Page 8 - FDMASIA JanFeb 2024

6 Market Beats Jan/Feb 2024 FDM AsiA | www.fdmasia.com

pexels.com however, will not fully offset consumer purchases.”
Parallel to other categories of the fooring industry, “We are
projecting the current soft demand for fooring to remain in
place through the bulk of 2024, and this includes hardwood,”
said John Hammel, director of one well-known company of
hardwood and laminate.

Shaw’s Kyle McAllister, director of a hardwood company,
said hardwood’s performance is heavily reliant on the economy
and “if interest rates continue to climb as well as infation,
the category will be challenged.”

Optimism remains
However, companies are predicting brighter days ahead for the
wood market. “We predict that the interest for hardened wood
will continue to grow in 2024, and combined with small market

improvements, we are expecting to grow the 2023 levels,”
offered Fredrik Alfredsson, from one global head of sales.
to the United Kingdom, historically the largest European Moreover, “Hardwood will remain a solid investment and
market for US hardwoods, plunged 37 percent to 71,357 cubic will continue to be upheld as the luxury foor standard. Most
metres. Deliveries to Germany and Italy fell 49 percent and 43 shoppers would be thrilled with a real wood foor that adds
percent, respectively. Shipments to Spain slipped 18 percent. value to their home, but also need a product that can hold
up to the wear and tear of a modern household,” provided

Hardwood category affected by many factors a company’s president, Doug Jackson.
According to FCW, the hardwood’s market has not been immune Furthermore, Michael Martin, National Wood Flooring
to harshness of current macroeconomic circumstances. For Association’s president and CEO, reported, “The demand for
instance, infation, high interest rates and challenging housing housing is pent up due to 2023’s higher interest rates and
market had a signifcant impact on the hardwood category. infation, which was done raising interest rates and to expect
The future of 2024 will be affected by the circumstances of drops in 2024. This will unleash demand for new housing and
the past year. In fact, according to Catalina Research’s most bring back renovation work that has been on hold. This will
recent Quarterly Update, “The housing market is expected be good for hardwood.”
to cause US foor coverings sales to decline further during Additions to product lines allow companies to diversify

the fourth quarter of 2023. Housing demand is estimated to and grow.
continue to decline at double-digit rates in the fourth quarter “Challenges in 2024 included volatility in raw material
as mortgage rates reach their highest level in decades. Rising pricing for wood fooring manufacturers. A return of growth
mortgage rates caused existing home sales to decline to in the housing market would reduce that challenge, but too
their lowest level since the 2008–09 fnancial crisis. This will much demand could raise material costs if supply cannot
keep the important residential replacement market. Signs keep up with demand. Even that would be a bright spot,
of a stronger builder market and positive commercial sales, though,” said Michael Martin, NWFA