Car-accessory maker revs up for even more growth

SMART INVESTMENT: Since President and CEO Thomas Melucci, center, and Richard Bready, right, bought Hope Valley Industries out of bankruptcy in 2002, the company has made a mark on the global automobile market, becoming recognized by both Ford and GM for the quality of its floor mats, produced under the guidance of Executive Vice President Craig Melucci. / PBN PHOTO/RUPERT WHITELEY
SMART INVESTMENT: Since President and CEO Thomas Melucci, center, and Richard Bready, right, bought Hope Valley Industries out of bankruptcy in 2002, the company has made a mark on the global automobile market, becoming recognized by both Ford and GM for the quality of its floor mats, produced under the guidance of Executive Vice President Craig Melucci. / PBN PHOTO/RUPERT WHITELEY

At least one company in Rhode Island has enough confidence in its business to make significant capital investments in the last 18 months. Hope Valley Industries spent $3.6 million for new equipment between October 2013 and February of this year, yet company President and CEO Thomas Melucci is clear about Hope Valley’s most important investments.

“People are our greatest asset. I couldn’t run this business without the people who work for me,” said Melucci. “If you hire good people, you’re going to get good work.” The recognition in this year’s Providence Business News Manufacturing Awards program, he said, is a tribute to all the company’s employees.

Hope Valley makes all-weather, custom-designed floor mats for original-equipment manufacturers. Many of the world’s most well-known car makers – BMW, Cadillac, Ford, Honda, Mercedes-Benz, Mitsubishi and VW among them – buy mats and other automotive accessories from the North Kingstown-based company.

Employing between 200 and 250 people, the company also leases property in Lincoln for its manufacturing facility, and in North Kingstown at Quonset Point for packaging and distribution operations. Anticipating future growth, and in addition to its spending on new equipment, Hope Valley has signed a letter of intent with the state to purchase a nearly 50-acre lot in the Quonset Business Park with access to rail transportation to build a significantly larger facility for manufacturing and distribution. A feasibility study is underway. If the company declines to purchase the Quonset acreage, it has the necessary permits to expand its North Kingstown operations.

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The privately held company declines to disclose its financials, but the industry is not shy about recognizing Hope Valley’s engineering and production skills. It is one of a select group of Ford suppliers that received the prestigious Ford QI Preferred Quality Status designation in 2012, and one of only 83 General Motors suppliers (out of 18,500) to earn GM’s 2012 Supplier of the Year. These and other awards – including Honda’s On-Time Delivery Model Introduction and Kia’s Choice Partner – allow Hope Valley to grow its market penetration, Melucci said. “They demonstrate that we qualify as an elite manufacturer.”

Continuous process improvement, new ideas, research and development, and plenty of trials are key factors in the company’s growth, said Melucci’s son Craig, executive vice president. Delivering quality products on time, with the people behind it all, is critical, said Craig, who runs the Lincoln facility.

Under Melucci’s leadership, the company has invested more than $100,000 in employee training, including the nationally recognized Paulson Training. In addition, Hope Valley incorporates Kaizen – the practice of continuous improvement – and internal training, as well as probationary periods for new employees. Its cohort of relatively young design, process and quality engineers hold degrees from such prestigious schools as Massachusetts Institute of Technology, the Rhode Island School of Design and the Chicago Institute of Design.

Employee turnover is fairly low, Melucci said, given the company’s family-like environment, generous benefits, frequent communication and celebrations.

Because of the company’s clean manufacturing processes, Melucci said, “We’re not even tied into the sewer. We don’t [emit] volatile organic chemicals or smoke, and we don’t discharge any waste. If we make a product that we don’t feel is up to standard, we regrind it and put it back into use.” Hope Valley’s strong environmental record was one of the reasons Mercedes-Benz chose the firm as a manufacturing partner.

Melucci and former Nortek Inc. CEO Richard Bready teamed up to acquire the company out of bankruptcy in 2002. The change of ownership and infusion of capital invigorated the company, leading to a significant growth curve.

Hope Valley, which primarily ships to domestic manufacturers, also sells to manufacturers in Australia, Canada, China, Germany and Mexico. Eager to grow its international footprint, the company is evaluating options to expand its distribution in Europe.

Asked to provide advice for other Rhode Island companies, Melucci said, “Make the right decisions, take your time and … hire the right people to do the job.” •

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