INVESTING IN MANUFACTURING

COMMUNITIES PARTNERSHIP (IMCP)

NORTHWEST GEORGIA REGIONKey Technology and Supply Chain Analysis

IMCP SummitOctober 30, 2014

Georgia Tech Enterprise Innovation Institute withThe Northwest Georgia Regional Commission

Image: Kathy Lohr/NPRImage: Shaw IndustriesImage: www.mmn.com

Overview

◎ About Northwest Georgia

◎ KTS: What Is “Floor Covering”?

◎ History of the Floor Covering Industry in Dalton

◎ Innovation and the Future of Floor CoveringImage: FloorTek

◎ 863,217 pop. (15 counties)◎ 9.5% Latino (Whitfield County 32% Latino)◎ 75% high school graduation rate◎ 1,107 manufacturing firms, 60k manufacturing

workers (25% of regional employment)

WHITFIELD

Northwest Georgia: Fast Facts

Dalton, GA (industry locus)

◎ 32,801 employees (2012)

◎ 47% of the U.S. exports of carpets and other textile floor coverings originate in Georgia

◎ 80% of US carpet and rug market

◎ Multiple large and medium-sized players

13.6% of total employment in

Northwest Georgia (2012)

Floorcovering Industry Profile

◎ The NWGA region has an established advantage in floor covering

◎ Right ingredients for growth in manufacturing and the industry

◎ Stagnant clusters can be accelerated◎ Best practices RESULTS!  

◎ Collaboration between university/technical colleges and industry

◎ Industry-specific degree programs◎ Co-location of equipment/R&D/entrepreneurs/growing

companies◎ State support

Advanced Manufacturing Strategy (Sept.2013 – Sept. 2014)

Key Findings for Implementation (September 2014 – Present)

IMCP Phase 1 Highlights

KTS: What is Floor Covering?

KTS: What is Floor Covering?

Year Event1791 First woven carpet mill in Philadelphia

Early 1900s Dalton’s Catherine Evans Whitener developed tufting for bedspreads

Early 1930s Cottage industries around Dalton for hand tufting for bedspreads

Late 1930s First mechanized tufting machine (chenille)

1941 99% bedspreads machine tufted

1940s-1970 Bedspread alley from Dalton to Cartersville

1950s Use of man-made fibersShift to carpetsJ&T Industries founded (a merger of UGA-GT graduates)

1963 Over $1 billion of carpet and rug products sold. Mohawk Carpet Mills moves to Georgia (acquired Aladdin, others)

1967-68 Shaw acquired Philadelphia Carpet Company, Star Finishing (sold to Berkshire Hathaway in 2001)

1970s Plain tufted carpet shifted to sculpted carpet

1978 Beaulieu founded (Belgium acquisition of bankrupt Barwick Carpets)

Source: Carpet and Rug Institute, selected company websites

History of the Floor Covering Cluster

Origins in Manual

Tufting…

History of the Floor Covering Cluster

Photo Courtesy of the New Georgia Encyclopedia

History of the Floor Covering Cluster

Mechanized Tufting Process of Yesterday…

Photos Courtesy of the New Georgia Encyclopedia and Shaw Industries

History of the Floor Covering Cluster

Modern Textile

Manufacturing

Photo Courtesy of NPR

History of the Floor Covering Cluster

Modern Textile Manufacturing

History of the Floor Covering ClusterIndustry

Diversification…

Modular Carpet TileLuxury Vinyl Tile

Laminate Ceramic

“When you are being asked to make the business case for sustainability - perhaps ask them to make the business case for being un-sustainable.”

- Ray Anderson, Founder and Chairman Interface Flooring

Innovation in the Industry

Floor Covering Cluster SWOT

◎ Strengthso Rapid response to new markets, products, and economic trendso Adequate access to capital, low debt, local contraction

◎ Weaknesseso Skilled labor shortageo Lack of research institution connectiono Some lack of state recognition/support (an “it will always be there” mentality)

◎ Opportunitieso Creation of an innovation-driven regional culture

(i.e., startups, entrepreneurs)o Up-training/re-training of ready workforce that “knows” the industry

◎ Threatso Competitiveness more than sharing among the major players; increased global

competitiono Consolidation rather than entrepreneurship o Lack of STEM education and recognition of manufacturing as a viable career choice

Ideas for the Future

Enhance the customer experience

(merge product and IT, sensors, apps, online

design/creativity)

New materials, new designs

Sustainability (process,

startups)

S-FLOR(IMCP)

IMCP Partners

IMCP Partners – Research + Education Partners

Northwest Georgia Workforce Investment

Board

IMCP Partners – Public Sector Partners

IMCP Partners – Industry Partners (Manufacturers + Suppliers)

IMCP Partners – Industry Associations + Other Partners

Thank You!

Questions?Leigh Hopkins, AICPProject Manager404-894-0933leigh.hopkins@innovate.gatech.edu

Northwest Georgia Advanced Manufacturing Strategy page:http://www.nwgrc.org/category/northwest-georgia-regional-manufacturing-strategy

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