Twenty-year-old manufacturing business, offering custom hardwood floor product lines with access to high quality raw materials, allowing for the ability to deliver distinguished woodworks in the luxury hardwood flooring arena at competitive pricing. The business operates out of an 11,500 SF facility (4,000SF Manufacturing, 5,000SF Warehousing, and the rest office space).
The company’s primary points of differentiation revolve around its custom and finishing capabilities. Its private label brand increases customer loyalty, and profit margins. The business also carries a line of exclusive finishes and adhesives. Inventory needs to be purchased separately.
The company is able to achieve high levels of quality control to meet Clients’ desired products, as the work is mostly done by hand and is closely inspected with great deal of care placed into the production of every order.
The business also obtains their materials from sustainable sources. Products are all Certified Sustainable and are eligible for Lead Point Credits. The adhesive systems they use to assemble their engineered wood products use state of the art adhesive bonding formulas that are strong and resilient. The component adhesive systems are E-1 rated and CARB II compliant.
The Company has a strong & diverse customer base. Its customers come from the LA area (60%) and out of state (40%), and typically fall into one of the following categories: Retailers, Designers, and Contractors.
The owner is selling for personal reasons but will assist during a transitional period. The Caregivers and staff, all of which are W2 employees, are available to work with a new owner.
The global market for wood flooring is expected to rise nearly 7% per year through 2020, according to Technavio. Leading countries for wood flooring manufacture include Canada, China, and the US. The US wood flooring manufacturing industry includes about 90 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $2.6 billion.
Demand for wood flooring is closely tied to residential construction and remodeling activity. The profitability of individual companies depends on efficient operations. Large companies have economies of scale in purchasing machinery and raw materials. Small companies can compete effectively by specializing. Competition for the industry comes from manufacturers of alternative flooring products such as carpet, vinyl, and ceramic tile.
Wood flooring is milled from hardwoods, principally oak but also maple, ash, beech, birch, pecan, walnut, hickory, and others. Oak is popular due to its hardness, low cost, appearance, and wide availability; red oak accounts for about 40% of wood flooring sales. Wood flooring comes in three main shapes: strips, planks, and parquet. Strips typically range in thickness from 3/8 inch to 3/4 inch; in width from 1 1/2 to 3 1/2 inches; and in length from 2 to 3 feet. Planks are 3/4 inches thick and 3 to 8 inches wide. Strips, planks, and parquet are milled so that one side has a tongue, the other a groove, allowing a tight fit when installed.