While the industry is turning the page on a new year, there are still lingering issues that stand to impact the flooring market. For example, what’s going to happen with interest rates? How will new policies affect the manufacturing, labor and economy as a whole? FCNews rounded up industry executives to identify the issues, challenges and potential threats on their minds. Here is what they said is keeping them up at night:
“The issue that stays on my mind is ensuring that Shaw remains a reliable, stable partner in an environment that continues to shift. Customers are navigating affordability pressures, sourcing challenges and evolving consumer expectations. My focus is making sure our teams have the clarity, tools and alignment they need to execute consistently, so our customers always know they can depend on Shaw.
Our job is to control what we can control. If we stay focused, disciplined and connected to our customers, we will continue to build momentum no matter what the market brings.”
Tim Baucom, president/CEO
Shaw Industries
“Are we doing the right things to attract, develop and retain talent? We are in the people business, and we must build an environment that attracts performance-minded associates who are a good cultural fit at Mannington. When we have the right people in the right seats—and a strong bench being developed behind them—we can adapt and adjust to whatever comes at us. This has proven to be the case over the last five years and it’s critical that we keep it going.”
Tom Pendley, president/CEO
Mannington
“Several things: Unpredictable tariffs and the inability to plan accordingly; economic instability and inflation, thereby reducing consumer confidence; high inventory levels across the value chain; a growing price spiral that encourages unhealthy competition; and increasing regulatory burdens that often add cost and complexity without delivering meaningful consumer benefit. Despite these challenges, I remain fundamentally optimistic. Companies that invest now in innovation, transparency and truly future-proof materials will be the ones that emerge stronger when the next growth cycle begins.”
Celine Quervel, managing director
Classen Group
“We’ve worked through the tariffs—our customers have dealt with that as the prices of products have gone up commensurate with the tariffs. Now we’re just waiting for the Supreme Court to tell us if they’re legal or not. Another concern is any kind of overseas upheaval that might affect shipping lanes. If you think about the imports of engineered hardwood in the United States, it probably makes up 80% or greater of the total amount of wood that’s sold here. Any disruption would cause our business to really suffer.”
Milton Goodwin, vice president
AHF Products
“The biggest challenge is navigating economic uncertainty while still delivering the consistency customers count on. Interest rates, housing affordability, supply chain disruptions, tariff discussions and ongoing pricing pressure continue to influence demand—but expectations for dependable molding profiles, finishes and in-stock availability haven’t changed.”
Keith Medick, president & CEO
Versatrim
“Volume is a massive issue for the industry. I think everybody feels it. Tariffs are a big issue for manufacturers to work through. To get through this we need to promote the benefits of new flooring in the home.”
Brent Emore, CEO,
AHF Products
“The overall economy and how factors like tariffs, interest rates and labor shortages will impact overall demand. There is a tremendous amount of competition in the resilient category, so we’ll need to make sure we’re tuned in to market conditions and adapt accordingly.”
Bill Anderson, CEO
Karndean
“I think one of the things is really the timing on this upswing. When’s it going to happen? Part of my role is to make sure that we’re balanced as an organization. Things like that certainly keep me up. We know it’s coming. Everybody knows it’s coming. But you certainly have to have the product and we have to have the labor in order to make it happen.”
Jim Perello, president
Emser
“Potential unexpected disruptions that create major challenges. The on again, off again tariff implementation this year is a great example of unforeseen chaos entering a new year.”
Jason Surrat, president
Tarkett Home
“The impact of the residential housing markets high home prices and mortgage rates driving confidence in home remodeling and housing starts continues to be a moving target. As the market adjust to a new normal, Mohawk is uniquely positioned to help support that demand.”
David Moore, vice president, product management
Mohawk
“Tariff-driven price compression could spark another wave of spec-down LVT. That’s the biggest risk—not just higher costs, but the industry reacting by cutting quality to chase price. That kind of “race to the bottom” increases claims, erodes consumer trust, and could set back the category at a time when we should be leaning into premiumization.”
Steve Ehrlich, vice president, business & operations
Novalis
“Specifically in tile it’s going to be the lack of qualified installation in the marketplace. That continues to be a significant headwind for us—and really is something that keeps me up at night. I believe the demand for tile is in there, but it’s just a matter of finding enough qualified laborers or installers to put the product in.”
Scott Maslowski, executive vice president of SSC sales & operations
Dal-Tile
“The biggest concern heading into 2026 is the ongoing installation labor shortage, which affects both service quality and project timelines for everyone. On a macro level, continued economic uncertainty and rate fluctuations make it harder for retailers and manufacturers to forecast demand with confidence. Most economists predict new home construction to be down again in 2026, so that’s a concern. Navigating these variables in the short term requires discipline and flexibility.”
Drew Hash, president/CEO
Southwind
“The wealth disparity between the wealthy and the middle class continues to widen. With inflation remaining elevated, particularly in essential areas like food and housing—two of the largest expenses for families—many are feeling the strain on their budgets more than ever.”
Jerome Goulet, vice president of marketing
Mirage
“Even with interest rates trending down and the stock market doing well, consumer sentiment and confidence is trending lower. There continues to be political unrest here in the USA and global unrest around the world. There seem to be a lot of things to overcome before we can expect to see business conditions improve.”
TM Nuckols, president, residential division
The Dixie Group
“The concerns for 2026 are less about demand for good product and more about the noise around it—policy whiplash, tariffs, trade rules and logistics—creating uncertainty for our customers who just want stable, reliable programs. Also, consumer confidence and affordability. In today’s climate, households are far more worried about inflationary pressure on groceries, rent and everyday essentials than about replacing a floor, which pushes durable goods like flooring further down the priority list and stretches replacement cycles even longer.”
Alex Decarie, business development
Egger North America
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