Canadian hardwood suppliers look to claim their stake

Mirage, a Canadian hardwood brand synonymous with product quality and consistency, continues to earn the praises of retailers and distributors in the trade.

When it comes to the flooring industry, which relies on products made around the globe, the overall quality of a given product from a certain region doesn’t automatically equate to high performance or visual standards. However, there’s definitely something to be said about the reputation that quality-driven hardwood flooring suppliers based north of the U.S. border have rightly earned over the decades. This has provided Canadian hardwood suppliers with a tremendous opportunity to leverage their respective strengths in the market as a means to grow sales and gain market share in the process.

“We are experts in hardwood, and we cover most product needs for any installation, in any looks or price point from unfinished solid to our prefinished Tru-Balance wide engineered floors,” said Jean-Pierre Thabet, director of special projects, Mirage. “We are proudly North American and we are focused on selling in North America. We have invested in additional engineered capacity to follow the market needs in volume and also offer different thicknesses, width and lengths.”

Mirage, which continues to earn numerous industry of awards that set the benchmark for product quality, has utilized its strengths to help its customers remain profitable. “We provide a wider offering of looks, prices and platforms to cover most of our customers’ needs,” Thabet added. “We also provide a variety of customized options that fall outside our regular product offering.”

The ability to customize products to suit the needs of a particular client is also one of the main reasons why customers buy from Wickham Hardwood. “That’s our strength—made-to-order products,” said Derick Roy, director sales, U.S. and Canada. “You can plug and play any color, any finish, on any of the species that we offer. Plus, having a perfect mix of customization along with our automation, our mass manufacturing process and the balance between both of those elements, allows us to really stand out in a crowd.”

Other major Canadian hardwood suppliers are also leveraging their strengths accordingly. Mercier, for example, is capitalizing on its expertise in the area of prefinished hardwood flooring to satisfy customers and seize share at the same time.

“At Mercier our strength has always been centered around being the best prefinished product on the market from a quality and innovation standpoint,” said Wade Bondrowski, director of sales, USA. “This commitment is what has maintained Mercier’s longevity in the marketplace for 45 years. Mercier is also proud to be one of few Canadian mills that are vertically integrated, controlling our process from log to box to ensure the highest possible standards.”

Mercier, a pioneer in the field of prefinished hardwood, seeks to raise the stakes in high-performance coatings with its Generations+ finish.

The most recent example of Mercier’s prefinishing prowess, according to Bondrowski, is its new Generations+ finish. The innovation provides 10X more scratch resistance compared to the previous version of the inaugural Mercier Generations finish. On top of that, it’s also easier to clean and reduces the adherence of dirt, residues and smudges. Despite the tougher finish, the natural attributes of the wood characteristics still shine through, the company said.

While some Canadian hardwood suppliers emphasize their finishing capabilities, others focus on different aspects of their sourcing and manufacturing strategies. “At Lauzon, our complete vertical integration is our major strength,” said David Lauzon, Jr., vice president of sales and customer service. “Having one of the biggest Canadian sawmills and controlling the materials down to the timber rights, gives our customers stability in supply, consistency in quality and stability in pricing.”

How does this benefit Lauzon’s retailer and distributor partners? “Our customers want a headache-free solution,” Lauzon Jr. added. “No headaches when opening a box of wood, ease of installation and no callbacks.”

Preverco has invested millions of dollars to automate many of its manufacturing functions.

Another area where Canadian hardwood suppliers continue to excel is in the field of automation. Computerized processes and robotics not only help manufacturers address the challenge of finding skilled labor to work at the plants, but automation also helps provide greater consistency when it comes to quality controls, proponents say.

“Five years ago we switched over to automation and optimization in our factories,” said Julien Dufresne, vice president of sales and marketing at Preverco. “We now have more than 25 robots installed at the factory. As a result, we’ve been able to reduce a lot of the direct labor we were using while at the same time increase output.”

Preverco primarily utilizes the robots—which entailed a significant investment estimated to be in the millions of dollars—in various manufacturing functions of the plant, including product handling and distribution within the facility. But these are not just your run-of-the-mill automated systems. “All the expertise has been developed internally at Preverco with our IT team,” Dufresne explained. “In fact, there are others in the market reaching out to us to buy our technology.”

Beyond automation, Preverco also leverages its capabilities in other areas, namely its ability to change product formats quickly to meet customer demands. In particular, Dufresne cited the company’s signature Flex technology, which enables the creation of multiple thicknesses on a 2-ply structure. “There are very few companies that offer a similar technology—and those that have it are very limited in terms of the widths and thicknesses they can offer,” he explained. “Flex is our flagship of product that helps us differentiate our products.”

Preverco also prides itself on its ability to control virtually every facet of its operation, from start to finish. “We produce everything throughout the process,” Dufresne said. “We don’t rely on anybody else or buy materials from other manufacturers.”

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Shaw Contract launches new digital AI tools

Cartersville, Ga.—Shaw Contract, a global leader in commercial flooring solutions, has launched two innovative digital AI tools: Inspiration Curator and View in My Space. Both tools are designed to empower designers, specifiers and end users with faster and more personalized flooring selection experiences.

Developed with a designer’s workflow in mind, these AI tools are meant to bring a new level of visualization, efficiency and intentionality to the specification process.

Inspiration Curator: From vision to reality

With the Inspiration Curator, users can upload any image of their choice and instantly receive a curated palette of Shaw Contract flooring solutions that align with the image’s aesthetic and mood. Designed to streamline decision-making and spark creative exploration, the tool is meant to help users select materials based on color, texture and emotional resonance, rather than just technical specs.

“Inspiration Curator brings the power of intuitive design to the specification process,” said Carrie Edwards Isaac, vice president of marketing at Shaw Contract. “It simplifies and accelerates product selection while promoting cohesive, brand-aligned environments that also support sustainable choices.”

With built-in visibility into certifications like Cradle to Cradle, low-VOC emissions and recycled content, the tool supports sustainable design from the start by minimizing waste, reducing misorders and encouraging thoughtful installations that are intended to last long-term.

View in My Space: See it before you specify

View in My Space is designed to offer real-time visualizations of Shaw Contract flooring—from rugs to tiles, multi-surface solutions and beyond—within the user’s actual space or in pre-selected commercial settings. This tool is intended to transform how designers evaluate and select products—offering clear, immersive previews of flooring options to ensure both aesthetic and functional alignment.

With just a few simple clicks, users are able to assess how a product will look in real-world conditions, accelerating decisions while avoiding the trial-and-error of traditional sample-based planning.

According to Shaw Contract, its newest Inspiration Curator and View in My Space AI innovations mark a new era of its user-centered digital advancements—combining technology, sustainability and design intelligence to deliver smarter spaces for people and planet.

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Cersaie returns to Italy with new content, layouts

Bologna, Italy—Cersaie, the international exhibition of ceramic tile and bathroom furnishings, will return here from September 22-26 with a focus on innovation, international expansion and sustainability.

This year’s edition introduces new content, exhibition routes and layouts aimed at providing a more effective and engaging experience. A major addition is “I Portici di Cersaie,” a new exhibition and narrative path inspired by the cultural identity of Bologna. The itinerary connects spaces, products and architecture in ways that highlight creativity, materials and design.

Organizers have also restructured Halls 31 and 32, which will now focus on finishes, bathroom furnishings and non-ceramic surfaces. This redesigned area is intended as a central hub where aesthetics, function and innovation intersect for both interior and exterior design.

Meanwhile, Hall 19 will serve as a dedicated space for tile installation, featuring demonstrations, technical workshops and product innovations aimed at addressing challenges on modern job sites.

Last year’s show drew more than 99,000 visitors-nearly half from outside Italy-underscoring Cersaie’s role as a key global event for the tile and bathroom furnishings sectors.

For more information, click here.

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Susan G. Komen: Round 2

What’s that saying about going to the well once too often? Flashback one year ago. Mohawk invited me to Denver to walk alongside the team with my friend Bruce Odette and regional vice president Mike Domarumo for the Susan G. Komen 3-Day. This is when people walk 60 miles over three days in support of the fight against breast cancer and those who have either been afflicted or lost someone to this horrible disease. People of all ages (one man I saw was 80-plus years old) walk 20 miles for three consecutive days. I attended the event one year prior as a spectator and was blown away by the solidarity and lasting relationships that have been forged through these events. It’s quite impactful to say the least. (I hear the same from those who have supported Shaw and the St. Jude 5K or 10K.)

Everyone seems to know someone who has battled breast cancer. Friends. Relatives. Co-workers. Me? Many years ago I had a wonderful therapist who lost her life to breast cancer. She was diagnosed with an aggressive form of cancer and passed within two years. She wasn’t even 35. Then, my buddy’s wife was diagnosed a few years ago but thankfully it was caught early enough. She was one of the lucky ones.

Anyway, my friends on the Mohawk marketing team suggested I walk last year. I agreed to walk with the caveat I’d only do one day. Fun facts: I’m about 10-15 pounds overweight; the only cardio I’d done was walk Surfaces for three days; and the Komen 3-Day they selected for me was Denver—the Mile High City where breathing doesn’t come easy. I guess San Diego would have been too easy.

I trained for it. Well, sort of. I walked five miles on the boardwalk in Ocean City, N.J., before 10 a.m. with a comforting breeze off the Atlantic. Then a couple weeks later I walked eight miles under the same conditions. Then I walked 10 miles through the streets of New York City, working my way down Fifth Avenue, eventually finding myself traversing the Brooklyn Bridge. I also prepped by buying three pair of sneakers (Brooks, Sauconys, Hokas) to determine what worked best. Final prep was depleting my Prednisone stash.

It would prove to be a winning combination. We completed the 20 miles in about six and a half hours—actually, it was 21 miles because we took a wrong turn at Albuquerque (obscure Bugs Bunny reference). We didn’t even take the customary hour break for lunch. Bruce Odette and I looked at each other after a 10-minute respite at the halfway checkpoint and decided rest time was over. Mind you, he’s in a lot better shape than me. He walks his dog each morning farther than I walk in a week. We also had Mohawk’s marketing specialist Landon Lambert with us, a 20-something female only a few years removed from playing Division 1 soccer at UGA. She proved to be a great prompt (like one of those lures at the greyhound races) as she was striding out over the last five miles like a gazelle. Odette was keeping up. Yours truly? Not so much.

So, given the overwhelming success of last year’s walk (success defined as not dying or spending a night in the hospital) I have signed on to do this Komen 3-Day, which in my world is a 1-Day. But just like any video game, the next round gets harder. Unlike last year, when the walk was held under perfect conditions on Sept. 27, this year the event will be held on…. wait for it…. Aug. 1. In the dead of summer. (Poor choice of words, I know.) I decided to do a little research on the temperature history in Denver on Aug. 1. Going backwards from last year: 99, 89, 98, 82, 91. There has been less than an inch of precipitation on this date combined dating back to 2011.

I have already walked five miles and eight miles in preparation, the latter in Portland, Ore., which included a mile uphill to the Rose Garden followed by bubbles and jello shots. Thanks, Jessica.

So why is someone who is overweight, out of shape and a late-in-life asthma sufferer doing this? It’s pretty simple. I see how people suffer with breast cancer. I see how people who have lost a loved one to breast cancer suffer. I wanted to do something in support of all those people. The suffering I will experience from my exhaustion (assuming I survive) pales in comparison to what they go through.

By talking about this undertaking I raise some awareness, whether to all of you out in Flooringland or to my friends and family. Maybe we will do an Instagram Live or Facebook Live or whatever they call it every few miles for awareness. Or to let you all know I am still alive. I’ll walk, I’ll talk, maybe I’ll stop here and there for some electrolyte-filled water or a Titos and soda. I’m not putting myself on a clock. I’ll finish when I finish. To prove a point. And that point is there are only three sure things in life: death, taxes and damn it if I take one step I will take 20 miles of steps. Bet on it.

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Flooring industry mostly positive on Trump’s spending bill

Some flooring industry executives view President Trump’s 940-page “One Big Beautiful Bill Act” as being favorable to small business for providing tax cuts and incentivizing business investment. At the same time, some executives cautioned that it was still too early to gauge the full impact of the bill on the flooring trade but are holding out hope that the legislation would generate more disposable income and, thus, spur spending.

Among the provisions, the spending bill would: make permanent the tax breaks from Trump’s first term; expand provisions on expenses and itemizations; and allow companies to deduct the cost of new manufacturing plants. The National Federation of Independent Business (NFIB), an advocacy organization, said there was several wins for small business, including:

• Section 179 – increases small business expensing cap from $1.25 million to $2.5 million. This would allow small businesses to fully expense business equipment purchases in the first year.
• Makes the 2017 marginal rate cuts permanent. Without this provision, five out of seven marginal (individual) income tax rates would have risen at the end of the year, according to NFIB. Nine out of 10 small businesses are structured as pass-through businesses and pay regular income tax rates rather than the C-corporation rate.
• Increases and makes permanent the Small Business Estate Tax Exemption. The new exemption thresholds will be set at $15 million for individual filers and $30 million for joint filers.

Several flooring executives said they have not fully digested the elements in the spending bill and therefore hesitated to comment directly until they have greater clarity. Their hope is that the legislation would eventually generate more disposable income and thus spur consumer spending.

“Relying on what is reported in the news media or shared on social media as the basis for my business opinion is a little dangerous as folks sometimes focus only on partial information or take matters out of context,” said Scott Rozmus, president/CEO of flooring distributor FlorStar Sales, Romeoville, Ill. “That said, I feel history has shown that when the government reduces the scope and complexity of regulation and when tax policies encourage investment, entrepreneurs take more risk, which ultimately is good for our economy. More specifically, to the extent businesses invest and expand their operations domestically, there should be opportunities not only for greater innovation from among those firms participating within floor covering, but also more demand for certain types of commercial floor covering and related items from these growing businesses. Likewise, the certainty that tax rates should remain stable may encourage more middle– and upper–income consumers to pursue remodeling projects, which certainly would provide an indirect benefit to the rest of the channel.”  

While the spending bill’s impact on business may not be immediate, some feel the long-term benefits bode well for an industry that has been stagnant in recent years. “I believe over time there will be a positive impact to consumer confidence, and we will begin to see a lift in activity as we go through the second half of 2025,” said T.M. Nuckols, president of The Dixie Group’s residential division. “If this bill delivers the kind of economic growth which has been touted, we should see improving flooring market conditions over the coming months and years. After the three years of residential flooring challenges the industry has seen, that will be a welcome change.”

Carpet Exchange’s Bruce Odette says more money in people’s pockets typically leads to greater discretionary spending.

Flooring dealers say the bill should inject some money into the economy, with the hope that it will trickle down to flooring purchases. “Our business has been good, but we can see a delay in the residential market where people are quoting but not purchasing right away,” said Bob Pireu, co-owner of Bob & Pete’s Floors in Canton, Ohio. “I hope this stimulates that sales time and rejuvenates some consumer confidence. There is so much white noise out there on what this bill will do, but ultimately, I think it’s good for manufacturers and small businesses.”

Bruce Odette, president of Denver-based Carpet Exchange, said there are several elements in the spending bill that he can get behind. “The extension of the tax cuts originally enacted during Trump’s 2017 term will continue to provide meaningful benefits to businesses like ours,” he said. “Additionally, while full details are still pending, the provisions eliminating taxes on tips and overtime pay could significantly increase consumers’ disposable income. More money in people’s pockets typically leads to greater discretionary spending, which bodes well for industries like ours. In short, more disposable income means more potential customers and more sales.”

Tariff threats loom

Days after the bill was signed into law, Trump amped up his trade war with several countries, threatening tariffs ofbetween 25% and 40% on imports from seven countries—including Japan, South Korea, Malaysia and South Africa—the first of what he said would be a series of higher duties as the administration continues negotiating trade deals ahead of a new Aug. 1 deadline.

For some industry executives, the uncertainty of the tariffs poses a more immediate concern than the promises of the bill. “Our primary thoughts at this time are [the administration] needs to resolve this tariff conversation to get consumers back in play as they have cocooned since the original tariff announcement back in early April,”

said Jeff Striegel, president of distributor Elias-Wilf, Owings Mills, Md.

As an importer, Couristan has been focused on the tariffs and how that may affect its business. “We just hope that higher tariffs, or uncertainty regarding the tariffs, will offset any benefits we can see with the [big, beautiful bill],” said Len Andolino, president. “Time will tell. Today is the time for a steady hand to navigate these choppy waters.”

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Style preferences reflect end-user tastes, demands

Across flooring categories evolving consumer preferences are inspiring suppliers to unveil fresh innovations and highly stylized designs. Carpet continues to see growth at the high end, where homeowners prioritize softness, comfort and unique visuals for bedrooms and specialty areas. In resilient, longer/wider planks and digitally printed designs are gaining traction for their realism, durability and affordability. Hardwood remains a premium choice, with demand shifting toward lighter tones and cooler colors. Laminate continues to benefit from advances in water resistance and design clarity, helping it reclaim lost market share. Meanwhile, tile is embracing bold color and tactile surfaces—trends that reflect both residential and commercial tastes for expressive, sensory-driven spaces.

Together, these developments underscore a consumer shift toward flooring that balances many key attributes.

Visit here for full coverage.

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Commercial stats: Market challenges impact contract recovery

The commercial market experienced a year of mixed activity in 2024, with some sectors showing resilience while others struggled amid inflation-driven price hikes, shifting end-user demands and labor constraints. Those factors combined to push commercial flooring sales down slightly to approximately $7.019 billion in 2024, a decrease of 1.6% over the year prior.

Flooring sales within key commercial segments such as healthcare, education and hospitality were anywhere from flat to modest growth while corporate offices and retail spaces saw declines, FCNews research found.

Here’s how some of the key end-use market sectors performed:

Corporate challenges

One sector that continued to recover from the fallout of the COVID-19 pandemic is offices, which saw its share of commercial flooring sales hold steady at around 13%, FCNews research shows. But that’s down significantly from 40% in 2020. Office/corporate vacancy rates hovered around 20% in 2024, leeching into the 2025 first quarter. “Commercial flooring has been declining due to factors such as widespread work-from-home policies, the impact of automation and AI, high office rental costs and ongoing corporate down-sizing or rightsizing initiatives,” said Jeff Galloway, vice president, product management, Mohawk Group.

New office construction remains limited, with only 3.5 million square feet delivered in Q1 2025, the lowest in over a decade, according to statistics provided by Coldwell Banker Commercial. The data demonstrates how the office market continues to grapple with shifting workplace dynamics, as hybrid work models and economic uncertainty influence leasing activity and interior design choices. “Corporate was the largest and most challenged for growth in the past 12 months,” said Eric Ruppert, senior director of product marketing and category management, Engineered Floors.

While some businesses sought to downsize office footprints, others invested in high-quality, flexible spaces to attract employees back to in-person work. For example, premium office spaces in major cities are reportedly maintaining strong demand. Case in point: In New York City, the overall availability rate fell to 17.3%, the lowest in five years, and was fueled by strong demand for trophy properties, according to published reports.

“The focus on quality in top-tier office spaces presents an opportunity for our contractors specializing in high-spec materials covering central business districts,” said Mark Bischoff, president and CEO, Starnet Worldwide Commercial Flooring Partnership.

Carpet tile and LVT remain popular choices as businesses valued their value and versatility across multiple applications. “Carpet tile dominates due to its modularity and ease of replacement during remodels,” said Carrie Edwards Issac, vice president of marketing, Shaw Contract. “Hybrid work models have led to phased renovations, favoring tile.”

The shift toward hybrid workspaces is increasingly influencing flooring choices, with modular and adaptable designs allowing businesses to reconfigure spaces easily. Technological advancements, such as smart systems that monitor foot traffic, continue to gain traction as businesses seek ways to optimize maintenance and longevity.

“Innovation, sustainability and a renewed focus on healthy materials are reshaping commercial flooring in ways that align with broader design and construction trends,” said Rusty Joyce, Tarkett Commercial president.

Healthcare’s pulse

Not all segments are equally challenged. Healthcare maintained its pace as one of the fastest-growing commercial segments, capturing the largest market share (44%), according to FCNews research. Healthcare services demand maintained an upward trend in hiring since 2022. The sector added 62,000 jobs in May 2025, higher than the average monthly gain of 44,000 over the prior 12 months, the Bureau of Labor Statistics reported last year. “While some sectors are still navigating post-pandemic shifts, we’re seeing strong momentum in key verticals like education, healthcare and hospitality,” said Carrie Edwards Issac, vice president of marketing, Shaw Contract.

The healthcare industry in particular is coming off a year of rapid transformation, as economic pressures, aging populations and technological innovation reshaped operations across hospitals, clinics and long-term care facilities. These changes, observers said, had a marked impact on facility interior design, where infection control, durability and patient comfort took center stage.

“The healthcare sector is experiencing growth driven by an aging population, an increased focus on better health and advancements in technology,” Mohawk’s Galloway noted.

A major factor driving demand is continuing growth of medical office expansions. “The medical office building sector is growing rapidly, driven by demographics and dramatic increases in outpatient procedures and ambulatory care,” Starnet’s Bischoff said. “This indicates consistent demand for flooring in hospitals, clinics and medical office buildings.”

A key driver is the continued surge in outpatient care. With more procedures shifting away from hospitals to ambulatory care centers, design priorities evolved accordingly. Flexibility and speed of installation became critical, leading to a preference for modular flooring like LVT and carpet tile, which allows quick repairs and replacements without disrupting services, proponents said.

“Healthcare is the biggest segment for sheet vinyl,” Geoff Gordon, executive director, Fuse Commercial Flooring Alliance, noted. “But we continue to see LVT, ceramic tile and rubber.”
Increasingly, hospitals are seeking eco-friendly materials that align with green building initiatives. Recycled rubber, bio-based linoleum, and low-emission floors are reportedly gaining traction, as healthcare facilities strive to reduce their carbon footprints while improving indoor air quality. “Clients are demanding low-carbon, recyclable products,” Shaw’s Issac said. “Our EcoWorx Bio backing, RE[TURN] reclamation program and Cradle to Cradle certifications are central to meeting these expectations.”

Back to school

Education was the second-largest commercial flooring sector, accounting for 23% of commercial end-use activity in 2024, FCNews research shows. K-12 dominates education-related construction, accounting for roughly 75% of total sales, with higher education making up the remaining portion. “Education is another growing sector, influenced by K-12 population growth, aging infrastructure requiring updates, increased college enrollment and a rising demand for highly skilled employees,” Mohawk’s Galloway said.

And while some educational institutions remained committed to updating and refreshing their properties during slow times, challenges limited some opportunities last year. For example, many public schools operate under tight financial restrictions, making affordability a primary factor during remodeling. Further compounding matters are project delays, which can be par for the course. “The business didn’t die down from lack of projects on the specified side,” Catherine Del Vecchio, AHF’s vice president, marketing, observed. “Budgets didn’t get approved in time for the work to be done.”

Observers expect the tide to turn, however. Growth is projected in the segment, as construction and renovation projects accelerate. These projects require a diversified amount of soft and hard surfaces, especially at institutions that operate multiple facilities. “Institutional construction is likely to remain a steady but modest contributor to growth, with gains in healthcare and recreational projects balanced out by weaker spending on education buildings,” said Rocamador Rubio, director, Trade Commission of Spain.

As institutions prioritize longevity and performance, flooring manufacturers are innovating to provide solutions that support evolving design flexibility. Hard surfaces dominate the landscape, representing more than half of flooring sold to K-12 educational spaces. Carpet also plays a significant role, as schools are the second-largest commercial market for this material, research shows.

An increasing emphasis on sustainability is also affecting material choices. Schools are looking for “green” flooring solutions that meet environmental standards while reducing their carbon footprint, according to published reports. “Many commercial designers and architects, especially those seeking LEED certification or other green building certifications, prioritize sustainable materials that are manufactured using environmentally friendly practices that align with these standards,” Rubio observed.

As schools integrate more technology-driven learning, collaboration and movement within these spaces are front of mind with designers. For example, carpet tiles allow for easy reconfiguration of learning areas while hard surfaces such as LVT, ceramic, hardwood and polished concrete offer easier cleaning and longer lifespans. “We’re seeing porcelain tile find its way into common areas within education,” said Fred Reitz, senior vice president of commercial, AHF Products. “There are food court and shopping areas where almost all of those spaces have porcelain on the floor.”

That’s not to say that tile is without its own challenges in the commercial arena. “The tile industry continues to face supply chain vulnerabilities following global disruptions,” Trade Commission of Spain’s Rubio said. “Commercial projects are particularly affected by inconsistent material availability, shipping delay and volatile raw material costs.”

Hospitality shines

The hospitality industry, which includes subsectors such as arts, entertainment, recreation, accommodation and food services, continued its post-pandemic recovery, fueled by boosts in leisure travel, conferences and business meetings. “One macro issue that came out of COVID-19 is people are spending more money on travel,” said Yon Hinkle, AHF’s vice president of product management – resilient. “There’s been a redistribution of where people are spending their discretionary income and a lot of it is experiential.”

These shifts are significantly influencing interior design across hotels and resorts, particularly in flooring. With travelers prioritizing high-end experiences, establishments focus on creating welcoming spaces through premium materials.

FCNews research shows the hospitality segment maintains an estimated 13% share of commercial flooring sales, with carpet, hardwood and LVT widely adopted to enhance the ambiance of guest rooms and common areas. “Hospitality is the one market segment where 12-foot broadloom carpet is still popular,” Fuse Commercial Flooring Alliance’s Gordon observed.

Another factor falling in hospitality’s favor in 2024 was the emphasis on sustainability in product selection. As companies look to reduce their environmental footprint, flooring producers responded with environmentally friendly lines featuring cradle-to-cradle certifications, low VOC emissions and materials made from post-consumer waste.

“Specifiers and end users are asking smarter questions about materials, life-cycle impacts and indoor air quality,” Tarkett’s Joyce reports. “This shift is pushing the sector toward more transparent and health-conscious solutions, which benefits both manufacturers and the communities they serve.”

Retail remains resilient

Despite persistent inflation, U.S. consumers continued to spend in 2024. But like past presidential election years, consumers appeared to pull back slightly leading up to November. But right after that, analysts said, consumers reopened their pocketbooks. This phenomenon, observers note, was a reflection of the mood of the country leading up to November as opposed to any real diminished buying power. Yes, there were a fair share of retail closings last year, but there were segments of the retail sector that continued to invest in their stores last year. These ranged from major chains to independent boutiques. “Retail is growing, primarily because of the expansion of big box stores and franchises, alongside necessary updates to aging or out-of-date retail models,” Mohawk’s Galloway explained.

The increased foot traffic is giving industry members reason to believe the segment will bolster its low-single-digit stake in the commercial flooring business this year. To attract more customers, retailers are reportedly focused on creating distinctive and memorable shopping experiences. “We have not seen a retail super cycle in many years,” Starnet’s Bischoff said, “so the members are hoping that one of the big retail chains makes a design rebrand part of their long-term effort to compete with online sales.”

Outlook for remainder of year

While mitigating factors expect to continue impacting project timelines and costs, industry observers are taking a cautious view of the market. “The largest current impact to the commercial business is probably some of the economic uncertainty that’s out there,” said Hilary Frank, Dal-Tile’s vice president of commercial sales and business development. “That’s probably preventing some owners from pulling the trigger, whether inquiring on a new project, kicking off a contract for a new project or really getting things continuing to move.”

Another factor impacting commercial construction, especially flooring is the shortage of skilled construction workers and floor covering installers. “Field labor scarcity is beginning to pinch our membership as the competition for tradespeople across construction ramps up,” Starnet’s Bischoff stated. “Other industries are far ahead of commercial flooring in the recruiting game, so the costs in the field will inevitably rise.”

Financing for commercial flooring projects is also impacted by factors shaping the overall real estate market, namely interest rates. During the end of December, Freddie Mac reported the fixed rate for a 30-year fixed-rate mortgage averaged 6.85% compared to 6.61% at the same time in 2023. Six months later, mortgage rates are essentially the same. And during the most recent Federal Reserve meeting, directors appeared hesitant to lower interest rates any further than the moves they made in September last year.

That has left some segments in particular exposed. For example, the multifamily market— which some observers consider commercial—saw a significant decline as starts fell 25% to a rate of 355,000 in 2024, industry data show. There were approximately 1 million apartments under construction, the highest rate since 1973, which put a damper on this business. “Multifamily unit turns are down because interest rates have made it more challenging to buy a home,” Noah Fulton, vice president, business strategy, Karndean Designflooring, observed. “Acquisitions have been down because the cost of properties is inflated.”

Then there’s the elephant looming in the room—tariffs on imports ahead of the holiday selling season. According to the CNBC/NRF Retail Monitor, retail sales grew through May 2025, even though consumers slowed down on stocking up ahead of tariffs. Core sales, excluding restaurants, automobile dealers and gasoline stations, were up 0.23% month over month in May and 4.2% year over year. “Consumer fundamentals haven’t been damaged yet and a slowing-but-still-growing job market is supporting household priorities ahead of any meaningful price increases in the coming months,” said Matthew Shay, president and CEO of the National Retail Federation.

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