One of the hardest hit industries in the economic downturn has been the carpet industry. Outside of a city inIndiana,Dalton,Georgiahas been said to have the highest unemployment rate at somewhere over 13%. You don’t see the local vehicle traffic you did six months ago, the restaurants aren’t as full and the tractor trailers coming downWalnut Avenue, the main street to the interstate, are few and far between. But, aside from business being off in some sectors from 10 to as much as 30%, no carpet manufacturer has gone to the government looking for a bail out. Why is that?
This is a very sophisticated and unsophisticated industry at once. It is not a particularly labor intensive industry. It is an adaptable industry and very flexible. The carpet industry has adjusted to the slowdown by actually getting more sophisticated. You may have heard of plant closings but many of those are due to the elimination of batch production processes. For example, many of the plants being closed have been yarn spinning mills. This is a process that has multiple steps and high costs. More continuous filament fiber is being used in carpet which can be literally taken from the fiber extruder to the tufting machine eliminating costs, steps, processes and yes jobs. But it does make the industry more productive, efficient and lowers manufacturing costs. It will also eliminate claims because continuous filament in cut pile carpet will not shed like staple fiber will. This means less fuzzing and thus fewer claims which drain profits from manufacturers and dealers.
New tufting technologies are being used, whereby complex patterns can be made using circles, squares and any other form imaginable, without shifting needle bars burying expensive yarn in the backing. This saves on yarn costs, the most expensive part of the carpet and eliminates claims for dimensional stability and installation issues. Making intricate patterns with yarns that run straight, eliminates widthwise expansion and contraction which prevents shrinkage in the width and buckles and wrinkles. Straight row tufts also allow the installer to follow a tuft row to make a cut or seam preventing yarns from being nicked or cut and fuzzing. As long as the installer knows what he’s doing and seals the seams as must be done, the construction of the carpet will lend itself to being more installation friendly. All this lowers costs, eliminates waste and prevents claims losses.
Though this is a multi- billion dollar industry there is nothing pretentious here inDaltonwhich has boasted in the past as having more millionaires per capita than any other city in theUnited States. No one here has let their success bloat their ego; this is a very grounded industry.
During these times the industry has taken the opportunity to implement technological changes and advances. They are taking advantage of new manufacturing processes that mean making investments so they’ll be ready when business picks up. In 38 years in this industry and living and working in the middle of it, I have never seen a time where more “new stuff” is being implemented and where minds were more open to it. We will be a cleaner, leaner, and more efficient, less problem producing and more problem solving industry by the time things are humming along again. Opportunities are being taken advantage of.
Now, if this can be done in little oldDalton, it can be done with your business as well. You have to look for where you can cut costs, eliminate waste, lower the incidences of cash draining claims and increase efficiencies. You have to sell better products that give you no cause for a complaint, have them installed by the best installers, NOT THE CHEAPEST, which will come back to haunt you and you have to look for every opportunity you can that will make your business better. Start by making yours a place people will want to shop for flooring.
One last thing I’ll share with you as an example of how a retailer has paid attention to the shopper. Bloomingdale’s in Buckhead has put lounge chairs all over in the women’s departments so that men who accompany them can sit and relax – the women cab shop leisurely. Macy’s even has little TV’s to sit and watch; simple yes, but oh so effective. It doesn’t take genius to figure this type of stuff out, just observation, common sense and knowing your customer.
Author: Lewis G. Migliore
LGM and Associates – The Floorcovering Experts