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By Lissa Wyman
The dollar is weak. Customs security is tight. Competition is tough. To help alleviate some of those headaches, rug importers are finding new sources of supply right here in the USA.
Importers such as Trans-Ocean, Hellenic and Capel have introduced domestically made machine-made products in recent months.
The concept of contracting with competitors is fairly new for the rug business, but it's commonplace in the carpet industry. In fact, some carpet mills exist solely as contract-jobbers.
Importers say there are several advantages for sourcing in the US:
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Trading dollars for dollars in a volatile currency market helps control costs.
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More direct control over production. A quick trip to a domestic production facility is less costly than an overseas trip.
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No language barriers or misunderstandings.
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No overseas shipping headaches and hang ups at customs.
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Shorter runs allows for faster turn on investment.
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Styling changes can be made quickly.
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No capital investment in costly machinery.
There are also obvious advantages for the supplier:
Most of the importers we interviewed declined to say who their sources are, but any company with a Van de Wiehle loom could be new source of supply.
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Trans Ocean's Visions collection retails for
$225 in 5'4" x 7'8." size.
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Trans Ocean Imports was one of the first rug importers to take advantage of U.S. manufacturing. The initial reason was a fascination with the Millitron injection-dyeing technology, according to Charley Peck, president.
"We have been very interested in the Millitron system for several years, and we wanted to experiment," said Peck.
Liora Manne, Trans-Ocean's chief designer, began exploring Milliken's injection-dyed Millitron patterning equipment approximately two years ago. "The partnership is working extremely well. With the Millitron products, we are able to give our customers quick delivery on proprietary products," said Peck.
Peck pointed out that one of the defining features of the Millitron system is the fact that production is quick, making deep back-up inventory unnecessary.
"This is especially important with customers such as furniture and specialty stores, where fashion turn-around is very fast," Peck pointed out.
Trans Ocean is not the only Milliken rug customer. Newcomer Gulistan Rugs is also using the technique, according to Milliken.
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Capel Belmont collection in Polonaise design. It retails for $299.95 in 5'3"x7'6."
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Capel is well known as a long-time manufacturer of braided rugs and as an importer of both machine made and hand made rugs.
Recently, Capel introduced two groups of US-made Wilton-woven rugs. Belmont is a densely woven 1.5 million point olefin construction featuring traditional styling. Tiburon has a natural sisal look and is machine woven of olefin with a leather border. It retails at $279.95 in 5'x7'8."
"Contracting products from a U.S. maker is a way for us to expand into a new direction,€VbCrLf said A. Leon Capel, president. Capel declined to name the domestic manufacturer, but said the rugs are being made in Dalton, GA.
The sad state of the U.S. dollar in relationship to the Euro is a factor in developing U.S. production, but the availability of larger sizes is another reason for Capel to use domestic manufacturing.
"There is a growing demand for Mansion sized rugs at moderate price points. Those extra large sizes have generally been available as one-of-a-kind hand made products at very high prices," Capel pointed out. "In addition to conventional sizes, we are stocking the new Belmont line in extra-large sizes from 10x14 to 14x21. They will be priced from $2,000 to $2,900,€VbCrLf Capel said.
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Hellenic Elegance Collection retails
at $129 in 5x8.
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Hellenic Rug Imports brings in rugs, textiles, carpets, home accents and wood floor from nearly every part of the world, so why not the U.S.A.?
" Hellenic recently allied itself with probably the best machine made manufacture in the USA," said Steve Mazarakis, president. He declined to name the source.
Stable pricing and styling capability are two reasons that Hellenic is sourcing in the U.S., Mazarakis stressed. "The Elegance collection is the first of many collections that will be made in the USA. The abundance of multi color creels allows Hellenic's design team to put together rugs at unbelievable prices to coordinate easily with today's fashion colors."
The rugs retail at $129 in 5x8.
Hellenic's Elegance collection was designed by Kate Goodhew, Hellenic's corporate designer. Made of fine-denier heat-set olefin with 12 mm pile height, the rugs retail at $129 in 5x8.
Although Mazarakis declined to reveal the company's American source, he noted that there are distinct advantages for both sides of the relationship. "Price, quality and productivity along with a great working relationship with great people are all great reasons for this alliance. A five percent freight saving, short lead times and great communications by understanding the market needs are other strong factors," he said.
There's also a matter of patriotism. "In today's global unrest, Hellenic takes pride in printing a label that reads 'MADE IN THE USA' ,€VbCrLf said Mazarakis.
For other major importers, there are no current plans to source in the US. But that doesn't mean the door is closed forever, according to Alex Peykar, president of Nourison. "When and if we are presented with a good opportunity and good management in the U.S., we might be interested," he said.
"Currently, we have our own production in China," said Peykar. "We want to be in charge of our own destiny and that means control over loom time."
Peykar also noted that Nourison's long-standing relationship with Shaw Living may also be a factor in any future decision to contract with another U.S. manufacturer.
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CORRECTION: An earlier version of this story indicated that Nourison plans Egyptian rug production. That is incorrect. Rugnews.com regrets the error. | |