Reviving Manufacturing: Cicilline Hears of Challenges from Woonsocket Business Owners

Diversified Distribution has innovative ideas.

The company has a huge network of buyers (including a major distributor headquartered just miles away,) dedicated talent, intricate machinery and an entire line of unique patented products, ready for resale.

The only thing missing from the equation is an environment favorable to doing business.

This was the key message delivered last week to U.S. Congressman David Cicilline during a tour of the Woonsocket company's Singleton Street factory. Although, like many American manufacturers, Diversified had moved their production operations overseas to China to save on costs, they found the lack of intellectual property rights and barriers to distribution prohibitive, and are now focusing their efforts on improving their Woonsocket facilities.   

The company produces an enormous line of personal care products including high-quality make-up brushes and sponges infused with everything from collagen to vitamin E, anti-aging skincare creams and cleansers, and foot care treatments. Their largest customer is Woonsocket's own , and their portfolio also includes contracts with Puma and Timberland.

The 100-year-old building they occupy at 128 Singleton St. was used mostly as a depot for imported goods until 2009 and has required significant investment for equipment and upgrades. Although the structure initially did not have enough capacity to power their operations, the business now employs 30 local residents and only their foot care products are still manufactured overseas.

To bring those products back to the USA, another major equipment investment is required. The final move is expected to create at least 50 local jobs in the next year and a half.

"Made in America is something we believe in," President and CEO Wayne Celia told Cicilline during his tour of the facilities. Celia, however, has found little help in securing finances to improve the business and has faced significant out-of pocket investment.

"You can't get money to invest in the United States," said Chairman Janice Ajootian of the process.

"This is exactly what 'made in America' is about. They can't produce this in China because they don't have that technology and they don't have the entrepreneur that created that technology," said Cicilline. "This is another example of where if we invest in innovation and entrepreneurship, we still can come up with a product that is not being made anywhere else in the world."

The two-factory tour was part of the congressman's ongoing Small Business and Manufacturing Tour Series designed to highlight the success of some of our area’s small businesses and manufacturers, while also providing an opportunity for business owners and other community members to discuss their needs as the economy continues to recover. 

At , General Manager Gerry Beyer related his tale of a once-thriving spinning mill now struggling for survival in an economy dominated by Chinese goods. His factory, which once employed 140 people and ran seven days a week, is now down to a staff of 45, running on two shifts.

"They can bring a finished product here cheaper than I can buy new material," said Beyer. "It's very frustrating. I want to get Congress in here and have them run the machines." 

Beyer said his business has seen the greatest decline in the past decade, and blames a NAFTA agreement which flooded the market with Chinese goods.

"From '98 forward, the business has changed more than it did in the previous 50 years," Beyer said. "We can't run a service economy in the United States. We have to be industry based."

Cicilline said he hopes to address the issue with the Currency Reform for Fair Trade Act (HR 639,) a bill focused on ending currency manipulation which he cosponsored and is lobbying to bring to the House floor.  The equivalent bill was passed in the Senate earlier this week.

"We make the best goods in the world," Cicilline said. "We need policies that allow us to compete. I don't think there's any question Americans can compete successfully if we have a level playing field."

According to Press Secretary Raymonde Charles, the House bill has majority support, including the approval of 60 House Republicans, but House leadership has not brought it to the floor. Cicilline signed on to a discharge petition earlier this week in hopes to end the delay.

The bill is just one in a series of bills the congressman said he has signed with a singular focus.

"The number one priority for all of us is what we do to get Rhode Islanders back to work and a big part of that is manufacturing."