Rhode island business

150 Years of Baubles, Bling and the Rise of America’s Only Jewelry Billionaire

Throughout 2018, we will be posting to our Then and Now blog series to unearth the roots of our state’s key industries. Today, our earliest entrepreneurs and Rhode Island’s rich and surprising history of jewelry manufacturing.

Then
In the 1880s, Rhode Island was the No. 1 state for jewelry manufacturing, accounting for one quarter of the entire country’s production, thanks to the more than 200 Providence-based jewelry firms that employed almost 7,000 workers. How did the smallest state become the “jewelry capital of the world”? 

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To put our finger on the industry’s origins in Rhode Island, we have to trace back even further, to 1794, when a man named Seril Dodge opened his jewelry store on North Main Street in Providence. He made shoe buckles that the dandies of that day took a shine to. But it was his nephew, Nehemiah Dodge, who would go on to develop an early process to plate lesser metals in gold and silver, whetting the nation’s appetite for inexpensive jewelry. Around the Dodge family, a generation of innovative jewelry manufacturers sprang up. A Jewelry District hummed to life in Providence, powered by an immigrant labor force. And around the country, the Industrial Revolution spurred increased production and economic growth. (Of note, Rhode Island is also widely credited as the birthplace of the Industrial Revolution. In 1790, English immigrant Samuel Slater built the first American factory to successfully produce cotton yarn with water-powered machines.) 

Jewelry-making in Rhode Island flourished for a century, and rags-to-riches stories abounded. The Great Depression put growth in the Jewelry District on pause until after World War II, but Rhode Island emerged from wartime with manufacturing as its dominant activity. And though the Jewelry District was bisected by the construction of Interstate 195 in the 1960s, jewelry represented the state’s largest manufacturing sector by 1978. At that time, Rhode Island produced 80 percent of the country’s costume jewelry and employed 32,500 workers in the industry.

Along the way, evolving trends in fashion helped feed demand for Rhode Island-made baubles. As Peter DiCristofaro, the jewelry historian who founded the Providence Jewelry Museum, tells it, “You had the counterculture, birth control—and pierced earrings. In the ’70s you had disco jewelry, and in the ’80s you had big hair and big jewelry.”

Then came a steep and sudden decline in sales. Fashions changed, and overseas companies that offered cheap labor began competing with local makers. Many Rhode Island companies went out of business. Factories closed. By 1996, only 13,500 people remained employed in jewelry in the state. 

Around the country, manufacturers were telling similar stories. According to the Bureau of Labor Statistics, in 1960, about one in four American workers had a job in manufacturing. Today fewer than one in 10 are employed in the sector.

Carolyn Rafaelian, founder of Alex and Ani. Photo by Rhode Island Monthly magazine

Carolyn Rafaelian, founder of Alex and Ani. Photo by Rhode Island Monthly magazine

Now
Nevertheless, the one-time “jewelry capital of the world” is undergoing a revival. Besides being home to Alex and Ani, the half-billion-dollar brand founded by native Rhode Islander Carolyn Rafaelian, the state can boast one thousand jewelry-related companies. According to a recent WWD account, “Rhode Island’s jewelry manufacturing is a nearly self-sustaining ecosystem—invisible to those not in-the-know. Stuffed into unassuming pre-war millhouses, their floorboards are worn to a sloping sheen and the sound of arcane machinery fills the air with a droning hum.”

Tiffany & Co., David Yurman, Shinola and Jennifer Fisher all now manufacture their wares in the state. From its HQ in Cranston, Jewelry Concepts has become a world leader in personalized jewelry, annually producing over one million unique personalized jewelry items. And companies like Luca + Danni and Alexys Ryan are quickly writing their own success stories. Why the return to manufacturing in Rhode Island? Besides the public’s embrace of the Made in America movement, jewelry makers cite frustration with quality control and delays experienced with overseas manufacturers. Designer Pamela Love, who manufactures part of her line in Rhode Island, recently told WWD, “The quality is fantastic, [the Rhode Island factories] do such a great job. I think that the chain factories, the finding factories are on par with Italy.”

Today, Rhode Island once more has the highest concentration of jobs in the jewelry industry in the United States. The 30-year-old Providence Jewelry Museum, which has long resided quietly on a dead end street in Cranston, is now being made over as the National Jewelry Museum and will be opened to the public. It will move to Providence, where it can better put the state’s industrial past on display, in the form of 50 Providence-made machines, 200 pieces of jewelry and 20,000 company samples spanning more than two centuries of jewelry making. Museum president Edward Lemire says, “We are on a mission to make [the museum] a bigger, better, permanent, public tourist attraction. A lot of people had no idea this all went on in the United States. This will bring that awareness back.”

By most accounts, one jewelry brand in particular has helped Rhode Island return as a world player on the jewelry scene: Alex and Ani, a bangle-making brand founded in 2004. Not only has the brand grown from $4 million in sales in 2010 to $500 million in sales in 2015, but it bridges Rhode Island’s past with its present, since founder Carolyn Rafaelian opened Alex and Ani out of her father’s Rhode Island jewelry factory. She and her sister had worked at the factory as teenagers in the 1960s, and she began to design jewelry herself. Today, her designs have made her America’s only jewelry billionaire, and she sits at the No. 18 spot on the Forbes list of America’s Richest Self-Made Women.

Gov. Gina Raimondo, another native Rhode Islander, also has familial ties to Rhode Island’s bejeweled past: “I had a great life as a kid—my dad had a job at the Bulova Watch company,” she told Rhode Island Public Radio. “Good jobs like his gave people dignity in their work. It’s important that Rhode Island gets [manufacturing] right.”

The governor, whose late father lost his job at the watch factory when work was shipped overseas, has committed to rebuilding and reinventing Rhode Island’s manufacturing prowess. Jewelry will always be an important part of that story. 

We Invited TechCrunch’s Andrew Keen to R.I. and Something Awesome Happened

For the past seven months, the Greater Providence Chamber of Commerce has supported “Innovate 2017,” a TechCrunch.com TV series hosted by author/speaker/Silicon Valley-based entrepreneur Andrew Keen. During this period, Andrew interviewed numerous leading thinkers across public, private and social sectors to “pontificate” about technology and innovation. When he attended our annual meeting in Providence on Nov. 20, he also interviewed Gov. Gina Raimondo for the series, as well as our board chair, Alden Anderson, Jr., Secretary of Commerce Stefan Pryor, and a number of other Rhode Island business leaders for a video series that we’ll be sharing with you over the coming weeks and months.

Influential blogger Andrew Keen says Rhode Island has extraordinary capacity in "design thinking"which is where the future is headed.

Influential blogger Andrew Keen says Rhode Island has extraordinary capacity in "design thinking"which is where the future is headed.

 

It was Andrew’s first time doing anything more than just “passing through” Rhode Island on the way to someplace else, and something awesome happened: He was blown away by the promise of our little New England state and in particular by our governor’s intellect and impressive background, calling her “incredibly smart and dynamic” and comparing her to another personable government leader he’s interviewed, Emmanuel Macron. By the time Andrew had completed his immersion in all things Rhode Island, I felt compelled to turn the tables on him, interviewing him about his impressions of our state. They are as follows:

 

·         Rhode Island offers the real deal: “The geography is incredibly rich with potential, at a time when geography is increasingly important. Digital pundits have argued that we’re in a post-geography, post-physical-space era—that it doesn’t matter where we are. In spite of those predictions, made goods and physical goods like vinyl LPs and books have become more valuable, and talent has congregated in places like New York and San Francisco. What digital has done is created an abundance of information, which has generated a new scarcity—attention. There are infinite amounts of movies, music and content online, but it’s no coincidence that young people are embracing the physical. And in spite of that fact that we can now speak or meet with anyone digitally or virtually, physical meetings, like TED conferences, have become increasingly valuable. Digital doesn’t replace physical engagement. Scarcity of the physical is one of the realities of the 21st century. It turns out, place does matter, and Rhode Island is an excellent place to be. We need to get people to experience the state firsthand; you have a wonderful state and a wonderful governor.”

 

·         The size is right: “What struck me, when taking the train from New York to Rhode Island and from Boston to Rhode Island, is that it’s really not that far. This is important—not only because of the state’s proximity to major urban centers, but also because of its size. Small, vibrant, flexible places will have huge value in the future as opposed to sprawling empires. The 21st century will be owned by smaller places like Singapore, Estonia and even Rhode Island. Rhode Island, being small, becomes a meeting post; it can play a central role on the U.S. eastern seaboard, but also globally. As America changes, places like Rhode Island have great potential.”

 

·         Its industrial pedigree bodes well for its digital potential: “Rhode Island was at the center of the Industrial Revolution, boding well for its potential as a player in the digital revolution. This is especially true now that Silicon Valley is in crisis in so many ways, and people are bored with it. I think there’s something to what Steve Case has written about with “the rise of the rest” and our country’s emerging startup ecosystems. Rhode Island just needs to roll its sleeves up. Your success is about the rejuvenation of America.”

 

·         Design is Rhode Island’s differentiator: “One unique attribute in Rhode Island is design thinking. It’s absolutely essential; you can’t commoditize design or human creativity. In the age of the algorithm and A.I., anything that can be crunched will be crunched, but design rests on human creativity. Design, storytelling and the creation of empathy and relationships will become the most valuable scarcity.”

 

·         Our governor is an asset: “My interview with Gov. Raimondo was one of the most successful that I’ve done. It generated a lot of positive buzz. People were impressed with her—how smart she is, her business-orientation, and they wanted to know more about her, especially these days with the explosion of gender in politics. It’s important for the state to leverage the governor’s vision for the future. Her background as a venture capitalist and her understanding of the investment landscape also needs to be stressed. It’s a compelling story, and it needs to be told repeatedly.”

 

·         What’s hot for 2018: “My new book [How to Fix the Future] comes out in February in the U.S., and on TechCrunch this year, we’ll explore solutions for a lot of the themes we pursued via Innovation 2017 around women’s issues, justice in technology, new technologies and algorithms that reflect biases—2018 is the year of solutions. Rhode Island is interesting because it doesn’t focus on problems, but instead on mapping out the future.”

 

Find Andrew Keen’s interviews with Rhode Island business leaders—ranging from Verizon’s Donna Cupelo to CCRI’s Dr. Meghan Hughes to BCBSRI’s Kim Keck and RIC’s Dr. Frank Sánchez and many more—on the Chamber’s web and digital channels in the coming weeks and months.