Re:Resilient: An RFCI perspective – June 2024
By Bill Blackstock
In my 30-year career, I have witnessed some major paradigm shifts, and the more recent marketshare growth within the resilient category has been one of the greatest shifts of all. Resilient flooring has been a key part of the flooring landscape for many years. Over the decades, the category has provided solutions that effectively addressed many key needs in both the residential and commercial sectors.
Visionary leaders saw the potential of the category and identified key innovations that would address spoken and unspoken customer needs in remarkable ways. Over the years, these leaders and their companies held tightly to their vision, experimented, took risks and invested in a major way.
There is an old Eddie Cantor quote that goes something like, “It takes 20 years to make an overnight success.” In a role like mine as president and CEO of the Resilient Floor Covering Institute (RFCI), I have witnessed many leaders in the resilient sector who have lived these words. I have appreciated the opportunity to spend time with each, to visit their locations and hear their stories firsthand. Universally, I have seen the glow in their eyes as they relived the key waypoints, the times when they doubled down, the challenges and the successes. Most of us share stories of the benefits of resilient products, the latest introductions and statistics on growth. In my opinion, the most incredible stories in resilient are about these leaders and their companies and journeys.
When these moments of reflection end, I always see a common transition-the leaders move to the present and to what’s ahead. That glow that was there when they shared their history doubles in intensity as they look to the future.
When you study the growth of resilient, think about the key innovations that have taken place and the solutions that these innovations brought to consumers and all who engaged the product in the various sectors of the residential and commercial markets. Key issues were solved. Design blossomed. Marketshare grew.
The pace of innovation in resilient has been nothing short of amazing, and it continues. An organization like RFCI is tasked with supporting the resilient category in a variety of ways. Keeping pace with the level of innovation is a major challenge that we gladly embrace. At RFCI, our committees allow access to incredible technical leaders in the sector, to the marketing leaders in our industry, to champions of sustainability and more. When you can have this view of the vision and energy of these companies, you gain additional perspective and appreciation for the core of this product sector.
TODAY’S MARKET AND WHAT’S AHEAD
At RFCI, we are blessed to engage economists who help us sort through, prioritize and see what the future might hold. As all know, 2024 is a period of some adjustment in the residential and commercial markets. I could spend pages going over the fundamentals. Indeed, there are some significant headwinds in the built environment right now. However, there is a reason to be excited.
Single-family is way underbuilt-millions of units short. When interest rates finally begin to come down, watch out! Major generational issues are in play that will impact renovation. Multifamily is in a period of adjustment. The numbers show that this pause will come to an end sooner rather than later. The institutional markets are being reliable, as they often are. Hospitality is growing. The office market will likely be the only laggard in 2025 as work-from-home continues to find its ultimate landing spot. The biggest worry for many is associated with commercial loans that have large amounts coming due. Other major forces like housing affordability and installation and manufacturing workforce availability are also in the mix.
There is indeed a reason for optimism. Now, let’s consider the power of resilient coupled with those coming economic tailwinds.
1. Resilient loves remodeling. As interest rates ease and as generational factors play out, watch for marketshare growth in resilient in single-family housing. Of the many television shows on remodeling, do you see a common theme in the flooring used in many of the spaces?
2. Resilient loves new-home construction. Resilient provides incredible aesthetic and technical solutions from first homes to dream homes.
3. Resilient is a go-to in multifamily. Why? Same answer. It addresses the needs of occupants and facility owners and provides incredible aesthetics.
4. The institutional markets have many technical requirements. Many resilient products have technical solutions in their DNA.
5. With the growth of hospitality, we have all witnessed the move to resilient in guestrooms and the impact that this has provided occupants and hospitality staff.
6. As the office market begins to strengthen in 2026, significant innovations in resilient will be there to continue share growth.
7. Courtesy of major investments in resilient manufacturing and supply chains, the sector has further strengthened its core to meet the growth of the future.
8. With the average age of flooring installers now over 58, the flooring industry is likely to experience a future where ease of installation will be rewarded with marketshare. Courtesy of tremendous innovation in this area, resilient will benefit.
Ultimately, when you combine tailwinds in the market with marketshare growth and then couple continuing investment in productivity...well, good things usually happen!
RFCI OVERVIEW
RFCI is a long standing organization that serves the resilient market. Today, RFCI is composed of 47 member companies. It is a strategic organization with key initiatives that are always in motion. These initiatives are in the space beyond a single company.
These initiatives include working on the technical side of the product sector to develop certifications like Assure Certified for rigid core flooring. RFCI also works on the regulatory front to keep members up to date on the many changes that are always occurring at the federal and state level, as well as engaging in meaningful discussions with those in the regulatory world-addressing their questions and providing the facts and data they need to make informed decisions.
Our Beautifully Responsible campaign has reached millions of current and potential users of resilient products in the residential sector. The campaign is massive in scope, based on deep customer research, and is ever evolving to provide meaningful information and perspective to consumers.
These initiatives are joined by two additional strategic imperatives. From an infrastructure standpoint, RFCI has key standing committees that advance its strategic work. Also, all members come together each year in the spring and fall, when the board convenes for a detailed review of existing initiatives and new ones, as well.
In addition, subject matter experts from across the nation share detailed views on economic factors and address horizon and over the horizon issues. RFCI goes to great lengths to have sessions that will provide valuable perspective to the executives who comprise its membership in very diverse arenas: AI, workforce development, regulatory, deep economics in both the residential and commercial sectors, branding and supply chain.
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