Energy costs challenge to European flooring
November 2, 2021
Mohawk Industries - the world's biggest flooring manufacturer - has cited energy costs as a key challenge across European markets alongside continuing supply chain issues.
The US-based conglomerate, best known in the UK for Quick-Step, Pergo, Unilin, Leoline and SmartStrand, has said Q3 demand is strong but added that anticipated improvements in the supply chain and the cost of labour and materials had not materialised and were cliniting factors.
Announcing Q3 trading results, CEO Jeffrey Lorberbaum commented: "Tight chemical supplies, in particular, reduced the output of our luxury vinyl tile (LVT), carpet, laminate and board panels.
"For the near term, we do not foresee significant changes in these external pressures. Due to supply shortages, Government regulations and political issues, natural gas costs in Europe are presently about four times higher than earlier in the year. This adds a temporary challenge to our European businesses as the higher costs are reflected in gas, electricity and materials," he said.
Mohawk's Q3 figures showed sales up 9.4% to $2.82 billion.
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