Hope Global CEO finds strength in Chamber ties

CHERYL MERCHANT is president and CEO of Hope Global and board chair for the Northern Rhode Island Chamber of Commerce. /
CHERYL MERCHANT is president and CEO of Hope Global and board chair for the Northern Rhode Island Chamber of Commerce. /

Cheryl Merchant is no novice to manufacturing or its woes. She’s been in the business for more than 20 years, and now she is working to carve a future for Cumberland-based Hope Global, an engineered textile component manufacturer that employs 1,000 globally, 350 in Rhode Island.
Since its inception – as the textile manufacturer, Hope Webbing, in Pawtucket in 1883 – the company has changed dramatically. It has offices and/or manufacturing plants in France, Mexico and Brazil and sells products all over the world.
Though the company’s sales have doubled since Merchant came on board in 2000, there are more challenges ahead. As the United States’ automotive and other markets decline, Hope Global will have to think of new markets to enter and new products to offer.

PBN: How did you come to be chair of the Northern Rhode Island Chamber’s board?
MERCHANT: It’s a three-year succession plan. … I’d been there a little bit of time at that point. The Northern Rhode Island Chamber is an organization that believes in businesses and does something about it. … It’s the community. It’s the involvement. It’s bringing the businesses together to make a difference. PBN: What do you hope the role as chair will help you accomplish?
MERCHANT: It’s not so much for me to accomplish as what I hope to be able to help them accomplish. The Chamber is an incredibly strong group. They are part of the [Rhode Island Chamber of Commerce Coalition], one of 13 Chambers, 13,000 companies. We need to have a stronger role in our government. We need to become more involved in helping each other.
PBN: Why?
MERCHANT: Hope Global sits here on the Blackstone [River] and we were completely wiped out [during the flood in 2005]. Water came four feet up in our building … and caused $5 million of damage. Chamber companies … helped us set up telephone lines in a remote office. They brought us water. Somebody else found us chairs and furniture. Somebody else delivered lunch. The rallying of businesses in the community here is what I hope to continue. … I want to let more people know that this is an organization they need to be part of. PBN: What other roles does the Chamber play for you?
MERCHANT: They are an organization I turn to for a lot of things. If I’m looking for a resource for marketing research, the first person I call is John Gregory [president and CEO of the Chamber], because he knows who we have in the Chamber that can help me with this. They’re there when the bills are being evaluated … of whether I’m going to lose my historical tax credits. They are my link to the government. PBN: What would you say to the manufacturing community? Do they have a great presence in Chamber membership?
MERCHANT: Unfortunately, there’s not a lot of manufacturing here. … One of the things we really work on hard in Rhode Island is bringing new businesses in. What hasn’t happened is trying to keep businesses to stay. … I’m working both with the Chamber and with our government right now trying to find businesses that stay here. … I think there’s a tremendous amount of knowledge in this area, and if we can be competitive globally and find the right products, we’re here to stay. PBN: How do you help businesses stay here?
MERCHANT: There are a lot of things. … It means keeping our taxes in line. It means keeping wages that allow us to be competitive. It means working with organizations like RIMES and other organizations to take on lean principles and be streamlined and efficient. It means helping each other when it comes to advertising. PBN: What are your thoughts on the economic climate in Rhode Island?
MERCHANT: It’s not just Rhode Island, unfortunately. The economic climate is not good. [Hope Global’s products] are 70 percent automotive. … Anybody off the street can tell you what’s happening with the North American automotive industry. … I’ve got suppliers that call me and close their doors from one day to the next. … We’re doing a lot for the military, the parachute business … but you know the spending is being cut everywhere there. We do apparel and construction, but both of those industries are down. PBN: Do you think this is something felt throughout manufacturing?
MERCHANT: I would say that, but from another aspect I’ve also heard of industries doing very well. … [Concordia Manufacturing] is working on a biotech material. They are just booming. So there may be those sectors that are in perfect position with the right product at the right time. We’re an old textile operation, and we’ve been changing ourselves around. … That process takes quite a bit of effort. And despite the fact that we have doubled since I’ve been here … it’s time for Hope to take one more step and say, “Where’s our next future? Where’s our next growth?” PBN: How is Rhode Island doing at helping manufacturers in the state?
MERCHANT: I’m also on the [board of the R.I. Economic Development Corporation]. … They are one of the people I called the other day, and they immediately brought people out. They’ve set up a secondary meeting, trying to assist with what businesses they’re working with to get together with me. … I would tell you that if you know where to call and you get a hold of the right people, the help is there.

Interview: Cheryl A. Merchant

Position: President and CEO, Hope Global; and chair of the board, Northern Rhode Island Chamber of Commerce
Background: Merchant has been president and CEO of Hope Global for seven years.
She started her career as a production supervisor of 65 people in the paint department at General Motors in Detroit about 20 years ago. Since then she’s worked for Mazda and as a quality manager for Ford Motor Co. She has run manufacturing operations in Canada and Europe.
She also ran a 3,500-employee plant in Mexico for Lear Corp. for five years, before being recruited by David Casty, the owner of Hope Global.
Education: B.A. in business management, 1984, Alma College, Alma, Mich.
Residence: Lincoln
Age: 44

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