Article Number: 4973
Shaw returns to the Outback, Acquires Australian wholesaler for commercial distribution
By Matthew Spieler
MELBOURNE, AUSTRALIA—Shaw Industries has once again taken up residence in the land down under by acquiring commercial distributor Purchasing Solutions.
This is Shaw’s second ownership venture in this part of the world. The company once owned and operated carpet manufacturing facilities here but sold them to New Zealand’s Feltex in 2000. Purchasing Solutions began supplying Shaw products to the Australian/New Zealand markets as an independent distributor in 2006.
Tim Baucom, Shaw’s vice president of commercial marketing and sales, said Purchasing Solutions will be run as a wholly owned subsidiary under the name Shaw Contract Group Australia and will be the exclusive distributor and sales organization for Shaw’s commercial products in Australia and New Zealand.
The new company will be run by Denis Peltier, managing director. He will report through John Davis, vice president of international sales, to Baucom who noted Peltier “had been continually engaged with selling Shaw commercial products back to the time when we had a manufacturing presence in Australia, so it made sense to bring him back to the Shaw organization.”
Davis called the acquisition “another step in Shaw’s growth as the floor provider of choice to international markets. Shaw Contract Group Australia brings local expertise combined with award winning products, quality and design from the world’s largest carpet manufacturer to this growing market.”
Shaw Australia will maintain its headquarters here with a team of sales representatives who will service all states throughout the country and in New Zealand. The acquisition included all of Purchasing Solutions assets, including offices and warehousing, along with its employees.
“The acquisition will allow us to be a distributor, not just a seller,” Baucom explained. The wholesaler, he added will only sell Shaw commercial products, primarily EcoWorx tile and EcoWorx Performance Broadloom.
Peltier noted the purchase creates a “definite market advantage. Becoming even more closely aligned with Shaw presents the team here with more tools and benefits to supply our customers with the best performing and sustainable commercial products available.”
Baucom said EcoWorx modular carpet products are “the backbone” of the company’s export business. “Modular carpet is a global product due to its ease of transportation and installation. Many U.S. multinational corporations prefer modular products for consistent styling across all of their global locations. Carpet tile will also continue to have [a relevant] market position regardless of the state of the U.S. dollar, whereas residential products are more significantly impacted by currency fluctuations.”
Another reason for focusing on EcoWorx has to do with the products’ Eco Solution Q nylon components that are certified through Good Environmental Choice Australia, the only environmental labeling program in the country.
“As in most commercial markets around the world,” Baucom explained, “product sustainability is very important in Australia. Good Environmental Choice is an extensive and comprehensive labeling program in Australia.”
He added this system is similar in nature to the popular Leadership in Energy and Environmental Design (LEED) environmental building rating system from the U.S Green Building Council (USGBC). “LEED does have some traction in Australia, but serves more as a model, as the program does not certify building projects there. The Green Star program is similar in nature to LEED and, currently, 11% of Australia’s commercial office buildings are Green Star certified.”
In the end Baucom said Shaw Commercial’s expanded presence in Australia and New Zealand “increases the level of service available for customers in these markets while reinforcing the strength of the company’s vertically integrated approach to the production of sustainable flooring products for commercial environments.” As an example, he cited the fact Shaw’s EcoWorx products are supported by the mill’s international environmental guarantee program. That means the company will collect and recycle EcoWorx products in Australia, turning them into more EcoWorx backing at no charge to the customer—“the customer is responsible for bringing product to an international port for shipping.”
The addition of the Melbourne facility, brings the number of showrooms Shaw Contract Group operates around the world to seven, with the other locations in London, Singapore, Shanghai, New York, Chicago and San Francisco.
MELBOURNE, AUSTRALIA—Shaw Industries has once again taken up residence in the land down under by acquiring commercial distributor Purchasing Solutions.
This is Shaw’s second ownership venture in this part of the world. The company once owned and operated carpet manufacturing facilities here but sold them to New Zealand’s Feltex in 2000. Purchasing Solutions began supplying Shaw products to the Australian/New Zealand markets as an independent distributor in 2006.
Tim Baucom, Shaw’s vice president of commercial marketing and sales, said Purchasing Solutions will be run as a wholly owned subsidiary under the name Shaw Contract Group Australia and will be the exclusive distributor and sales organization for Shaw’s commercial products in Australia and New Zealand.
The new company will be run by Denis Peltier, managing director. He will report through John Davis, vice president of international sales, to Baucom who noted Peltier “had been continually engaged with selling Shaw commercial products back to the time when we had a manufacturing presence in Australia, so it made sense to bring him back to the Shaw organization.”
Davis called the acquisition “another step in Shaw’s growth as the floor provider of choice to international markets. Shaw Contract Group Australia brings local expertise combined with award winning products, quality and design from the world’s largest carpet manufacturer to this growing market.”
Shaw Australia will maintain its headquarters here with a team of sales representatives who will service all states throughout the country and in New Zealand. The acquisition included all of Purchasing Solutions assets, including offices and warehousing, along with its employees.
“The acquisition will allow us to be a distributor, not just a seller,” Baucom explained. The wholesaler, he added will only sell Shaw commercial products, primarily EcoWorx tile and EcoWorx Performance Broadloom.
Peltier noted the purchase creates a “definite market advantage. Becoming even more closely aligned with Shaw presents the team here with more tools and benefits to supply our customers with the best performing and sustainable commercial products available.”
Baucom said EcoWorx modular carpet products are “the backbone” of the company’s export business. “Modular carpet is a global product due to its ease of transportation and installation. Many U.S. multinational corporations prefer modular products for consistent styling across all of their global locations. Carpet tile will also continue to have [a relevant] market position regardless of the state of the U.S. dollar, whereas residential products are more significantly impacted by currency fluctuations.”
Another reason for focusing on EcoWorx has to do with the products’ Eco Solution Q nylon components that are certified through Good Environmental Choice Australia, the only environmental labeling program in the country.
“As in most commercial markets around the world,” Baucom explained, “product sustainability is very important in Australia. Good Environmental Choice is an extensive and comprehensive labeling program in Australia.”
He added this system is similar in nature to the popular Leadership in Energy and Environmental Design (LEED) environmental building rating system from the U.S Green Building Council (USGBC). “LEED does have some traction in Australia, but serves more as a model, as the program does not certify building projects there. The Green Star program is similar in nature to LEED and, currently, 11% of Australia’s commercial office buildings are Green Star certified.”
In the end Baucom said Shaw Commercial’s expanded presence in Australia and New Zealand “increases the level of service available for customers in these markets while reinforcing the strength of the company’s vertically integrated approach to the production of sustainable flooring products for commercial environments.” As an example, he cited the fact Shaw’s EcoWorx products are supported by the mill’s international environmental guarantee program. That means the company will collect and recycle EcoWorx products in Australia, turning them into more EcoWorx backing at no charge to the customer—“the customer is responsible for bringing product to an international port for shipping.”
The addition of the Melbourne facility, brings the number of showrooms Shaw Contract Group operates around the world to seven, with the other locations in London, Singapore, Shanghai, New York, Chicago and San Francisco.
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