The flooring industry is experiencing strong competition and demand is declining for legacy products made with vinyl, laminate, and wood, which tend to be cannibalized by the highly engineered rigid-core LVT products. Mannington has a leading position in rigid-core LVT, which it began manufacturing in a Calhoun, Ga. plant in order to better compete with imports from China. We assume the company's sales will grow moderately in the next 12 months, as steady remodeling activity is somewhat offset by a slowdown in new residential and commercial activity. In May 2019, the U.S. government increased the tariff on certain flooring products coming from China—including LVT, rigid-core LVT, and engineered wood—to 25% from 10%. Mannington sources 20%-30% of its flooring products from
