Global Flooring Alliance (GFA), which recently held a meeting via Zoom conference, reported mixed developments. On the one hand, members report positive sales in the flooring trade, but the continuously rising costs of transport and raw materials worried the members. 

The danger of stagnation is just around the corner, the group reports in a statement. Since the resurgence of trade after the corona crisis many companies have been facing supply problems. This leads to manufacturing issues, late deliveries to customers and price adjustments. The demand from construction, projects and consumers is high and increasing. As long as customers are willing to pay more, and compensate for the higher prices of freight and raw materials, the underlying problems will remain limited. But add the recent problems with delivery times and it is clear that eventually this will put pressure on margins and can turn the positive results so far into a downward spiral.

However, this is not yet the case. GFA members report upbeat figures with a positive turnover and profit over the first half year. The Global Flooring Alliance expects that in 2022 the tense situation regarding freight and raw materials will dominate the market to a somewhat lesser extent. In the coming period, GFA will continue to closely monitor developments on the market and take proactive measures to grow the association with new members.

GFA chairman Einar Gottskalksson emphasizes again the importance of cooperation and partnership in these remarkable circumstances: “The exchange of information and the sharing of experiences proves invaluable and has helped us a lot in times of corona, and will certainly do the same in the face of these new challenges of rising costs of freight and raw materials and the unpredictability of delivery times.”

The market share of interior products and flooring will definitely remain strong but the growth in turnover and profit will probably flatten  somewhat down.

“The members are excited and delighted to have a chance to meet each other again at Domotex 2022," GFA chairman Gottskalksson. "We booked our rooms in Hannover and are ready for our full member meeting next January like we have done for over 30 years. New candidate members will be invited and all signals indicate that it will be a very fruitful meeting.”

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