Ongoing and intense competition from wood look-alike categories. Maintaining the category’s value proposition in an increasingly price-driven market. Contending with the impact of tariffs in a segment that’s dependent on a blend of both sourced and domestic production. Overall economic concerns centered on slow mortgage rate movement and wars in certain regions of the world. These are just some of the issues manufacturing executives identified as the top challenges facing the U.S. hardwood flooring market today.
“The market is being shaped by a combination of macroeconomic pressure and global uncertainty,” said Jerome Goulet, vice president of marketing, Mirage. “Interest rates and slower housing activity continue to weigh on demand, particularly in new construction. At the same time, global conflicts and trade tensions are creating volatility in energy, transportation and raw material costs.”
High on the list of concerns is the impact that tariffs are having on the U.S. hardwood flooring market. Increasingly, suppliers have to become much more strategically (and fiscally) minded when sourcing product.
“Importers are now required to manage cash flow more conservatively, which directly impacts purchasing and inventory strategies,” said Louie Wang, senior vice president of sales, Johnson Hardwood. “High-cost engineered wood products, in particular, must be forecast with greater precision. This has, in some cases, led to tighter inventory positions and potential shortages.”
Indeed, some companies are making progress in solving that puzzle. Take Mohawk, for example. Although the company sources its wood program, it was able to adjust quickly in a tariff-driven climate. “We didn’t have to do a lot of moving product from point A to point B or a different country, and that’s been helpful for us,” said David Moore, vice president, product management, Mohawk. “But we have seen the impact of tariffs. We planned for it, and we certainly absorbed as much of it as we could and tried to offset it as best we could. However, we did have to pass some of those costs on to the retailer. It’s not something that anyone wants to do, but it’s just a situation where there’s not enough margin in the supply chain to absorb a 20% increase in costs.”
It’s a tricky environment to navigate, Moore noted, in an era defined by uncertainty. “There’s a lot of ‘they’re off, they’re on, now it’s a different tariff,’” he explained. “It’s 15% today, but it could go to 25% tomorrow. We felt like there was a little bit of stability when everything had landed, and we planned for that. Now we’ve entered back into an area of instability. Right now we’re just waiting to see how we’ll react as we get more confidence in a clear forward path that we’re going. It is what it is, unfortunately.”
Shaw, which also sources some of its wood flooring products, is taking a strategic view as well. “We are a firm believer that a balanced approach in sourcing and manufacturing hard surface is important,” said Benjamin Liebert, president, residential, Shaw. “We do source a number of products with select partners abroad. This gives us a ton of flexibility in what I call the ‘make vs buy.’ You can make it or you can buy it, but ultimately our goal is to own the innovation, to have the intellectual properity and work with our partners to do that.
“At the same time, we are also making investments here domestically. We have a hardwood facility in the Northwest Georgia area that continues to play a huge role in our hardwood with investment and product launches.”
For some companies, including AHF Products, tariffs don’t present much of a challenge. But then again, few domestic hardwood flooring suppliers can tout the stateside manufacturing footprint that AHF has—even though the company does import some engineered products. “Domestic manufacturing delivers real advantages for our customers,” said Milton Goodwin, senior vice president-product management, wood. “It means shorter lead times, better service consistency and the ability to support projects without disruption.”
Goodwin cited key benefits of U.S. manufacturing:
- Faster and more predictable lead times to keep projects on schedule
- Consistent product quality supported by controlled manufacturing processes
- Reliable supply and reduced risk of disruption
- Protection from tariff volatility and global sourcing uncertainty
- High domestic content that is able to support customer preferences and project requirements
Competitive pressures
Macroeconomic issues aside, hardwood flooring manufacturers are also facing pressures from competing hard surface categories, including LVT/WPC and laminate. The key to recouping lost market share, wood proponents say, lies not so much in playing the pricing game but rather emphasizing wood’s unique attributes. As Mirage’s Goulet put it: “The challenge is not just demand, but ensuring the long-term value of real wood remains clearly understood in a more price-sensitive environment.”
Yvette Shroyer, director of marketing, Urbanfloor—another supplier that’s focused on the upper end of the market—also attested to the competitive margin pressures created by the increased consumption of today’s popular resilient flooring options. “As lower-cost hard surface alternatives like SPC and laminate continue to improve in both performance and aesthetics, they are capturing share at the more price-sensitive end of the market,” she explained.
For Johnson Hardwood— which in recent years has expanded beyond its wood roots to include WPC, SPC and laminate—attested to the gains wood look-alike products have made. “Categories such as water-resistant laminate and WPC have been gaining market share at a rapid pace,” Wang said. “These products resonate strongly with today’s consumers due to their durability, color consistency, on-trend visuals and ease of maintenance. As a result, they are increasingly competing with—and in many cases replacing—traditional hardwood options in a wide range of applications.”
These competitive dynamics, industry experts say, are changing the way hardwood is being positioned in the marketplace. Specifically, it’s altering the mix of product tiers at retail. “Hardwood has lost ground in the ‘good/better’ middle of the market,” said Jamann Stepp, senior vice president, hard surfaces, Stanton Design. “When the price of hardwood jumps, consumers generally trade down. This is especially true in the remodel/multifamily category.”
The result, observers say, is hardwood is pushed into a narrower premium niche category—“where the average price point at retail is much higher than LVT/rigid core and the average square footage per order is also substantially higher,” Stepp added.
In that same vein, Johnson Hardwood cited sales data showing what Wang called “a bifurcation” in performance: higher-end engineered products (featuring thicker wear layers, 5/8– to ¾-inch profiles and premium grades) continue to perform well, as do entry-level options such as 3/8-inch products. “However, mid-tier products have experienced a noticeable decline in volume, suggesting that constrained spending power is influencing purchasing decisions.”
But some say that slower hardwood flooring sales activity at the opening price point might not necessarily be a bad thing for the hardwood category. As Wade Bondrowski, director of sales, U.S. at Mercier, explained: “The popularity of less-expensive wood look-alikes have reduced demand for entry-level wood flooring, and that has benefitted companies like ours that focus on the upper-mid to high end of the market.”
Industry observers agree that the ongoing price battle among less expensive competing hard surfaces presents a valuable opportunity for wood specialists.
“More than ever, manufacturers and retailers have an opportunity to differentiate beyond price, highlighting the enduring value of genuine hardwood through design, quality and authenticity,” Urbanfloor’s Shroyer stated.
Mirage’s Goulet concurred. “We are focused on reinforcing the value of real wood through innovation, strong design and a product offering that addresses different needs and price points. Hardwood remains a premium, high-value material, and over the long term its durability and authenticity position it well against alternative products. At the same time, we’re doubling down on service, ensuring our partners can rely on consistent lead times and product availability. In a more uncertain environment, reliability and support are key differentiators, and we continue to optimize our operations to deliver that consistency.”
If hardwood is indeed being more relegated to that upper-mid to high-end niche, that’s just fine with some suppliers. “In our engineered hardwood portfolio, we’re definitely seeing a lot of healthy activity there,” Mohawk’s Moore said, citing in particular the 9/16– and 5/8-inch-thick products featuring 3mm and 4mm face veneers. “There’s a lot of activity there because the people who are remodeling are the ones who don’t necessarily see inflation as a problem. They’re not having to worry about all of the increased costs that they’re seeing. They’re on the higher end of the socioeconomic status, which typically lends itself to being a wood consumer.”
The demand for high-end wood flooring has inspired the creation of products that reflect an upscale appeal. Case in point is Tarkett Home’s L’Artisan, which was designed around what today’s homeowners are looking for: eye-catching visuals, simple choices and the option to personalize their home without paying the price of custom hardwood. Featuring European white oak, the new line comes available in 10 colors ranging from light neutrals, beiges and taupes to the on-trend medium brown hues. Each color is offered in two different formats—a broad width plank that is 9.5 inches wide with varying lengths up to 86 inches long, and a classic, narrow width plank that is 3 inches wide and up to 47 inches long. Four colors are also available in a herringbone format, a classic visual that’s resurging.
Outlook for remainder of 2026
Despite the numerous challenges facing the U.S. hardwood flooring market, executives remain largely optimistic—if cautiously. “We remain confident in the medium to long-term outlook,” Mirage’s Goulet said. “While the market is currently impacted by economic uncertainty, these are cyclical factors. As conditions stabilize and housing demand recovers, we expect the category to regain momentum.”
For sure, all eyes will be on the housing market. “We recognize that external market forces will play a pivotal role in shaping business outcomes this year,” said Danielle Lancianese, director of hardwood & laminate, Shaw. “The performance of the housing market is the most significant factor impacting the industry.”
AHF Product’s Goodwin agreed. “If lower interest rates convince more builders to start building houses, that’s going to help our engineered wood business. That’s because most housing is being built in the southern part of the U.S.”
For his part, Mohawk’s Moore is going to be keeping a close watch on world events. “We’re watching international freight and logistics closely with what’s going on in Iran,” he said. “We haven’t seen a huge impact yet, but it typically takes a little while to work through the network of ocean freight. Again, it’s a little bit more of the wait-and-see approach, but that’s certainly something we’re having conversations about.”
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