Newsline

Volume IV, Issue 21 - October 31, 2003

The Carpet and Rug Institute news for industry executives

Special Edition - CRI Annual Conference

This Special Edition of Newsline is devoted to the CRI Annual Conference which took place on October 24, 2003. The items included are intended to give you a summary of the topics and speaker remarks presented during the conference.

More than 150 were in attendance at the conference. We appreciate those who attended and invite those who could not be present this year to please try to attend next year. We also welcome your comments and suggestions on how to improve on next year's conference.

In This Issue:
-- New Board Structure Approved
-- New CRI Board of Directors Elected
-- Board of Directors Approve 2004 Budget
-- Dan Frierson of The Dixie Group Receives Joseph J. Smrekar Memorial Award
-- CRI President Discusses U.S. Carpet Market
-- Featured Speaker Senator Saxby Chambliss Discusses Immigration
-- Trade Expert Casts Light on China
-- Consumer Health Expert Suggests Changing the Paradigm on Carpet and Health
-- Former EPA Administrator Addresses Annual Conference
-- CRI Meetings
-- CRI Participation in Upcoming Events

New Board Structure Approved

The CRI Board of Directors, at its meeting on October 24, 2003, approved revisions to the By Laws which create a new fourteen-member Board structure:
* Six members of the Board will consist of representatives of the six largest CRI Manufacturing Members;
* Three members of the Board will be fiber manufacturers and designated as Associate Manufacturing Members;
* One member of the Board will be a representative of a CRI Manufacturing Member primarily engaged in rug manufacturing; and
* Four members of the Board (may be either Manufacturing, Associate Manufacturing, or Associate Members) will serve as rotating members.
* The CRI President and General Counsel will serve as ex officio members.
* Members of the Board will include a Chairman, Vice Chairman, and Treasurer.
* Officers of the Board shall be elected for one year terms, with the provision that the Chairman and Vice Chairman may succeed themselves for one year only. The Treasurer may succeed himself indefinitely.
* Board Members' terms will be on a staggered, two-year basis and will be eligible to succeed themselves indefinitely.
* The Executive Committee will be replaced by a Policy Committee. The Policy Committee will be elected by the Board of Directors; will formulate and recommend Institute policies to the Board; implement policies; and, upon Board approval, be responsible for overseeing the President's activities in implementing such policies. The Policy Committee will be composed of the Chairman of the Board, one member each from the two largest Manufacturing Member companies, one Associate Manufacturing Member, and two or three other members at the discretion of the Board. The Policy Committee, in the interim between Board meetings, will be empowered by the Board of Directors with all of the duties and powers vested in the Board of Directors necessary to carry out any action affecting the Institute, subject to approval or disapproval by the full Board at its next meeting.

For additional information, please contact Werner Braun at 706.428.2100.

New CRI Board of Directors Elected

At the CRI Annual Conference, the following individuals were elected to serve on the CRI Board of Directors for 2004:
*Robert Shaw, Shaw Industries
*Jeff Lorberbaum, Mohawk Industries
*Mac Bridger, The Tandus Group
*Russell Grizzle, Milliken & Company
*Carl Bouckaert, Beaulieu Group
*Dan Hendrix, Interface
*Dick Prinstein, Honeywell
*Alan Wolk, Invista
*Brad Hill, Solutia
*Derick Close, Springs Industries
*Dan Frierson, The Dixie Group
*Jim Jolly, J & J Industries
*Dick Bierie, Mannington
*Jule Smith, SI Flooring Systems
Jeff Lorberbaum was elected Chairman of the Board, Russell Grizzle was elected Vice Chairman, and Gerald Embry of Shaw Industries will serve as Treasurer.

For additional information, please contact Werner Braun at 706.428.2100.

Board of Directors Approve 2004 Budget

The annual budget process of vetting expenditures with issue committees, the budget committee and the Executive Committee, culminated with the presentation of the budget to the Board of Directors at the CRI Annual Conference. Some highlights of this year's budget are an increased focus on the cleaning and maintenance issue, a reduced focus on the mold issue, and a continuation of the importance of sustainability. Almost all of the budget remained flat with the exception of the Market Issues Committee which will receive approximately a 10% increase to focus on getting our messages out. As with any budget, there are things CRI and its members would like to do but resources are not available to do everything every year. This year we will continue our focus on improving communications with key audiences and try to expand to others.

Contact Frank Hurd at 706.428.2136.

Dan Frierson of The Dixie Group Receives Joseph J. Smrekar Memorial Award

Dan Frierson of The Dixie Group, winner of the Joseph J. Smrekar Memorial Award This year the Joseph J. Smrekar Memorial Award was presented to the Chairman of the Board of The Dixie Group, Dan Frierson. The Joseph J. Smrekar Memorial Award was established by Milliken & Company to honor the late Dr. Joe Smrekar who, through Milliken's generosity, served on numerous CRI committees. Dr. Joe set "the standard" for service to CRI and the carpet industry. Though the award was established by Milliken, CRI staff members have had the honor of choosing the recipient each year.

Mr. Frierson has worked tirelessly for the carpet industry - in his own company, as well as the time he has devoted to CRI. He has also given very generously of his employees' time to work on numerous CRI committees. He has given even more generously of his own time. For a number of years he has served, tirelessly, on CRI's Board of Directors, Executive Committee, Budget Committee, and in several other capacities. Congratulations on receiving this prestigious award, Mr. Frierson!

CRI President Discusses U.S. Carpet Market

CRI President Werner BraunWerner Braun, CRI President, reviewed recent developments in the U.S. carpet market, detailing CRI's message of "Carpet for a Better Environment" and the way in which the organization was attacking the barriers to profitability and growth. On the environmental front, Mr. Braun detailed where the industry was in 1990 and the significant amount of progress the industry has made in energy, water, Hazardous Air Pollutants (HAPS), waste, Carbon Dioxide reductions as well as the recycling effort. He also discussed the new Seal of Approval program, including the new cleaning chemical testing program and the new extraction cleaner testing program. Mr. Braun also went into great detail about CRI's emergence as a true business, discussing market surveys and a marketing plan to address ways to get the CRI message out to the key flooring decision-makers. The plan as outlined by Mr. Braun includes setting measurable goals, re-surveying critical audiences and adjusting the market plan as needed.

Contact James Beach at 706.428.2116.

Featured Speaker Senator Saxby Chambliss Discusses Immigration

US Senator Saxby ChamblissUS Senator Saxby Chambliss of Georgia discussed Immigration Reform as the main topic of his presentation at the Annual Conference. Sen. Chambliss described the current situation of "winking and nodding" at illegal immigrants in the country as a thing of the past, but said the government should not grant blanket amnesty to illegal immigrants. Sen. Chambliss, who serves as Chairman of the Senate Judiciary subcommittee on Border Security, Immigration and Citizenship, said that Congress must come up with a solution to the problem or it will continue to get bigger and bigger. Currently, he stated, there are 8.7 million illegal aliens in the country and that reform should allow illegal immigrants working in the United States the opportunity to continue working as long as they are not taking jobs away from American workers.

Sen. Chambliss also touched on how the carpet industry must continue to keep tabs on China as it becomes a more dominent player in the carpet and rug industry. He pointed to the textile industry experience and cautioned that China was becoming very aggressive as it expands its role in the global capitalist marketplace.

Contact James Beach at 706.428.2116.

Trade Expert Casts Light on China

Michael Colopy, expert on US-China trade policyMichael Colopy, the President and co-founder of International Commerce Consultants Incorporated and an authoritative figure on China trade policy, discussed current issues and perceptions related to business practices in that Asian country.

Mr. Colopy described China as the number one magnet of foreign capital in the world having captured that distinction from the United States. He portrayed the country as a "gambler's choice." Specific needs in business transactions may be indeed met, however, when taken as a whole, a business venture into China is still a game of roulette. The country is saddled with the world's greatest amount of bad debt, its environmental stewardship is practically non-existent, its number of unemployed is greater than the entire population of the United States, and organized crime continues to be a major internal problem. While typical due diligence would uncover these and other shortcomings, they are often ignored by countries and companies eager to invest their capital in China.

In the coming years, China will impose many non-tariff barriers to trade, however, companies wishing to do business in China must expect these barriers and learn to deal with them. In anything to do with China, in every facet of its economy, society or environment, companies must amplify the results by the sheer numbers of people and enormity of the country. Napoleon described China as a "Giant, but it sleeps. When the Giant awakes, the earth will tremble." Based on Mr. Colopy's remarks, the Giant is beginning to stir.

Contact John Miller at 706.428.2109.

Consumer Health Expert Suggests Changing the Paradigm on Carpet and Health

Dr. Holly Atkinson, consumer health expertDr. Holly Atkinson, Assistant Professor of Public Health at Cornell's Weill Medical College, Chair of the iVillage Health Initiatives and editor of the consumer newsletter HealthNews, discussed carpet from a physician's perspective. Highlighting the significance of allergies and asthma as a public health issue, she reviewed the medical literature relevant to carpet, as well as the prominent debates among medical experts. Given the lack of consensus among leaders in the field and the gaps in research, Dr. Atkinson emphasized that media sensation has clouded the debate. She concluded a very informative presentation with suggestions about how CRI can approach future research, engage with thoughts leaders in the field, promote evidence-based medicine, and take a leadership role in changing the paradigm on carpet and health.

Contact Joan Seelaus at 706.428.2123.

Former EPA Administrator Addresses Annual Conference

Carol Browner, Former EPA AdminstratorCarol Browner, former administrator of the U.S. Environmental Protection Agency, closed the CRI Annual Conference with a very insightful presentation on how working toward sustainability is not only good for the environment but it is also good for the bottom line. Ms. Browner, who had the longest tenure for any EPA Administrator, is now a senior fellow at the Aspen Institute's Program on Energy, the Environment, and the Economy, where she serves as co-chair for a multi-stakeholder project on sprawl and urban growth. CRI was indeed fortunate to have a person of Ms. Browner's stature share her wealth of experience on sustainability.

Contact Frank Hurd at 706.428.2136.

CRI Meetings

* Commercial Caucus, November 3, 1:30 p.m.-3:30 p.m., CRI Boardroom
* Governmental Issues Committee Meeting, December 2, 2 p.m.-3:30 p.m., CRI Boardroom

CRI Participation in Upcoming Events

* Association of School Business Officials, October 31-November 4, Charlotte, North Carolina
* United States Green Building Council (USGBC) GreenBuild, November 11-13, Pittsburgh, Pennsylvania
* Industry Sector Advisory Committee 15, December 8, Washington, D.C.
* Surfaces, January 28-30, 2004, Las Vegas, Nevada
* Inaugural Meeting of the World Carpet and Rug Council (WCRC), January 29, 2004, Las Vegas, Nevada

If you are aware of other events that present significant opportunities to deliver our messages to our critical audiences, please contact Louise Dobbs at 706.428.2104.

Check our website calendar for other industry related events

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