VALDESE, North Carolina — When F&FI listed the Top 50 Mills of the World in 2008, Valdese Weavers was among the top five with $150 million in sales. Today, it is the only mill remaining and continues to grow.

“The textile industry has changed  dramatically, as the result of globalization and the dramatic impact of the recession of 2008,” said Mike Shelton, president of Valdese Weavers LLC since 1996. “In 2009, we saw the beginning of a turn-around and it has steadily rebounded for us in the last six quarters.”

Valdese Weavers has been owned by the Shuford Family for 75 years, who still hold the majority interest after selling a minority position to the employees through an ESOP program in 1995. In spite of adverse market conditions, Valdese Weavers now stands as the largest seller of decorative fabric in the world. In 2007, it acquired Circa 1801, Home Fabrics, and Guild 360 Contract Fabrics at a bankruptcy auction. With the specific acquisition of Guild 360, Valdese Weavers became a dominant player in contract fabrics and subsequently established five brands of products: Valdese Weavers, Valdese Weavers Contract, Circa 1801, Home Fabrics, and Valdese International Products (VIP). With this product line-up, Valdese Weavers has emerged with the broadest upholstery assortment available in mid-to-upper end price points from $5 to $20 per yard, according to Shelton.

Home Fabrics, designed by Wesley Mancini for the last 25 years, sells products in the $8 to $25 range. Circa 1801 is the high end product line of Valdese Weavers, with prices in the $10 to $30 range. According to Shelton, VIP imports distinctive product.

“We source and stock products we don’t choose to make or have the capabilities to make like velvets and silks,” said Shelton. “These products coordinate and compliment all of our other brands.”

Part of the reason Valdese Weavers has been able to rise above the competition is its ability to bring product directly to manufacturers, regardless of location. “For our customers who manufacture home textiles or upholstered furniture offshore, we can drop ship our products wherever they are or our weaving partners can manufacture the products for them in China or another location,” said Shelton.

Shelton also attributed elements of the supply chain and the inability of companies to provide sources for yarn as reasons for their ultimate demise.

“The supply chain has been hit with failures, reorganization, and consolidation. These shifts make it more and more difficult to line up yarn sources,” said Shelton. “In the last 15 months, both Craftex and Weave have been absorbed by other owners and there are less suppliers operating in the U.S. Elements of the supply chain have followed with business closings and reduction of capacity.”

Chief among his concerns for the future, Shelton is concentrated on raw materials and the consumers, both of which are greatly influenced by the strength of the supply chain. Due to restricted credit facilities, Shelton is skeptical that some suppliers will survive.

“As business improves, a critical requirement for sustained growth for many of our suppliers and customers is adequate short term funding and a need for cash flow,” said Shelton.

Despite skepticism for how others are positioned, Shelton is excited to have emerged stronger from the recession and is looking at the present as a perfect opportunity to grow more than ever in the 75-year history of Valdese Weavers.

“With the market share that we have been fortunate to obtain, the confidence of our customers and the improved market conditions, we forecast significant growth well into double digits next year,” said Shelton. “We have never been so prepared for an upturn in our business as we are today. We have been able to reinforce with our customers the value of our products and service. We have gained a share in each market we serve: home textiles and furniture manufacturers, fabric distributors, OEM manufacturers, and contract jobbers.”

Shelton has given Valdese Weavers a presence like never before, with an increased share of each sector it serves and by increasing its production to meet the growing demand of its customers.

“Nearly 80-percent of what we do is customized to some degree,” said Shelton. “We produce many diverse styles in 50 to 60 yard minimums for our customers’ specifications and deliver them quickly. Each brand has a distinct style and construction with highly technical fabrics with more eco friendly components for contract. We’re developing and designing more products today than ever to meet the needs of our multiple brand structure,” said Shelton.

Color and design of each brand is handled by dedicated design groups with separate studios and distinct merchandising and marketing for each.

"Our diversification in branding and our market presence gives us strength so that we have not been adversely affected by changes in any one market segment,” said Shelton. “However, we were negatively affected by the recession like everyone else in 2008.”

Shelton feels that being vertical separates Valdese Weavers from domestic and foreign competition alike.

“We have the most complete vertical operation in our industry today, yarn forward with one million square feet of production in four factories all within five miles of each other in Burke County, North Carolina,” said Shelton.  “We are vertical from design through finishing today. This is important given the fact that there are reduced capacities in the market in yarn spinning, dyeing and fabric finishing compared to the industry that existed just five to 10
years ago.”

Valdese Weavers has clients in North America, Middle East, South Africa, Pacific Rim, Europe and the U.K. It is building its export business under the watchful eye of Joe Feege, executive vice president of sales with over 20 years of experience. In addition to Feege, Valdese Weavers is blessed with the longevity of its other key executives, all of whom have 15 years or more experience with the mill: Snyder Garrison, CFO and CAO; Carson Copeland, COO; Blake Millinor, president of Valdese Weavers Contract; Zack Taylor, senior vice president, sales and marketing for all residential brands; Laura Levinson, senior vice president, design and product development, coordination of design activities for all brands.