(Editor’s note: This is the seventh installment in a monthly series highlighting some of the region’s unsung manufacturers that make products essential to the economy and, in many cases, our way of life. See previous installments here.)
Before Scott Weldon became CEO and president of Rhody Rug Inc., he wasn’t particularly interested in the rug business. He was simply searching for his next commercial venture.
But when the Lincoln-based rug manufacturer founded in 1987 went on the market in 2020, Weldon took a shot. Although the Massachusetts native had years of manufacturing experience – he was co-founder and CEO of the Boston-based hat company Nogginwear – he still had something to learn.
“There is a lot to making a rug,” he said.
Rhody Rug has about a half-dozen national competitors, and only one in Rhode Island, Colonial Mills Inc. in East Providence. Realizing he could use some help navigating the industry, Weldon hired Tony Loura, who had previously spent 25 years with Colonial, as his plant manager.
“It was an easy fit,” Loura said. “I didn’t have to learn anything new.”
Rhody Rug manufactures traditional wool-based rugs along with its signature products made with nylon and polypropylene thread that arrives pre-dyed and ready for the winding machines that don’t stop spinning until closing time. The company has a yearslong relationship with a thread supplier in Dalton, Ga., that Weldon won’t identify because he said it’s a trade secret.
Inside the Lincoln facility, large buckets overflow with every color of thread waiting to be wound into braids and stitched into one of hundreds of different designs with names such as Bar Harbor, Astoria, and Twin River.
The material feels more like fluffy yarn than traditional wool thanks to the proprietary fiber-based filler made in-house.
“They are specially made for me,” said Weldon, demonstrating the feel of the thread made softer through a high-pressure “naturalization” process that allows rugs to last longer and be placed in any outdoor weather condition without fraying or lying uneven.
The filler also makes the rug easier to clean. “You can just spray them down with a garden hose,” he said.
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FINAL EXAM: Tony Loura, right, plant manager at braided rug manufacturer Rhody Rug Inc. in Lincoln, examines pieces of a rug while Scott Weldon, president, looks on.
PBN PHOTO/MICHAEL SALERNO[/caption]
In the center of the 50,000-square-foot factory, workers are positioned at large tables pocketed with holes that shoot air to the surface, like an air hockey table, allowing sections of rug to be spun around as they are stitched together.
Rhody Rug pumps out 1,500 rugs per week, Weldon says, many destined for big-box and online retailers such as The Home Depot Inc., Wayfair Inc., Overstock.com Inc. and Amazon.com Inc., as well as hundreds of rug dealers nationwide.
The company also makes braided baskets, stair treads and chair pads.
Rhody Rug has not been spared the supply chain problems that have challenged commerce across the world. Weldon says that before the pandemic the company used to receive and ship new orders in two days. But now it takes five. Trucking prices have also shot up, adding to the financial pain points for the independent manufacturer.
At the same time, expenses have been reduced in other areas. “We’ve been able to add some new people,” Loura said, “which has cut down on overtime [costs].”
Ironically, the worldwide transportation snags have worked somewhat in the favor of some American manufacturers that don’t rely on overseas materials, Weldon says.
“That gave us a competitive advantage,” he said.
With annual revenues now topping $4 million, Weldon is looking to diversify beyond selling products wholesale to retailers.
Rhody Rug is getting ready to launch a direct-to-consumer online platform and has recently constructed a showroom for retail customers to see and purchase products. The room is hung with dozens of models that reach from floor to ceiling and has a large window that looks onto the factory floor.
“We are really trying to build a brand here,” he said. “There are only a few of us [braided rug makers] left.”
Part of the key to survival is paying close attention to what’s selling well and meeting that demand.
Being in the business for over two decades has given Loura an insight into the rise and fall of design trends. He has noticed a shift in customer demographics in recent years – an uptick in younger buyers, many of whom are city transplants or young families who have either relocated or are looking to spruce up their properties.
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SPOOL SKILLS: Sandra Lucario, braider, selects some thread to make the next braided rug at Rhody Rug Inc. in Lincoln.
PBN PHOTO/MICHAEL SALERNO[/caption]
Declining in popularity has been the dark greens and neutral colors of decades past, Loura says, replaced by bolder and brighter tones. “Many customers are trying to work in something that will match a modern kitchen,” he said. “They are looking for a little bit of color.”
These vibrant pigments show up prominently in the “Kids Isle” line, a collection of smaller rugs and matching braided baskets meant for playrooms or nurseries. The Walt Disney Co. has placed the baskets in some of its retail stores to hold toys.
“Disney ordered a tractor trailer’s worth of those,” Weldon said.
Cultural shifts have helped. Weldon notes the growing popularity of reality TV programs that focus on home remodeling, which has brought interior design to the mainstream.
There is data supporting his claim. The most recent market analysis by Technavio found that consumers have become more conscious about interior design and are willing to invest both time and money to decorate their homes.
Customers have already started visiting the showroom to purchase items as is or request a custom design. Some will ask Weldon if Rhody Rug can match a color scheme they saw on a TV show. Others have requested peculiar color configurations that would never make it off the company’s drawing board.
But in the end, the customer knows best, Weldon says.
“Everybody is a designer now,” he said. “On the other hand, some of our most popular lines we have had since the ’90s.”
Despite modern-day globalization and the cost pressures, U.S. manufacturers are inching back to normal now that the worst of the COVID-19 pandemic has passed. Weldon says quality is the secret to maintaining market share.
“If you want people to buy American,” he said, “then you need to be making a quality product.”