By Steven Feldman
Lancaster, Pa.—In an effort to better support its customers in the Pacific Northwest, Armstrong late last month established Armstrong NW LLC, which will provide sales and distribution functions to retailers and builder subcontractors solely in Washington, Oregon, Montana, Wyoming, Idaho and Alaska. The move comes six months after Armstrong and Sea-Pac, its longtime distribution partner in the region, severed ties.

According to Frank Ready, president and CEO of Armstrong’s flooring business, when the company weighed its options to best penetrate the market, it realized taking control of the selling effort would not only better its relationship with the retailer, it would have a positive impact on the business.

However, he was quick to clarify this move should in no way be viewed as a template for the company’s approach to business in other markets. “This is not the first step in a bigger plan,” he said. “In the majority of the markets we have great distribution partners that provide the quality and service levels our customers have come to expect from Armstrong.”

As evidence, in this same Pacific Northwest region, Armstrong is retaining the services of Cascade Pacific and Goodfellow U.S. for the distribution of Bruce Hardwood products and Pacific Mat for servicing its commercial products, according to Paul Murfin, vice president of sales.

Ready noted that after Armstrong and Sea-Pac parted ways unexpectedly in November 2006, the manufacturer concluded the best alternative to supply its customers was for it to control the process more directly. “As a supplier, we have an obligation to provide our loyal retailers and contractors with the best products and services possible,” he said. “To fulfill our obligation, this is the best approach over time to provide the service, quality and comfort level our customers expect.”

Remarkably, Armstrong did not experience the dramatic loss of business one would expect when a manufacturer and distributor part ways. Ready attributes this to the strength of its product portfolio coupled with the effort of its Northern California distributor, BR Funsten. “BR Funsten went to great lengths to ensure continuity of supply to the Pacific Northwest on short notice,” he said. “They are a great partner and we appreciate what they did for us in support of our business.”

When the relationship with Sea-Pac terminated, Funsten immediately began taking orders for the market and was shipping product from its Northern California location. Needless to say, this could only be a short-term solution given the expense of shipping to a challenging region. To that end, about two months ago, Armstrong began assembling a dedicated sales team to call on retailers. “The reaction and enthusiasm for the brand has gone up dramatically,” Murfin said. “We are convinced long term this model will position Armstrong as the clear leader in that marketplace.”

Specifics

Armstrong NW LLC launches with a general sales manager, Monte Asken, and an eight-person sales force dedicated exclusively to Armstrong’s extensive product portfolio. They will be responsible for selling Armstrong residential sheet vinyl, MODe luxury vinyl tile, the Armstrong and Robbins hardwood lines and the Armstrong and Bruce laminate brands. Asken is a flooring industry veteran who has held leadership positions in Pacific Northwest distribution.

A full range of product will be inventoried in the Seattle area, Murfin said. The facility became fully operational May 29. “We will offer logistics services that will be equal to or better than anything we have offered this market in the past.” As well, Armstrong has set up a Lancaster-based customer service and credit team that will be available during Pacific Northwest business hours. “We are giving dealers in this marketplace a groundbreaking opportunity to become closer to Armstrong.”

Murfin believes the opportunity to grow the territory is significant across all categories. He noted that these dealers have not been exposed to many of the products Armstrong has introduced over the last six months. “The goal is for our business in the Northwest to be a reflection of the leadership position we enjoy in resilient, hardwood and laminate on a national scale,” he said.

The benefits of this business model may actually be felt on a national scale. “This is Armstrong’s opportunity to learn about and give us a new appreciation for what our distributors have been dealing with on a daily basis,” Murfin said. “We are going into this project knowing the organization will be going through a learning curve.”