| A Resurrected Rice Braid Brings Quality Accessories Back to Dress Uniforms |
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| Monday, 02 March 2009 16:05 | |||
Purchasing another company is always risky, but to acquire a troubled business is a gamble few in the uniform industry would take. But that's exactly what family-owned Eiseman-Ludmar Company a New York manufacturer of epaulettes and accessories did in 2006. Effectively rolling the dice, the owners of Eiseman-Ludmar purchased the assets of the braid division of A.H. Rice Company, a business driven to the brink of ruin by poor management, establishing a new company called ELC Industries,. "We're not a large, Fortune 500 firm, so this was a pretty big risk for us" says ELC co-owner David Ludmar. "Yet we knew that if there wasn't a good quality of braid out there, the entire industry would suffer."Unlike the odds in Vegas, this gamble appears to have paid off. In the three years since the acquisition, Rice Braid has experienced a Lazarus-like resurrection, going from a beleaguered company that couldn't fill orders to an entity with renewed purpose, regaining its stature as the premier American braid house for the uniform industry. As a Rice customer who is a major supplier for the airlines industry recently expressed to Ludmar, "It's hard to believe a problem ever existed." For a company on the verge of extinction, the turnaround is remarkable. Sales grew over 25 percent from mid 2006 through 2007, and rose 11 percent during 2007-08, an impressive feat given the inhospitable economy. And growth is still anticipated this year, despite an overall bleak economic picture. For those unfamiliar with the Rice rise and fall, a primer: Founded in 1878 in Pittsfield, MA, Rice Braid had been synonymous with quality, reliability and service. Originally family owned, it was sold a number of times throughout the years. It also acquired several competitors along the way, purchasing the businesses and assets, including equipment and machinery, of its once rivals. The latter decision proved most savvy, for it laid the groundwork for the creation of a vast array of unique patterns, stripers and size options that are still in demand today. "Nobody can duplicate our patterns," notes Ludmar. "Uniforms would be less distinct without Rice, no doubt about it." In 2001 Rice was sold again, this time to a South Carolina firm whose expertise was in the thread business, not the uniform industry. The result sent the company into a continuing downward spiral. "They really didn't understand the manufacturing business, and because of this, the braid division wasn't properly managed," says David's father and co-owner Andy Ludmar. In an effort to cut costs and reduce overhead, ownership chose to abandon its Pittsfield home of over 125 years and relocate to Rock Hill, SC in 2005, causing a major disruption of operations. Raw materials had been run down, machines were damaged in the move, customers were not notified, and the dedicated employee team in Pittsfield was left behind. "They were never able to get the place set up again," recalls David Ludmar. It almost destroyed the company, leaving many in the uniform industry without a critical supplier for their finished goods.With this backdrop, Eiseman Ludmar entered in 2006. Andy and David Ludmar purchased the assets of the braid division of A.H. Rice in June, and immediately travelled to South Carolina to begin the rebuilding phase of the once renowned company. Carol Ludmar said, "I always wanted to own Rice, I thought it would be a natural complement to our business. After all, we worked so closely with Rice, visiting the factory several times, to ensure that our cord and braids were made as required." It wouldn't be easy. "The place was a mess," David Ludmar says bluntly. Boxes of stock and other materials remained unopened, piled onto shelves. Back-orders were stacked high on desks; messages from customers left unanswered. Braiding machines were in disrepair, and basic office equipment was non-existent. Customers began to look for similar products elsewhere. The situation demanded a return-to-the-basics approach. Others from the Ludmar family were flown down to South Carolina, charged with opening boxes and inventorying the contents to determine the amount of product, if any, on hand. Richard Cizek, a Rice veteran and plant manager for over 30 years, oversaw day-to-day operations, and the team painstakingly worked to reassemble over 400 specialized braiders. "The typical braiding machine is about 50 years old, which is actually a good thing," notes David. "We wouldn't be able to get the precise look our customers want without them." They purchased new machinery too, including state of the art weaving machines, which opened up new opportunities. Customer service staff was overhauled, replaced by a dedicated, courteous and thorough team, available to help. "We needed to be honest with our customers if we were going to repair relationships, and this simply wasn't being done before," says David. And while the thirty-plus years of experience the Pittsfield production crew had could not be replaced overnight, new employees were trained in the nuances of braid manufacture, a specialized art that can only be mastered through experience. "There was definitely a learning curve," adds Andy. "Operating a braid machine isn't the same as using a key board." To get their product line restored, they had to find dye houses willing to work with nylon, the yarn of choice for Rice. "The color is more vibrant and stronger," says Andy. They currently work with 5 different dye houses and have 50 colors in their open color line, with 30 more available for custom orders. And for other applications requiring different yarns, they also run polyester, metallics, cotton and even mohair, which is popular with the military. All the while, father and son worked the phones in an attempt to win back the trust and confidence of customers. "We called people who were frustrated with the pervious owners and let them know we were in charge now," says David. In their favor was the reputation they had as owners of Eiseman-Ludmar, and Andy's history in the uniform industry. "My father being in the business for such a long time was a big help," notes David. Their efforts centered on the high to mid-end customer, a natural base given the end use of their products. Rice braid is typically worn by the military, airlines, cruise lines, marching bands and the dress uniforms of police and fire departments across the U.S. The Rice purchase has had crossover benefits to ELC, enabling the company to broaden its line and increase product offerings. "We have been able to introduce and integrate customers into both companies," says David. "A customer looking for shoulder knots, citation cords, epaulettes, hash marks or other embroidered insignia for example, now can get braid in the same color and achieve the coordinated look they wanted." ELC has been successful in winning back most of the old Rice customers, including the major manufacturers of better uniforms. As for lower end customers who haven't returned, both David and Andy remained unconcerned. "We really haven't gone after them because that part of the business isn't our traditional niche," says David. "We're about quality, and for quality dress uniforms, Rice is the braid to have." Rice braids are available in a number of different styles, including vellum, flat, cordedge, soutache, tabulars and cords. To learn more, visit them on the web at www.ricebraid.com or call 803-980-7600.
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| Last Updated on Monday, 09 March 2009 07:34 |
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