Portland Jewelry Symposium Focuses On 3D Printing And Other Technologies

Peter Smith delivering the keynote at the Portland Jewelry Symposium. Photo by Lena Knofler

The Portland Jewelry Symposium celebrated its 10th anniversary but there was no time to wax nostalgic at the most recent gathering. Instead it was time to focus on the future of the industry. This future consists of the use of technology in general and more specifically the continued growth of 3D printing technology.

“It just seemed like so much evolution was going on with technology we should focus on the future so everybody can sit here for a day-and-a-half and think about the next 10, 15 years for their businesses,” said Teresa Frye, who founded the symposium.

Teresa Frye, founder of the Portland Jewelry Symposium. Photo by Lena Knofler 

Frye, owner and president of TechForm Advanced Casting Technology, a platinum manufacturer, said her business is 95% digital. She is dependent on designers who create the pieces that she manufactures. Because of this she said she is most interested in how designers will adapt to new ways of creating jewelry without losing the human aspect of the artistry and design.

“It’s so easy to look at the robots and say that has nothing to do with my craft, it’s so cold and sterile. Yet we can’t avoid it,” she said. “It’s crucial to our survival that we pick the elements of technology that are going to help us to not just survive but to stay at the top of our game and I think that’s the challenge for the industry because we really are so traditional.”

One of several 3D printers on display. Photo by Lena Knofler

She says there is no one answer, designers, manufacturers and retailers will have to adapt various elements of technology in ways that will enhance their businesses.

“Our customers value the handcrafted nature of what we do, yet we’re going to have to give up some of that. All the top brands know that they have to select the elements of technology that are going to help them to remain competitive yet they can’t lose their soul in the process. And I still don’t know the answer because it really lies with the designers as far as the aesthetics of what we’re creating and how to not lose that in the process.”

This year’s symposium, with the theme “Future Think: Innovate, Create, Thrive,” was held October 1 and 2 at the Sentinel Hotel in downtown Portland, Ore. Approximately 150 independent retailers, manufacturers, designers and others in the jewelry trade attended this year. The attendance was a new record for the symposium. In addition, it has grown from a regional gathering in the northwest United States to a national event. Frye said one of her challenges is to manage this growth while maintaining its intimate, informal and friendly atmosphere.

3D Printer models. Photo by Lena Knofler

3D printing was the hot topic this year and they were the top item on display among the vendors at the event. The technology is being used regularly to produce jewelry molds that are used for casting. Costs of the machines have dropped significantly over the years and they are smaller and easier to use. Their easy entry point has opened up jewelry design to a broader group of people. For example, retailers can now create custom designs for their customers with greater efficiency and speed.

The vast majority of 3D printing is being used to create resin models for casting. However, the newest generation of 3D printers can now print jewelry using precious metals. As one vendor told me the process hasn’t been perfected yet and isn’t a viable replacement for current uses.

But it doesn’t take an expert to know that the technology will get better. Frye, who is well adept with technology and how it is used in manufacturing environments, sees this as well. She says it brings questions on how it may change jewelry design.

“I’m thinking about this next evolution of 3D printing,” Frye said. “Is jewelry going to start looking all the same because we’re letting the technology dictate the designs? That’s the challenge for the industry and I fully expect there will be many designers who are going to overcome that challenge but there may be inherent limitations with the technology. There is probably going to be a multitude of solutions and what we’re trying to do here is to get that conversation going. We have the technology experts here talking about what’s out there and then we have the networking with real world jewelers who will challenge them. That’s when you have the really interesting conversations.”

Kevin Abernathy discussing manufacturing technology. Photo by Lena Knofler

Kevin Abernathy of BIS Ventures, in his presentation on trends in digital manufacturing, said that 3D metal printing is the next big thing and that artificial intelligence, robotics, cloud computing and other technologies are becoming commonplace in the world’s largest companies and will soon be commonplace in the jewelry industry.

Abernathy, whose company consults with jewelry manufacturers on their automated and digital technology, said he was an early adapter of 3D printing and computer numerical control (computer automation of machine tools). Because of these technologies, he said “vendors can help you navigate the minutiae of the design in your mind.”

Bench demonstrations. Photo by Lena Knofler

Abernathy assured those in the audience that although these technologies will continue to grow, there is no need to be fearful of losing your job.

“At the end of the day it takes a human, an artist putting that love into a piece of jewelry,” he said. “No machine will ever replace that and no robot will ever do it.”

The keynote address for the symposium was delivered by Peter Smith, jewelry industry consultant and author, who discussed the future of traditional jewelry retail, which he says, is actually brighter than it is being portrayed.

“This fear that somehow we’re losing business to online is just not based in reality,” he told the audience.

Kristi Broussard of Stuller demonstrates a detector for lab-grown diamonds. Photo by Lena Knofler

Instead, he argues what is happening is a transformation of the retail business combining the bricks-and-mortar experience with the convenience of eCommerce. He stresses that it’s retail stores that will continue to drive the business.

In most cases, he says, retailers who are losing customers are doing so because they are not providing a high-quality store experience. He said the landscape of the retail industry can be broken down to convenience and price sensitive stores, such as Costco and Wal-Mart; and stores that focus on experience, such as Apple, Starbucks and Tiffany & Co.

Jewelry retailers cannot compete with price so they have to create stores that provide a better experience for their customers. It includes reevaluating everything about the store, from the lighting to the music to the scent (which can be purchased) in a way that creates a story about the retail experience they want to deliver.

Chris Ploof of Laminated Metals describing his products. Photo by Lena Knofler

Smith also encouraged retailers to streamline their product offerings and focus on what sells and to build eCommerce websites in order to create a well-rounded retail experience.

Sherris Cottier Shank, an award-winning gem artist and master gem carver, had a bit of warning for those jumping into technology head first. She challenged retailers and others in the jewelry industry to think “beyond mainstream” when specifying jewelry.

“All of this automation is really great but remember there are other people out there beyond mainstream,” she said. “Take the time to talk to them and find out what they like.”

Shank, calls herself an “odd duck” in the jewelry industry because what she likes in gemstone jewelry is rarely displayed in stores.

“If I were to walk in most jewelry stores today I would turn around and leave. Most jewelry stores would have nothing that interests me,” she said. “There are others like me and I know this because they contact me out of the blue.”

She began her career as a bench jeweler but discovered that she loved the art of gemstone carving. A self-described “girl who plays around in the dirt,” she sometimes goes to the mines to select her gems. She said dealers have mixed reactions when selling to her.

“I’m very careful when I select rough and the sellers either love me or hate me. They usually give me a pad and let me select my own (stones),” she said.

Shank, known for her signature carvings, has received numerous awards. Several of her pieces are on display in museums, including National Gem & Mineral Collections of the Smithsonian and the Boston Museum of Fine Arts. She also works with exceptional jewelry artists who mount her gems into jewels.

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Portland Jewelry Symposium: A Forum For Innovation In The Jewelry Industry

Jim Tuttle of Green Lake Jewelry Works, Jennifer Dawes of Jennifer Dawes Design and Travis Isaacson of Lashbrook, spoke about their personal experiences with selling custom jewelry. Photo by Anthony DeMarco

Jewelry professionals who attended the ninth annual Portland Jewelry Symposium received a great deal of information on the technology, craft and artistry of jewelry making. They discovered ways to improve their business and their digital media results; and they learned about the responsibility associated with the making and selling of jewelry. 

The event held Sunday and Monday in Portland, Ore., was attended by 125 jewelry professionals (primarily independent business owners) from 12 western states and Canada, including designers, manufacturers, metalsmiths and retailers. Its focus this year was responsible sourcing (as I have written about previously: link and link) but in the eight sessions on Monday presenters exchanged ideas on a number of topics ranging from the highly technical to the wildly creative. 

The more technical presentations included Jim Binnion, an expert on metalsmithing and goldsmithing techniques who discussed his process for developing a new method for preparing 3D acrylic photopolymer patterns for investment casting, a complicated but important topic with the recent proliferation of 3D printers in the jewelry industry.

Teresa Frye, founder of the Portland Jewelry Symposium, provides an overview of what jewelers should known about precious metals metallurgy. Photo by Anthony DeMarco

Teresa Frye, founder of the Portland Jewelry Symposium and owner and president of TechForm Advanced Casting Technology in Portland, presented a technical overview of what jewelers should known about precious metals metallurgy. This includes discussions on porosity, microstructure, mechanical strength, and the effects of alloying elements.

Frye said she started the symposium nine years ago to fill a need in the northwest United States primarily for independent jewelry retailers, designers and manufacturers. The event has steadily grown over the years. Frye said the symposium prides itself on being a non-commercial venue for jewelry professionals.

Jewelry designer Chris Ploof describes the creative process during his presentation on Mokume Gane. Photo by Anthony DeMarco

It was modeled after the Santa Fe Symposium, founded more than 30 years ago by Eddie Bell, director of technology for Rio Grande, Inc., perhaps the largest jewelry industry supplier of tools, equipment and know-how in the U.S. Frye has participated in the event as a presenter and attendee for many years. 

The Santa Fe Symposium is international, attracts some of the largest jewelry companies and is the closest thing to a scientific process in the jewelry industry. Large manufacturing representatives present highly technical white papers on new findings in jewelry making production. The non-commercial networking aspect among these professionals is cited as one of the key reasons for its success. 

Frye says the Portland symposium is a bit different in that it is geared toward smaller companies and is bit broader in terms of presenting highly technical white papers with artistic and business presentations. It received the blessing of Eddie Bell and Rio Grande is one of its major sponsors, providing bench jewelry demonstrations.

Frye expressed confidence that the Portland symposium will continue to grow. 

“There’s a national need for this type of non-commercial event in the type of setting with a more intimate environment than a tradeshow.”

Several attendees said the non-commercial networking environment is one of the best parts of the annual gathering. 

“You don’t feel like you’re in an environment where you’re being sold. You are able to relax a little and enjoy the people who are here,” said Jennifer Shaline a bench jeweler at Beaudet Jewelry, Eugene, Ore. The self-claimed “too junkie” was also at the show headhunting for full-time employees. This is her second time at the event. 

Networking had a direct impact on jewelry designer Ali Peret of Troutdale, Ore. He was specifically looking to find information on 3D jewelry design. The schedule didn’t have this topic this year but during networking he met a 3D jewelry design instructor from the Gemological Institute of America. 

“This is exactly why I come,” said Peret, who has attended the symposium a few times in the past.

Andrea Hill describes how to adapt Lean Manufacturing to small jewelry operations. Photo by Anthony DeMarco

Andrea Hill of Hill Management Group, a consultancy for the jewelry industry, presented a tutorial on Lean Manufacturing, a systematic method for the elimination of waste within a manufacturing system. This system was developed in Japan and is flexible enough to use for a variety of manufacturing processes, including those in the jewelry industry.

“It’s a system that trains an organization to look at itself from the outside in and to make all improvements accordingly,” Hill told the jewelers. “It provides value through the eyes of the customer by designing your business and processes around your customer.”

She added, “This core concept of lean is very accessible to the small business and if you’ll embrace you’ll see benefits in your business.”

Hill has been a longtime presenter and attendee of both The Portland and Santa Fe Symposiums. 

“Teresa (Frye) does a really good job,” Hill said after her presentation. “She packs a lot of content into a day.” 

She adds that’s there is no other place in the northwest United States where such a diverse group of jewelry professionals can get together in such a supportive environment. 

Chris Ploof explains the true worth of what someone buys from a designer. Photo by Anthony DeMarco

Jewelry designer Chris Ploof of Leominster Mass., gave a presentation on the history of the Japanese art of Mokume Gane and described techniques to produce the distinctive design in a modern jewelry workshop. 

It was one of the more entertaining and informative presentations on such a difficult topic. It included a chart on the artist process that read: “Work begins; F#*k off; panic; All the work while crying; Deadline”

Mokume Gane is a technique that produces a wood-like grain in metal. It’s done by fusing several layers of different colored precious metals together then manipulating it in a way that a pattern resembling wood grain emerges over the surface. There are several techniques are used to produce a variety of effects.

Three jewelry designers (Jim Tuttle of Green Lake Jewelry Works, Jennifer Dawes of Jennifer Dawes Design and Travis Isaacson of Lashbrook), spoke about their personal experiences with selling custom jewelry.

Lake Giles of Thinkspace Jeweler of Portland, which creates cloud-driven website management systems and internet marketing services for jewelers, told attendees how they can successfully manage their own website Search Engine Optimization (SEO) without hiring consultants. 

“There are better ways to advertising digitally,” he said. “Google ad words, Pandora radio, Facebook, email marketing lists. They all have their pros and cons. SEO is frequently less attractive than these other channels.

He also encouraged jewelers to use social media (perhaps the only industry on earth that needs such encouragement). 

“At least create those accounts, claim those business names on social media sites shows your biz is alive,” he said. 

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The Personal And Social Benefits of Responsible Sourcing At Portland Jewelry Symposium

Stewart Grice of Hoover & Strong speaks about Responsible Sourcing to approximately 125 jewelry professionals. Photo by Anthony DeMarco

As mentioned previously, the ninth annual Portland Jewelry Symposium put an extra focus on Responsible Sourcing, a voluntary commitment by companies to take into account social and environmental considerations when managing their relationships with suppliers. 

In addition to the keynote by Bennett Freeman on Sunday, two other presenters opened the eight sessions Monday with their takes on the benefits of Responsible Sourcing. 

The two-day Portland Jewelry Symposium discusses innovations in technology and artistic trends.Teresa Frye, who founded the symposium, says the responsible sourcing of materials for jewelry making is one of the most important current topics for the industry. This year, she said she placed an emphasis on this topic. This year, approximately 125 independent jewelry professionals including retailers, designers and manufacturers attended the event. 

The first, Stewart Grice, VP of Mill Products at Hoover & Strong, a jewelry manufacturer and refiner of precious metals, took the audience into two artisanal mines in Peru, where the company sources its Fairmined gold for its jewels. Among its products, the North Chesterfield, Va., based company produces more than 30,000 eco-friendly and responsibly sourced mill products and finished jewels under the Harmony brand name. They include products sourced with Fairmined gold and silver. 

There’s a premium paid for jewels made with Fairmined gold but in return retailers and end users get gold that is ethically mined without life-threatening chemicals (like Mercury) and the extra money goes toward making the lives of miners and their families better. 

Grice argues that customers are willing to pay the premium if it is explained how Fairmined gold works. “When you buy Fairmined gold this money is invested in community,” he said.

In the case of the two Peruvian mines in Aurelsa and Iquira, this premium is used to improve the safety of the mines, provide power and water to the communities, medical care, cell phones, proper food and even recreational activities, including a soccer pitch in which Grice says may be the highest such field in the world. 

In explaining the harsh conditions at the mine prior to this initiative he said, “These guys were shooting at each other, now they’re playing soccer.”

Only about 15 percent of all independent mines in Peru are regulated by the government, Grice said. The vast majority of mines operate illegally.

One of the requirements of Fairmined gold is that the artisanal mine must be government regulated. This provides an added bonus for the Peruvian people as these mines now contribute to the tax base.

Jewelry designer Toby Pomeroy. Photo by Anthony DeMarco

Jewelry designer Toby Pomeroy, the second presenter, is a pioneer in using responsibly sourced materials in his jewels. In his presentation, “A World Without Design,” he used his own experiences as an example of how a purpose-driven life can lead individuals to find what truly motivates them. 

“In an absence of an inspired context, our lives will not be inspired,” he said. “It will not leave us fulfilled and inspired and not leave other people fulfilled and inspired.”

The Corvallis, Ore., based jeweler talked about his inspirations as a jewelry designer and in his life that led him to making many life choices, including his most important career choice: working with sustainably sourced materials. He is now a world leader in the production of environmentally sustainable and socially responsible jewelry. His launch of “EcoGold” and “EcoSilver” set a new standard, defining ethical luxury. 

In 2006, he learned about the “No Dirty Gold” campaign, which educates people about the impacts of irresponsible gold mining. He learned about the poverty stricken metal miners who work in dangerous conditions and how it contrasted with the beautiful jewels he sells. He thought about closing his business.

“I can’t keep making jewelry knowing the destruction of wide scale mining,” he said. “We’ve been prospering on the backs of miners. For millennia the jewelry industry has been prospering on the backs of other people.”

Pomeroy went to Hoover & Strong to see if the company could purify previously used scrap gold and silver separately from newly mined metals. The company came through but added a 3 percent surcharge for the effort. For the second order the surcharge was dropped. In addition, Hoover & Strong also decided that it was going to develop this business. 

Once seeing that it was doable Pomeroy decided, “This is the direction we’re going.” The jewelry and process was branded as “EcoGold” and “EcoSilver.”

It turned out to not only to be a good ethical move, but a superb business decision as well. After a story appeared about this new use of recycled gold in a trade magazine the consumer press followed, giving his business a great deal of publicity. 

Pomeroy created a pair of hoop earrings, called “Eclipse” made entirely with recycled metals. The elegant, casual and lightweight earrings are flat and wider at the bottom with a rough hammered texture and touch of fair trade diamonds. It then features a subtle bend as it moves up to the ear. The earrings were an instant success. The small store received so many orders for the earrings that he had to develop a way to machine manufacture them without losing the quality, which he did. 

“They loved the shape,” he said. “I just couldn’t make them fast enough.”

Pomeroy seems to be most proud of accidentally starting a movement in the jewelry industry toward responsibly sourced materials.

“Over 100 brands are now using Fairmined gold,” he said. “We’re really causing a revolution in the jewelry and mining industries. Anything is possible.” 

This is the second of three stories about the Portland Jewelry Symposium.

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LJ International Revenue Up 26%, Profit Up 59%, Led by China Retail Business

The Enzo retail chain in China is a stellar performer for  LJ International.

Hong Kong-based jewelry manufacturer and retailer, LJ International Inc., reported Thursday that operating revenue in the second quarter increased 26 percent to $41.5 million. Gross profit increased 59 percent to $20.6 million. Operating income increased 13 percent to $3.3 million. Net income for the period ended June 30 rose 67 percent to $3.85 million.

It was the company’s retail division in China led the way showing exceptionally strong sales and offsetting a decline in its international wholesale business due the sluggish economy in the U.S. and Europe.

The company, which owns the Enzo store chain in China, reported that second quarter retail sales increased 70 percent year-over-year to $28.4 million. Same store sales for the period increased 61 percent for the period, ended June 30. Enzo added 16 new stores in the second and since then added another 12 stores to boost its branded retail chain to 166 stores. LJ International said it will continue to aggressively expand its retail network in China.

LJ International’s wholesale revenue fell 19 percent to $13.16 million year-over-year. Sales from the U.S. and Europe decreased 26 percent and 6 percent year-over-year, respectively, representing 71 percent and 20 percent of wholesale revenue. Meanwhile, sales from Asia and other markets grew 49 percent and represented 9 percent of wholesale revenue for the period. The company distributes a full complement of jewelry lines under the Lorenzo brand name to fine jewelers, department stores, national jewelry chains and electronic and specialty retailers in North America and Western Europe.

“Our solid financial performance came in ahead of our expectation, mainly driven by the stronger than expected performance of Enzo, the retail business arm targeting affordable luxury segment,” said Yu-Chuan Yih, LJ International chairman and CEO. “Consumer and luxury product markets are widely perceived to be two of the fastest growing sectors in the expanding Chinese economy. Enzo, with solid financial strengths, will continue to expand its retail network, deepening penetration in its affluent first and second tier city network while strengthening its presence in the third tier cities. We are well on track to operate a network of about 200 stores at the end of the year and have scheduled to add approximately 26 stores by the end of the third quarter, bringing the number to about 180 stores.”

Yu-Chuan Yih added, “Amid an intricate macro environment which impacts the wholesale markets, we remain a key partner of our long-standing wholesale customers, which has warranted stable sales throughout the economic cycle. We will focus on strengthening collaboration with core customers to better align product strategy and design with the changing preferences of the end consumers, to add value to our strong relationship with leading wholesale customers; and our high quality of products and services would continue to help us maintain a steady growth in the wholesale business amidst unfavorable market conditions.”

In its outlook the company said it expects a 19 percent to 25 percent increase in gross revenue, year-over-year, to $42.5 million and $44.5 million. This outlook is fueled by an expected 33 to 38 percent increase in retail sales in the range of $28 to $29 million for the period. Wholesale revenue is expected to be $14.5 million to $15.5 million, representing a flat growth rate to an increase of 6 percent for the period.

More financial highlights for the second quarter after the jump:

LJ International Revenues Up 36%

LJ International Inc. on Tuesday reported a 36 percent year-over-year increase in revenues for the third quarter ended September 30. Sales and income growth reflected an 83 percent rise in sales at LJI's ENZO retail chain of jewelry stores in China.

The Hong Kong based company makes gold, platinum, and sterling silver jewelry set with diamonds and precious and semi-precious stones at its plant in Shenzhen, China. It markets its jewelry primarily under the Lorenzo brand name to retailers in Europe and North America. It also sells jewelry through fine jewelers, discount chains, department stores, television shopping channels, and in about 100 of its own ENZO retail stores in China, Hong Kong, and Macau.

The company said it expects fourth quarter 2010 sales for ENZO to increase 40 percent year-over-year, offsetting an approximately 15 percent decrease in wholesale revenues.

"Today's results clearly demonstrate how our retail-based growth strategy is succeeding as planned," said Yu Chuan Yih, LJI's chairman and CEO. "Our ENZO division is the primary driver of both sales growth and margin improvements at all levels, from gross to net profit. Retail sales also are rising not just from the opening of new stores but from significantly higher sales on per-store basis. With new financing in place to fund at least 60 new ENZO stores in 2011, LJI is on track to take advantage of continuing economic growth in China while holding its own as a leading jewelry wholesaler in slower-growing global markets."

LJI's company-wide revenues for the third quarter rose 36 percent year-over-year to $35.7 million. Retail revenues were up 83 percent to $21.1 million. Same store retail sales rose 13 percent for the period. Wholesale revenues were down less than 1 percent to $14.6 million.

Rising retail revenues reflected expanded store count (up to 124 at the end of the third quarter from 92 a year earlier) and growing consumer interest in ENZO jewelry lines coupled with the continued rise of disposable income in China's expanding economy.

As in past quarters, gross margins for retail revenues were substantially higher than wholesale. Gross retail profit in the third quarter of 2010 was $10.6 million, or 51 percent of retail revenues. Gross wholesale profit was $3.4 million, or 23 percent of wholesale revenues. Overall gross profit was $14 million, or 39 percent of revenues.

LJI's operating income for the third quarter of 2010 was $3.7 million, or 10 percent of revenues, up 188 percent from $1.3 million, or 5 percent of revenues, a year earlier. The improvement was due both to the sharp rise in higher-margin retail sales along with effective controls on sales, general and administrative expenses, the company said.

Retail operating income was $3.1 million, or 15 percent of retail revenues, up from $1 million, or 8 percent of retail revenues, a year earlier. Wholesale operating income was $1 million, or 7 percent of wholesale revenues, compared to $$500,000, or 4 percent of wholesale revenue, in the third quarter of 2009.

Gay Frères Receives RJC Certification

French jewelry manufacturer, Gay Frères, is the first member of the Responsible Jewellery Council to be certified against the ethical, human rights, social and environmental standards as established by the organization’s Member Certification System.

RJC is an international not‐for‐profit organization of more than 240 companies committed to promoting responsible ethical, human rights, social and environmental practices in a transparent and accountable manner throughout the jewelry industry from mine to retail.

Gay Frères’ RJC Member Certification results from a successful verification assessment conducted by Specialized Technology Resources, Inc. (STR), an international audit firm based in Enfield, Conn.

“This important milestone builds on five years of sustained effort by the RJC’s members to create the independent third party RJC Member Certification System applicable from mine to retail,” said Matt Runci, RJC’s chairman. “RJC Certified members have the benefit of recognition against an international certification system, supporting their own reputations and enhancing consumer confidence in the jewelry supply chain.”

Founded in 1835, Gay Frères is a manufacturer and supplier of European jewelry brands, employing 300 people and producing 1,000 jewelry pieces on a daily basis.

“We are most proud to be the first RJC Member to achieve this important certification and we encourage others within the industry to follow suit so that they too can evidence responsible business practices,” said Claude Schlappi, Gay Frères’s director.