The not-to-suddenly resurgent laminate flooring market in the U.S. is well documented. The budget-friendly product segment has clearly benefitted from a renewed focus on products made in the U.S., thanks in no small part to the port challenges the industry experienced in the immediate aftermath of the COVID-19 pandemic.
But that’s not the only reason for the continued interest in the product segment. The thinner, more brittle SPC planks in particular are problematic, given their intolerance for imperfect and/or uneven subfloors.
“WPC and laminate are gaining in popularity, largely because they offer trusted performance, durability and value,” said Brian Erickson, Floorz, Copley, Ohio. “Many consumers and RSAs have concerns with some rigid core products. The legacy costs tied to certain rigid core products have raised questions about long-term value, pushing RSAs and customers toward WPC and laminate.”
Wholesale flooring distributors are experiencing this phenomenon as well. “I think what’s going on here in the western United States is a lot of dealers have SPC fatigue,” said an executive with a West Coast-based distributor. “They’re tired of it underperforming. So, I think a lot of dealers don’t want to take on SPC lines.”
SPC flooring in and of itself is not the problem, industry experts agree. Shoddy SPC—or cheap, commodity-driven SPC—is. What was once hailed as a “waterproof” sensation has taken a hit where it hurts—its durability—due to the influx of inferior product entering the market, particularly from West Coast ports. As those products have made their way into applications up and down the coast, their subpar quality has begun to show.
Part of the issue, industry observers say, has to deal with the rapid rise of the SPC sub-category and the attendant race to the bottom by offering aggressive pricing to gain share. “It’s really easy for importers to set up shop right by the major ports—especially in Southern California,” explained David White, president, Tri-West Flooring, a top 20 distributor. “When the 25% tariff hit, they were all scrambling to make their products cheaper to be more competitive. The only way they could really get it affordable is to change the recipe of the core, which we’re seeing a lot of.”
The challenge facing distributors and dealers, observers note, is discerning between quality SPC and the low-grade stuff. The fact remains SPC is the largest sub-segment of the resilient category, accounting for 46% of total resilient dollars and nearly 40% in volume, according to FCNews research. When compared to the rigid core market, SPC accounts for nearly 80% of dollars and nearly 40% of volume.
“The problem is retailers look at the price—then they install it,” White added. “But most of the time you can’t tell the difference until it’s been installed and it’s in the application for a while. That’s when you start having problems. We’ve seen so many retailers get frustrated because they can’t differentiate between [high-quality SPC and low-quality SPC because it’s all in the formula]. And they’re starting to think SPC is a product they don’t want to sell anymore.”
The rigid core import category was especially hard hit by U.S. Customs restrictions on flooring products produced in the Uyughar region. As David Moore, vice president, product management at Mohawk, explained, “A lot of the imported LVT products out there, especially during UFLPA, had to re-engineer their products and take out some of the fillers and other components. There were also issues with some of the locking systems on SPC. Many retailers and the consumers turned away from that and going to a more stable, strong product like laminate.”
Laminate suppliers respond
The situation regarding the impact of low-grade SPC products has certainly caught the attention of companies that either manufacture or source laminate flooring. Many are adjusting their product mix accordingly. “At one time, SPC was the only rigid core product available that was waterproof,” said Isaac Lee, marketing director, Eternity Flooring. “But now laminate—which was primarily known for its scratch resistance and durability—has demonstrated its waterproof performance. Now we see more customers going over to the laminate side.”
AHF Products, a multi-source hard surface supplier, won a 2024 FCNews Award of Excellence for its Timber Tru laminate line. While the company also plays in the SPC/WPC arenas, it’s keeping a close eye on emerging opportunities. “While the SPC/LVT business remains strong, import supply chain challenges have created a new opportunity for our laminate,” said Chris King, vice president of sales for AHF Products. “Timber Tru floors will stand up to the challenges of a busy home. From basements and bathrooms to great rooms and kitchens, there are virtually no restrictions to where TimberTru can be installed.”
Other major suppliers are looking to ride the rising laminate wave as well. This past year, Tarkett Home launched ShoreFlor, a laminate offering featuring Searenity Waterproof Technology. The product features a painted bevel edge, EIR technology and comes in a 10mm + 2mm pad for a total thickness of 12mm. The collection features clean, warm visuals as well as some rustic looks such as hickory.
“We had a lot of requests and customers wanting something beyond just SPC,” said Jason Surratt, president. “With all the technology improvements that have occurred over the last 10-15 years in laminate, it’s definitely a category we see opportunity in.”
On a broader scale, Surratt said he sees laminate clawing back some share from SPC. “I definitely think it’s taking a little bit from the overall rigid category,” he said. “I don’t know quite where that may trend or if that’s going to continue, but I definitely don’t see it diminishing. It’s at least going to hold its own and continue to grow some.”
In many cases, the loss of market share previously held by low-end, poor quality SPC has translated into laminates’ gain. “There’s no doubt there has been some softening in the desire for some SPC/WPC products—which is a big category,” said Derek Welbourn, president and CEO of Inhaus. “As a result, laminate is benefitting.”
Still, the competitive pressures laminate brands are feeling are very real. “The most pressing issue we face currently is the price pressure from cheap, low-end SPC products in the market,” said Alex Shaoulpour, president, HF Design. “However, more customers are starting to realize the marginal price difference and performance of a modified HDF core laminate is far superior and not worth the risk of customer complaints.”
The key, suppliers say, is winning over RSAs, which in turn influence the end customer. “For us, the issue is gaining RSA endorsement of the laminate category at independent retail,” said Brian Parker, vice president, product management, AHF. “SPC/WPC rigid core products have been the darling flooring products for the last decade and is the easy sale for the RSA. Waterproof laminate is also a rigid core-type product, with great visuals and performance. That makes it an easy transition for the RSA to make to promoting and selling laminate.”
Helping RSAs embrace the return to laminate is critical for suppliers. To that end, many are leveraging technological innovations to drive interest in the product segment. “Consumers are choosing laminate for a variety of reasons—it’s beautiful, sustainable and readily available,” Mohawk’s Moore said. “The technologies are at such a place now where you’re getting really high style and design, great texturing and low gloss. Not only do they look really good but they also perform well.”
Another positive attribute of laminate that’s swaying customer influence, according to Moore, is the product’s sustainability story. “We see that as a key factor in a homeowner’s thought process for picking a floor. They’re asking questions like: ‘What is it doing for the environment?’ ‘Is it sustainable?’ ‘Does it have recycled content?’ We’ve seen a lot of interest in the category and specifically our products because of the carbon-negative aspect of what we can do with RevWood. It’s a product that you can get over the stigma of the word laminate.”
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