U.S. Rubber-Band Maker Survives by Stretching Its Portfolio of Products; Alliance Rubber Finds Novel Uses for Rubber Loops; New Equipment Turns Out Customized Products

U.S. Rubber-Band Maker Survives by Stretching Its Portfolio of Products

Alliance Rubber Finds Novel Uses for Rubber Loops; New Equipment Turns Out Customized Products

JAMES R. HAGERTY

June 1, 2014 4:48 p.m. ET

Most of Alliance Rubber’s products now are rubber-band spinoffs, like the Eraselet, a wristband that doubles as an eraser. Alliance Rubber

Making rubber bands in the U.S. takes a lot of flexibility these days.

Companies in Thailand and China, benefiting from lower labor costs, have grabbed much of the U.S. market for rubber bands. Meanwhile, some of the biggest traditional uses for the product—such as holding together newspapers and bundles of mail for home delivery—are withering away.

One of the few remaining U.S. makers, Alliance Rubber Co., based in Hot Springs, Ark., has survived by finding new uses for loops of rubber, as well as by investing in more-sophisticated equipment.

Expanding the Portfolio

The family-owned company, which employs about 150 people, now is headed by one of the founder’s daughters, Bonnie Swayze, 60 years old. She says sales exceed $35 million a year—higher than ever and up from $26 million a decade ago—and are growing about 5% annually.

Today, the bulk of Alliance’s products are spinoffs from the original rubber-band concept, including bands used for stretching exercises, holding together bunches of produce or flowers, organizing electrical cables or strapping down bundles of almost anything. Alliance’s Slip-On Grips are designed for helping people twist off bottle caps or hold tools more firmly.

Alliance also sells wristbands, including some infused with fragrances that it says relieve stress. Wristbands also can be imprinted with images, brand names or slogans. The company’s Eraselets are wristbands that can be used as erasers.

As You Like It

Employees can earn a $1,000 bonus by suggesting an idea that turns into a product for Alliance. Despite those efforts, “we’ve actually been scooped a couple of times,” says Jason Risner, strategic marketing manager. One was the fad for the type of wristbands made popular by cyclist Lance Armstrong a decade ago to raise funds for cancer research. The second was the craze among schoolchildren five years ago for Silly Bandz—wristbands that come in a wide variety of colors and shapes.

But Alliance leapt into the current boom in colorful interwoven bracelets made from rubber bands. The company is supplying bands for a bracelet-making product called the Wonder Loom.

In recent years, Alliance has invested in automated equipment to mix the rubbery, dough-like material that is flattened and then sliced into rubber bands. It also has bought digital-imaging equipment so it can make more customized products, including ones with color photos.

“We’re the Starbucks of the industry,” Ms. Swayze says. “You don’t like that color? You don’t like that size? Give us about five minutes and we’ll come up with something that suits your purpose.”