In the years since the U.S. flooring sector began seeing dramatic declines in imports from China—particularly engineered hardwood and laminate products—Southeast Asia has emerged as a viable alternative. Countries like Vietnam, Indonesia, Malaysia, Cambodia and Thailand have seen their manufacturing industries grow steadily, driven by competitive labor costs, a maturing supply chain infrastructure and increasing foreign investment.
However, despite these advantages, suppliers from the region face a range of formidable challenges when entering and sustaining a foothold in the U.S. building materials market. These challenges span regulatory hurdles, logistical complexities, intense competition, sustainability expectations, shifting consumer preferences and, more recently, the threat of new tariffs. Heretofore, many Southeast Asian countries had enjoyed protections from tariffs as China was chiefly under the microscope. However, tariffs imposed by the second Trump Administration are targeting Southeast Asia more broadly as the president looks to encourage more domestic manufacturing.
However, for many manufacturers with a U.S. presence—as well as distributors that import wood flooring from Southeast Asia for their private-label programs—it’s not as simple as turning off a switch. Many U.S. importers have come to rely on engineered wood flooring products from that region of the world to populate their programs.
Following is an overview of the core issues Southeast Asian suppliers of flooring and other building materials must navigate to succeed in the U.S. market.
Regulatory compliance and certification requirements.
One of the most immediate challenges Southeast Asian suppliers encounter is meeting the stringent regulatory and certification standards of the U.S. market. U.S. laws such as the Lacey Act require that imported wood products be legally harvested and sourced. Violations can result in severe penalties, including shipment seizure and bans.
Additionally, suppliers must comply with product testing and safety standards set by organizations such as the Environmental Protection Agency (EPA), the California Air Resources Board (CARB) and the U.S. Green Building Council (USGBC).
Products often need to be certified for emissions, such as formaldehyde content in composite wood flooring.
While meeting these technical and documentation requirements can be costly and administratively burdensome, especially for small to mid-sized manufacturers, it’s worth the expense.
“We produce on-trend, high-demand flooring options by sourcing durable hardwood species from around the globe,” said Billy Ko, president, Johnson Hardwood. “Our products are recognized for their affordability and superior quality. Plus, we offer the highest standards of worry-free floors in the industry being CARB II and Lacey Act compliant.”
Logistics and supply chain disruptions.
Southeast Asian suppliers rely heavily on maritime shipping to reach the U.S. market. However, the COVID-19 pandemic revealed the fragility of global logistics systems. Port congestion, container shortages and unpredictable shipping schedules have become commonplace. Even as the situation has improved, the industry remains vulnerable to bottlenecks and rising freight costs.
Moreover, the long lead times involved in shipping from Southeast Asia to the U.S.—typically ranging from four to eight weeks—require precise inventory forecasting and demand planning. That’s why the more savvy importers make it a point to ensure ample stateside supply to avoid such issues.
“We have over 2 million square feet of inventory in two company-owned and staffed warehouses in Sutton, Mass., and Franklin, N.J.,” said Bill Schollmeyer, who serves as vice president of sales for R&J Flooring Supply. More importantly, the company partners with a reputable Vietnamese company that actually owns the plant. “We’ve been active in the U.S. market for the past two years, and in the last 18 months we’ve grown to be a respected and valuable manufacturer and distributor of high-quality, high-fashion hard- wood floors,” he added.
Brand recognition and trust.
Building materials—especially flooring—are long-term investments for both residential and commercial projects. U.S. consumers and contractors often prefer well-known domes-tic or European brands due to perceived quality and reliability. Southeast Asian suppliers, many of whom operate as original equipment manufacturers (OEMs) or under private labels, struggle to gain visibility and brand trust, observers say.
Even when the product quality is high, the lack of a direct brand presence in the U.S. means Southeast Asian suppliers are often dependent on distributors or importers to market their goods. This limits their control over pricing, customer experience and after-sales support. However, it’s not necessarily a deal breaker.
“In the past we have partnered with select Southeast Asian suppliers to help supplement our stateside offerings,” one prominent distributor executive told FCNews. “It’s all about doing your research.”
‘Perceived’ innovation gaps
The U.S. building materials market, especially in the premium flooring segment, increasingly values innovation—whether in the form of new installation technologies (like click-lock systems), improved wear layers, waterproofing capabilities or aesthetic advancements. While Southeast Asian manufacturers excel at cost-effective mass production, one misperception is they often lag in research and development compared to North American or European competitors. This perceived innovation gap can sometimes limit their ability to differentiate in a crowded marketplace. Or, when leveraged properly, it can create opportunities for importers.
Case in point is LM Flooring, a Cambodian hard surface flooring manufacturer that was purchased by AHF Products several years ago as it looked to pivot away from China. While AHF Products was already heavily leveraged in terms of its domestic production capabilities, it saw an opportunity via the LM Flooring acquisition to add specialized engineered products.
“Many of these products are not yet produced here in the U.S.,” said Kevin Whaley, vice president of AHF Products. “The factory produces quality engineered flooring products, and we have a team there that inspects for quality controls.”
Tariffs, anti-dumping duties.
Geopolitical dynamics and shifting U.S. trade policies pose another substantial challenge. While Southeast Asian countries have benefited from supply chain diversification away from China, they are not immune to protectionist measures.
Vietnam and other nations have seen increasing scrutiny under anti-circumvention and anti-dumping investigations, particularly in cases where they appear to be used as transshipment points for Chinese goods. The U.S. Department of Commerce has launched several investigations into vinyl and engineered wood flooring products originating from Southeast Asia to determine if they are being dumped at unfairly low prices.
In a recent whistleblower case, Urbanfloor—which sources responsibly from factories in Vietnam—won a judgement for exposing an operation that for years had circumvented import duties by mislabeling point of origin documents.
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