Local economic leaders, former company executive laud planned Armstrong Flooring sale; ‘Very best possible outcome’ | Local Business
Richard Hendricks is in a exclusive posture to offer insightful analysis of AHF Products’ deal to obtain most of Armstrong Flooring’s North American property and retain Armstrong Flooring’s Lancaster facilities running.
The 73-year-outdated East Petersburg resident had a 34-calendar year job with the two companies’ mother or father organization, Armstrong Planet Industries, and labored carefully as a fellow govt with the current CEO of AHF, Brian Carson.
“If you would have called me a 7 days back and questioned, ‘Who would have the most effective prospect of pulling this off and earning it work?’ (the remedy) would have been Brian Carson,” Hendricks stated. The deal “is the extremely ideal feasible outcome for all involved,” he reported.
Adhering to an arrangement announced Sunday, a bankruptcy judge is established to look at the $107 million sale currently. The sale, which must win acceptance from the choose, would have Armstrong Flooring’s Lancaster functions continue under AHF Merchandise, a West Hempfield Township company that began as a 2018 spinoff of Armstrong Flooring’s wooden flooring enterprise. AHF Items is led by Carson, a previous executive for Armstrong Earth Industries, which spun off Armstrong Flooring in 2016.
Some uncertainty dispelled
Even though it is not nonetheless apparent if any of Armstrong Flooring’s 606 Lancaster County positions will be eradicated, news that the local operations would continue was cheered by community financial development officials.
“Armstrong has constantly been doing the job to guarantee the sale was in the greatest fascination of their stakeholders, inclusive of those in the Lancaster community,” explained Heather Valudes, president and CEO of the Lancaster Chamber. “It is excellent information that an additional regional business enterprise is buying belongings and that they will proceed to operate in Lancaster. AHF has been developing and is certainly a leader in the flooring marketplace.”
Lisa Riggs, president of the Economic Advancement Organization of Lancaster County, reported the sale announcement is welcome information pursuing months of uncertainty about the destiny of the company’s nearby operations.
“It sounds like (Armstrong Flooring’s Lancaster plant) will carry on to be a critical asset relocating forward and will proceed to operate. That to me is a big constructive,” Riggs explained. “It’s heading to be operated by somebody with a new title, but it displays the strength and quality of (Armstrong Flooring’s) item, and that it is a practical merchandise in the current market.”
In June Armstrong Flooring said 215 men and women labored at its Lancaster town services on Dillerville Highway and Loop Road, and about 391 worked at, were assigned to, or described to the corporate place of work on Hempstead Road in East Lampeter Township. Even though Armstrong Flooring has mentioned its North American places will run as usual, it’s not crystal clear however if there would be some area work cuts.
Riggs said the Economic Improvement Company of Lancaster County is keenly intrigued in regardless of whether all those employment will be retained but adds that any person who is laid off will uncover a sturdy neighborhood financial state wherever all sorts of employees are in demand.
Dave Hanson, CEO of Lancaster-based mostly Fulton Financial Advisors and Fulton Private Lender, agrees. He reported that with Lancaster County’s unemployment fee down below point out and nationwide averages, “our area overall economy gives opportunities in the party that any staff members would be displaced.”
An insider’s perspective
At 1st glance, Hendricks, who grew up in East Hempfield Township, would have minimal motive to talk up with praise for AHF’s Carson. The two were being on unique sides of a sensitive problem when they labored at Armstrong Environment Industries.
A administration shakeup resulted in Carson taking Hendrick’s govt part. Hendricks, who retired in 2005 soon after a 34-12 months occupation with Armstrong Planet Industries, documented to Carson for the duration of his ultimate assignment as a plant manager in Kentucky.
However, Hendricks claimed he continued to admire Carson, who aided navigate his individual exit from the organization.
“He handled me quite perfectly. I can’t say ample about him. He’s an fantastic option. He’s a knowledgeable supervisor, he’s very well believed of and he’s proficient,” Hendricks mentioned.
Carson, who commenced with Armstrong Entire world Industries in 1990, still left the organization not extended just after Hendricks retired. In 2006 Carson, joined Mohawk Flooring, an Atlanta-dependent manufacturer of carpet, wood, vinyl, tile, and rugs. Mohawk, Armstrong Flooring and AHF all contend in comparable flooring marketplaces. Carson returned to Lancaster County in 2019.
“(Carson) understands that small business inside and out and he’s been thriving in his other flooring ventures with Mohawk and everything because. The point that he is part of that team that is performing it (looking for to obtain Armstrong Flooring) is really fantastic information,” Hendricks said.