Being able to adapt to changing market conditions and new challenges is the best ability a business can have. For some businesses, these difficulties were too much and forced them to close down. Thankfully, just as Heritage Oak has adapted to conquer past challenges, we have continued to do so. With our diverse product line of hardwood products, Heritage Oak still remains strong during uncertain times. In addition, we believe it is critical that our customers know the hurdles the hardwood industry is working to overcome.
With rising interests and higher material costs, homeowners building a house can easily go over budget or run out of money. As flooring is typically one of the last installments to happen, these issues can cause great concern for businesses, especially those who just offer flooring products. Furthermore, this is just one of the many challenges that the hardwood industry is facing as we approach the new year.
2022 Market Conditions of Product and Labor Market Challenges
Over the course of the past few years, businesses have experienced problems across almost all aspects of their business. The most notable (more than 86 percent) being disruptions that still continue to plague the supply chain. Furthermore, labor shortages are still a factor (more than 74 percent) as skilled labor is a rare commodity.
Hiring experienced installers, sanders, and finishers have been creating struggles for businesses across the industry. Even new hires with basic industry knowledge / training from trade schools are hard to acquire.
Competitive pay is definitely enticing to skilled workers looking for a job. However, being a part of a business is more than just the pay. A company’s atmosphere has been shown to be equally as important. By recognizing each team member’s value, businesses can continue to grow and improve their workplaces.
While businesses are trying to overcoming these hurdles, they are also experiencing:
- A drop in sales
- Price increases
- A build up of back orders
- Rising fees for inventory storage
- Freight disruption
- Production facility shutdowns or scalebacks
How the Hardwood Industry Supply Chain is Preparing to Tackle 2023’s Challenges
Every year brings its own set of challenges. According to the National Wood Flooring Association’s report, the major factors that can spell trouble for businesses in the new year consist of:
- The economy and less demand from consumers (72 percent)
- Supply chain disruptions (43 percent)
- Labor shortages (43 percent)
To prepare for the new year, businesses throughout the hardwood industry are focusing on improving their business. As the markets change, businesses are adapting to fit the needs of the consumers. Companies are working to become more efficient in order to develop and enhance themselves by:
- Improving processes (72 percent)
- Offering new services or product categories (43 percent)
- Bringing in new team members
- Investing in technological advances
- Seeking new supply chain business partners
Predicted Hardwood Trends
As 2023 approaches, businesses not only seek to find unique solutions to their situation, but also to the trends and demands of the consumers. The demand for smoother and more natural hardwood species and colorations has been steadily increasing. Hardwood types such as white oak and red oak are in high demand as natural hardwoods are becoming popular. Due to competition from other flooring types, natural and light colors will be in higher demand for hardwoods and engineered flooring. This is because the natural colorations of wood can be hard to imitate in flooring options like vinyl.
Curious about other market challenges facing the hardwood industry? Check out National Wood Flooring Association’s Report on 2023 Industry Outlook
Interested in bringing hardwoods into your home? Reach out to one of our professional hardwood experts! We would love to help answer all your questions about hardwoods so you can feel confident in your decision!