Dama has golden touch with jewelry

LOCKED IN: Marcos Fountoulakis, president and CEO of Johnston-based Dama, is currently overseeing the introduction of LuxLock, an innovative earring back-and-post system resulting from years of research and development. / PBN PHOTO/TRACY JENKINS
LOCKED IN: Marcos Fountoulakis, president and CEO of Johnston-based Dama, is currently overseeing the introduction of LuxLock, an innovative earring back-and-post system resulting from years of research and development. / PBN PHOTO/TRACY JENKINS

Rhode Island is still a good place for innovation and expansion in the jewelry industry, said Marcos Fountoulakis, president and CEO of Johnston-based Dama.
The company, which designs and manufactures quality jewelry components, produces about 1.2 billion pieces a year and has continued to remain competitive by investing in state-of-the-art, high-speed equipment, said Fountoulakis.
Dama’s new product, LuxLock, was introduced in April. It is an innovative earring back-and-post system resulting from years of research and development that Fountoulakis began with a patent in 1982 that used base metal. He’s modified that patent and the new LuxLock product uses 14-karat gold.
“The exciting thing is we have partnered with LeachGarner and they have tremendous distribution,” Fountoulakis said. “They manufacture the gold we use. They have their own mill in South Attleboro and they have manufacturing facilities around the world.”
The new earring back is expected to have a solid market because many of the products commonly used have flaws, he said.
“Many times earring backs get very loose or they go on sideways or the earring isn’t straight on the earlobe. So it’s not secure and women lose their earrings,” said Fountoulakis. “The earrings often have a sentimental value. They may be a gift from a husband or boyfriend.”
The LuxLock has a clutch that holds the post straight and a plastic disc that keeps the earring straight on the earlobe.
“Using gold is very expensive. That’s another reason I’m excited to partner with LeachGarner. They’re able to finance the gold that is needed,” said Fountoulakis. “You need a lot of material for the process. Only 30 percent of what we use is going to be the end product. The rest is sent back to them and reused.”
Manufacturing the new LuxLock will add four-to-five jobs for skilled workers, he said.
Dama, which means “lady” in Italian and Spanish, expects to hire local workers to fill the new positions that will add to the current 27 employees, he said.
“I believe we can find the expertise here because there are still some jewelry companies here and still some people who have that experience,” he said. Some companies remain from the glory days of the jewelry industry in Rhode Island, he said.
“Rhode Island used to be the jewelry capital of the world. We had 55,000 people employed in the state in the jewelry industry,” said Fountoulakis. “People came from all around the world for our trade shows. They came to see the new technology and buy components and visit the manufacturers.
“Then labor costs went up and people went overseas looking for lower costs. They went to Hong Kong, Thailand, South Korea and Taiwan. Many moved to China or to Vietnam,” said Fountoulakis.
While others in the Rhode Island jewelry industry went in search of those lower costs, Dama dug deeper roots at its Johnston facility. The company has doubled the size of its original building and now occupies 10,000 square feet.
Dama has kept upgrading and stayed viable amid the tough international competition.
“We managed to stay because we invested a lot of money in automation,” Fountoulakis said. “We stamp over 1.2 billion pieces a year and those pieces have to be assembled. The units have two or three parts. More than 450 million earring backs a year are assembled in Johnston.”
Dama has Swiss-made equipment that’s top of the line. The company’s stamping press, which forms the metal pieces, works at up to 1,000 strokes per minute. That compares to the 150-to-300 strokes per minute of a more traditional press, Fountoulakis said.
Dama makes components and stamps logos for Monet, Liz Claiborne, Swarovski and other companies, he said.
“We have over 50 brand names we stamp on our components,” he said.
The U.S. Small Business Administration named Dama small-business exporter of the year for Rhode Island in 2009.
“Seventy percent of our product is exported to China,” said Fountoulakis.
If a successful business depends on skilled and loyal employees, Dama is a good example.
“We train them and we pay more than minimum wage,” Fountoulakis said. •

COMPANY PROFILE
Dama
OWNER: Marcos Fountoulakis
TYPE OF BUSINESS: Manufacturer of jewelry components
LOCATION: 25 Oakdale Ave., Johnston
YEAR ESTABLISHED: 1978
EMPLOYEES: 27
ANNUAL SALES: WND

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