Fabrica’s 50th: A one-of-a-kind carpet mill hits a major milestone – Jan 2024

By Darius Helm

Fabrica, which has been part of The Dixie Group since July 2000, was founded in April 1974 by Al Frink, Scott Gunther and Bob Forte, and out of the gate, it was the most exclusive, high-end carpet mill in the market. Fifty years later, it still commands that same niche, essentially unchallenged.

Fabrica is the only residential carpet mill operating in California. When Fabrica was launched in the early ’70s in Santa Ana, California, there were still scores of carpet mills in the state; today, it’s just Fabrica on the residential side and Bentley Mills on the commercial side. Remarkably, the business was started with an investment of only $150,000, including a $100,000 SBA (Small Business Administration) loan, and was profitable from the very beginning.

“QUALITY WITHOUT COMPROMISE”
All of Fabrica’s products, many of which are custom, are beck dyed, mostly from nylon, with some wool-no polyester or polypropylene. Those products find their way into celebrity mansions, embassies and even the White House, and onto luxury yachts and motorcoaches. According to The Dixie Group, Fabrica pioneered the use of LCL (level cut loop) tufting technology and was also the first to adopt the use of softer yarns-yarns that started out made exclusively for them and then were sourced through Invista’s Stainmaster, branded as Tactesse. It was also the first to domestically produce tufted wool products. This focus on high-end quality led Al Frink to the slogan, “Quality Without Compromise.”

One product that embodies the focus of the firm is Chez, arguably its most high-profile design. It’s a solid color, cut pile broadloom that goes through multiple rounds of shearing for a true pencil-point finish. The first order for Chez, 40 yards in the color Chantilly for Chicago’s Pedian Rug Company, came in 1983. The firm offers a huge range of stock colors, as well as custom colors.

In recent years, Fabrica has added engineered hardwood to its offering, and a couple of years ago, it added Décor by Fabrica, a sub-brand of decorative carpet, much of it wool and imported.

In many ways, Fabrica is old school. Its workers are highly skilled craftsmen who have devoted themselves to the mill. Of the approximately 300 employees, the vast majority of whom are Latino, at least 40 have been with Fabrica for more than 25 years. Some have been there since the beginning.

It is also a business born out of relationships, including the relationship between Dan Frierson, chairman of The Dixie Group, and Fabrica co-founder Al Frink. Last month, Frierson and Frink spoke with Floor Focus about Fabrica’s first 50 years and how the future looks for the California carpet mill.

AL FRINK
Al Frink, co-founder of Fabrica, emigrated from Chihuahua, Mexico as a young child and grew up in Southern California. Prior to the creation of Fabrica, he was responsible for sales and marketing at Continental Carpets. And following the sale of Fabrica to The Dixie Group in 2000, he went to work for the administration of George W. Bush as assistant secretary of commerce for manufacturing and services, a role he held for nearly three years. “It was an honor and a challenge,” he says. Frink currently lives in southern California with his wife, Denise.

Q: How did you and your two partners know each other? And how did you come together to create Fabrica?
A: One of them, Scott Gunther, I hired as a sales rep at Continental Carpets and the other is J. Robert Forte, a representative of the fiber division of Celanese Corp. He was working to get our firm to use Celanese fiber. And that’s how I met Dan Frierson. He was calling on Continental for Candlewick Yarns, which at the time was perhaps the best yarn spinner of all of the industry.

Bob Forte actually wanted to start a carpet manufacturing company with outside investors, anonymous at the time, and went to my boss, Chuck Cooper, with the idea of an as-yet-unnamed carpet mill. Continental was doing very well at the time. He was looking to see who was behind it all. Chuck said the success was mostly driven by the sales and the marketing of the company and that he should talk to Al Frink.

Q: What unmet need in the marketplace were you trying to fill?
A: We knew we wanted to be a high-quality, high-end mill. Most mills in those days started out with a low-end commodity product. We thought that was never going to be our niche, and it was too typical of what others had done, so we went in the opposite direction. Both Scott and I had experience calling on retailers and customers, me in the northern half of Southern California and he in the southern half, and all of the companies were very high-end, designer-driven retailers. We wanted to build a product to appeal to that part of the market.

We came out the door as if we were a much bigger company than we really were, like a well-established, high-end mill. We sold our samples while others were giving them away, and that was a big distinction. We had some push back. Why should we pay for your books? And we had to represent that we were not going to be selling the kind of carpets that everybody else had. We came out the door as an innovator.

Q: Tell us about how you started up the business, including the role of the Small Business Administration loan that helped launch your operation.
A: Well, we had the idea to start the company with samples. What we didn’t have was capital to get things going, but what we did have was experience. Two things of note: Dan Frierson called on me back at Continental, and Candlewick was agreeable about giving us yarn, even though we hadn’t established credit, to start our first manufactured product. Second, Roy Card sent us a machine, a very expensive tufting machine from Dalton, Georgia, and he gave it to us out of faith and was willing to take a risk. We still needed more money, and that came from Vacco Rug, a retailer where I had been working part-time, and they were willing to put up $50,000-they ended up more than tripling their investment. We were short $100,000. One of the many people we talked to suggested we contact Eldorado Bank, which was doing SBA loans. We got an approval within 60 days. That gave us our $150,000. April 19, 1974 was the official start.

We paid off the loan in half the time.

In 2004, SBA was looking to have an event in Florida to honor those companies that they assisted getting money to start or improve a business. It rated who had done the best job with their money, and we were chosen among three honorees. I flew to Florida to accept the award on behalf of Fabrica, one of 23 firms in the hall of fame. Another was Hewlett Packard.

Q: What were the biggest challenges in the early days of Fabrica?
A: Meeting the demands of our products. We were actually very successful coming out of the door. We had one tufting machine, and it was a challenge to keep up with demand. It was a recessionary year in 1974. We did well enough that it put a stress on our ability to service what we were selling. But we managed it. We were doing three shifts, running 24 hours a day, in no time at all. And we immediately placed an order for a second tufting machine, and it went from there. It was really the growth of the company that exceeded our expectations.

We started out focusing on designers. Designers are the heart of higher-end sales. When they tell a client to use a product, clients take their direction from them. That’s why designers were a prime target for us.

By the time I left, I would say 80% of our business was driven by designers.

Q: Tell us about how you came up with the name. Is it significant?
A: It’s a fun question. When we were looking to get the SBA loan, we were struggling to come up with a name. When we were typing out the papers for the SBA loan and were putting in the location of our first facility, which was on Fabrica Way in Cerritos, we all perked up and said, What about Fabrica? It sounded good. We looked up what it meant in Spanish, to fabricate or manufacture.

Q: How did you select the dealers that could carry the line?
A: The answer is that we both knew the marketplace. We were a southern California mill. I knew every area north of Orange County, and my partner knew the ones south. The builder
market back then was led by designers, so you went to designers and got them to specify your carpet in their models.

Q: How did you make sure that interior designers knew who you were?
A: We called on them. Designer showrooms were all over the place. Some sold directly to their clients; clients would look for designers with a great reputation.

In the first years, our sales were in Southern California. The next step was Northern California, and shortly thereafter came Florida. What took us national was Ethan Allen, which came to the West Coast because it wanted someone who knew California styling.

Ethan Allen wanted us nationally, but at first, I told them no; we weren’t ready for them.

It took six to eight months before we started selling in East Coast. We became their number one carpet manufacturer.

Q: Explain Fabrica’s design niche and why it has been so successful. Why, for instance, are all your products beck dyed?
A: Sometimes it is the simplicity. We spent most of our time educating our sales reps on what it is we do differently. There was a whole list of things. At one point, we even put on a label on the back of our product listing what was unique and different. One of those was the dye beck method.

This goes back to the early years of textiles. For years, vegetable dyes were used, and yarns were dyed in becks with dye solutions. Later came chemical dyes. The fact is that when you dye in a dye beck, the carpet is in there for three-and-a-half to four hours in high-temperature water, getting the dye deeply embedded in the fiber. And the uniformity of that is virtually perfect. The matching from one end to another it always very, very accurate.

Solution dyed probably has the same uniformity. But the problem is that in beck dyeing you can custom dye, as little as 100 yards or less. You can’t do that with solution dyed. If you’re building something custom, the beck dye is the superior method.

Q: What convinced you to sell your business to The Dixie Group as opposed to going another route?
A: There were concerns about the direction of the industry. Raw material suppliers were being bought up by the big companies, Shaw and Mohawk and such. We feared there would come a time when raw materials would be in short supply, and we would be at the mercy of what was available to us as a manufacturer. There was a desire to sell the company and find a buyer that could ensure the future of the company, raw material wise.

I immediately said, “What about Candlewick?” Because Dan Frierson at Candlewick, our first yarn supplier, was the Fabrica of yarn producers, and he knew and understood the higher end. Their product, in my view, was the best quality with the best control. It was the right match. They already owned Masland. I said, “If we’re going to do it, let’s do it with the right partner.”

Q: What do you consider to be your most important achievement in terms of Fabrica?
A: I would say the brand that we created. A brand is something very difficult to establish, and if you do it right, it’s hard to kill.

Q: With hindsight, would you do anything differently?
A: I thought about that. Honestly, it’s hard to argue with how profitable we were. We were the highest profit, highest margins of any carpet mill. In the mid ’90s, Carpet and Rug magazine put out a survey naming us best carpet mill for quality, service and style. And Masland, I think, was named right after us.

Q: When did you retire, and what have you been doing since then?
A: I stay actively involved in business. I’m a real estate guy, buying and selling and managing. I’ve consulted with Dixie; I’m involved in a lot of charity work, charter schools. Cars are probably my number one hobby. I have a vineyard in La Filipos, Califirnia. I enjoy cooking. And I keep active in everything I enjoy. I tap dance several times a week, been doing it for four years. And I do a lot of mentoring of kids.

DAN FRIERSON
Dan Frierson started his career with Dixie Yarns in 1966, selling carpet yarn through its Candlewick Yarns subsidiary to firms like Masland and Fabrica, and it was through those relationships that the two firms were acquired: Masland in 1993 and Fabrica in 2000. Frierson was named president and COO of Dixie in 1979 and, a year later, was named CEO. He’s currently chairman of The Dixie Group.

Frierson, who grew up in Chattanooga, Tennessee, raised five children with his wife, Joan, and has several grandchildren. He and his wife still live in Chattanooga.

Q: Tell us about your earliest encounter with Fabrica.
A: My first encounter was before Fabrica. We supplied yarn to Continental Carpets, where I met Al Frink, as well as Scott Gunther. Then, they decided to start Fabrica, and we really were there on the ground floor, supplying them yarn from the beginning.

Q: What were your reasons for acquiring Fabrica in 2000?
A: We had acquired Masland by that time and were convinced we wanted to be in the upper end of the marketplace. Dixie is over 100 years old, but over our history, which was in the textile business, we were always or nearly always in the upper end of the markets we serviced, and that’s where we did the best job. We were always known for color also, and both Fabrica and Masland are known for color.

Q: In what ways did Fabrica alter or enhance your brand? Following the acquisition, did you adjust any business or manufacturing strategies at Fabrica?
A: It was just additive. We think we have a large share in the upper end of the market with these two brands. We’ve done what we can to keep them separate and growing and viable, including separate sales forces. Fabrica is the higher-end brand, price point wise, six times the industry average carpet selling price.

We had no plans to change Fabrica’s approach to the market. It was known for quality without compromise, and we just wanted to build on that. We have grown the business since the acquisition.

Q: What goes into maintaining Fabrica’s upscale position in the residential flooring market?
A: It might surprise you that one of the main things that has gone into it is an unbelievably dedicated workforce in California. We have over 40 people with over 25 years of service at Fabrica. And that’s one of the things that’s been helpful to us. Being located in California certainly has some negatives, but one of the positives is that trends tend to start in California and then go east, and Fabrica has been able to take advantage of that over the years.

Q: What percentage of sales are influenced by interior designers? And how do you make sure they know about the brand and its products?
A: About 25% is directly involved with interior designers, sold through designer showrooms, etc. But I would say another 25% to 50% is influenced by interior designers. Interior designers love Fabrica. There’s a lot of flexibility of color, of texture, and very broad color lines-as the industry has moved to solution-dyed polyester, that’s missing.

Q: Are you selective in terms of which dealers can carry the brand?
A: We have to be selective. When someone is used to selling commodity carpet and has not sold high-end products, putting samples in that showroom is not a good investment for them or us. So, they need to be sure that those they are partnering with have the capability and desire to sell high-end goods. It leads to higher gross margins for that retailer and fewer yards to install.

Q: Having added engineered wood, do you have plans for other flooring categories?
A: Well, not at this time, because we have SPC, WPC and laminate in the Masland and Dixie Home brands. At this point, we’re adding to Fabrica’s offering in engineered wood to secure our position and broaden the beautiful product offering.

Q: What is the secret of Fabrica’s success?
A: Part of it is the people at the Fabrica facility in California, and their dedication to-and they try to live up to it-Quality Without Compromise. And that’s a very important ingredient in what makes quality products. You have to have a talented group of people to develop beautiful, stylish product, and you have to invest in the equipment to make that.

Machine efficiency is not the important thing in Fabrica. It’s having the capability of making these different products and doing it in a way in which you’re servicing the customer well but also producing good-quality product. The other thing is the color. We are one of the few companies that really offers a broad palette of color today, and everything in Fabrica is piece dyed. We have some unique capabilities. We’re introducing a product this year with 50 colors. And we will do custom color, as well.

Q: What are the pros and cons of manufacturing in California? Do you anticipate ever making any changes in terms of manufacturing?
A: Ever is a long time. However, let me say, we have such a dedicated and committed quality workforce, it would be difficult to leave. The cons have to do with Sacramento [the capital]; who knows what they might come up with? Most of the environmental regulations probably make us a better company, exposing us to what the rest of the country is going to be exposed to down the road. I’m more worried about regulations regarding the workforce.

Q: What will be the biggest challenge to the success of Fabrica in the years to come?
A: Continuing to attract young people to business and developing in them the same qualities we have in our workforce today. I’m confident that we have the creative people, and that we can invest in the technical and innovative side of the business. But I think it comes down to workforce, and we’ll continue to translate that into beautiful product delivered on time and quality without compromise.

Q: Your Fabrica products are made of nylon and wool. Do you anticipate making any changes to the face fibers?
A: Invista changed things a lot for us; 90% of our products were Stainmaster. We had to develop four other suppliers, change virtually every product we had, on the fly. And that’s sort of like running a 100-meter dash and tying your shoes at the same time. It was a difficult period, but one of the things we’re doing is that we’ve invested in a nylon extrusion operation, coming on stream first quarter of this year to ensure we have an adequate supply going forward. The extrusion is in Calhoun, Georgia. The plant has already started up, partnering with another firm; the next machine startup will be ours.

Copyright 2024 Floor Focus

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