Economic Slump Spurring Creative Carpet Strategies

Calhoun based Mohawk Industries reported a 23 percent decline in the past year. Similar slumping industry performance has forced over 2000 layoffs in the Northwest Georgia region.

Now officials in the flooring industry are thinking creatively to get through tough times. Part of that creativity means diversifying markets. Mohawk is ramping up commercial carpet production to help offset lack luster home flooring sales. Mohawk is also increasing domestic production of laminated floors. Officials hope this will stretch a weakening US dollar as well as cut down on fuel prices.

Meanwhile, fuel costs have spurred rival flooring firm Shaw Industries to begin producing bio-fuels. The Dalton based company is hoping a bio plant in Alabama will save three dollars a gallon on distribution costs. Still, these efforts aren’t expected to bring the industry out of the slump. Many in the industry expect tough times to last until the end of 2009.