Explore how Gerflor | Gradus are reshaping the flooring industry through innovation and strategic collaboration
An international market-leading interior contract solutions provider, Gradus is renowned for its wide product range including stair edgings, floor trims, commercial carpet, wall protection, barrier matting systems, and specialist LED lighting. Additionally, the company offers a project management and installation service for these products. Steve Watt, Group Managing Director, provides an overview of Gradus’ journey in the industry.
“I joined the company 28 years ago, when one of our largest customers had just acquired it. As a result, we became owned by the biggest competitor of all our other customers, which was a challenging period. Four years later, we completed a management buyout, allowing us to operate independently. In 2015, we engaged in a significant acquisition deal with Gerflor Group (Gerflor), who had approached us several times over the years. At that time, Gerflor was about a €600 million business, and having become quite acquisitive, it has since grown to approximately €1.5 billion. Our biggest issue during that time was finding a partner that could grow with us in this market, so we needed to avoid another acquisition that could complicate matters for our customers.
“Gerflor had established itself as a market leader in France, Germany, and many other parts of the world, and we believed that, after allowing some time for things to settle, there was a real opportunity for us to leverage its market leadership and brand values to enhance Gradus’ offerings,” he begins.
The integration within Gerflor was a demanding yet rewarding endeavour for Gradus, particularly in terms of cultural alignment. “During the lockdown, we did a lot of work behind the scenes to prepare for a launch at the end of 2020. A crucial aspect of our evolution was developing warehouse distribution and merging the sales organisations to engage more effectively with specifiers.
“Amalgamating two different cultures in the marketplace was not without its difficulties,” he admits. “There were some initial conflicts, but to address these challenges, we introduced a ‘Listen and Learn’ process that encouraged open dialogue to gather feedback on areas for improvement. By organising workshops to implement these ideas, we fostered a more cohesive culture between Gradus and Gerflor. Today, most newcomers would not even spot the difference between the two businesses, as our ethos has evolved to emphasise support and collaboration within the marketplace. We have always believed that being a market leader is not only about size but also about the impact we make. Gradus holds approximately 50 percent market share, and we are focusing on market development for growth. The addition of Gerflor has strengthened our position in the flooring business, making us a more important player in the industry,” Steve explains.
Complementary capabilities
Merging the cultures of Gradus and Gerflor was a significant achievement. An equally important aspect of this integration was ensuring that both companies’ capabilities complemented each other, particularly in shared sales and support functions, all while still preserving their distinct brand identities. “What we discovered is that one of the most important aspects of our business ethos and a key company goal is cross-selling, which aims to provide more products per project. We now have many examples of projects where we managed to achieve approximately £20,000 in benefits, and this has evolved into larger projects worth £200,000 or £300,000. These include wall protection matting, all necessary accessories, and extensive floor covering specifications. The beauty of our sales teams working in clusters is that they can share projects and utilise a Customer Relationship Management (CRM) system to maintain their project banks. All of this
knowledge is shared, which allows for coordinated efforts and joint calls to the right contacts when appropriate. It is important to note that customers, whether end users, general contractors, or clients, generally prefer to deal with fewer points of contact and often dislike a fragmented approach. Furthermore, we have observed quite a bit of repeat business, as clients appreciate the positive experiences we have provided. As a result, they often invite us back for their next projects. This has created a beneficial cycle, fostering stronger relationships and collaboration,” Steve enlightens.
To accommodate its ongoing growth, Gradus and Gerflor have recently invested in two new dedicated facilities. “One of these is a flooring distribution centre located in Winsford, Cheshire. This site is a large unit spanning 100,000 square feet and standing 13 metres high. We operate a fleet of 16 trucks across our two businesses, with seven of those trucks based at this warehouse. The remaining nine represent accessories, but all 16 can float between the two entities in order to maximise service. Additionally, in 2021, we expanded our accessories business by building an extension. This new combined manufacturing unit also covers 100,000 square feet and means we have two factories right next to each other, linked by a tunnel. This setup has greatly enhanced our flexibility in managing manpower movement and addressing any operational pinch points as they arise,” says Steve.
As he looks to the future, Steve shares his vision for Gradus over the next three-to-five years. “Our objective has always been to maintain our current growth levels. Specifically, in the flooring sector, we aim to achieve a ten per cent market share. Currently, there are four competitors ahead of us, including the market leader, and our goal over the next two-to-three years is to secure the number three position in the marketplace. However, we aspire to be respected as if we were number one in terms of how we approach our customers and go-to market. This isn’t just a pipe dream; there are two or three companies, including us, of similar size competing right now. We just need to do our job effectively and make sure that we grow by benefiting from the challenges faced by other competitors,” he ends.
With Gerflor by its side, Gradus is poised for continued success through collaboration, innovation, and strategic growth.