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Hardwood Flooring Price Increase

By FAF Staff Writer, (265 words) Posted in Hardwood Flooring on June 7, 2010
There are (330) comments permalink

The economy continues to effect the flooring industry, including hardwood flooring. Mohawk Industries recently announced their hardwood prices will increase due to the reduced supply of lumber, climbing costs of materials and transportation. For more information on Mohawk and the hardwood flooring price increase, see the press release below.

DALTON (June 2, 2010) — The continued escalation of lumber and transportation prices has forced Mohawk Industries to revisit market pricing on solid wood flooring and accessories. U.S. economic conditions over the last 2 years have affected the lumber industry severely. The recession has forced many saw mills to reduce capacity or exit the industry entirely, thereby reducing lumber supply in the market. The reduced supply has resulted in escalating hardwood lumber prices since the beginning of the year.

As a result of these rising lumber and transportation costs, Mohawk Industries will be increasing selling prices by an avera ge of 6 percent on select solid hardwood flooring and accessories. These increases will be effective with all orders and shipments made on or after Monday, July 5th, 2010.

# # #

Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk offers a complete selecti on of broadloom carpet, ceramic tile, laminate, wood, stone, vinyl, rugs and other home products. These products are marketed under the premier brands in the industry, which include Mohawk, Karastan, Ralph Lauren, Lees, Bigelow, Columbia, Century, Dal-Tile, American Olean and Quick-Step. Mohawk's unique merchandising and marketing assist our customers increating the consumers' dream. Mohawk provides a premium level of service with its own trucking fleet and over 250 local distribution locations.

 

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Every industry is hit by this economic recession. So many ways have taken to bail us out of the wood. However, the economic recovery may not necessarily be coming along too quickly, but there are plenty of companies paying out dividends with lots of money. Record-low rates of interest make putting cash in financial institution accounts illogical. Corporations paying an average yield bond in dividends have hit a 15 year high. There is a low tax rate on dividends. Many are using dividend-paying stocks to protect from inflation with a revenue stream. The only problem with the dividend-paying stocks and shares is that they're protected with Bush tax cuts. If those go, so will the reputation of dividend-paying stocks.

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So, now we have to face the pricing trouble too? But as the economic condition is getting better, so now we cann't hope an improvement in hardwood flooring price?

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Hardwood flooring There are still other suppliers who didn't Increase the price of their products. This is a chance for small suppliers to be on the frontline.

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