Dear Valued Retail Partners:

It’s a very challenging time for the flooring industry, but we will get through it. I believe now is the time - more than ever to work closely together and align ourselves to weather this storm. At Mohawk, we are experiencing the same pressures managing our business as you, the independent retailer. We are both dealing with rising product costs, increasing fuel prices, slowing demand, and a recessionary housing market. The flooring industry is in its third year of downturn and those who can successfully navigate through this period will be well positioned for the eventual rebound.

Setting Mohawk Apart: One of our core philosophies is to bring enhanced value to our retail partners and we have supported this position through major investments in the business. Over the years, we have consistently invested in our consumer brands, diversified product portfolio, marketing programs and national distribution systems. These investments help fortify our channel partners’ position for the long-term, as well as ours. Today, Mohawk is clearly positioned as a complete flooring company and we believe this is the best way to set ourselves apart, serve our customers and the consumer.

Responding To The Demands of Greater Environmental Responsibility: With all of the media focus on escalating energy costs and climate change, we expect consumer demand for environmentally responsible products to grow. We are proud to provide our customers access to over 500 products that contain recycled content.

In fact, our polyester business illustrates the ultimate solution in environmental responsibility. We divert over 3 billion plastic bottles every year from landfills and convert this high quality, post-consumer plastic into high performance EverStrand™ carpet fiber. And we were also recently named the recipient of the coveted GSA Evergreen Award for Environmental Stewardship for the second time in four years.

The Short and Long Term for the Industry: In the short term, the industry needs to maintain profitability throughout the total chain; from supply partners to manufacturers to retail partners.

We are working hard to compete with the reality of spiraling costs as we continue to take a long-term view and deliver the products and services our retail partners have come to expect. There is no doubt that we are experiencing a challenging business environment, but I believe if we work together, provide consumer focused solutions and maintain profitability throughout the total chain, we will be well positioned for the rebound. The long-term outlook favors the flooring industry.


Jeff Lorberbaum
Chairman & CEO Mohawk Industries, Inc.