The flooring industry is evolving rapidly, driven by technological advancements, market trends, and shifting consumer needs. To better understand these dynamics, Cyncly recently conducted an extensive survey with over 200 flooring industry professionals. This comprehensive study sheds light on business priorities, technological gaps, staffing challenges, and growth strategies—offering a roadmap for businesses aiming to adapt and thrive in 2025.
As we step into the new year, these insights provide flooring businesses with a valuable opportunity to set clear goals and strategic priorities. With innovation, adaptability, and workforce planning at the forefront, the year promises significant opportunities for growth and success. Let’s explore the key findings and actionable strategies for navigating the path forward.
Cost Pressures & Growth Ambitions
One of the most pressing challenges for industry professionals is balancing cost pressures while striving for revenue growth. Rising material costs, labor shortages, and operational inefficiencies have pushed businesses to seek smarter solutions.
Pro Tip: Automate workflows to reduce inefficiencies and improve financial health. For example, integrating tools that streamline invoicing, quoting, and inventory management can save both time and money.
Real-World Example: A flooring retailer in Texas recently implemented an end-to-end Enterprise Resource Planning (ERP) system to automate manual tasks, reducing their operational costs by 15% within six months.
Portfolio Diversification Beyond Flooring
The survey revealed a strong push toward diversification, with 60% of flooring companies expanding their service offerings to capture new revenue streams. Top areas of diversification include:
- Countertops: 75% of respondents
- Cabinets: 62% of respondents
Diversification allows businesses to meet evolving consumer demands while establishing themselves as one-stop shops for home improvement projects.
Pro Tip: Analyze market demand in your area before diversifying. Invest in training and marketing to ensure your new offerings match your quality standards.
Scenario: A family-owned flooring company in Florida added cabinet installations to its portfolio, leveraging existing customer relationships to cross-sell services. Within a year, their revenue grew by 20%.
Streamlining Operations with Simplified Workflows
Manual tasks and inefficient workflows remain significant pain points for flooring businesses. The survey identified key gaps in technological adoption:
- Accounting: 29%
- Project Management: 12%
- Quoting: 39%
- Inventory Control: 47%
Pro Tip: Adopt an integrated technology suite to centralize operations and eliminate silos. Look for systems that combine accounting, inventory management, and project tracking into one platform.
Real-World Example: A flooring contractor in California implemented a project management tool that integrates with their ERP system, reducing project delays by 25%.
Revenue Growth: The Top Business Priority
Unsurprisingly, 74% of respondents identified revenue growth as their top business goal. Expanding profitability and staying competitive requires strategic planning and targeted investments.
Pro Tip: Use data analytics to identify your most profitable product lines and customer segments. Focus your marketing efforts and inventory stocking accordingly.
Scenario: A mid-sized flooring company in Ohio analyzed sales data and discovered that luxury vinyl tile (LVT) accounted for 40% of their profits. They ramped up LVT promotions and increased inventory, resulting in a 15% boost in sales.
Technology Integration: A Game-Changer
Technology is critical for addressing operational challenges. According to the survey:
- 56% of participants emphasized the importance of a fully integrated technology suite.
- Cost and ease of integration were cited as top priorities.
Pro Tip: Invest in scalable, user-friendly technology that aligns with your business size and goals. Avoid patchwork solutions; instead, prioritize platforms that offer seamless integration.
Real-World Example: A flooring distributor in New York replaced multiple disconnected tools with a single ERP system, reducing administrative overhead by 30%.
Tackling Staffing Challenges
The labor shortage remains a significant hurdle, with 60% of respondents identifying it as a top challenge. Key issues include:
- Hiring and training new employees (45%)
- Reducing labor costs (42%)
Despite these challenges, 60% of companies plan to increase staffing over the next five years.
Pro Tip: Create an attractive work environment by offering competitive wages, training programs, and career development opportunities.
Scenario: A flooring company in Colorado launched a training academy for new hires, reducing turnover by 20% and improving employee satisfaction.
Marketing Challenges: Driving Traffic & Acquiring Customers
Attracting customers remains a top priority, with 40% of respondents citing driving traffic as a critical challenge. Current marketing channels include:
- Social Media: 86%
- Google My Business: 69%
- Paid Search: 51%
- SEO: 50%
Pro Tip: Diversify your marketing strategy by investing in underutilized channels like email campaigns and text messaging to increase customer engagement.
Real-World Example: A flooring retailer in Chicago boosted website traffic by 25% by implementing a targeted email marketing campaign featuring seasonal promotions and exclusive offers.
Strategic Opportunities for 2025
Based on the survey findings, here are actionable strategies flooring businesses can implement to thrive in 2025:
- Adopt Integrated Technology Solutions: Streamline workflows by addressing operational gaps in quoting, accounting, and inventory management.
- Diversify Your Portfolio: Explore adjacent markets like countertops and cabinetry to create new revenue streams.
- Strengthen Marketing Efforts: Leverage untapped channels such as email and text campaigns to drive customer engagement.
- Focus on Workforce Planning: Invest in training and development to address staffing challenges while reducing turnover.
- Simplify and Automate: Use automation tools to reduce labor costs and boost efficiency.
Conclusion: The Path Forward
Cyncly’s survey offers a blueprint for flooring companies navigating today’s complex market. By focusing on technology, operational efficiencies, diversification, and workforce planning, businesses can position themselves for sustainable growth and profitability.
The flooring industry is poised for innovation and adaptability in 2025. By leveraging these insights and implementing strategic changes, businesses can overcome challenges and seize opportunities for a prosperous future.
