Chas Sydney

Rugnews.com Interview: RUGS BECAME A MAJOR INDUSTRY OVER PAST 25 YEARS AT ATLANTA MARKET CENTER

By Janelle Lampp

ATLANTA -- In 1980, when Chas Sydney joined the Atlanta Merchandise Mart, there were five major floor covering markets in the US: Atlanta, Chicago, Dallas, New York and San Francisco. The markets took place back-to-back fhrough most of the months of January and July.

Today, a quarter century later, a lot has changed. The Atlanta Market Center has become the country's hub for rug wholesaling.The only multi-product floor covering market is the annual Surfaces event in Las Vegas.

In a wide-ranging interview with Rugnews.com, Sydney talked about the changes in floor covering markets and the rise of the rug industry over the past quarter century.

The Atlanta Merchandise Mart is now the Atlanta Market Center, housing permanent wholesale centers for home furnishings, home accents, gifts, apparel and rugs. The three  buildings  in the AMC campus are collectively known as AmericasMart.

In the process of re-inventing itself, AmericasMart has now become the leading wholesale center in the US for the rug industry.

When the doors open Jan. 19 at the Atlanta International Rug Market,  there will be over 500,000 sq. ft dedicated to rug products, a five year high in exhibitor participation. There will be 130 permanent showrooms and 58 temporary exhibits.

In his 25 years at AMC, Chas Sydney's duties have expanded significantly. He  is now senior vice president of new business development of AMC, Inc. a post he has held since October 2003, in addition to his long-standing role of senior vice president of floor coverings.

Today, the Chicago, Dallas and San Francisco floor covering markets no longer exist. However, the Atlanta International  Rug Market is  now the largest of its kind in the country.

AmericasMart management  has worked hard to earn the loyalty and support of the area rug industry, Sydney told Rugnews.com in a wide-ranging interview.

  "Rugs were not always a separate industry. They were an afterthought to carpet and furniture," Sydney noted. "The AMC created a home for rugs and helped to make it a self-standing industry. We are happy to a part of this business.€VbCrLf

In 1980, when Sydney joined the Mart, soft floor covering occupied a floor and a half  of the Mart. Most of the vendors were broadloom carpet producers. The only three selling  rugs were Capel, Couristan and Transocean.

At about the time Sydney joined AMC, the Mart was taking its first steps to build up its rug business with the sponsorship of  the first International Carpet & Rug market in the U.S. It was backed by the Carpet & Rug Institute (CRI), the State of Georgia, and the Department of Commerce.

"We had between 2,000 and 2,500 international buyers who attended that show. Exchange rates were good and merchandise was cheap,€VbCrLf said Sydney. Middle Eastern countries, previously only exporters of goods, were beginning to import carpet from the US. One notable new buyer was Mohammed Farid, owner of Oriental Weavers, a company which at that time distributed floor covering but did not yet manufacture.

The International Carpet & Rug Market was a huge success spurring the growth of the Atlanta floor covering market to four floors. Permanent exhibitors sold carpet, ceramic, resilient flooring, wood and rugs. Major fiber producers such as DuPont, Allied Chemical, Monsanto, Enka and Dow Badische had showrooms in Atlanta and hosted huge all-industry parties that some estimated cost a million dollars. Atlanta became the de facto national floor covering market.

In 1982, Sydney read about an Oriental rug trade show in New Orleans and went to visit. "I met Nasser Rahmanan, Gene Newman, Dan Hodges and a few others, and invited them to come to Atlanta. That  developed into the January rug show,€VbCrLf said Sydney. Approximately 20 vendors filled half the second floor for the first temporary show, which quickly became permanent.

"The growth continued with the NAME show,€VbCrLf Sydney recalled. The National Accessories and Maintenance Exhibitors show focused on tools and supplies for the carpet industry, much like the basement of Surfaces, today.

A recession hit the country and the floor covering industry in 1990/1991. At the same time, Surfaces opened its doors in Las Vegas. The AMC management expanded to California about the same time, with a show in Pasadena.

The first year, a huge rainstorm put a damper on  attendance, but the show continued to run for a couple of years. As the recession dragged on, AMC executives decided it was in the best interest of the industry to leave the West Coast and re-focus on the core business in Atlanta.

"That was a tough time for the country, for the industry and for me personally.€VbCrLf recalled Sydney.

Surfaces was gathering strength and the recession was in full play. Many of the carpet vendors decided to move their show to Las Vegas. They were sure that it would cost less to run a show in a temporary exhibition space and that the Las Vegas venue would add some pizzazz to their business.

" I don't think the cost savings ever materialized, because the AmericasMart is unique in the market center business. Rent here is all inclusive, not a la carte as it is in Las Vegas.€VbCrLf said Sydney.

Just before the carpet vendors made a major exit from  the AMC, the National Oriental Rug Show (NORS) had  been formed and the Mart was firmly in support of the rug industry.

 "We kept our eye on the Atlanta market and committed ourselves to the growth and support of the rug business. We are really behind the rug business. We promote and emphasize it to the greatest degree. We want to give back to the business.€VbCrLf Sydney emphasized.

AmericasMart's commitment to rug is evident in the many rug industry  activities it sponsors. In January, AMC hosts the Magnificent Carpet Awards, which is co-sponsored by Architectural Digest magazine. In July, AMC sponsors the  Retailer of the Year (ROY)Awards which honors excellence in rug retailing. AMC also contributes to various charitable funds through ORIA and other rug industry sponsored charities.

AmericasMart has a mailing list of 15,000 stores which is used to mail announcements for the shows, Awards announcements,  co-op ads and postcards with showroom tenants and the company's semi-annual The Market magazine.

Future plans for AmericasMart call for diversification, according to Sydney  "We feel that we have penetrated the rug business and that for future growth we must look outside our industry€VbCrLf he said.

AMC is now concentrating on cross-marketing efforts, said Sydney.

The overlap in the gift and rug markets will continue. The two Summer shows run concurrently, while the Winter events dovetail at the end of gift and the beginning of the rug show. 

A new building is being built on the site of the old  Greyhound bus station. It will house three to four new exhibit halls and showrooms for additional furniture and accessories tenants. There will be up to 18 new floors that cross product lines and support the rug business in its efforts to sell to the other sectors of home furnishings.

 

Janelle Lampp

Contributing editor Janelle Lampp is a well-known lifestyle designer of rugs and other home products.

12.19.05