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Business of Home Podcast - Episode Summary
Episode Title
The Thursday Show: East Fork's Alex Matisse on Rebuilding after Helene. Plus: Will a wave of silicosis lawsuits upend the engineered stone industry?
Host & Guests
- Host: Dennis Scully
- Co-Host: Fred Nikolaus, Executive Editor of Business of Home
- Special Guest: Alex Matisse, CEO of East Fork
Episode Overview In this episode, Dennis Scully and Fred Nikolaus dive into recent news affecting the interior design industry, followed by an in-depth conversation with Alex Matisse regarding the challenges and recovery efforts following Hurricane Helene's impact on North Carolina. Additionally, the episode addresses concerns around silicosis lawsuits in the engineered stone industry.
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Key Discussions
Industry News
- East Coast Port Strike
- A brief three-day strike by dockworkers was resolved quickly through negotiations.
- The strike highlighted issues regarding pay and automation within the industry.
- Workers secured a six-year deal with significant pay raises, although automation concerns remain unresolved.
- Closure of Effetto
- Effetto, an online marketplace founded by Carmine Bruno, has shut down after struggling financially.
- The marketplace aimed to offer a kinder alternative to First Dibs but faced difficulties in gaining traction.
- Silicosis Lawsuits in the Engineered Stone Industry
- A rise in silicosis lawsuits against companies producing engineered stone materials (such as Cambria and Caesarstone) due to safety concerns.
- The discussion reveals a debate on whether the responsibility lies with manufacturers or fabrication shops concerning worker safety.
Interview with Alex Matisse of East Fork
- Company Background: East Fork, established in 2010, is a manufacturer and retail brand specializing in dinnerware. The company has two factories in Asheville, North Carolina.
- Impact of Hurricane Helene:
- Matisse discusses the unexpected severity of the hurricane and its effects on the community and the company.
- Although East Fork's main facilities were spared, many local businesses and residents faced significant destruction and displacement.
- Community Response:
- The company launched a fundraising effort through a "seconds sale" to support local community organizations.
- Matisse emphasizes the importance of supporting local businesses in the aftermath of the disaster.
- Looking Ahead:
- Matisse shares insights about the challenges of rebuilding within the community and the long-term effects of climate change on business and infrastructure.
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Key Takeaways
- Community Resilience: The episode highlights the strength and determination of local communities to come together in the face of disaster.
- Market Challenges: Industry discussions showcase ongoing challenges in supply chain management, labor relations, and legal accountability within the engineered stone industry.
- Role of Business in Recovery: Companies like East Fork emphasize a people-first approach in leadership, particularly during crises, to sustain their workforce and community.
- Environmental Awareness: The conversation stresses the urgency of acknowledging and addressing climate change impacts as they affect business and community resilience.
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Conclusion This episode of the Business of Home Podcast provides valuable insights into the current state of the interior design industry, the effects of natural disasters on local businesses, and the responsibilities of the industry towards worker safety and environmental practices. Through interviews and discussions, it underscores the importance of community support and proactive leadership in navigating challenges.
For more updates, visit [Business of Home](https://www.businessofhome.com).
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:07This is Business of Home. I'm Dennis Scully, and welcome to the Thursday show. Later on, I'll be speaking to Alex Matisse of East Fork about North Carolina's recovery from Hurricane Helene. But first, we're going to catch up on the news, including a quick end to the dock workers' strike, the shuttering of an online antique site, and a look at whether a slew of silicosis lawsuits will upend the world of engineered stone. To do all that, I'm joined by Business of Homes executive editor, Fred Nikolaus. Hi, Fred. Hi, Dennis. How's it going? Great. How are you doing? Doing good. Now that I've got my Business of Home podcast coasters, I actually joined the club.
0:47The good folks at Custom Furniture Shop Abner Henry have sent me my own set after sending you. I complained. I heard about it. I heard you complained and they got right on it. And my offer to listeners stands. If you want a Business of Home podcast coaster, write us a review on Apple Podcasts and DM me. I'll send you one. I like you getting the swag out there. Good for you. You've been busy. I saw you were at Design Social in Darien, Connecticut the other day. How was that? That is a terribly fun event, and I'm really glad that I made the effort to drive up to lovely Darien, Connecticut, and see the many small wallpaper fabric companies and an array of people who were displaying their wares there.
1:31Lots of designers on hand as well. It was a very high-energy show. High energy in a lot of BOH podcast alums. You had Kira of 22, Rebecca Atwood, haven't seen her in a while. Of course, Brooks Morrison, the founder of Design Social is up there. Caitlin Peterson, our editor-in-chief is up there as we speak, giving a talk that we're sadly missing here cramped up in our podcast studios. But a couple highlights. What was the mood? Yeah, you mentioned Brooks Morrison, and I was congratulating her yesterday because the show just has so much energy, there's just a wonderful spirit there. And one of the things that really stood out to me was how upbeat people were about business.
2:13Several of them said to me, you guys are always talking about the doom and gloom in the home industry. We're actually doing pretty well. And so I was happy to hear about that. And it was a reminder, Fred, that we do need to talk about that more, that some people are doing remarkably well in this environment. Yeah, they're in the right part of the market. Well, let's quickly look back on Monday's episode and interview with the creative team behind Watts 1874, Fiona Flint, and I'm going to try, Marie Severine de Caramon Chimay. How did I do, Dennis? Was that all right? Well, surprisingly well. And I think there may be some Belgian beer in your future, Fred, for doing that as well as you did.
2:55You can see why she prefers people just to go with MS, though, right? Yes, exactly. You don't want to force people to struggle with that one. Yeah, a fun one from my time in London this summer. I actually got to sit down with them in person in the celebrated designer Ali Dodd's conference room, actually, and have an intimate conversation about a 150-year-old company that has reinvented itself many times over the years and how they're navigating the American market and the global market. Yeah, it's funny. Normally, I'm inclined to try and find a cool business takeaway here, but I'm just going to say this one's for the Anglophiles.
3:36Truly, the history of Watts is so intertwined with the history of England. And it's, you know, the company has produced like garments for four or five coronations. And, you know, it's intertwined with the architect who designed the red telephone booth. It's just like if you like British stuff, you will love this episode. There are business takeaways, to be sure, but definitely one for the Anglophiles. Well, exactly. And not only can MS say that her relatives designed literally hundreds and hundreds of buildings that still stand throughout Britain. But I think to be able to say that someone in my family created the red telephone box is a pretty good mic drop right there.
4:18Yeah. Yes. My own family does not have. Well, my dad did translate some pretty crucial communist texts, but maybe that's a discussion for another podcast. Yes. Well, we'll talk about your family in more detail on another show. But in the meantime, we're going to get into the news in just a moment. But first, a quick break.
4:43This podcast is sponsored by Lalloy, who's headed to High Point Market with all new rugs, pillows, and wall art. For retailers and designers, and for all styles. Stop by showroom D320 to see introductions from Lalloy and Amber Lewis, Magnolia Home by Joanna Gaines, Chris Loves Julia, and Rifle Paper Company. Plus newly added one-of-a-kinds and special events with Gene Stouffer and Chris Loves Julia. Visit laloyrugs.com to make both in-person and virtual appointments. That's l-o-l-o-i rugs.com and follow them on Instagram and TikTok at laloyrugs. This podcast is sponsored by Ila Porter, whose mission is to create a little more space in everyone's lives.
5:34Whether your client needs more functional space in their home, or whether you're a designer who needs more breathing room to let your creativity flow, Isla Porter wants to support your business and creativity with its AI-powered platform. The platform manages the technical details of kitchen design, and the result is custom cabinetry made with real American hardwoods, available in more than 20 door styles and 80 finishes, giving you more time, space, and options to create beautiful and functional kitchens for your clients. Let Isla Porter take care of the custom millwork and technical design. Visit islaporter.com to make space for more at islaporter.com.
6:33And we're back. First up, Fred, an update on the East Coast port strike. As quickly as it arrived, it was over. Last week's dock worker strike shut down ports from New York to the Gulf of Mexico, but it only lasted three days. The Union and the Maritime Alliance quickly came to a provisional agreement and shipping resumed Friday and many people we know breathed a sigh of relief. Exactly. I think many people were grateful for an election year is, I think, the big takeaway to help make it happen as quickly as it did. But yes, people were really preparing themselves for the worst, and this turned out to be a pretty good outcome.
7:11Yeah, I mean, just to sort of remind people, you know, the conflict here was essentially the unions that represents the dock workers or the union, rather, that represents the dock workers was striking against the shipping companies and the port companies for a pay raise and also looking to limit automation. And, you know, this kind of strike cost the economy billions of dollars every day. I think some people said that the cost of even this very short strike was five billion dollars. But they were able to come to an agreement over the wage increase very quickly. The dock workers, I think, forced the ports and the shipping companies to blink, and they got a six-year deal with a 62 % pay raise baked in, which is not bad if you can get it.
7:51No, absolutely. And what didn't get resolved, which was the other big issue in all of this, as we discussed last week, is the issue surrounding automation. And I think we were reminded in this strike just how powerful this union is and how quickly they can bring an awful lot of trade and commerce to a halt. And you saw a lot of opinion pages around the country write pieces about what a warning sign this strike is. And this and this issue around automation really needs to be dealt with. Several, several big newspapers, including The Wall Street Journal, pointed out that that the U.S. ranks, I believe, about 53rd in a World Bank survey that they did in terms of efficiency of ports.
8:38And so it is a big issue and and is very unresolved. Yeah. I mean, you know, we should say the agreement was provisional. So they ended the strike, but they haven't formally ratified this contract with every T has not been crossed, not every I has been dotted. So it's possible they'll strike again. Ideally not. But yeah, the automation issue is so tricky because it seems like you can't fight the march of technology. At some point, they're going to automate more. But the workers in this case do have like a chokehold on the port system. And clearly, they don't want automation. They don't want to lose jobs because of it.
9:13But as a result of that, the ports are getting more and more out of date. So this is a tricky issue, and I'm sure we'll talk about it again. But I guess for the time being crisis for the rest of the economy, avert it. Exactly. Let's go back and remind ourselves this is a good news story. Yes, it is. This is the one we're going to celebrate. So high five for getting that resolved, and hopefully they will sign the deal and everyone's already back at work. The question is, Fred, are there any lasting implications from this? I do think this is just one more thing on a very, very long list of problems in the global supply chain that have cropped up over the past five years.
9:52And it was COVID, of course, was the biggest one. Then, you know, you have the crisis in the Red Sea. Then you have this. There was also a labor dispute on the West Coast. I would imagine that some importers are just exhausted dealing with all these complications and all this stress of importing stuff from overseas. So I do think this, you know, some people who may have been considering, quote unquote, nearshoring, you know, manufacturing in Mexico and Central America or even manufacturing in the U.S. will more strongly consider it if they're thinking, well, am I going to have to deal with a dock strike every year or every three years?
10:23You know, it's just the stress of that starts to mount over time. I completely agree. And I think this was a wake up call for a lot of people. We'll see what comes out of it. I'd be surprised if some big changes don't come in the coming years. Stay tuned for that. Up next, Effetto. After four years, the online marketplace founded by former First Dibs executive Carmine Bruno is shuddering. In a LinkedIn post, Bruno wrote about struggling to raise money while dealing with a family health crisis. This was a sad one, Fred. You and I had spent some time talking with Carmine. He had been on the show a while back.
11:01But let's refresh people's memory about Effetto and the business that Carmine had built. Yeah. So Effetto was originally called the Bruno Effect when he launched it in 2020. And the idea behind it was basically just to sort of take it back to the early days of First Dibs. You know, Bruno himself was, Carmine Bruno himself rather, was, you know, an employee of First Dibs. Before that, he had started his own online antiques marketplace in Europe. And so I think he had a lot of affection for sort of the very early days of First Dibs, where it was just antiques dealers listing their wares on the site.
11:34designers or shoppers of any kind could connect with them directly and negotiate a deal. And that was it. The platform itself, First Dibs in the very early days, didn't get involved in the transaction the way that it does now. Now, this is going back a little bit in time and getting into the weeds, but somewhere in the late teens, First Dibs made this big change of going from a sort of lead generation site to a transactional site. So instead of talking with the dealer directly, you were clicking to buy. At the time, there was kind of a minor revolt among the dealers. I mean, I'm sure you remember this, Dennis.
12:04There was a story in The Times about how upset all the dealers were with the changes First Dibs was making and how they were really constraining the process and limiting communication between buyer and seller. And so there was a lot of like agita among antiques dealers, and there still is, to be clear, around First Dibs. And so I think Carmine was thinking like, why don't I do that? Why don't I do something that the dealers want to do and set up a platform that just lets people list their merchandise and gets out of the way? Yeah, no, absolutely. And we should say, I mean, we've had David Rosenblatt, the CEO of First Dibs on the show several times.
12:39And the first time when I sat with David, we talked about the revolt and we talked about the strong reactions and the responses. And listen, he comes from a tech background and Google and felt that the march of the internet and technology is going to be a disruptor and there's no turning that back. Interestingly, Carmine, who spent some time working for First Dibs and I believe still held some shares in the stock, was always watching First Dibs and thinking, could I be the, I think in his mind, the kinder, gentler First Dibs? And could I make it so that people didn't feel as if they were being watched perhaps as closely as they do sometimes when they're starting up a transaction on First Dibs, he pointed to.
13:29But I think it's very challenging building these marketplaces. We've seen several of them shutter recently. We talked about Kayo and the local vault not long ago. It's a challenging model to build out. I know Carmine had never gotten to profitability yet. What's your sense? Yeah. I mean, these marketplace businesses are just notoriously difficult to pull together because you have to bring together the buyers and the sellers in the same place in the same time and make them both happy, which is very difficult to do. I know some of the dealers were obviously upset about the changes First Dibs made in the late teens, but First Dibs spends a ton of money on marketing, millions of dollars every quarter, and it brings in buyers.
14:13And buyers like the simple transaction nature of the way First Dibs works. So I'm sure some dealers weren't happy about the changes, but they like the business that the platform brings in. Whereas Carmine's platform, it was definitely more aligned with the way that dealers think, and I understand why they would want it to work. But if he's not bringing in the business for them, you know, the money, the way he was making money was he was charging, you know, dealers a listing fee. So, you know, great if the terms of the site are aligned with the way that you want the business to be done. But if you don't have customers, then it doesn't really make any difference.
14:42So, you know, it's just, it's just a tough, tough business. You know, I know Carmine had, you know, very specific problems that led to this, this shutdown, but I do think that no matter what, this is tough to do. Do you think there will be a successful challenge to something like First dibs? I mean, is there any credence to the idea that there's room in the marketplace for another option? Or is it just like, it's going to be first dibs and that's it? I mean, I know there's cherish too, of course, but like that model. So I don't know that I see anybody really dying to get into this space and try and one up first dibs.
15:14I think they look at the struggles at first dibs and think, well, this is a tremendous brand with, again, money and resources and smart people behind it. And if they can't figure it out, I sort of wonder, what do I think I'm going to be able to do so much better? So I'd be surprised, but never say never. You see lots of consolidation in a lot of these other online marketplaces in the fashion world these days. And I think much of that is also just an acknowledgement that it's a tough model to make work. Agreed. Up next, we're going to talk about the engineered stone industry, Fred. Yes. This week for Business of Home, Associate Editor Caroline Burke, also a producer on this show, took a deep dive into the silicosis lawsuits filed against manufacturers like Cambria, Cosentino, and Caesarstone.
16:00A good article, a very deep dive. This week, it's Caroline who's doing the very long article, but it's a very serious subject, and I'm glad she took such a deep, thorough, balanced view on it. It's a good read, and we should start by refreshing people's memory about this whole silicosis issue and what this is all about. Yeah, I mean, we've talked about it on the show before, but silicosis is a disease that affects people who cut stone. It's actually a very old disease, but in recent years, it's become much, much more common because in engineered stone, what's more commonly called quartz, there's a much higher percentage of these little particles called silica that are released into the air when you cut it.
16:39And so if you don't cut it under very safe conditions, then a lot of this dust gets up into the air and makes workers who work on it very sick. And there's been a big rash of these cases popping up in Southern California, these very sad stories of these workers who get sick as young as 24 or 25, and some of them sadly die. It's a treatable but not curable disease. So this has been a very serious story popping up in the news recently, and we've been trying to cover it here at BOH. Yeah, it seems like there's a lot going on around this issue and people trying to determine who is to blame. So we should talk about why we're covering this.
17:15Yeah, well, I mean, I think sort of the debate over this, so to speak, has been that the companies that manufacture courts like Cambria, Cosentina and Caesarstone basically say it's a workplace safety issue that you can cut courts safely. If you have this equipment, if you follow proper procedures, it's not dangerous for the workers. So that's essentially been their argument is that these sort of like rogue fabrication shops that cut corners and don't pay attention to the safety of their workers, you know, and that's what's causing these cases. You know, the counter claim to that is just that like these shops basically just don't have the I mean, the equipment to make it safe costs hundreds of thousands of dollars.
17:53And oftentimes people specify courts because they're trying to save money. And so there's always going to be an incentive for these fabrication shops to cut corners. And so there's no way to protect worker safety and courts should just be banned. You know, we saw that in Australia last year that the entire country just essentially banned the product. And so that's kind of been the debate, like whose fault is it and what's the best way to actually fix this issue? Yeah. And it seems as if we're getting some guidance and some direction from recent lawsuits that have been out there. Yes. Including one that Caroline wrote about.
18:25Yeah. I mean, that's kind of the pivot here is that, you know, there was this the case of this worker in Southern California, a very young man who contracted silicosis. Very young guy, but he had to have a double lung transplant. It's the story is so heartbreaking. He's got so sick because of this. And so he sued. But instead of suing the fabrication shop where he worked, he sued the manufacturers of the stones, I think 42 of them in all. Most of them settled out of court, but a few of them, including Cambria and Caesar Stone, took the case to trial. And this summer, a jury essentially ruled against the manufacturers, saying that they had been partially liable for the illness that this worker suffered.
19:05It gets a little tricky because what happened was the jury assigned percentages of blame for who was to blame for his illness. And each company, I think Cambria got 10%, Caesarsone got 15%, and the jury did also find the fabrication shop liable for some percentage of his illness. So they essentially backed up the manufacturer's claim that, yeah, the fabrication shop is partially to blame here. But at the end of the day, the jury awarded$52 million in damages. And so if that judgment proceeds all the way through the appeals process, you know, these companies are going to be on the hook for millions of dollars.
19:38And, you know, it's important to keep in mind that this is this is one case out of hundreds of silicosis lawsuits that are working through the system right now. So if they all go the same way as this one case and these companies are found liable for millions of dollars in every instance, I mean, these companies are going to be, you know, face being sued out of existence. So we are at a very pivotal moment for this corner of the industry. Absolutely. And as you said earlier, in Australia, they decided to just not even let this product be out there. Here in America, we do things a little differently and we let it play out, it seems.
20:15But as you say, it certainly seems as if it's going to be a meaningful deterrent for these companies if, in fact, these lawsuits end up with huge awards. Exactly. And I think that's really like the crux of Caroline's piece. And, you know, I'm sure the manufacturers feel that they're being unfairly targeted in lawsuits like this because they have deep pockets. You know, they have money that the small fabrication shop doesn't have to be won in a lawsuit. And I'm sure their preferred solution to all of this is more regulatory scrutiny. Why doesn't OSHA go after these small workshops and shut down the ones that are being unscrupulous and unsafe?
20:52And that solves the problem. You know, I think the challenge there is just that, you know, the U.S. government doesn't really have the resources or the inclination to, you know, send out OSHA to every small stonecutter shop. And so there's always going to be a little bit of a, you know, incentive for these small operations to spring up and cut corners and then workers end up in harm's way, no matter what the manufacturers are doing. And so, you know, and we should also say, too, of course, that, you know, these manufacturers at least, you know, do put some effort into educating workshops. and Cambria owns its own fabrication workshops that are, you know, by all accounts run very safely.
21:26And so, you know, if you get rid of the, you know, the big manufacturers, you end up with sort of smaller players, which, you know, maybe aren't even operating as scrupulously. So that's, you know, you understand how given that set of circumstances, like a country like Australia ends up, you know, just outright banning it because they don't want to deal with the complexity of dealing with all of this. And, you know, one thing Caroline's piece did very well, I think was pointed out that this is a global story. You know, Australia, the ban we've talked about in Spain, Cosentino is based in Spain.
21:55The owner of Cosentino was found grossly negligent in a trial in Spain and has a six month suspended prison sentence related to the death of some stone workers there. Caesarstone is an Israeli company. There was a class action lawsuit there that, you know, alleged that the company sort of misled people about the safety risk. So this is this is a global story. It's played out all over the world a little bit. Now it's playing out here. Right now, the lawsuits are just moving faster than the government and the regulations. And so they are, at the moment, the kind of prime mover. We'll see what happens with this rush of hundreds of lawsuits that are in the court system right now.
22:31I mean, the stone companies have developed products that are lower in silica concentration and hopefully safer to cut than what they were selling before. So maybe that's the way out of this. Maybe there's a version of engineered stone that's safer. That would certainly be ideal and would be great. But something's going to change here. There's just so many moving pieces. It would be foolish to make a prediction about what exactly happens. But I would say very much watch this space. Yeah, exactly. I mean, and again, we point to many other countries in the world seem to take this very seriously and seem to want to step in.
23:07Whereas, as you point out, in the US, we don't feel that often the people that are being impacted the most by this are the ones that have the most political clout or that we're the most concerned about, which is a terrible statement to have to make about our great country. But but I think that is often the sad truth. So we'll see. Honestly, it's it's partially why I'm glad that Caroline wrote about this in the detail that she did and that we continue to talk about it, because I think people should be aware of it. And I hope people will make decisions about trying to influence this in a in a in a positive way, even outside of our great litigious society.
23:47Yes, if at all possible. that's our that's our hope and now fred for a really difficult transition watch this okay next up color drenching yes last year the phenomenon of color drenching started to trend on social media as creators shared their monochromatic rooms a year later and el decor is kicking things up a with an exploration of double drenching. The question is, Fred, have we reached peak drench here? I don't know. Put some more paint on social media. We'll see. Yeah, this was sort of a funny one. I don't know. I started to see this pop up on my Instagram feed earlier this year, so I was maybe a little late to the party.
24:31But I did the thing that I always do in these situations, which I look at Google Trends and see how the term color drenching, and there's just this crazy spike up in the middle of 2023. So something was going on in the cultural ether that led to the rise of color drenching last year. What do you think it was, Dennis? Well, that's the thing. Was there some great designer who did this amazing project that was all purple on the walls and the ceiling and everywhere you looked? I don't know. I don't know what triggered this. I know we were thinking, is this coming from across the pond? Is this a phenomenon that we see more often in England?
25:09was, did Martin Brunitzky play a role in this somehow? Because I'm happy to follow wherever Martin wants to lead, but I'm curious. Yeah, that's kind of what the commentary has been, is that this is something that's more common in English decor, which, you know, seems to be the case. I will say, like, I feel like anecdotally, I feel like English designers have been more in the mix here in the US. I feel like we keep hearing that saying, oh, you know, they're opening up a New York office and the success of a company like Plain English, for example. I feel like we are in a very like British, there's a strong British invasion moment going on in design.
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25:44And I feel like maybe we all caught a case of the color drench when the Brits came over. Is that a plausible excuse? Well, and I think maybe, you know, maybe some of the British paint companies like Farrow and Ball and Little Green, you know, maybe they've got some really good press people and they're getting these stories out there. That wouldn't surprise me at all. They're awfully good at naming the colors, as we talked about recently. And I think they're creating a lot of excitement around this. The question is, Fred, I mean, I really want to know, how do you feel about color drenching? Do you like the whole concept?
26:17Do you look at it and say, oh, my gosh, I want to do that myself? Do you think it's a timeless idea, Fred? I don't know. Well, no, is I think the correct answer. I do think that color drenching is like, it's one of those, one of these little micro, I I wouldn't call it a micro trend exactly, but it's one of these things that I think it's almost purpose built for social media. It just pops on Instagram. It's also something that people say over and over again that repainting your room is the quickest, cheapest, and most efficient way to refresh it. And so it's something that an influencer who doesn't have a huge budget can do.
26:56So it's almost tailor-made for our social media moment. Whether it actually works in a real home that you live in. I don't know. I mean, I'd be curious to hear from designers. I feel like this is something a little bit more for the editorial social media world than it is for, like, the everyday client. But I don't know. What do you think, Dennis? Got any drenched rooms in your house? Or double drenched, for that matter? Well, exactly. I mean, the double drenching really caught my attention. Wait, if you love that color for everything, just try and work in a similar color and see what that does.
27:30I mean, I completely agree, and I really would love to hear from designers out there what they make of this whole trend and whether or not they think this whole thing is just hilarious or ridiculous. Or as it pointed out in several of the articles, maybe if you don't have a great bone structure in a room, if you didn't have a lot of great old moldings or something, that this can kind of punch up the room and make it a lot more more personal and warm. I get that. I think it could be sort of fun. I don't know about talking the lovely Mrs. Scully into color drenching if I can get her on board, but I think it might be fun to try it in a space and see.
28:11But again, I think, is it going to last the test of time? Or are we going to look back at, oh yeah, that 24 moment when everyone was color drenching? Yeah, it totally looks like that. When everyone was filling up a fire hose with pharaoh and ball paint and just going to town in their room. I think what this is really doing is giving me an idea for my design Halloween costume. I'll just do like blue man group style, blue paints top to bottom. I will come as a color drenched room. I like it. Okay. I look forward to seeing pictures of that. All right. That's it for the news, but there's plenty more to check out on businessofhome.com, including a roundup of the biggest new hires in the industry and advice from Sean Lowe about taking on smaller projects during a slowdown.
28:54We'll be back in a minute, but first, a quick break.
29:02We're taking a quick break from the show to remind you about Isla Porter. Making space for more isn't always about square footage, ceiling height, or physical constraints. Rather, it's about opening up the possibilities of what designers can accomplish when their schedule allows for more creativity and innovation. Isla Porter's collection of bespoke cabinetry and AI-powered technology is here to improve your kitchen design process. Isla Porter takes care of the technical details and craftsmanship, from providing elevations and 3D renderings to offering a wide array of door styles and finishes, all made with the highest quality materials, giving you more time and variety to create stunning spaces for your clients.
29:50See how Isla Porter is designing differently. Follow along on Instagram at the Isla Porter. That's at T-H-E-I-S-L-A-P-O-R-T-E-R. We're taking a quick break from the show to remind you about Lalloy, who recently introduced Love Lalloy, a commitment to doing good for their community, industry, and environment. Through this initiative, Lalloy has recently worked in India to promote female education, donate a thousand tree saplings, and provide free eye exams and glasses to hundreds of craftspeople. Learn more at lalloyrugs.com. That's L-O-L-O-I rugs dot com. And follow them on Instagram at Lalloy Rugs.
30:45and we're back i'm joined now by the ceo of east fork alex matisse alex it is such a relief to see you and i'm so glad to get to talk to you it's good to be here good to see your face again i wanted to introduce reintroduce in in some cases east fork to people uh and tell a little bit of your story before we dive into everything. Sure. East Fork is part manufacturer, part beloved brand of dinnerware, primarily for the kitchen, dining, kind of adjacent. I started the company in 2010. My now wife, Connie, was there from the very beginning. And then another friend, John, who is also sort of a classically trained potter joined.
31:34And 2015, we saw pottery having this kind of moment in the sun again. Now we have two factories in Asheville, North Carolina, and about 110 employees or so. And that's East Fork in a nutshell. Hurricane Helene, you start to hear this hurricane is coming in the days before it arrives. What were you thinking? How were you preparing? What did you imagine? We imagined that there would be some flooding, that the river would get high. I think people were preparing for some flooding. We canceled work on Thursday. There was a few of us that came in to button things up and then canceled work on Friday.
32:20But nobody here was expecting this. Nobody in the mountains thought that they would be touched this profoundly by a natural disaster. Asheville was considered kind of a climate haven. So it's sobering for everyone here and should be sobering for others that live in places where they think they're kind of immune potentially to climate change because it is not the case. It sounds like everyone on your team has been accounted for, everyone safe at this point. Tell me what's going on. We were incredibly fortunate. Everyone on our team was safe. Communications were blacked out. So just finding people communicating was a real challenge, but we did manage to track down on everyone.
33:13We were safe. And then we went into response mode. I'm in the factory, so you may hear. We're just starting to get things spooled back up. So there's a forklift backing up. You might hear that. East Fork was so amazingly fortunate. Our two main production facilities were well out of floodplain. Well, one of them 10 feet above. The other sits up on a hill. So I feel beyond grateful and fortunate that our main facilities were not impacted. We had one small facility that was, but not a major impact to our manufacturing. And just as a company, we can keep going when so many companies in Asheville right now and in the region are shut down.
34:02Either they've lost a facility or there is no water in the city of Asheville. So restaurants cannot open. There's obviously no tourists. People are getting furloughed left and right. I mean, hotels are closed. Asheville is a tourist destination, so it's not a good scene for folks. And that's not even talking about the actual physical devastation caused by this and the loss of life and the people's homes that are gone. Just the scale of the devastation and how far it reached into all the nooks and crannies of these mountains is you can't fathom it even if you live here. You mentioned earlier it was thought previously to be a climate haven.
34:56What did happen? The river rose up clearly, but tell me what caused such devastation. Tell me a little bit about when you realized the severity of it all. There was a series of things. One, we had a rain event leading up to it. So before Helene even hit, we had some very heavy rains. That happened kind of on Thursday. And then when Helene hit, it was just more water. So the first thing I noticed when I got out of our house and we live out in the country and we live next to a small river, I could see that the road across from us was gone. That was the very first thing I saw. And I knew immediately that this was something really bad was happening.
35:42I walked up to our road, began to walk down it. And the trees were down everywhere. and I had a chainsaw and started sawing my way down the road and got to the point where I could then see the river and my neighbor's house was completely off its foundation, sort of crumpled up in a ball and knew at that point, that's when the sort of panic, the adrenaline, the reality of the situation was clear. That was early in the morning on Friday. So in Asheville, people were watching the River Arts District to go under much later in the day. So the devastation just kept rolling and rolling and rolling, putting entire towns, Marshall, underwater, hot springs.
36:28I mean, Swannanoa sustained just a tremendous amount of impact. And they're still, you know, the cadaver dogs are here and they are still discovering people. Yeah, yeah. No, it's, as you were saying earlier, Asheville, a big tourist area, also a big art and creative people community and a lot of people. I can't remember what originally brought you to Asheville and what made you want to set up shop there. I worked for a potter that lived outside of Asheville named Matt Jones. And I worked for him for two years and in that time made some connections and some friends. And then I left for a year, worked for another potter.
37:12When I came back, I chose Asheville as the spot. It was kind of a cool, groovy little spot to set up in. And that's how I landed here. when i when we had connie on the show not too long ago she was bemoaning the fact that ashville had become so popular and such a destination that that in a way the community had become a little overwhelmed by it all that so many people were coming and during covid so many people moved there it it sounded like and so the the community was was feeling very stretched at the at the time? The community was stretched. The community is still stretched, and now we're stretched even more.
37:53Housing prices kept on rising. Wages stayed relatively stagnant. The post-COVID recession kind of hit in spring of 2022. Tourists kept visiting. The infrastructure, particularly the water infrastructure, could not really keep up. And two years ago, we had an issue with the water infrastructure. And now obviously there's a much larger issue. So no, Asheville has been a, it's really sort of caught between a whole number of challenges right now, obviously that the impact is gonna, there's gonna be a long tail to this. Yeah. Yeah. And I wanna talk about that and the lengthy rebuilding process. I'm wondering specifically for you in the short term, in the longer term, what the impact has been.
38:52It's great that you're already able to be back in the factory and lights on, but it sounds like there's still a lot of issues. Yeah. I mean, for us, again, we're so fortunate. We have these customers that really show up when we call on them. We kind of followed the early COVID playbook, said, here's what's happening. Here's how you can support us. Here's how we can keep payroll going. I think one of the defining things of East Fork is this kind of people first approach. We've kept payroll going sort of completely uninterrupted. It will go uninterrupted until the 21st of October. And then folks that really cannot return, there'll be some impact there.
39:37But our first instinct is always how do How do we keep people whole for as long as we can? And that means getting back to work as fast as we can. And again, we're in a fortunate position. We've got electricity at one facility. We've got internet. We have water as of this morning, I think. It's hard to say if this water will stay. But at the moment, we have water here, not at the other facility. We're planning to drop a large tank there, plummet into the building, get that one going. but making pottery is our engine and that's what we need to to restart as fast as we can yeah as you say you reached out to your community they were they were very responsive you you announced a big seconds sale and uh and and raised funds for some some local charities that uh that you think are doing good work on the on the ground tell me a little bit about how that went for you yeah that again is something that we've we have done for a long long time we have a community partnership program.
40:38We pick every quarter an organization within the communities that we live. And usually we sort of leverage our customers to support that organization and we raise money for them. And they're small organizations. So it's a meaningful check that ends up being given to them. For this one, we had the ability to make an in-cart donation to our community partners, the three that we had worked with so far this year, that were doing work in immediate response to this. So you could make an in-cart donation. 50 % of customers made an in-cart donation. And then we were also donating 5 % of proceeds to those community partners.
41:21So we ended up raising, I don't know,$150 ,000 at this point, split across these orgs. And we'll continue that 5 % through the end of the year because it's going to be needed long after this leaves the news cycle, which of course it will. You mentioned about people coming back and I don't imagine for a company like yours, a lot of people can work remotely. I noticed your social media person relocated to Mississippi to make sure that she'd be okay and she can do what she needs to do remotely, but I imagine most of your team needs to be there. You tell me. Yeah. I mean, a big portion of the team that's working on the floor is here.
42:06Obviously, it needs to be here. But we have remote team members. We have folks in Atlanta. We have people in Portland, Oregon, and all over the place. So the sales, marketing side of things, we certainly have more remote people. And they've really kept the wheels turning while the factory's been down. So all of those folks that had connectivity that could work, they've been putting in long hours to keep that going. We're also working on our store in Brooklyn. So that continues with a hopeful opening date of mid-November. So all of these things, we're trying to keep all of the wheels moving. Good.
42:52I'm so glad that you mentioned that. And I'm thrilled to hear that that is still on track, Alex, because of course, I was wondering the impact on your plans. And I know this Brooklyn location, which many people are already so excited about, and has been on the calendar for a long time, I was worried that some of your initiatives might be scaled back or postponed a bit. But it sounds like you're moving forward. Yeah, no, we're moving forward. We will get the doors open. The opening party, maybe we're not going to have the big, huge floral displays that we thought we were, but it is going to be a celebration of East Fork and of our resilience and of moving through this.
43:40So with again, sales of all proceeds, not just online, going to support these relief efforts down here. Let's talk about the rebuilding process for the whole community there. So one of the things that we always learn in these horrible situations is how few people have flood insurance because of the cost. I think it was one or two percent of the population of that. I don't know if you had flood insurance. I don't know what insurance is going to be able to do in this case. And what are you both imagining and being told about what rebuilding efforts will look like? I don't know one person that had flood insurance.
44:27So that's kind of out of the picture. Business interruption insurance. I think there's also something that says if it's because of something outside of the Even our business interruption insurance, we are questioning whether that will come through. But yes, no, a lot of people really, they lost everything. There's SBA disaster relief loans that are going to be available. There's some bridge financing that's been available to the smaller businesses, which are really the ones that are most vulnerable from just a business side of things. you have this kind of one-two punch of these small businesses, craft businesses, small CPG, whatnot.
45:13Everybody's been struggling in the reset, this kind of COVID reset, right? You've been talking about it on your show in the home space for a long time. So people were already struggling. And then you have this. and so folks aren't sitting on super solid foundations. A lot of them, we weren't sitting on a super solid foundation before this happened. So hence the need to bring in as much of that cash as possible. It's been a real push. So general rebuilding, they're moving really fast. Everybody I think gets online and especially people that don't live here and they have a disaster in the age of social media and have an opinion of who's showing up and who's not, I can only speak to my own experience, which is obviously all of these communities have come together overnight and really supported themselves.
46:09In our small community, we had all sorts of different folks in. We had a search and recovery team from Kannapolis in. We had Army Corps of Engineers. And I mean, it's just there's been helicopters putting up power poles. They've restored a tremendous amount of power, the linemen from all over the East Coast that are here working day in and day out. So there's a huge amount happening. Of course, there could be more. Of course, certain things could be done in a better way. But when something of this scale happens, there's no perfect response. There's not. I try to proceed with a lot of grace and gratitude through it.
46:57You alluded earlier, Alex, to listen, the big lesson out of all of this is that clearly climate change is coming for us all in one way or another. And I don't honestly know what to do about that or how we better prepare ourselves for it. What are your thoughts? Truth is, and we're already seeing it, is that it's impacting certain people before it impacts others. mostly the most disadvantaged of us, the people with the most privilege, the most, they can kind of insulate and protect themselves. So it's happening. We're in the midst of it. We're seeing it unfold sort of, I wouldn't even say in slow motion anymore.
47:47And I don't know. I mean, I guess I'm sort of a cynic and I own a pottery company and we fire big kilns and we contribute to it. We all contribute to it. We all fly around at every whim. Living for a few days without power, without water, you can see. You do see. I mean, you can survive. But it really requires people to change their habits, to change the way they're living their lives. I mean, this is something Connie, my wife, is really passionate about. And I think she's really sort of trying to sort of fight for that. but will people really make a change to how they're living and then the corporations will the corporations make these make a change that you know that i have much less um faith in and and even the green you know yeah the uh renewable stuff electric cars battery cars like no we just need to drive less like that's what needs to happen people need to drive less yeah as you say It's so hard to know what to do and what habits need to change.
48:54And as you suggest, the changes are so massive and whether corporate America will get on board is yet to be determined. But this was certainly a huge wake-up call for the whole country and I hope the whole world about the seriousness of all of this. So many people – we were talking earlier about Asheville just becoming such a tourist destination. So many people love Asheville, just feel heartbroken over everything that they've seen. So many people, even in our close community, have recently moved to Asheville and then wanted to be part of it. And I want to believe that Asheville is going to rebuild and be better than ever.
49:41But as you were saying earlier, it's a long tail. It's a long process. Yeah, it's a long tail. It's a long process. There's a lot of us here that are dug in that aren't going anywhere. I'm sure that there will be people that move, but it's a crucible moment. It's going to melt everything down and it's going to reform it and something new is going to come out of it. Hopefully something better, but it will come back and it's going to take some time. The water, I mean, the infrastructure is one thing, but just getting the water going, there's no timeline for when water will be running through the city.
50:13They recently pulled every restaurant permit in the city of Asheville, which is wild because people were operating and it wasn't safe and clean. So nobody's allowed to operate. And they have to then apply, I think, for sort of an emergency permit. And they have to have water that's brought in. But in moments like this, I feel very fortunate to live in the country, to drive 45 minutes to work every day, which I do. Yeah. One of the things I admire about you in addition to all that you've built and done is that I feel like you're always working on yourself and you're always trying to improve yourself.
50:58And you and I have talked in the past about working on your leadership and really wanting to be the best leader possible for your team and for your community. And suddenly, all of this is thrust upon you, an enormous test of those leadership skills. And I wonder how you're feeling and how you're doing with all of that. Leading up to this, I've actually felt, I mean, work's been hard. We've been moving through hard moments. I've felt like that sort of the hubris of youth is gone. Like when we started the company and we had some very kind of lofty goals and ambitions, now we've sort of operated enough to see the reality of some of these things, to see just how hard it really is.
51:52You know, we sort of started in 2008 and we rode the Instagram kind of algorithm right up with Connie leading the way there and then made it through early day COVID and then rode that COVID wave for that short little period. And now we see, you know, now we've been sort of tested over and over and again. And so I've really felt, I've called it the sort of like this kind of nadir of me feeling like, oh, I do not have all of the answers. I have surrounded myself with people that I admire and respect, like Eric from Fireclay and Sarah Frisch, formerly Schoolhouse, two leaders who I consider sort of mentors of mine.
52:44and yeah, I think I'll come out of this a better leader and I've been showing up for the team and that's all that you can do and no, it's certainly, it's funny and I feel actually the things that I was stressed about leading up to this are sort of kind of pale in comparison and I almost, my stress levels have in some way gone down because of the perspective shift, I think. It's going to be a long road back. People want to know how they can help, how they can contribute. There are so many ways that you can contribute, the organizations that we highlight, but so many other great organizations here doing work.
53:26And also, if you care about beautiful things, if you care about the people that make them, supporting those makers that are here, those artists, those designers. A friend of mine just started, I'll plug his website, brands of wnc.com which is a collection of of brands that all have been impacted by this and uh we're just one of of many and and many of those brands were impacted far greater than we were so yeah just uh thinking about yeah where where are you spending your money like maybe spend your money on some of these beautiful southern southern brands especially this holiday Absolutely. And we, and we very much want to direct people to, to do that.
54:09And so many people have reached out wondering how best to, to help. And, and so much of the messaging I think is supporting these local brands. And so I'm glad you mentioned that site. And I, I would encourage people to, to go on your social media and, and others that are, that are local there to, to, to guide them to places where they can make a meaningful difference. And then be very patient about getting your order delivered. Okay. That's the other thing. Be very patient. Be very patient. We've got 10 ,000 orders and we're going to get all of our pack stations humming, but yes, it's going to take a little time.
54:44Alex, I'm so pleased to get to see you and so glad to get to talk to you. And please send my very best to Connie and your family. And I'm just so glad you're okay. Yeah. It's great to talk with you. As always, thank you so much for reaching out and giving us a platform to share what's happening down here.
55:06We're getting to the end of the show here, but before we go, we'd like to take a second to highlight anything going on in the industry that might have caught our eye. Fred, what caught your eye? A collaboration that will turn around a struggling furniture industry. Hooker has unveiled a licensing deal with Margaritaville, the brand started by Jimmy Buffett, of course, that exemplifies his Parrothead lifestyle. R.I.P. to the great man. But I don't know. I just thought this was just, I mean, anything, anything that has the word Margaritaville in it, I'm going to be interested in. So I thought that was funny.
55:36I can't, can't wait to see what that looks like. on a more serious note I saw this story just a minute ago actually that Home Depot is having a program now where they're requiring their executive teams to work an 8 hour shift in their retail stores on a somewhat regular basis which I think is there's a quality of stunt to it like a undercover boss vibe to it but I do really think that like you just learn so much getting out there and doing different roles within a business I can't tell you how many times people in this industry have talked about how meaningful it is to work a day on the phones or, you know, to get out there into the factory.
56:14So I thought that was, you know, if it is real and not just a publicity stunt, I thought that was really cool. Did you see that one? I did. I saw that announcement from Home Depot and I agree. I think it's great in Home Depot's case, the founders used to talk about they wanted everyone to put on the orange apron and work the floor. And that was really important in the early days of Home Depot. And I think there's a feeling among many that they need some executives visiting the stores because I think many complain that the stores feel a little unattended. And so I think people can learn a lot and also get a true sense of what's happening on the sales floor.
56:51So I salute them in that effort. So what caught your eye this week, Dennis? So recently we had Joe Motorico on the show, and he was talking at the time about his upcoming exhibition that is going to be opening October 10th at the Wexler Gallery in Philadelphia. I sadly will not be there for the opening, but I am eager to come. The show is called Juxtaposed, and it's running through December 20th. So people who are near the Philadelphia area definitely want to go and see a collection of Jomo's furniture, also his fun wallpaper that I'm encouraging him to launch a lot more of. And he's got some great pieces and it's a really fun and interesting show.
57:34He shared with me some of the setup of it and I'm a big fan of his and I'm really excited. I know this is a big deal for him. Yeah, it looks cool. I was seeing it come together on social media. So I'm looking forward to seeing some pictures from it. Absolutely. I hope I get down to Philadelphia soon. Good luck to you, Jomo. All right, that's all the time we have today. Thanks so much for listening. If you want to keep up with the latest news, browse job listings, or take a workshop, visit us online at businessofhome.com. If you want to get in touch with the show, write to us at podcast at businessofhome.com.
58:07This episode was produced by Fred Nikolaus and Caroline Burke and edited by Michael Castaneda. I'm Dennis Scully. Have a great weekend, and we'll be back with you on Monday.
From the publisher
BOH executive editor Fred Nicolaus and host Dennis Scully discuss the biggest news in the industry, including a quick end to the dockworkers strike, the shuttering of an online antiques site, and a look at whether a wave of silicosis lawsuits will upend the world of engineered stone. Later, East Fork CEO Alex Matisse joins the show to talk about Helene's impact and what comes next for North Carolina.
This episode is sponsored by Loloi and Isla Porter
HELENE RELIEF
Red Cross of North Carolina
BeLoved Asheville
