YMF Completes Transition to Manufacturer
September 3, 2007,
Two years after investing in tufting, dyeing and backing equipment for manufacturing rugs and then buying a large production facility in China, the two-generation family owned and operated rug supplier YMF Carpets/Creative Home Ideas has expanded its floor coverings assortment to include new constructions as well as a new category — kitchen rugs.
When Shemesh joined his father 10 years ago, he launched the Creative Home Ideas component to the business, to add new types of floor coverings — namely bath rugs and accent/scatter pieces — and to help the company get into other related home textiles products.
All these initiatives comprised an effort to pursue larger national retail customers.
The bath and accent rugs were imported from overseas. But as Shemesh explained, "We wanted to make sure to control our quality and supply," so the company in 2002 bought the majority stake of a factory in Turkey from where it was importing the products and began developing programs with designs specific for the U.S. market.
"To become not just an importer but also a manufacturer and to establish a bath rug line put us on the map with most retail chains," Shemesh said. One of the company's bath-oriented focuses started out as three-piece sets that employed high-quality constructions that could still sell at popular retail prices.
Then about two years ago, several new opportunities presented themselves, Shemesh said.
First came the shutting down of the now-defunct Burlington Rug Corp. in Monticello, Ark. YMF/Creative Home Ideas bought "many of their pieces of machinery" — including tufting and dyeing equipment — that were used to make bath and accent rugs. Also around that time, as Pillowtex went bankrupt, YMF/Creative Home Ideas bought machinery used to make the latex backing for rugs. "We believe it was the machinery Pillowtex used to make its Royal Velvet and Cannon lines," Shemesh said.
Outfitted with its newly purchased equipment, YMF/Creative Home Ideas bought a more than 100,000-square-foot facility in Langfang, China, where it moved these machines and laid the groundwork for itself as a manufacturer.
This two-year effort came to fruition this past market, when the company showed retailers many new programs — including olefin heat-set rugs and cotton-and-olefin blended varieties as well as some micro-acrylics — all in the forms of accent, scatter, bath and kitchen rugs.
"Now we can take advantage of low production costs," Shemesh said. "We control the quality and supply and we can help the retailer get rid of the middleman because they can buy directly from us. We can now offer open-stock programs as well many coordinate programs, taking one type of construction and matching it in color and pattern to another construction of rug."
All of YMF/Creative Home Ideas' programs are supported at the company's warehouse in Edison, N.J.
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