About Shaw Industries

Shaw Industries Inc., a subsidiary of Berkshire Hathaway Inc., is the largest manufacturer of carpet in the world. Headquartered in Dalton, Georgia, Shaw sells floor covering and rugs for residential and commercial applications throughout the United States and exports to most markets worldwide.
The Beginning. In 1958, Robert E. Shaw (Bob) became Chief Executive Officer of Star Dye Company, an enterprise organized in 1946 to dye tufted scatter rugs. Soon after, Star Dye evolved into Star Finishing Company, which became the largest commission finisher of tufted carpet in the world.

One of the most significant moves in the company’s formation occurred in 1967 when Star Finishing Company organized the purchase of long-respected manufacturer Philadelphia Carpets. Three and a half years later, in 1971, the company went public as Shaw Industries, Inc. Shaw common stock was first traded on the American Stock Exchange in March, 1972, and on the New York Stock Exchange in June, 1981.

In the years that immediately followed, Shaw's expansion continued with a particular emphasis on generating its own yarn supply, including the start of a yarn division with the purchase of New Found Industries, a spinner of carpet yarns. This acquisition began the company's pursuit of control over every phase of production. By 1977, Shaw discontinued commission work and began dedicating all of its dyeing, printing, and tufting operations toward manufacturing carpet exclusively for Shaw Industries.

The 1980s: The Growth Years. In 1980, Shaw Industries was the sixth largest carpet manufacturer with $213 million in sales. Bob Shaw predicted at the time that Shaw Industries would be a one billion dollar company. The figure was deemed so improbable that many didn't take it seriously, but by the end of the decade, the company was the number one manufacturer of carpet with $1.6 billion in sales.

A marketing strategy initiated in 1983 that dramatically increased its sales force and expanded direct sales to retailers played a significant role in the company's growth. Also contributing was an increased number of regional service centers, the creation of our own trucking fleet, and the decision to modernize plants and equipment. Shaw's willingness to invest in new technology allowed the company to respond more quickly than competitors to the 1986 breakthrough of stain-resistant carpet.

In 1987, Shaw bought the WestPoint-Pepperell Carpet and Rug Division, the fourth largest manufacturer, immediately adding 40 percent to its sales volume. The purchase brought to Shaw the known and respected Cabin Crafts residential line and Stratton commercial brand.

In December, 1989, Shaw Industries acquired the carpet division of Armstrong World Industries, of which the flagship brand was Evans Black. This acquisition increased the company's sales volume by another 30 percent. Additionally, Shaw's stock appreciated an astounding 3,500 percent during the 1980s. With an average return to investors of 38.7 percent, Shaw was one of the nation's top growth stocks of the decade.

The 1990s: The Evolution Continues. Just as in the decades before it, Shaw Industries continued to grow in the '90s. In May of 1992, Shaw Industries acquired Salem Carpets, the fourth largest manufacturer and the largest privately owned company in the industry. The acquisition of Salem added approximately 25% to the annual tufted carpet sales volume of Shaw through the Salemcarpets and Sutton brands.

Later that same year, Shaw acquired the fiber division of Amoco Fabrics and Fibers Company, with facilities in Bainbridge, Georgia and Andalusia, Alabama. The purchase made Shaw Industries the largest producer of polypropylene yarn in the world.

These pivotal acquisitions, combined with a joint venture for the manufacturing and marketing of carpets, rugs, and related products in Mexico, moved Shaw from a domestic exporter of carpet to a multinational manufacturer and leader in the global carpet market.

In 1998, Shaw completed one of the largest and most significant mergers in its history as it joined forces with privately-held Queen Carpets, the industry’s fourth largest carpet manufacturer. The Queen merger brought to Shaw such successful brand names as Queen, Tuftex, Designweave, and Patcraft. The combination of Shaw and Queen was called by many in the industry a "perfect fit."

Throughout the '90s, Shaw Industries also developed and continued to expand its successful and award-winning area rug division. Furthering its commitment to become a full-service flooring supplier even more, Shaw also launched a national program for selling hard surface flooring under the Shaw Ceramics, Decades Laminate Flooring by Shaw, and Shaw Hardwoods brands.

A New Chapter. On January 4, 2001, Shaw began a new chapter in its long and varied history with the completion of its sale to Berkshire Hathaway Inc., the holding company of renowned investor Warren E. Buffett. Berkshire Hathaway is known for buying and holding businesses that have a dominant market share, have strong management teams, and are considered undervalued in the stock market. With the move, Shaw ended its tenure as a public company, becoming instead a subsidiary of a public company. Being a part of Berkshire Hathaway gives Shaw even greater ability to work toward its vision to be a world-class company as defined by the customers it serves.

Random surveys conducted by Floor Focus magazine suggest the company is on track to reach its vision. For three straight years, independent residential retailers have named Shaw Industries the #1 carpet manufacturer in three out of three categories: quality, service, and design. Similarly, commercial facility managers rated Shaw #1, again for the third straight year, in five out of five categories: quality, service, styling, value, and performance.

These rankings--as well as the successful history of Shaw Industries--are the result of the exceptional sense of teamwork shared by over 30,000 Shaw employees. Their daily efforts illustrate their commitment and their determination to stay on top in an ever-changing and highly competitive marketplace.