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You are here:News»GFA forecasts a slowdown of the market
Monday, 13 June 2022 10:07

GFA forecasts a slowdown of the market

Last month, the Global Flooring Alliance (GFA) scheduled an additional meeting to discuss the current market situation in the flooring industry. High inflation, rising energy and transport costs and the war in Ukraine are putting pressure on margins worldwide.

Although the members of the Global Flooring Alliance are still reporting positive sales growth, profit and margins are under pressure.
They therefore conclude price increases are necessary because of all these costs. However, caution is advised in this regard since the consequence of this is that at the end the consumer is presented with the bill. The market should not be ‘locked’ due to ill-considered price increases.
GFA keeps a close eye on interest rates which threaten to slow the economy at the moment. In addition, delivery times and availability of products are also putting pressure on the market. The members of the GFA are therefore cautious with precise forecasts for the second half of 2022. They expect a slowdown and possibly a decline in sales compared to the same period last year.

The GFA sees partnership as the key to dealing with the current market conditions. Maintain a good relationship with supplier and customer and share the pain. Work together wisely and thoughtfully. Don't just switch suppliers. It is especially important now to understand partnership and put it into practice.
A positive market approach applied in this way can take the sting out of today's challenges. Despite these many challenges of this moment, members of the GFA view the continued growth in turnover as promising. The housing markets in the countries of the members affiliated with the GFA are also still outperforming.

GFA chairman Einar Gottskalksson emphasizes the importance of cooperation and partnership: “The massive inflation and cost increase worldwide and the unpredictability of delivery times calls for a sensible partnership with suppliers and customers. This is not only about supporting each other with regard to logistics and products, but especially the exchange of information and the sharing of experiences is invaluable. Information sharing has made Global Flooring Alliance an important partner for the trade for over 30 years, offering precious added value for its affiliated members.” The Global Flooring Alliance hopes to welcome new members at the General Meeting which will be held later this month.

More information regarding Global Flooring Alliance can be acquired via the website www.globalflooringalliance.com 

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