Revealing The History Of The Special Carpet, The History Of The Carpet King

In September this year, the city of Berkshire received a mysterious gift from Omaha, a small town in Nebraska. Boxill Hathaway, the largest carpet company in the United States, arrived at the Xiaomi industrial group, a subsidiary of Berkshire Hathaway.

The company has two notable aspects: first, the zero leverage mode of vertical integration in the carpet manufacturing industry; the two is Oscar The red carpet of the evening party is woven by it. A red, a wonderful blue of red, called Nancy Reagan. This is the red carpet of the evening party. When carpets were woven, they were pure natural white, and the workers in Xiaoshi spent five days dyeing them to match the requirements of the red carpet. Then, on the eve of the year, tons of heavy Shaw carpet were transported to the theater of the avenue by truck on time. Hollywood star After reviewing, after the show, the red carpet was also recovered by truck on time. Little known is that the red carpet is known as the world carpet capital.

Tufting machine worked day and night to produce hundreds of millions of square meters of carpet. Not far away, the CMC tufting machine factory and the TUSCO back glue line production plant in the state of Qi produce the upper production equipment and raw materials of the carpet, forming the most developed carpet town in the world.

Xiaoshi industry is a microcosm of prosperity. It started from Clarence Shaw, a star dyed dye factory. Its successor Robert Schou Robert Shaw and J.C. J.C. (J.C. Shaw) two brothers continue to expand their businesses. Now the world's largest carpet manufacturer in the world with annual sales of over $4 billion 500 million.

This is a traditional American industrial mode. Vertically integrated nylon production, polymer production, including polyester material manufacturing, carpet production equipment manufacturing, and transportation convoys covering the United States, etc., make it the largest carpet fiber producer and carpet recycler in the United States, greatly reducing its manufacturing cost. The extreme carpet vertical integration system enables the carpenter to achieve "zero financial leverage". Management 。 "When I joined the company in 1975, Shaw was the OEM OEM business of OEM, with an annual revenue of only $75 million. Now we have changed from subcontracting to whole industry chain production." Vance Bell, chairman and CEO of Xiaoshi industrial group, told reporters (Vance Bell).

During this period, Xiaoshi bought the fourth largest carpenter in the United States, West Point Pepe, and became the world's largest carpet manufacturer. At that time, the whole thing was shocked, and the super Shaw carpet empire was rising in the ravines of the western United States. By 2001, however, there was another surprising event. It was Shaw, the largest carpet manufacturer in the world, and another Warren, Boxill Hathaway, who is the richest man in the western United States. Buffett (Warren Buffet) acquired.

At that time, Berkshire bought Shaw 80% shares at a price of $19 per share, which raised Shaw's share price by 55%. Since then, when the privatization of the market was going on, Robert Schou and Julian Juyn Sol, the company's chief executive, were asked to hold at least 5% of Shaw's two Saul. He also asked to retain the current management and continue to operate the company. These are standard Berkshire practices.

"At that time, Warren Buffett had a piece of advice: build high walls, build grain and create advantages. That's exactly what we need to do. We are not worried about the past or the future. We are only worried about whether we can create competitive advantage for business development. Vance Bell told reporters. "This is a basic industry, because people will always use carpets," he said. "This is a fairly easy industry."

Of course, even though the carpet industry is easy to handle, the vertical production chain has greatly improved its industry threshold. For example, its competitors should master the production of raw rubber technology, and grasp the most important tufting technology in the carpet production process, which is different from the cross knitting method. Tufting is knitted in one direction on the fabric bottom cloth with a needle machine, and weave patterns with different positions.

The birthplace of tufting is in the county of Georgia, and this technology can also be applied to the production of artificial turf. The original traditional American enterprise once again strengthened its vertical integration from raw material to raw material under the command of stock god.