Bob Shaw Says Carpet Industry Bottomed in April

Chattanooga, TN, June 19, 2009--Bob Shaw told the Rotary Club of Chattanooga on Thursday that he believes the carpet industry bottomed in April.

"The carpet industry always leads into a recession and is always the first to lead us out," said Shaw, founder and former CEO of Shaw Industries.

"I am convinced we bottomed out in April."

The industry is down about 32 percent from its peak, but Shaw said he expects the economy will be stronger and unemployment lower by the second quarter of next year.

"Everybody wants you to believe that the carpet industry is all new construction," he said, noting that new construction makes up about 22 percent of the residential flooring industry. "Carpet replacement is the biggest part of our business."

Shaw said consumer confidence is the biggest factor affecting the flooring industry, and with confidence increasing, people will soon begin buying new flooring.

"Our business is going to pick up," he said. "Peak to valley we are off 32 percent. We are in the trough right now."

Shaw recently backed up his belief by upping his stake in the The Dixie Group to 12 percent.

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