{"id":82936,"date":"2022-09-22T08:29:32","date_gmt":"2022-09-22T08:29:32","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/us-hardwood-flooring-tackles-supply-chain-issues-labor-shortages\/"},"modified":"2025-09-19T08:58:15","modified_gmt":"2025-09-19T08:58:15","slug":"us-hardwood-flooring-tackles-supply-chain-issues-labor-shortages","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/us-hardwood-flooring-tackles-supply-chain-issues-labor-shortages\/","title":{"rendered":"US hardwood flooring tackles supply chain issues and labor shortages"},"content":{"rendered":"

Last year, the U.S. hardwood industry posted its first year of revenue gains since 2016, buoyed by elevated housing and remodel markets. Gains were driven by a narrower delta versus SPC at the low end that boosted engineered wood revenues, price increases averaging 16% that inflated solid hardwood revenues, product enhancements that drew attention to the category, and, as a hedge against further supply chain constraints, investments (where possible) in inventory, some of which is yet to be sold downstream.<\/p>\n

Navigating adversities<\/strong><\/p>\n

\u201cThe biggest issue last year was finding enough people,\u201d says Paul Stringer, vice president of sales and marketing for Somerset. There was no actual shortage of containers, trucks and ships-the issue was and continues to be that these assets have been tied up, in large part due to insufficient manpower to load, unload and transport (for instance, at U.S. ports)-and there was plenty of hardwood too.<\/p>\n

Into 2022, headwinds remain, some that are unique to the wood flooring business and some that are more generalized. Labor remains one of the major issues in the U.S. in general, and from sawmills to wood flooring mills to trucking-despite wage increases and added benefits-it\u2019s still causing huge bottlenecks in the production and delivery of hardwood. And oceanic shipping delays, port slowdowns and container costs-all of which are interrelated-also impact the domestic flooring market, since 52% of the hardwood flooring consumed in the U.S. market, in terms of cost, is imported. And the biggest importer is China. (For more on the state of freight, State of the Supply Chain starting on page 69.) China\u2019s recent Covid lockdowns of various provinces and cities, including Shenzhen, may lead to more bottlenecks over the next couple of months.<\/p>\n

As Brad Williams, Mirage\u2019s senior vice president of sales and marketing, puts it, \u201cEvery three months there\u2019s a new challenge.\u201d And, in fact, the new year has brought with it new adversities. In terms of business impacts, Russia\u2019s invasion of Ukraine is causing major global disruptions, roiling financial markets, driving up energy prices and inevitably maintaining inflationary pressure. In response to sanctions imposed by the international community, on March 10, Russia announced a string of export bans, including lumber. According to TimberCheck, a wood-focused research and data firm, Russian wood accounts for about 10% of hardwood plywood.<\/p>\n

When it comes to wood flooring, Russian birch, also known as Baltic birch, is far and away the single most popular core material for engineered floors, due to its strength, grain regularity and price. Russian birch is grown in other eastern European countries, like Poland, Finland, Latvia and Estonia, and demand on these volumes will drive up prices and likely create more bottlenecks. And it\u2019s worth noting that well before Russia\u2019s invasion, a year ago or more, there were already significant disruptions to Baltic birch imports, so many manufacturers were already looking for alternatives.<\/p>\n

At a National Wood Flooring Association (NWFA) and Floor Covering Institute (FCI) webinar in the middle of last month, flooring producers discussed the issue and potential solutions. An NWFA survey prior to the webinar revealed that 95% of respondents were using Baltic birch in their engineered flooring. According to Brian Beakler, president of International Certified Flooring Installers Association (CFI), \u201cThe reality is Baltic birch is a highly stable platform; it has a good density to it; and it\u2019s very homogenous and predictable. Not all plywood structures that you\u2019ll be able to source, either domestically or from Southeast Asia, will provide those same attributes,\u201d<\/p>\n

\u201cMany NWFA members are looking for answers about how this situation will impact supplies, potential legal or social issues, and alternatives,\u201d says Michael Martin, NWFA\u2019s president and CEO. He notes that some firms have switched to Douglas fir or other softwoods coming out of Canada, while others are turning to eucalyptus. Also gaining attention is poplar. And some manufacturers are considering switching to HDF cores. Both Shaw and Mohawk are leaning on eucalyptus as an alternative.<\/p>\n

No matter what the material, manufacturers can expect a lot of price inflation, in part due to the wide use of these products. As Neil Poland, president of Mullican, says, \u201cWith Russian birch and HDF, the flooring industry is like a blister on the body,\u201d with most of the volume going to case goods like furniture, desks, bookshelves and other interior elements.<\/p>\n

And as Dan Natkin, CEO and managing director of Boen North America, points out, the issue goes beyond engineered cores. \u201cRussia and Ukraine represent 50 to 60 million square feet of lumber, an annual volume they produce specifically for flooring,\u201d says Natkin, noting that a lot of European white oak is sourced from both countries.<\/p>\n

Issues with the delivery of imported products over the last couple of years has driven demand for domestically manufactured products-this, despite the fact that transportation within the U.S. is also overburdened. But it still conferred an advantage to hardwood, with over half of U.S. hardwood consumption coming from North American production.<\/p>\n

However, as Somerset\u2019s Stringer points out, \u201cDistributors are looking for domestic production, and while that includes wood, it notably includes more LVT domestic production.\u201d In fact, the U.S. is in the midst of a massive wave of investments in domestic rigid LVT production-from Shaw, Mannington, Mohawk, Engineered Floors, CFL, Wellmade, Novalis and Huali, among others. For more on investments in domestic flooring production, \u2018Made in America\u2019 Investments starting on page 55.<\/p>\n

By the numbers<\/strong><\/p>\n

Looking back, 2021 was a successful year for the hardwood flooring industry. \u201c2021 was a great year but a weird year,\u201d says Wade Bondrowski, Mercier\u2019s director of sales for the U.S. Despite a raft of challenges, the hardwood flooring industry surged last year, making gains across most price points, driven by the strength of the remodel and builder markets. This year, while some conditions have measurably improved, new challenges have cropped up that could make for a difficult year, including the sourcing of cores for engineered wood.<\/p>\n

Growth on the order of 23% in dollars-we\u2019ll present finalized numbers in next month\u2019s Annual Report-belies the true state of the industry. For instance, that 23% is compared to 2020, a chaotic and volatile year where hardwood was down by high single digits. Also, price increases pushed wood\u2019s gains in dollars well ahead of gains in volume-the producer price index for domestic hardwood was up 16% year over year. In addition, Santo Torcivia from Market Insights reports that last year a lot of players in the industry-from manufacturers and distributors to large retailers and home centers-invested heavily in building up inventory to get the jump on continued supply chain disruption and price increases.<\/p>\n

The issues with oak<\/strong><\/p>\n

While the white oak trend continues seemingly unabated, Martin notes that by 2021, for the first time in several years, \u201cred oak surpassed white oak as the market leader, 30% and 25%, respectively.\u201d He adds that, while some of this is due to availability, it\u2019s also because of the growth in remodel work on properties that predominantly have red oak floors.<\/p>\n

When it comes to European producers, the vast majority of their products are white oak. For Boen, for instance, 92% of its products are European white oak. K\u00e4hrs is also all about white oak. And many of the big multi-category players are also heavily focused on white oak, though not so much at the lower end. While Shaw Floors is more heavily weighted toward red oak, its higher-end Anderson Tuftex is mostly white oak. It\u2019s the top species for Mannington. However, hardwood specialists, from Lauzon and Mercier to AHF Products, Somerset and Maxwell, tend to lead with red oak.<\/p>\n

Part of the issue is availability and price-for use in flooring, white oak is over 50% more expensive than red oak. There\u2019s just not enough white oak in North American forests to satisfy demand, and there\u2019s also competition from bourbon barrels. Whisky consumption has been on the rise for several years, and higher-grade white oak provides an ideal, leak-proof barrel for aging whisky. Also, North American producers churn out a lot of solid hardwood, which is heavily weighted toward red oak.<\/p>\n

Imports tend to have higher ratios of (European) white oak, much of it harvested in Europe and Russia and assembled there or shipped to Asia to be turned into engineered wood.<\/p>\n

The rise in white oak over the last decade is in many ways a story about color. Mullican\u2019s Neil Poland relates a story about a half-million-square-foot job in New York City about five years ago. The firm produced samples of sawn-face engineered white oak in the specified grey stain, and while the designer said she was satisfied with the stain, she insisted on using it on white oak instead, because red was out in the design world, and she didn\u2019t want to take the chance of \u201csomeone reacting against a hint of red.\u201d<\/p>\n

Oaks, in general, offer distinctive open and regular graining. White oak certainly offers a cleaner visual, less pronounced than red oak, whose coarser grain structures are porous-that\u2019s one reason why bourbon barrels use white oak. And in terms of color, red oak has a light reddish cast while white oak is often described as having a light olive or yellow. And then there are the European white oaks, which don\u2019t have that yellow cast.<\/p>\n

There\u2019s much more to it when it comes to grain differences, tannin content, performance, ability to take stain and even the type of cut, but color is arguably the biggest driver of the white oak trend. And the strong movement toward lighter colors in general over the last few years has strengthened white oak, since it\u2019s a lot harder to hide red oak\u2019s hue in paler colors.<\/p>\n

Considering that the limited supply of white oak is anticipated to extend into the foreseeable future, likely becoming even more constrained, manufacturers are taking another look at red oak and experimenting with ways of neutralizing its rosy hue. Preverco, for instance, just launched two colors in red oak designed to match the colorations of pale white oaks, and it intends to add a few more to match its white oak bestsellers. Lauzon also has red oaks in the same color palettes as its white oaks.<\/p>","protected":false},"excerpt":{"rendered":"

Last year, the U.S. hardwood industry posted its first year of revenue gains since 2016, buoyed by elevated housing and remodel markets. 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