quickly to global changes. On the product side, the market continued to shift between SPC, WPC and laminate, and the lesson is that having the right portfolio balance is essential.
Another defining moment for us was elevating our USA factory as our flagship operation, which showcased the strength of domestic production and innovation.
Q: What product categories or innovations are you betting on to drive growth in 2026? Which segments or performance stories are resonating most with consumers and retailers?
Baert: We expect continued acceleration in our Ultra-Matte solutions, supported by our strong patent portfolio. Our digital printed collections will see a full rollout, unlocking more design flexibility and visual realism.
In the U.S., we’re expanding innovation around pre-grout solutions, next-generation WPC and our signature Ultra-Matte look paired with realistic bevels. Moreover, we now have Made-in-USA acoustic collections rolling out. These attributes are resonating across retail, builder and commercial segments.
Q: From a leadership perspective, what has been your biggest challenge or learning moment in the past year?
Baert: The key leadership learning has been to avoid making assumptions about category trajectories. The revival of WPC and laminate surprised many in the industry, and it became clear that the resurgence is tied to new features and new technologies. The market responds quickly when innovation adds meaningful value.
Q: Looking further ahead, what gives you the most optimism about the flooring industry? What trends or developments make you confident about the years beyond 2026?
Baert: Several macro factors support long-term confidence. Much of the Covid-era renovation activity was four years ago; in another cycle, we expect pent-up demand for renovations to rise sharply again. Interest rates will continue to impact short- and medium-term activity. Product differentiation and innovation will continue to lead and provide margin opportunities. Globally, added-value flooring products are gaining traction among the growing middle class in emerging markets, particularly across Asia and Africa.
These trends point to a long runway for innovation-driven growth.
JOHN WU
Novalis Innovative Flooring
CEO
“You have to be persistent. Nothing is easy, but if you believe in the mission and value your team, you can push through any cycle.”
Q: How did you maintain culture and alignment across so many countries and facilities during such a volatile year?
Wu: The toughest moment was during Trump 1.0, when China tariffs hit. That forced us to diversify production quickly so our customers had alternatives. That’s why we invested heavily in the U.S., and later in Vietnam, Mexico and Southeast Asia. We needed a footprint that could support customers wherever tariffs or policies shifted.
Maintaining culture across all of that takes constant communication-Teams calls day and night, emails, visits. My sister, our CEO, is in every facility multiple times a year, and I try to visit each at least once annually. The whole company must think the same way. When one region sees another adjusting schedules or taking on tough hours to collaborate, they say, “Okay, I can do that too.” It builds team spirit.
Q: What are your priorities and investments heading into 2026 and beyond?
Wu: Location-wise, we’re set. We have Asian production, North American production and Mexico as an extension of the U.S. network. Now it’s about improving every plant-more efficiency, more scale, more innovation.
We’re focused on making each facility better: adding capabilities, improving productivity, and investing in technology that allows us to offer differentiated solutions. No massive new greenfield plans-just optimizing and expanding within the footprint we have.
Q: Where do you see innovation in LVT and rigid core heading? What’s the next wave?
Wu: As the category reaches almost 30% of total flooring, growth won’t stay at 3% or 4% forever. The next wave is in aesthetics and performance. Digital printing will grow, even though we haven’t invested in it yet. Acoustics will grow because noise remains one of the biggest consumer complaints, especially in multifamily.
LVP/LVT is still the most versatile flooring product-residential, hospitality, healthcare, multifamily, retail. There’s always room to make it look better, perform better and install easier.
Q: What about sustainability? What needs to happen next?
Wu: There are two big conversations. One is PVC alternatives-there are some options, but nothing yet matches PVC’s versatility at the right cost. The second, and more important, is end-of-life.
We’ve sold LVT for ten to 20 years now. We need real takeback programs. Europe is ahead because they require recycled content. In the U.S., we need coordinated efforts and reverse logistics. At RCI, where we’re board members, we’re focused on creating systems where installation waste and eventually post-consumer material can be collected and repurposed. It must become an industry-wide focus.
Q: What gives you optimism as you look toward 2026 and the years ahead?
Wu: LVT is still the most sought-after product in flooring. Ten years ago, no consumer walked into a store asking for LVT. Today it’s the first thing they look for. It’s versatile, DIY-friendly, beautiful and durable. That’s a huge advantage.
There’s also a lot of home equity built up. People are holding their wallets tight now, but at some point they have to renovate-homes are aging. The average house is 40+ years old. That’s flooring’s opportunity.
And honestly, shows like BDNY gave me optimism. The energy was strong, and people were active. Projects are moving-whether renovation or new build.
RAJ SHAH
MSI
Co-CEO
“Leadership is about influencing others positively and creating an environment where everyone can do their best work.”
Q: Looking back at 2025, what defined the year for your business-and for the flooring market overall? Were there turning points or lessons that will influence your 2026 strategy?
Shah: 2025 has been one of the most volatile years in the flooring market. Numerous issues have been present:
1. Consistently high mortgage rates, causing a slowdown in existing home sales
2. Trade volatility as it relates to tariffs
3. Technology continues to change how we look at numerous parts of our business and the industry
4. Installation costs remain high
The primary lesson we learned is to continue to have an adaptable business model. So much is being thrown at the industry at a high pace that we cannot forecast what will happen. It’s better to have an adaptable model that can pivot as needed. In addition, it’s important to have a diversified product portfolio and strong relationships with retailers. Retailers expect exceptional service levels in this marketplace.
Q: What product categories or innovations are you betting on to drive growth in 2026? Which segments or performance stories are resonating most with consumers and retailers?
Shah: The good news is there continues to be significant innovation in our industry. Technology is really influencing how inspiration is delivered. It’s also lowering the cost of inspiration. This means everything from room scenes to videos can all be delivered to a more targeted audience.
As it relates to products, the aesthetics continue to get better and now surfaces are becoming more tactile. Customers are expecting tile, LVT, etc. to all be much more realistic in terms of look and feel. They’re also looking for better ROI on their purchases. We have to provide products that will not only last but ultimately increase the value of homes and offices. When introducing products, we have to continually ask which problems this product is solving and how it is helping the consumer.
Q: From a leadership perspective, what has been your biggest challenge or learning moment in the past year?
Shah: There were many lessons and challenges this past year. Ultimately, we have learned that you need to be extremely adaptable and diversified. This relates to numerous points: sourcing strategies, product portfolio, and channels served.
Q: What is your overall outlook for 2026? How do you expect the flooring market to perform, and what factors will determine whether it’s a year of growth, stabilization or continued correction?
Shah: We believe that 2026 is setting up to be similar to 2025. There may be growth, but it will most likely come in the second half of the year. This is under the assumption that mortgage rates continue to drop and inflation stays under control.
Q: What are some bright spots or areas of opportunity that you see?
Shah: The good news is that there remains tons of opportunity in the industry-so much innovation in terms of new products. We just need to spend more time inspiring the consumer. The good news is the cost of that inspiration continues to reduce. There are numerous surfaces in which our industry is not a big player-wall, outdoors, counters, etc.-so there is still ample opportunity.
WINN EVERHART
Tarkett North America
President & CEO
“We’re doubling down on the fundamentals: serving customers with speed and precision, simplifying complexity, and bringing meaningful innovation to the market.”
Q: Looking back at 2025, what defined the year for your business-and for the flooring market overall? Were there turning points or lessons that will influence your 2026 strategy?
Everhart: As my first full year with Tarkett, 2025 will always be marked by learning for me. This year, we’ve worked on establishing a foundational infrastructure that will improve service levels and prepare us for future growth. In 2026, we’re doubling down on the fundamentals: serving customers with speed and precision, simplifying complexity, and bringing meaningful innovation to the market. We’ve invested in tools, technology, and service models that remove friction and give people confidence at every step of their project.
Q: What product categories or innovations are you betting on to drive growth in 2026? Which segments or performance stories are resonating most with consumers and retailers?
Everhart: In 2026, we’re leaning into products-and tools-that simplify decision-making and performance.
On the product side, high-performance resilient flooring remains a growth engine, so we’ll be evolving our LVT and sheet collections that meet new design and performance needs. Across new resilient, carpet tile and hybrid carpet collections, we’re taking a segment-focused approach to ensure our strongest markets have the solutions they need. In every segment, customers value durability, ease of maintenance and strong sustainability credentials. Our focus on healthy materials and circular design continues to differentiate us.
On the innovation side, we’ve invested heavily in design and visualization tools, selector platforms, and digital solutions that help customers get to the right choice faster. These tools reduce project risk, compress timelines, and allow designers, installers, and end users to bring concepts to life with confidence.
Performance-wise, stories around indoor air quality, acoustic comfort, and healthy materials are resonating strongly. People want flooring that performs beautifully-and responsibly.
Q: Retailers continue to face price sensitivity and margin pressure. How is your company helping them protect profitability and differentiate on value rather than price?
Everhart: The best way to support retailers today is to help them win on experience.
We’re doing that in three ways:
1. Better service. Our new distribution center is delivering improved service with greater speed and accuracy. When retailers can rely on us for accurate orders, on-time delivery and clear communication, they reduce costly rework and build trust with their customers.
2. Tools that elevate the selling process. From visualization technology to product selector platforms, we’re giving retailers digital capabilities that enhance design conversations and increase close rates.
3. A sustainability story that adds real value. More consumers-and commercial clients-are looking for healthy materials and third-party certifications. Retailers who can articulate that story win business on differentiation, not on margin erosion.
What long-term investments are you prioritizing right now to position your company for the next market cycle?
Everhart: We’re investing in three core areas:
• Customer experience: Modernizing systems, refining service models and simplifying every touchpoint so we become the easiest flooring company to work with.
• Innovation: Expanding our design capabilities, accelerating digital tools and continuing to lead on material health and circularity.
• Operational excellence: Strengthening manufacturing and building redundancy into our supply chain.
These investments ensure that when demand accelerates-and it will-we’re ready to deliver with precision, speed and confidence.
Q: What gives you optimism beyond the next year?
Everhart: I’m incredibly optimistic about where this industry is heading.
The demand for spaces that support wellness, productivity, and sustainability isn’t going away. The ability to visualize, customize and recycle flooring is changing rapidly. But what gives me the most optimism is the people in this industry. It’s a community of problem-solvers, craftspeople and innovators. When we focus on service, quality and responsible design, the opportunities ahead are tremendous.
Related Topics:AHF Products, The Dixie Group, Engineered Floors, LLC, Novalis Innovative Flooring, Shaw Industries Group, Inc., Crossville, Tarkett, Interface, Mannington Mills, Shaw Floors, Anderson Tuftex, Tuftex, Mohawk Industries