Lean Manufacturing

How can we prevent future supply chain disruptions in the US

| Posted by unionwear

Unionwear CEO Mitch Cahn had the opportunity to speak at New Jersey Manufacturing Day and discuss the recent global supply chain disruptions due to the COVID 19 pandemic.

When asked how we can prevent supply chain disruptions, Cahn said the pandemic exposed weaknesses in our global supply chain that we didn’t even know existed. Thus, it is reasonable to assume that future disruptions of unknown origin will likely expose additional weaknesses that we cannot even think about. 

On the plus side, those domestic manufacturers who managed to survive outsourcing and Amazon have proven to be very flexible. In fact, they learned so much during these tumultuous times that many manufacturers, including Unionwear, were making PPE in a matter of days even though they had zero knowledge of manufacturing such items before. For instance, Cahn said he had never heard of a face shield before the pandemic hit. But after getting specs, he was able to quickly assemble prototypes in less than two days. It was only a matter of repurposing items Unionwear already had — including foam from backpacks, plastic from binders, and headbands from hats — and turn them into useable face shields. 

To prevent supply chain disruptions, companies need to invest in domestic manufacturers. It is imperative to do so, as our national security continues to be at risk. To justify its cost, The Reshoring Institute created a formula that calculates the true cost of importing. These costs include:

  • Travel
  • Prototyping
  • Shipping
  • Time
  • Lines of credit
  • Delays
  • Pirating
  • Transportation problems
  • Reputation cost

When taking these into account, importing oftentimes looks more expensive than domestic manufacturing. 

Ultimately, if the US government is serious about preventing future supply chain disruptions, American policymakers and regulators need to incentivize increased domestic manufacturing. Meanwhile, purchasers need to support these manufacturers by actually buying materials from them and not letting them go out of business. Although domestic manufacturers came to the rescue during COVID-19, we lost tens of thousands of lives because we didn’t have domestic-made PPE. This needs to be a major national priority.

Links:

NJMEP – Manufacturing Day 2020

NJMEP

How Unionwear stays competitive in a high labor cost environment

| Posted by unionwear

Even though the northern New Jersey area is one of the most expensive places in the world, and Unionwear has a well-compensated unionized workforce, we have managed to successfully stay in business since 1992. How? For starters, we embraced lean manufacturing (we discussed how in other blog posts.) But there are other reasons we thrive here as well.

 

In addition to embracing lean manufacturing, we have consistently had good relationships with local organizations and the community at large. We work closely with the New Jersey Manufacturing Extension Program (NJMEP). They have been an invaluable resource for us as we navigate through these challenging and ever-changing times. So before you decide to set up shop here, reach out to NJMEP.

 

Not only does Unionwear CEO, Mitch Cahn, sit on the board of directors for NJMEP, he has also served as Chairman of the Newark Workforce Development Board and a director of the Newark Regional Business Partnership. He is a champion of New Jersey manufacturing and continuously challenges the state to improve the business environment for manufacturing, given the quality of its workforce, its access to ports, and the existing general infrastructure. By maintaining a good relationship with the community, we are able to capitalize on opportunities that would not have been possible otherwise.

 

We maintain a good relationship with our union. When the coronavirus pandemic hit, our production pretty much ended and we were weeks, if not days, away from going out of business. So we reached out to our union and, within a matter of days, began manufacturing PPE, such as face shields and washable gowns, for first responders. We could not have capitalized on that opportunity without our union.

 

In order to improve efficiency and reduce costs, we often re-engineer our products to uncompromisingly keep design intent and desired utility, while reducing the labor steps.

 

Finally, being made in New Jersey means Made in USA. There are significant advantages to that as well, which we will discuss in future postings.

 

Read more about our custom made products and manufacturing practices HERE

Unionwear was featured on CNBC’s “The Profit”

| Posted by unionwear

Marcus Lemonis is a business turnaround expert who hosts “The Profit” on CNBC. This show highlights businesses that are struggling, and Lemonis tries to help them on the path to profitability. He digs in to identify what is right, what is wrong and recommends improvements. 

In this episode, he visits a New Orleans-based sewing manufacturer called Queork, which makes a wide variety of items made from cork. The business is truly unique but they are struggling with profitability.

Upon inspection of Queork’s facilities, Lemonis realizes the facility is horribly organized, as there is effectively no manufacturing process in place. The lack of process and procedure is costing them a lot in profitability and inhibits their ability to scale.

To find out what they could do better, Lemonis takes them to Unionwear in Newark, NJ to show them how it’s done. There, they meet Unionwear CEO Mitch Cahn who walks them through how efficient processes can dramatically increase their profitability and item quality. Cahn explains that, by implementing manufacturing processes, Unionwear reduced excess labor costs from three hours to about 15 minutes, just looking for thread. By implementing similar changes across their organization, Unionwear has been able to dramatically increase output quality and profitability, even though they are a union shop located in Newark, NJ.

Upon re-evaluation of Queork, Lemonis learns that they moved their facility to a much better-organized space, allowing them to increase production and profitability. Thanks in large part to Unionwear’s example, everyone now knows US-based manufacturers such as Queork can succeed in a challenging domestic manufacturing environment.

Unionwear Maintains a Competitive Edge: American Textile Manufacturer Thrives in New Jersey

| Posted by unionwear

Unionwear, an American apparel manufacturer based in New Jersey, celebrates the company’s effort to implement lean manufacturing. Founded in 1992, today they employ 175 people. Mitch Cahn, president, and CEO uses his business as an example of why New Jersey is an ideal place to manufacture.

One reason Unionwear can remain incredibly competitive in New Jersey is its willingness to integrate best practices in order to create an efficient and productive manufacturing environment. Lean manufacturing is a strategy aimed at eliminating waste from production by applying process- es and procedures that have a dramatic impact on the efficiency, effectiveness, and profitability of the company. Lean manufacturing utilizes many “common sense” strategies that might at first sound easy to put into action.  However, creating a truly lean manufacturing operation can present challenges, and these processes and procedures are often difficult to maintain over time. There is a clear distinction between understanding the concepts of lean and implementing it on the shop floor.

“We had been struggling to implement lean manufacturing constantly for the last 12 years and it’s a struggle because lean flies in the face of human nature,” said Cahn, the company’s president, and CEO. “The key principles to wrap your head around are reducing waste. Before we started lean manufacturing [employees] were spending 30 minutes working for every hat produced. They are now sending five minutes to produce a hat.”

Lean manufacturing is centered around the idea of creating more efficient processes, working smarter not harder, and eliminating waste in all its forms. Cahn identified that employees were spending too much time searching for fabrics. If Unionwear was able to reduce the time it took to find the correct materials for one employee by 5 seconds, and that employee repeats that process 10 times a day, that could equate to just about three and a half extra hours that one employee can spend on production per year. Scale that up to an entire facility employing 175 individuals and the ROI is undeniable.

Additionally, Unionwear began to focus on “Made in USA” branding. This proved to be a major selling point for American companies and Cahn was confident people were willing to pay a premium for ‘Made in USA’ products. He stated, “We do not have to be as inexpensive as goods made in China. We just need to be in the ballpark,” They are able to maintain a competitive price point due to their implementation of lean as well as through a comprehensive grasp of proper supply chain management and computer automation.

“We want stuff coming right off the truck and going into a product and then we want that product coming right off the production line and being shipped to a customer. That reduces our expenses of keeping inventory and storing inventory.” – Mitch Cahn

Cahn sits on the board of directors for NJMEP, a chairman of the Newark Workforce Development Board, and a director of the Newark Regional Business Partnership. He is a champion of New Jersey manufacturing and insists the state offers an incredible environment for manufacturing because of its workforce, access to ports, and its manufacturing infrastructure.

His impression of New Jersey manufacturing comes from years of experience in the sector and state. Cahn’s success is a testament to his leadership, the ability to implement lean, and brand his products as “Made in USA”.

Unionwear worked with NJMEP to develop a comprehensive lean manufacturing plan and to put it into practice. NJMEP’s lean manufacturing services are designed to make implementing this proven and effective business strategy manageable for a business of any size. For more information on lean manufacturing services, contact NJMEP and begin taking advantage of all the resources, support and experience available.

Manufacturing needs to embrace innovation, especially during a pandemic

| Posted by unionwear

In 2018, Canadian Prime Minister Justin Trudeau made this very insightful remark at Davos: “The pace of change has never been this fast, and it will never be this slow again.”

While this holds true in normal times, it is especially true in the middle of a pandemic.

COVID-19 has upended a whole host of sectors, including the entire hospitality industry, live events, and most industries which require person-to-person contact, such as beauty parlors and hair dressers.

Meanwhile, other sectors have never been busier. Those firms which enable working from home such as Zoom, and home delivery services like Amazon, have seen their valuations skyrocket.

One overlooked sector, of course, is manufacturing. Because things still need to be manufactured, manufacturers must innovate to stay alive in an industry that is constantly changing. For instance, how do manufacturing employees work from home? Is that even a viable option when making physical products? Do these firms have the right technology in place to maintain productivity and profitability?

The answer is, sometimes yes, and sometimes no. Over five years ago, Unionwear embraced new technologies such as cloud mobile ERP and MRP, which made our work significantly more productive, so we were more prepared than others. We figured out how to have a number of manufacturing employees working from home while COVID was at its peak so we could avoid production disruptions. We innovated and developed a full line of PPE products in a matter of weeks. And we came up with innovative ways to avoid disruptions to our supply chain.

For me, there are two big lessons to learn from this. One, manufacturers who embrace innovation will stay in business in the short-run and become more profitable and efficient in the long-run. Two, there is a lot of opportunity for entrepreneurs to assist manufacturers in embracing innovation, both from a consulting side and deploying hardware and software solutions.

We are in the middle of unprecedented challenges and an equal number of opportunities. If manufacturers want to stay profitable in the long-run, they must embrace innovation.

Unions who embrace lean manufacturing improve job security

| Posted by unionwear

In 2013 APICS of Greater North Jersey hosted Unionwear CEO Mitch Cahn to talk about his lean manufacturing journey. According to their website, APICS is “the industry leader in supply chain certification, training and networking. For more than 60 years, APICS has provided world-class supply chain training and certification to foster supply chain talent and improve end-to-end performance.”

Mitch has been living and breathing lean principles for years now.  Indeed, in this video Cahn says, “I didn’t support the lean program, I was the lean program.” 

Running a profitable manufacturing firm in New Jersey with unionized staff is a daily challenge. One of the keys to Unionwear’s survival and success has been to embrace lean manufacturing. In fact, without lean manufacturing, they would not be able to afford union labor. Even though well-paid employees are expensive, happy employees stay longer and embrace lean manufacturing because they want the company to succeed.

From Baseball Hats to Face Shields & Isolation Gowns

| Posted by unionwear

As one of the few remaining manufacturers in the US, Mitch Cahn & Unionwear is trying to fill the void left by all of the cost-cutting, outsourcing companies that have contributed to our crippled supply chain for lifesaving healthcare products, including personal protection equipment. They have turned a factory that was gearing up to make baseball hats for the Olympics, the US Census, and presidential campaigns into a facility making face shields & isolation gowns for frontline healthcare workers.

source: The Righteous Capitalists

NJBIZ: Manufacturers grateful for federal help, worried about the future

| Posted by unionwear

A group of business owners and executives told state legislators June 10 that federal loans provided crucial assistance in the early days of the COVID-19 lockdown, but said they are worried about the state’s business climate and what will happen when the funds run out if the economy does not recover quickly.

“I pushed the button to upload my documents one second after the loans were available,” said Gary Fails, the president of Carlstadt-based City Theatrical Inc. “We were among the first companies to get funding.”

The loans enabled the company to retain all of its employees, but, he noted “as one of the first companies to get funding, we’re also one of the first companies to have the funds run out.” City Theatrical produces lighting products and accessories for live events, a business that is unlikely to return this year. “Broadway shut down and our business disappeared and our sales dropped by 90 percent, Fails said.

Fails’ comments, along with those of other owners and executives, came during an online hearing convened by the bipartisan state Legislative Manufacturing Caucus and the New Jersey Manufacturing Extension program.

While some executives described problems getting loans from the federal Paycheck Protection Program they were eventually resolved and allowed them to keep employees on staff.

Newark-based UnionWear usually makes promotional hats and other apparel, but pivoted to producing personal protection equipment when the COVID-19 outbreak hit. “In early March, we were about to have our greatest year ever,” said company President Mitch Cahn. UnionWear had orders to make products for presidential election campaigns and for Olympic athletes.

The PPP loans, Cahn said, allowed him to offer hazard pay to workers. He was able to offer a “significant bonus to convince people to come back to work.”

When a worker at Newark-based ZaGo Manufacturing Co. contracted COVID-19, the company was able to allow him and everyone he had contact with to be away from work for a month, thanks to PPP funds. “Our employees knew that that if they were exposed, they wouldn’t be hurt economically,” explained Gail Friedberg Rottenstrich, ZaGo’s CEO. The company makes self-sealing screws, nuts and bolts.

Cahn also raised an issue that many of his peers echoed: the regulatory environment in New Jersey. He said UnionWear did not get any orders from New Jersey for its PPE because the state did not override the need for approval from the Food and Drug Administration, an action other jurisdictions have taken. “We work with Detroit and Los Angeles, but nothing locally,” Cahn said.

Several lawmakers on the call, including Manufacturing Caucus co-chair Sen. Linda Greenstein, D-14th District, vowed that the Legislature would examine the issue.

Social distancing rules could also pose problems in a state where expanding structures can often be expensive and time-consuming. Marotta Controls CEO Patrick Marotta, told the lawmakers that in preparing his most recent budget, he planned to squeeze more employees into the company’s existing space. “That’s completely out the window,” he said.

The Montville-based maker of electronic components for the military owns 25 acres of land, but cannot add another building because of Highlands Council rules. So Marotta is trying to find a second location and is “looking at New Jersey restrictions as opposed to restrictions in other states.”

While the participants in the call generally praised the government response to the pandemic, many are concerned about what the recovery might look like. As Dax Strohmeyer, president of Triangle Manufacturing Co. Inc., put it: “If the demand isn’t there, it doesn’t matter if you can stay open.” The Upper Saddle River-based company is a contract manufacturer of medical devices and its business was hurt by the prohibition on elective surgical procedures imposed in March. Gov. Phil Murphy ended the ban effective May 26, though some limitations remain in place.

Strohmeyer is concerned that when his PPP funds are exhausted, he may be “in the tough position of furloughing and laying off people to realign our costs and revenue.” He added that when demand does return, he won’t easily be able to bring qualified workers back.

All of the owners and executives heaped praise on the NJMEP and CEO John Kennedy for providing essential guidance on reopening and interpretation of government mandates.

Source:  NJBIZ.com

Unionwear is the merchandise provider of choice for Trump, Biden and others

| Posted by unionwear

Unionwear in Newark, NJ made hats for the Warren, Bloomberg and Trump campaigns. Mitch Cahn, CEO of Unionwear, has been overflowing with orders of merch. Before the Coronavirus pandemic, the factory had been making election swag for both parties since 1992.

“I want to make sure that people have a way to speak freely and use our products to get their messages across,” said Cahn. “Some will appeal to young people, some will appeal to women, some will appeal to old white men.”

Before the Coronavirus hit, Unionwear was making between 2000-3000 hats in a single day. The factory orders usually come from agencies working with campaigns or candidate-supporting groups. That’s because political campaigns often want to hire US-based businesses for their merch.

The 2016 election was also a busy season.

Cahn continues: “The one time we saw a very surprising spike was with the original ‘Make America Great Again’ hat. The demand overwhelmed the supply. There are only a handful of factories [that could produce these] in the United States working on that hat for Trump.”

This sort of swag often doubles as campaign contributions, and it adds up. The Trump campaign sold more than $20m worth of merchandise between 2016 and 2018. 

But not all campaigns make money on merch. Mike Bloomberg did not make money on his hats. He funded his run out of his own pocket.

Political swag is as old as the Presidency itself. Buttons bearing George Washington’s initials were sold at his first inauguration in 1789. But the business really took off in the mid-90s, when Mitch was just getting started.

“When the Internet came around and e-commerce became more viable, we got into the political market in a big way,” Cahn commented. But it wasn’t always easy. “All of our clients had moved overseas. And then we were left with a baseball hat factory and a lot of employees, and not a lot of places to get business from.”

Mitch had to transform the company, but he didn’t have to look far. He began selling to unions, who were looking to buy from Unionized businesses like his. He also began selling to military agencies, some of which are required to buy US-made goods.

Then came the political campaigns.

“The first order we got was a small order for the Bill Clinton campaign and was maybe 150 hats. Our first big break was with the Al Gore campaign [in 2000.] We sold probably more hats than we ever sold for any one particular client before. It was probably 200,000 hats overall.”

But having lots of swag may not translate into lots of votes, especially in 2020.

“The candidate that ordered the largest amount dropped out of the race early, Andrew Yang. That was definitely the most hats we’ve sold in this election cycle.” 

Yang’s campaign sold more than 30,000 “Make Americans Think Harder” hats, which made up about $1.2 million of campaign revenue and are still for sale on his website.

And, what does Unionwear do with its merchandise once a candidate drops out?

“We have this down to a science. We are producing in small batches. Someone would have to drop out unexpectedly for us to get stuck with anything.”

Business Insider: Presidential candidates buy hats from Unionwear for three primary reasons

| Posted by unionwear

Before the Covid-19 crisis, Unionwear CEO Mitch Cahn spent the past 28 years supplying hats to a wide variety of clients. Being one of the only unionized, domestic manufacturers of hats and other items, Mitch has found a significant advantage in providing swag to organizations that purchase products that are made in the USA. These groups include labor unions, some military organizations, and especially Presidential campaigns. 

Presidential candidates buy hats from Unionwear for three primary reasons:

1- Candidates are eager to show off their commitment to American job creation

2- Some candidates, such as Donald Trump and Andrew Yang, earn a profit off of selling their hats, providing much-needed financing to their campaigns

3- Unionwear’s prices are not significantly higher than those made overseas, thanks to their commitment to lean manufacturing and just-in-time ordering. This also means there are almost never leftover hats, even if a candidate drops out of the race suddenly

How did Unionwear get started selling merchandise to candidates as diverse as Al Gore, Donald Trump, Mike Bloomberg, and Andrew Yang?

After making a whopping 150 hats to Bill Clinton’s re-election campaign, their big break came from Al Gore’s 2000 presidential run, where he sold an estimated 200,000 hats. He has made hats for nearly every presidential candidate since.

“The candidate that ordered the largest amount dropped out of the [2020] race early, Andrew Yang. That was definitely the most hats we’ve sold in this election cycle,” said Cahn. 

Yang’s campaign sold more than 30,000 “Make Americans Think Harder” hats, which made up about $1.2 million of campaign revenue and are still for sale on his website.

“I want to make sure that people have a way to speak freely and use our products to get their messages across. Some will appeal to young people, some will appeal to women, some will appeal to old white men,” Cahn said.

Although currently manufacturing face shields and washable gowns for first responders, Unionwear is still taking orders for hats and other apparel. This crisis won’t last forever, but Unionwear plans on being around for a long time afterward.

2020 vision: Candidates who want ‘Made in USA’ hats can call Unionwear — but there’s more to business than slogans

| Posted by unionwear

No matter whose team you’re on, there’s money to be made in presidential campaign-branded baseball caps — epitomized by those red “Make America Great Again” hats.

And Unionwear is one of the few companies in the running for that profit.

Mitch Cahn, president of the 180-person manufacturing team in Newark, says there are not a lot of textile products such as hats being made in the United States in general today — most of the work has gone to China or other emerging economies. 

But, certain customers need to send the right message by choosing U.S. manufacturers for merchandise. That includes any would-be commander-in-chief.

Read more here

ACG Global: Mitch Cahn discusses winning ACG New Jersey’s Corporate Growth Award

| Posted by unionwear

In the latest installment of ACG Global’s At Home with the Middle Market, Unionwear’s President, Mitch Cahn, discusses why Unionwear won ACG New Jersey’s Corporate Growth Award (1:15) and their experience being a union shop (2:55).

Mitch explains how Unionwear was able to participate in the PPP due to some assistance from the Newark Mayor and Invest Newark (9:48), how they’re able to grow by purchasing the assets of bankrupt textile businesses (11:32), and more.

NJ.com: Unionwear, Workers United team up to produce PPE for coronavirus first responders

| Posted by unionwear

A healthy relationship between company and union has been the driving force in getting health care providers more and more personal protective equipment when it is needed most.

Unionwear, a Newark-based company that is known for its production of hats, backpacks and binders, has quickly shifted its focus to creating face shields and surgical gowns.

Workers United has been reaching out to companies who could provide needs for those on the front lines in combatting the coronavirus, ensuring their employees are still working.

In uncertain times, it was a perfect match.

Please read more here

njpac: The New Home Front: Newark Manufacturers Innovate to Fight Covid-19

| Posted by unionwear

Mitch Cahn of Unionwear was featured in a new series called NJPAC Business Partners @ Home.  These interviews will offer virtual conversations with executives leading their businesses in creative, effective and useful ways in the fight against the pandemic.

The first video conversation features three Newark business leaders who’ve rapidly pivoted from producing their traditional wares to manufacturing the vital materials—masks, sanitizer, medical face shields, isolation gowns—needed by front-line medical workers.

To learn more, please visit here

The Athletic: How a Newark factory that was going to make U.S. Olympic hats is now making PPE

| Posted by unionwear

Mitch Cahn saw his entire summer’s worth of production laid out. His shop was going to produce hats for the U.S. Olympic team, manufacturing the line that organization would wear and sell. It was already manufacturing hats for all of the Democratic presidential nominees. Then his company would make more hats for the fall. Presidential merchandise was a lifeblood for Unionwear and the Newark, N.J., factory where they are produced.

As one of the few textile manufacturing factories in the United States, Cahn said, its “Made in USA” emblem was a premium companies want to be associated with. When a presidential candidate or the team representing the U.S. abroad wants a hat, they also want it, well, made in the U.S. — and that’s Cahn’s business.

But everything went awry quickly in early March. All but two of the Democratic candidates dropped out. Then the novel coronavirus pandemic started to hit the United States in full force, dramatically slowing down business along with the rest of the country. A few weeks later, Unionwear cut their staff, too, sending workers home and trying to figure out how they would operate in this new world.

Read more here

Candidates who want Made in USA call Unionwear

| Posted by unionwear

No matter whose team you’re on, there’s money to be made in presidential campaign-branded baseball caps — epitomized by those red “Make America Great Again” hats.

Promotional products made by Unionwear include hats, backbacks and tote bags.

And Unionwear is one of the few companies in the running for that profit.

Mitch Cahn, president of the 180-person manufacturing team in Newark, says there are not a lot of textile products such as hats being made in the United States in general today — most of the work has gone to China or other emerging economies.

But, certain customers need to send the right message by choosing U.S. manufacturers for merchandise. That includes any would-be commander-in-chief.

Promotional items with the coveted “Made in USA” label tend to get a boost from the presidential race, but with the popularity of President Donald Trump’s iconic headwear from the last election cycle, Cahn said baseball caps are especially relevant now.

“That hat really drew attention to hats as a campaign accessory,” he said. “That helped our business out immensely. We actually did some of those hats at the beginning of the Trump campaign before he settled on another manufacturer. At the same time, we did hats for the Democratic candidates and, ultimately, Hillary Clinton.”

When it came time for the presidential campaign season to get underway once more, Cahn said his business was busier earlier in the election cycle than it has ever experienced.

Right now, the business is busily manufacturing large quantities of hats for several of the Democratic candidates. Cahn didn’t name the clients, but he did add that three of the four candidates using Unionwear were at the top of polls.

Unionwear also makes accessories such as laptop bags for other clients, including the military and labor unions. It boasts that it compensates its Newark garment workers with union wages and benefits. And that’s a selling point around campaign season.

“Because someone who wants a union-made baseball hat really just has one choice — so that’s going to come up during presidential elections,” Cahn said. “A lot of candidates want to appeal to unions however they can.”

But, when the showdown for the country’s top job ends, local manufacturers are left with the competitive pressures of keeping products American-made.

And that goes double for keeping them New Jersey-made, given the higher costs of real estate and the minimum wage set to rise to $15 by 2024, Cahn said.

“Most of our competition is in the Southeast, where a lot of the country’s garment industry is,” he said. “There, the minimum wage is still at the federal minimum of $7.25. So, unless that goes up, by 2024, it’ll cost us twice as much to pay an entry-level employee here as it would in Georgia.”

That’s why the manufacturer is expecting to do some reinvestment in the automation necessary to sew and produce garments, even if the orders are coming in left and right for hats with campaign logos and slogans.

Cahn said he has no intention of replacing his workforce, but instead wants to give each person the potential to do more tasks.

One of the only reasons it hasn’t happened already is that the development of automation tools has been slower in the textile sector compared with other manufacturers.

“Most automation works well with hard goods, because they’re easy to grab and have finite measurements,” he said. “Things that are soft, you run into issues of robots being unable to grab fabrics and feel wrinkles in the fabrics.”
But, even with more options available now for the hat-maker, it’s safe to say there’s going to be more robotics on the manufacturing line come next campaign cycle.

“Several years ago, it wasn’t something we’d even consider, because the labor was a lot less expensive and the automation was a lot more expensive,” Cahn said. “The price of automation has come down tremendously and the price of labor keeps going up. So, now, it just makes sense.”

republished from http://www.roi-nj.com/2019/10/14/industry/2020-vision-candidates-who-want-made-in-usa-hats-can-call-unionwear-but-theres-more-to-business-than-slogans/

Unionwear Wins NJBIZ “Excellence in Manufacturing” Award

| Posted by unionwear

Mitch Cahn, the President of Unionwear, and the Chairman of the Newark Workforce Development Board, has won the Raymond Hopp Lifetime Achievement Award for Excellence in Manufacturing. The announcement was made official at National Manufacturing Day. The fifth annual event was held on Friday, October 7, 2016. This celebration aims to improve public perception of the manufacturing industry’s economic value and to expand knowledge of manufacturing careers.

The Excellence in Manufacturing Award was established in memory of the president of HK Metalcraft, Raymond Hopp. Mr. Hopp was extremely dedicated to the New Jersey manufacturing community’s workforce development and was considered a strong advocate for their cause.

This very special award has specific criteria that the ideal candidate must meet:

  • Demonstrate clear respect for cultural awareness and diversity
  • Show a willingness to explore and learn new technologies
  • Display passion for continuing education
  • Be active in associations that indirectly or directly support manufacturing
  • Understand networking’s importance
  • Be a forward-thinking, creative, innovative business person/entrepreneur
  • Show, through their treatment of employees, peers, and business associates, that they are a highly moral businessperson
  • Have been involved in the New Jersey manufacturing community for a minimum of 20 years.

Back in 1992, Mitch Cahn started the New Jersey Headwear Corporation, which would one day become Unionwear. He landed a contract with Ralph Lauren for ball caps and had 15 individuals doing all of the sewing. Now, with 175 employees, Mr. Cahn’s Unionwear is responsible for nationwide promotional gear used in political campaigns and much more. Additionally, he is a principal textile supplier to the federal and state governments, post office, homeland security, and the military.

As president of Unionwear, and in years before that, Mr. Cahn has been publicly recognized as a passionate individual who works relentlessly to do as much as possible within his platform and position. A recommendation specifically for this award credited Mitch with not only meeting but exceeding the challenging expectations and requirements to win the Raymond Hopp Award for Excellence.

Mr. Cahn’s commitment to fellow manufacturers and education is evident; he participates in numerous events and organizations, including but not limited to Grants and Incentive Programs for Urban Manufacturers; Cloud, Mobile, Manufacturing Technology on the Shop Floor; Designing for Manufacturing; Worker Rights Compliance in Procurement; Continuous Improvement and Lean Manufacturing, marketing “Made in USA”; and more.

Numerous fellow entrepreneurs and friends celebrated Mr. Cahn’s achievement. Cohn Reznick (of Cohn Reznick LLP) offered an official pat on the back via Twitter: “Congratulations Mitch Cahn of [Unionwear USA] on receiving the Raymond Hopp Award for Excellence.” Cohn Reznick LLC is one of the top advisory, tax, and accounting firms in the United States.

Thanks to devoted entrepreneurs such as Mitch Cahn and his devotion to manufacturing high-quality products, consumers have a viable and laudable alternative to cheap imports.

Unionwear Wins NJBIZ “Excellence in Manufacturing” Award

| Posted by unionwear

Mitch Cahn, the President of Unionwear, and the Chairman of the Newark Workforce Development Board, has won the Raymond Hopp Lifetime Achievement Award for Excellence in Manufacturing. The announcement was made official at National Manufacturing Day. The fifth annual event was held on Friday, October 7, 2016. This celebration aims to improve public perception of the manufacturing industry’s economic value and to expand knowledge of manufacturing careers.

The Excellence in Manufacturing Award was established in memory of the president of HK Metalcraft, Raymond Hopp. Mr. Hopp was extremely dedicated to the New Jersey manufacturing community’s workforce development and was considered a strong advocate for their cause.

This very special award has specific criteria that the ideal candidate must meet:

  • Demonstrate clear respect for cultural awareness and diversity
  • Show a willingness to explore and learn new technologies
  • Display passion for continuing education
  • Be active in associations that indirectly or directly support manufacturing
  • Understand networking’s importance
  • Be a forward-thinking, creative, innovative business person/entrepreneur
  • Show, through their treatment of employees, peers, and business associates, that they are a highly moral businessperson
  • Have been involved in the New Jersey manufacturing community for a minimum of 20 years.

Back in 1992, Mitch Cahn started the New Jersey Headwear Corporation, which would one day become Unionwear. He landed a contract with Ralph Lauren for ball caps and had 15 individuals doing all of the sewing. Now, with 175 employees, Mr. Cahn’s Unionwear is responsible for nationwide promotional gear used in political campaigns and much more. Additionally, he is a principal textile supplier to the federal and state governments, post office, homeland security, and the military.

As president of Unionwear, and in years before that, Mr. Cahn has been publicly recognized as a passionate individual who works relentlessly to do as much as possible within his platform and position. A recommendation specifically for this award credited Mitch with not only meeting but exceeding the challenging expectations and requirements to win the Raymond Hopp Award for Excellence.

Mr. Cahn’s commitment to fellow manufacturers and education is evident; he participates in numerous events and organizations, including but not limited to Grants and Incentive Programs for Urban Manufacturers; Cloud, Mobile, Manufacturing Technology on the Shop Floor; Designing for Manufacturing; Worker Rights Compliance in Procurement; Continuous Improvement and Lean Manufacturing, marketing “Made in USA”; and more.

Numerous fellow entrepreneurs and friends celebrated Mr. Cahn’s achievement. Cohn Reznick (of Cohn Reznick LLP) offered an official pat on the back via Twitter: “Congratulations Mitch Cahn of [Unionwear USA] on receiving the Raymond Hopp Award for Excellence.” Cohn Reznick LLC is one of the top advisory, tax, and accounting firms in the United States.

Thanks to devoted entrepreneurs such as Mitch Cahn and his devotion to manufacturing high-quality products, consumers have a viable and laudable alternative to cheap imports.

Unionwear CEO Keynotes Manufacturing Summit at Legendary Brewery

| Posted by unionwear

On October 12, 2017, at the Anheuser-Busch Brewery in Newark, Mitch Cahn, Unionwear’s own CEO and President was the  keynote speaker at the Commerce and Industry Association of New Jersey (CIANJ) Manufacturing Summit.

The CIANJ summit concentrated primarily on enhancing the manufacturing sector of New Jersey. From energy needs and transportation to tax implications and environmental regulations, its purpose was to bring together environmental professionals, manufacturers, lawmakers, and other stakeholders. Why bring all of these people together in one room? To decide what needed to be done to grow New Jersey manufacturing, a candid discussion had to take place.

The hope of those organizing this event and holding it at Newark’s historic Anheuser-Busch Brewery, was that those attending would leave with a deeper comprehension of how our economy and manufacturing are related in the world today. Manufacturing is key—it’s critical. And to grow the sector, some things need to change.

As a speaker at this type of event, Unionwear CEO/President Mitch Cahn is considerably qualified. This individual started what would one day be Unionwear with humble beginnings and a mere 15 workers. Today, not only has he increased his union workforce to 175, but with their help, he has grown the company into one of the only headwear producers still manufacturing in the United States of America.

The man who started out making baseball caps for Barneys New York, Ralph Lauren, Izod, and Gant is now the primary manufacturer of much of today’s political campaign and promotional gear. So successful has Mr. Cahn become that he and his “Made in America” company recently purchased the assets of business accessory manufacturer DLX industries, retaining many of its personnel, as well.

At the manufacturing summit, Mr. Cahn spoke about the fact that business has never been better. There is a slight problem, however, that he imagines many other manufacturing plants are also experiencing: Business is outgrowing the supply of machine operators. It’s hard to keep up. But with a problem like this, he wonders, why are domestic manufacturers being depicted as victims in the national dialogue?

One such recent source of “national dialogue” was an article in the New York Times. The writer portrayed a grim picture of domestic manufacturing, discussing the assumption that owners of manufacturing plants hoped their kids would grow up to find some easier way to make a living! To add insult to injury, the article also strongly suggested that despite all the pronouncements, praises and promises by politicians, they were actually doing little to help the industry.

In this article, the owner of a well-known engineering and plastics firm painted a very “woe is me” picture. While Mr. Cahn agrees that domestic manufacturing isn’t the easiest way to make a living in today’s world, he also notes that many of the problems in the industry are in the hands of company owners, CEOs, presidents, etc. There is a solution to every problem. It is not always easy, and sometimes you have to work at it, but you cannot let the growth of your business be impeded by systemic factors. Thinking outside the box is the kind of ingenuity that allows us to invent products, produce them on a mass level, automate that production, and finally, outsell our competitors.

The planners who put this manufacturing summit together could not have chosen a better candidate to speak. His invigorating words of encouragement and support will undoubtedly boost the morale of those needing it and inspire those fighting the good fight to keep going.

Note: The entire keynote given by Mitch Cahn can be found by clicking here.

Unionwear’s Featured TedX Talk: Made Right Here

| Posted by unionwear

Unionwear President Mitch Cahn’s 15 Minute Ted Talk–Made Right Here: How the international worker rights and buy local movements are creating a surge in U.S. urban manufacturing opportunities.  The talk discusses why the premium for domestic goods are shrinking, and the five types of business to business to market segments with strong convictions about buying USA Made.

TRANSCRIPT

Manufacturing is booming in Newark and other American cities after decades of decline.

Newark, NJ has over 400 active factories within the city limits that employ over 10,000 people.  Four years ago nobody knew this, now a growing number of people know this.  How did this happen in the middle of a recession?  Well, as a manufacturer, I can’t say it was anything that our industry did.  I am pretty sure it wasn’t anything that our government did.  And I don’t think it was a wave of made in USA consumerism that pushed us over the edge.

What happened was over the last 20 years, goods have been made overseas in the third world very, very cheaply on the backs of exploitation of labor and exploitation of the environment.  The growth in manufacturing now is because both “overseas” and “exploitation” have become a lot more expensive and a lot less attractive.

Activists did this–labor activists did this, unions, worker rights coalitions and environmental and buy local activists made this happen.  They raised awareness, they localized supply chains and they helped to impose regulations creatively.  And as a result we’ve seen what’s going on in Newark right now.  “Made in USA” has relatively become a bargain.  Cities like Newark are reaping the benefits because we have an infrastructure in place still from the 70’s and before that, we have a lot of concentrated labor and we are in the center of a transit hub.  We have the ability to move people and goods around very quickly.  We are within a day’s drive for something like a third of the population.

What I want to do now is talk about my experiences running Unionwear, which is a manufacturer of baseball hats, bags like backpacks and garment bags, safety vessel scrubs.  We manufacture everything from scratch right here in North Newark.  We have about a 110 union workers, we are 11 miles from Midtown Manhattan.  We have been in business for 21 years.  In almost every product category of ours, we might be the most expensive place to make that product in the entire world.  So how is that over the last four or five years we’ve grown by about 25% per year after about a decade of being flat.

Well we’ve narrowed it down to five areas.  One is market forces, specifically understanding the market forces that are going on and being able to educate our clients about it.  How is Obama care going to affect domestic manufacturing?  How is immigration policy going to affect in manufacturing.  What if China decides to float their currency against the United States?  Is that going to make United States manufactured goods less expensive?  And more appealing to the rest of the world?  Yes.

We stay on top of these things and we make sure clients know about them because changes in the economy happen right under people’s noses and they don’t even see it.

Market selection is a big one.  There are markets that want to buy local.  There are markets that want to buy made in USA.  It’s more expensive to buy those things but they are willing to pay a premium.  Who are those people and how do we reach them?

Product selection is an area that goes along with market selection.  Now someone might not be in a market that wants to buy made in USA but they might want to be a product that might be less expensive to manufacture in United States, so what are those products?

Re-engineering is important because it’s very different to manufacture a product where there is no regulation and people are paid ten cents an hour versus where it is manufactured in an area where there is a lot of regulation and people make 10 to 15 dollars an hour.  You can bridge that gap through smart re-engineering.

Finally we take advantage of our geographic advantages.  We play up how close we are to New York City and Newark airport and port Newark and millions of skilled laborers.

So I am declaring right now the era of cheap imports is over. It’s dead.

So what’s happened as the price of imports increases is the premium paid for made in USA product shrinks.  As that premium shrinks it becomes less expensive for people to have sourcing standards or enforce standards that they already had.  So what happens and why the market is grown is there are a lot more people who are willing to pay 25% more for a product that’s made green, made in USA, made union, then they were in 2008 when it might have been 200% or 300% more expensive for that same thing.  And it is that a big of a difference.

So one reason for this is labor supply and demand.  China has had decades of a one child policy, and as a result there are a lot fewer people entering their workforce now and the people who are entering the workforce, they don’t want to make the iPhone, they want to work for Apple.  So there are not enough people working in these factories–when that happens you have to pay people more to get them to work in manufacturing.

As a result of people being paid more there is now a consumer class in China and in India and in Pakistan.  That’s driving up the costs of goods, its driving up the costs of gasoline, petroleum which is making goods more expensive to ship to United States.

I put a slide up of the iPhone factory because that’s an example of what has happened because of worker rights activists.  When all of the working violations at the Foxconn factory where over a million people are employed were discovered, labor activists came in and negotiated a 40% wage increase and they lowered the amount of hours they can work from a 100 hours a week to 60 hours a week.  They came in a year later and negotiated another 40% increase.  You imagine what it does when a million people make that much more money.  And have to work that fewer hours.  They have to scramble the find workers.  That’s why prices have been of imports have been going up so much.

And as a result of social media, the rest of the world’s workers are finding out what’s going on and realizing they don’t have to work this way.  So you are seeing the same sort of riots, protests, strikes in Bangladesh and Pakistan.  This has led to wage inflation of 25% to 30% a year.  The response overseas has been to cut corners– poison in pet food, poison in dog food, exploding tires, broken plane parts, that’s led to more regulation which has put more expense on products that come in from overseas.

Companies have moved their manufacturing to places that they thought were cheaper than China like Bangladesh.  But they didn’t have the infrastructure and ended up being more expensive.  You ended up with month after month, factory fires and factory collapses which led to more regulation and more expense.

So who is buying made in USA, now that their premium has shrunk?

There are five different ways that people can say “buy local” and these are the markets that we try to appeal to.  Buy American, people buy American for economic reasons, or if they have standards like the US government.  Or if they want consistent messaging, like General Motors who makes goods domestically and they want to buy American-made goods because they are selling made American.

People want to buy union and support their fellow union workers.

People want to buy fair labor, they don’t want to buy goods that were made in a sweatshop.

People want to buy eco-friendly and people want to buy local.

So one of the of the areas that wants to buy American is the US government which makes up about a quarter of our GDP.  This is something that is relatively new, this enforcement of the government buying American made goods.

Another area is trade justice and if you say the labels fair trade and sweat free and living wage on goods, those are all ways of saying that these goods were made by workers who are not exploited.

An example of someone who used to not buy products with these labels in is now is NPR.  They would give away tote bags for memberships at the same time they were doing stories about sweatshops in China but the tote bags were made in those sweatshops because they get them for 25 cents a piece.  Now it’s costing them $2.50 a piece to import.  They are going to spring for $3 a piece and buy something that is made in USA and it basically cost less for them to put their money where their mouth is.

The link between fair labor and local and eco-friendly is this:  The closer production is to consumption the less acceptable worker exploitation becomes.  You don’t want to buy a shirt from someone around the corner who you know as working for below minimum wage and maybe working a 100 hours a week, but its okay if it is around the world.

Also the more likely that goods are produced using your labor and environmental standards.  The factories are operating under the same laws that you benefit from.

Another area is product selection.  So two examples of products that are less expensive to make domestically would be products that are big and bulky to ship and don’t have a lot of labor like this gigantic case right here that we make.  That didn’t need to be made in USA but it is.

Or bags using expensive materials– this bag has $40 in leather in it but only maybe $8 in labor.  In China maybe you can get it made for $4, so at the end of the day its $48 verses $44.  By the time you ship it here and have the duties on it, its less expensive to make it in the United States.  That’s why you see a lot of goods with expensive materials made in countries that are more expensive than United States like Italy.

So another area is small batch customization.  There is a big overhead to making products overseas, you have to translate, you have to make tech packs.  It is expensive to ship sampling back and forth, there are time zone considerations, so as result nobody wants to make 500 or a 1000 of something in China or Bangladesh.  It’s a lot less expensive to make it here.

And finally re-engineering is the area where we are able to close the gap through product design.  When we get goods a lot of times now people are reshoring goods–they send goods to us and it was a bag that they had made in China, they want to get it made in United States and I’ll say if you want it made exactly this way, its going to cost you $80 because there is no thought given to engineering the products because labor was practically free over there.  We can redesign it so your clients won’t notice the difference that will be just as nice and we can do it for $15.

The other area is Lean Manufacturing and that is the concept where you can take people in a high wage environment and train them to use all of their time to just add value to the product and not waste time doing things that are not that the client doesn’t pay for, like looking for a pair of scissors or waiting for manager or walking from machine to machine.

So finally, Newark is a place that is perfect for manufacturing for a number of different reasons.  We’ve got a high concentration of skilled labor, we’ve got a well developed infrastructure of manufacturing.  There are lot of other manufactures here which means that there is a market for mechanics and trucks and things where that might not exist in an economy where there is not a lot of manufacturers.  We are close to the port, we got Newark airport here and we’ve got access to everything.  We have access to New York City we have access to capital, marketing, and technological expertise right here in the city of Newark through our academic communities.

There are other cities where this is happening.  There are not a lot of rural areas where this is happening.  So this is the time to take advantage of this once in a generation opportunity where people are coming to Newark to get things manufactured.  Thank you very much.

 

Kudlow: Unionwear Gets “USA Made” Gold Ring

| Posted by unionwear

Unionwear and New Balance were featured on the Kudlow Report’s Made in USA July 4th Special. Unionwear President Mitch Cahn talks about how lean manufacturing principles helps union shops compete with factories overseas and in Right to Work States.

 

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