Solutia & CCA Partner to Educate Industry on High
St. Louis, MO, November 11, 2005--Solutia Inc. is rolling out a program to help carpet manufacturers and retailers adapt to this changing environment. Solutia is the world's leading manufacturer of nylon 6,6 staple carpet fiber, including the Wear-Dated brand. "Carpet is made of essentially 100 percent petrochemical and energy-based raw materials. Simply stated: when oil prices are high, it costs a lot more to make carpet," said Jonathon Wright, president of Solutia's Integrated Nylon Division. "While the raw material shortages arising from Hurricanes Katrina and Rita will subside in time, these events only compounded the unprecedented rise in oil and natural gas prices that had taken place over the past three years. Global economic forces--such as China's demand for oil--are making it clear that high energy costs are here to stay." As a result, the carpet industry must adapt. Recognizing this fact, CCA Global Partners, a leading consortium of carpet retailers, turned to Solutia for help educating its members. As part of this program, Solutia met with CCA Global leadership to explain the raw material dynamics driving carpet prices. The meeting was so effective that CCA Global invited Gary Lanser, general manager of Solutia's nylon carpet fiber business, to make a similar presentation to its Carpet One and Flooring America members across North America. Over 1,000 members participated in the sessions. "The Solutia presentation is an unbiased, fact-based, easy-to-understand overview of how the cost dynamics in our industry have fundamentally changed," said Jim Gould, chief product officer, CCA Global. "It helps our members better understand the flurry of price increases and put them into a global perspective. Our retailers are resilient. When they have the facts, they can adapt. I would highly recommend this educational presentation to others in the industry." How then, should the carpet industry adapt? According to Wright, "We can begin by never underestimating the value of carpet. We supply a valuable product that is a very cost effective floor covering. For far too long, our industry has focused on the cost of our products. Instead, we need to focus on their value, which is immense."
Related Topics:Carpet One