Mohawk Industries, Inc. (MHK)

While the Mohawk brand is one of the most respected brands in the industry and well known for it's supplier confidence the housing/commercial market continues to get hammered and I see no relief till mid to late 2010. Several divisions such as the Dal Tile brand which is number 1 or 2 in the commercial market appear to be heading south rather quickly in 2009 with currently no end in sight. I am farily familiar with the Dal Tile brand(s) and believe the Dal Tile and related branding have done a absolutely horrible job in the market place. Dal Tile being a manufacturer continues to be a competitor rather than a supplier to the industry. The American Olean brand by Dal Tile has fallen off the face of the earth in California and much of the west as their corporate decisions over the last year has disseminated or alienated the majority of American Olean independent distributors. . Dal Tile still struggles in bringing their products to market place as it appears they would rather be a competitor rather then a supplier to the industry. They have designed their own store structure so even their own outlets compete with each other resulting in lower margins in areas with high store concentrations. With only about 220 stores nation wide you would think reworking the distribution network would be a high priority as I would rather see 2000-3000 independent distributors working through distribution centers rather the only around 220 stores to distribute though out the whole United States. If this division ever does figure out an intelligent distribution plan I believe they would blow by the other Mohawk divisions, but from what I see of the mediocre management that wont be happening anytime soon.