A crazy number of styles on demand, including top visor embroideries and the world’s largest selection of mesh back color combinations. We’ve lowered minimums to 24 blank and 48 embroidered and now stock blank caps for next day shipping of 12 units or more.
Everything from our new value-priced union made event giveaway bags to high end duffel and messenger bags. Keep us in mind for small batch custom jobs like 300 backpacks, and styles you need to reshore for USA manufacturing.
The last union shop in America sewing knit ski caps and beanies. Our in house sewing and embroidery enables us to embroider the hats before folding and sewing, leaving a clean finish on the inside.
The only union shop in America making high end, stitched-edge binders and portfolios now in four finishes and dozens of fashion colors. Our in house embroidery enables us to embroider faux leather covers before the products are completed.
Unionwear embroiders its own hats, bags, and binders before production for cost savings, larger imprint areas, no registration problems, and sharper details. This process allows Unionwear to embroider products generally considered unembroiderable: The top of a plastic baseball cap visor. The pocket of a tote bag. The front of a leather portfolio folder.
Unionwear now offers contract embroidery services on 80 or more garments (or fewer with a minimum run charge of $615 (s)). Embroidery prices depend on the actual number of stitches it takes to duplicate your design, not on the number of colors. All baseball caps listed at unionwear.com are priced to include up to 4,000 stitches. For an estimate email artwork to sales@unionwear.com.
President Donald Trump, known for his “America First” policies, has vowed to reinstate and expand measures to bolster U.S. manufacturing, increase tariffs on imported goods, and provide tax incentives for domestic producers. But how would a Trump presidency actually impact the manufacturing sector?
During his 2016 presidency, Trump emphasized revitalizing American manufacturing through tariffs on imports, renegotiating trade deals, and incentivizing domestic production. His policies included imposing tariffs on Chinese imports and pushing for the USMCA trade deal, which replaced NAFTA. With his possible return to office, Trump has promised an even more aggressive stance on trade policies and economic incentives aimed at strengthening American industry.
One of Trump’s signature economic strategies is the imposition of tariffs on imported goods. In 2018, his administration placed tariffs on billions of dollars’ worth of Chinese products, driving companies to reconsider their supply chains. If re-elected, Trump is likely to reinstate or even increase these tariffs.
Trump has proposed reducing corporate tax rates for U.S. manufacturers, potentially bringing the tax rate as low as 15%. This would make it more attractive for companies to invest in domestic production facilities rather than outsourcing jobs overseas. By lowering the tax burden on manufacturers, Trump aims to strengthen American industry and make it more competitive on a global scale.
Trump has consistently supported federal procurement policies that prioritize American-made goods. Under his leadership, companies that manufacture products in the U.S. could receive preference for government contracts, further driving demand for domestically produced items. This could significantly impact industries such as defense, construction materials, and workwear manufacturing.
Trump’s proposed policies could create a more self-sufficient and competitive U.S. manufacturing sector, but businesses must be ready for the potential drawbacks of protectionism and shifting trade dynamics. Whether these changes ultimately boost or burden domestic manufacturing will depend on how companies adapt to the evolving economic landscape.
As the 2024 election approaches, the future of “Made in USA” manufacturing hangs in the balance, making it critical for industry leaders to stay prepared for any political and economic shifts ahead.
The NJBIZ article “Made in the USA: What a Trump presidency could mean for domestic manufacturing” highlights Unionwear as a prime example of successful domestic production. Founded in 1992, Unionwear manufactures hats, bags, and other products entirely within the United States. Notably, the company has produced presidential campaign merchandise since President Bill Clinton’s 1992 campaign and recently crafted camo hats for the Harris-Walz presidential campaign.
Join us for an insightful conversation with Mitch Cahn, founder of Unionwear, and Audley Wilson, CEO of RoboBurger, as we explore their entrepreneurial journeys, manufacturing success, and innovation. Mitch shares how he grew Unionwear into a leading U.S. manufacturer, supplying brands like Supreme and Budweiser while reshoring textile jobs. Audley discusses RoboBurger’s rise, automation in food tech, and its Shark Tank success. We dive into industry trends, challenges, and how the business ecosystem has supported their growth. Tune in for expert insights on U.S. manufacturing, automation, and entrepreneurship.
With major events like the USA’s 250th anniversary, the World Cup, and the Olympics on the horizon, the “Made in USA” trend is expected to gain momentum. Automation and AI-driven customization will play a critical role in shaping the future of domestic manufacturing.
Unionwear, a Newark-based manufacturer specializing in union-made, American-produced apparel and accessories, has found itself at the intersection of politics and business during the 2024 presidential election. Led by CEO Mitch Cahn, the company has experienced a significant surge in demand for its products, particularly hats, as political campaigns seek merchandise that aligns with their “Made in USA” ethos.
Founded over three decades ago, Unionwear has carved a niche in the manufacturing industry by producing union-made, American-manufactured apparel and accessories. This commitment has made the company a go-to supplier for political campaigns that prioritize domestic production and labor standards. In the realm of political merchandise, especially hats, Unionwear’s products have become emblematic of a candidate’s commitment to American manufacturing and union labor.
The 2024 election cycle has been particularly lucrative for Unionwear. The company’s strategic positioning and readiness to adapt to the evolving political landscape have resulted in a substantial increase in orders. This surge underscores the importance of domestic manufacturing in political branding and the electorate’s growing interest in supporting products that are both union-made and American-produced.
Mitch Cahn, the founder and CEO of Unionwear, has been instrumental in steering the company to its current prominence. His entrepreneurial spirit and commitment to union principles have not only sustained the company’s operations but also positioned it as a trusted supplier for political campaigns across the spectrum. Cahn’s leadership reflects a blend of business acumen and a steadfast commitment to ethical manufacturing practices.
Unionwear’s success during the 2024 election cycle highlights a broader trend in American manufacturing. There is a growing appreciation for products that are domestically produced and ethically made. This shift indicates a potential resurgence in American manufacturing, driven by both consumer demand and political advocacy for domestic production.
Unionwear’s trajectory during the 2024 presidential election serves as a testament to the enduring value of American manufacturing and union labor. Under Mitch Cahn’s leadership, the company has not only capitalized on the current political climate but also reinforced the significance of ethical production practices. As the nation moves forward, Unionwear’s success story may inspire other manufacturers to embrace similar commitments to quality, domestic production, and fair labor practices.
In the 2024 presidential election, campaign merchandise played a pivotal role in shaping candidate branding and voter engagement. Mitch Cahn, president of Unionwear, a prominent campaign merchandise supplier, shared insights into the evolving trends and strategies that characterized this election cycle.
Hats emerged as a central element in campaign merchandise, transcending traditional apparel to become powerful political symbols. The “Make America Great Again” (MAGA) hat from previous elections set a precedent, and in 2024, Kamala Harris’s camouflage hat gained significant attention, even being highlighted by Vogue as a fashion statement. Cahn noted that hats have become integral to presidential campaigns, serving as wearable billboards that supporters can don in various settings. Their versatility and widespread appeal have solidified their status as effective tools for conveying political messages.
Promotional products have a measurable impact on voter perceptions. A study by PPAI Research revealed that 53.3% of voters felt that such merchandise positively influenced their view of a candidate. This underscores the importance of thoughtfully designed and strategically distributed campaign items in shaping public opinion and fostering a connection between candidates and constituents.
Campaigns recognized the value of merchandise in their marketing strategies, with many allocating between 11% to 20% of their total budgets to branded items. This investment reflects an understanding of the tangible benefits that physical products offer in reinforcing campaign messages and enhancing voter engagement.
Sustainability emerged as a significant consideration in the production of campaign merchandise. Eco-friendly products accounted for 13.77% of total industry sales, marking a 20% increase from the previous year. This shift indicates a growing demand for ethically sourced and environmentally conscious items, aligning with broader societal trends towards sustainability. Campaigns that embraced this movement not only catered to voter preferences but also demonstrated a commitment to responsible practices.
The 2024 election cycle unfolded against a backdrop of economic unpredictability, with factors such as inflation and potential tariffs influencing campaign strategies. Despite these challenges, the promotional products industry displayed resilience, with revenue growth observed in the months leading up to the election. This adaptability highlights the sector’s ability to meet evolving demands and underscores the enduring importance of tangible merchandise in political campaigns.
The 2024 presidential election underscored the enduring significance of campaign merchandise in American politics. Items like hats not only served as fashion statements but also as potent symbols of political allegiance. Voter engagement was positively influenced by thoughtfully designed merchandise, prompting campaigns to allocate substantial portions of their budgets to these items. The emphasis on sustainability and the industry’s resilience amidst economic challenges further illustrate the dynamic nature of campaign merchandise strategies. As future elections approach, the lessons from 2024 will likely inform how campaigns leverage promotional products to connect with voters and convey their messages effectively.
Unionwear, a New Jersey-based manufacturer, has experienced a significant surge in demand for its hats and caps due to recent political events. Founded by Mitch Cahn in 1992, Unionwear specializes in producing union-made, American-manufactured headwear, aligning with the values of various political campaigns.
The company’s prominence grew notably when Vice President Kamala Harris became the Democratic presidential candidate, leading to a substantial increase in orders for Harris-themed merchandise. Anticipating this shift, Cahn had prepared $50,000 worth of hats and raw materials, which paid off when Harris took the lead; the hats sold out on the first day. Since Biden’s withdrawal, Unionwear received orders for over 100,000 hats. This surge countered a slow political merchandise season earlier in the year.
The Harris-Walz campaign’s merchandise strategy has effectively leveraged internet culture to engage supporters and fundraise. Notably, the campaign’s camouflage hats, produced by Unionwear, sold out rapidly, leading to the production of over 47,000 hats and raising nearly $1.9 million. This approach underscores a shift in political merchandise towards embracing memes and cultural trends, resonating particularly with Gen Z voters who express support through fashion.
Unionwear’s ability to swiftly adapt to political shifts and cultural trends has solidified its position as a key player in the political merchandise landscape. By producing union-made, American-manufactured products, the company continues to meet the evolving demands of political campaigns and their supporters.
The 2024 U.S. presidential election season has seen a significant influx of Chinese-manufactured campaign merchandise flooding the American market. Items such as “Make America Great Again” hats and “Kamala Harris 2024” apparel are being sold at substantially lower prices on platforms like Temu, with some hats priced under $4, compared to $40 on official campaign sites.
This surge of inexpensive imports poses challenges for U.S. manufacturers who adhere to higher labor and environmental standards, resulting in higher production costs. Ben Waxman, founder of American Roots, highlighted the difficulty in competing with the low prices of Chinese-made products, emphasizing that domestic production involves paying living wages and complying with environmental regulations.
The prevalence of these low-cost items is facilitated by the de minimis trade provision, which allows goods valued under $800 to enter the U.S. duty-free. This loophole has been exploited by Chinese sellers, leading to a market saturated with affordable election merchandise. Kim Glas, president of the National Council of Textile Organizations, noted that this exploitation has contributed to the closure of 21 domestic manufacturing operations over the past 18 months.
Both the Trump and Harris campaigns have committed to offering only U.S.-made products on their official websites. However, the vast availability of cheaper, foreign-made alternatives presents a significant challenge to these commitments, underscoring the complexities of enforcing domestic production standards in a globalized economy.
One of the American companies impacted by this influx is Unionwear, a New Jersey-based manufacturer specializing in union-made, American-made political merchandise. Unionwear has long been a key supplier for Democratic and labor-backed campaigns, producing high-quality, ethically sourced hats and apparel. However, the company faces growing competition from low-cost Chinese imports, which pose a major challenge to U.S. manufacturers that adhere to higher labor and environmental standards.
Despite these challenges, Unionwear remains committed to producing ethically sourced, union-made campaign gear, ensuring that supporters of U.S. political candidates have the option to purchase merchandise that aligns with their values. Both the Trump and Harris campaigns have pledged to sell only U.S.-made products on their official websites, but the widespread availability of foreign-made alternatives underscores the ongoing struggle for American manufacturers like Unionwear to maintain their foothold in the industry.
This situation highlights the broader issue of U.S. reliance on Chinese manufacturing and the difficulties domestic producers face in competing with low-cost imports, especially during high-demand periods like election seasons.
The 2024 U.S. presidential election season has seen a surge of Chinese-manufactured campaign merchandise flooding the American market. Items like “Make America Great Again” hats and “Kamala Harris 2024” apparel are being sold at drastically lower prices on platforms like Temu, with some hats priced under $4—far cheaper than the $40 versions sold on official campaign sites.
One of the American companies impacted by this influx is Unionwear, a New Jersey-based manufacturer specializing in union-made, American-made political merchandise. Unionwear has long been a key supplier for Democratic and labor-backed campaigns, producing high-quality, ethically sourced hats and apparel. However, the company faces growing competition from low-cost Chinese imports, which pose a major challenge to U.S. manufacturers that adhere to higher labor and environmental standards.
Ben Waxman, founder of American Roots, echoed these concerns, emphasizing that domestic manufacturers like Unionwear must pay fair wages and comply with strict regulations, making it difficult to compete with cheap foreign alternatives. The situation is further exacerbated by the de minimis trade provision, which allows products valued under $800 to enter the U.S. duty-free—giving Chinese manufacturers an advantage in saturating the market with inexpensive election merchandise.
Despite these challenges, Unionwear remains committed to producing ethically sourced, union-made campaign gear, ensuring that supporters of U.S. political candidates have the option to purchase merchandise that aligns with their values. Both the Trump and Harris campaigns have pledged to sell only U.S.-made products on their official websites, but the widespread availability of foreign-made alternatives underscores the ongoing struggle for American manufacturers like Unionwear to maintain their foothold in the industry.
This situation highlights the broader issue of U.S. reliance on Chinese manufacturing and the difficulties faced by domestic producers in competing with low-cost imports, especially during high-demand periods like election seasons.
Unionwear, a New Jersey-based manufacturer specializing in union-made, American-made hats, has seen a significant boost in business following a poor debate performance by President Biden against Donald Trump. Mitch Cahn, the owner, anticipated a surge in demand for merchandise from Kamala Harris’s campaign and prepared $50,000 worth of hats in advance. When Harris replaced Biden as the Democratic candidate, the hats quickly sold out, and Cahn received orders for over 100,000 more. The success marks a reversal from earlier in the year when political merchandise sales were low. Unionwear specializes in union-made, Made in USA hats and has a history of providing merchandise for presidential campaigns. The company’s recent success is also partially attributed to a camouflage hat inspired by Minnesota Gov. Tim Walz, which became a popular item in Harris’s campaign.
Unionwear has struck gold with its camo hat featuring neon orange lettering, now the top-selling political merchandise of 2024. Originally designed for the Harris-Walz campaign, the hat’s widespread appeal—among hunters, urban trendsetters, and younger voters—has led to record-breaking demand. Unionwear now produces 5,000 hats daily, making up 75% of its campaign merchandise output.
Founded in 1992, Unionwear transitioned from fashion manufacturing to American-made political gear, starting with Bill Clinton’s campaign. The company later supplied hats for Al Gore, John McCain, and Donald Trump, solidifying its reputation as the go-to source for union-made, U.S.-manufactured campaign products. With 160 skilled workers working overtime, Unionwear continues to lead the charge in high-quality, domestically produced political merchandise.
In the October 17 edition of ‘Newark Today,’ host Michael Hill engages in a conversation with Mitch Cahn of Unionwear, a Newark-based manufacturer renowned for producing hats and other wearables that have garnered international attention. The discussion delves into Unionwear’s journey from a local enterprise to a globally recognized brand, emphasizing its commitment to quality and ethical manufacturing practices. Additionally, the program highlights initiatives by Newark students exploring careers in fashion, showcasing the district’s efforts to integrate education with industry opportunities.
Unionwear, a New Jersey-based company, has seen a surge in demand for campaign hats, including those for Kamala Harris and Donald Trump. The rise of Harris’s camo hats mirrors the popularity of Trump’s MAGA caps, with both hats selling out quickly. Mitch Cahn, Unionwear’s founder, notes the importance of political merchandise in gauging candidate support. Despite a shift in suppliers, hats remain a key part of election campaigns. Learn more about how these hats may predict the 2024 election outcome.
The popularity of campaign hats, such as Donald Trump’s MAGA hats and Kamala Harris’s camouflage caps, has surged ahead of the 2024 U.S. elections. Unionwear, a New Jersey-based manufacturer, has seen unprecedented demand for Harris’s hats, which sold out quickly. Mitch Cahn, Unionwear’s founder, links merchandise sales to candidate support, recalling how Trump’s hats predicted his 2016 victory. While Trump’s campaign now sources hats elsewhere, Unionwear remains a key player in U.S.-made political merchandise, which has grown in importance amidst rising support for domestic manufacturing.
Unionwear, a New Jersey-based company known for its union-made, American-made products, plays a vital role in the production of campaign hats for major political candidates, including Donald Trump and Kamala Harris in the 2024 election. Their hats are manufactured using union labor, showcasing a commitment to supporting both the U.S. economy and workers’ rights. The company has experienced a rise in demand as political campaigns seek to align with ethical, locally produced merchandise.
Unionwear, a U.S.-based, union-run manufacturer, has gained attention for producing campaign hats for Kamala Harris and other political figures. The company, known for its commitment to American-made merchandise, has seen a surge in demand, reflecting a broader trend of consumers seeking ethically produced goods. Unionwear has made hats for Obama, McCain, Trump, and now Harris. Unionwear remains a key supplier for political campaigns and organizations prioritizing union labor.
Welcome to the Yard” is an initiative by MENTOR Newark to celebrate Historically Black Colleges and Universities (HBCUs) while supporting mentorship programs for local youth. The event aims to inspire future leaders through education, networking, and community support. Donations help sustain programs that provide guidance and opportunities to Newark’s young people.
Unionwear will be honored by MENTOR Newark for our commitment to the Newark community at this amazing event celebrating HBCU’s at the Hahne’s Building in Newark 9/26. Please consider attending or making a donation. MENTOR Newark focuses on programming and building relationships that help Newark youth achieve success.
NPR postsed a video of Unionwear sewing the Harris Walz camo caps which received over 2 million views, 100k likes, and thousands of positive comments.
See it here: https://www.instagram.com/accounts/login/?next=%2Freel%2FC_D23qUhaX-%2F&source=desktop_nav
Mitch Cahn, president of the New Jersey-based supplier, says political hat sales can indicate the popularity of a candidate, noting that sales spiked after the Democratic presidential ticket changed.
Some say the design originated from a meme referencing popstar Chappell Roan, who sells a camo hat with orange lettering that says, “Midwest Princess.” Others say it targets rural voters who may sport camo regularly, as the former Minnesota Gov. Walz is a hunter.
Whoever the target demographic, the hat was a hit.
Cahn founded Unionwear in 1992 with six employees. One of the first orders the Made-in-the-USA manufacturer received was from Bill Clinton’s 1992 presidential campaign for 150 baseball hats.
“There was really no way for political campaigns to sell merchandise,” Cahn says, describing how political merchandise functioned more as a giveaway than a source of income in the pre-internet era. “The first time we really did substantial numbers, like six figures of units, was in 2000 with Al Gore.”
The Al Gore-Joe Lieberman ticket was the first campaign to set up an e-commerce merch website, Cahn says, and Unionwear’s hats were its primary item. Since then, the supplier has produced hats for candidates in every presidential election.
Unionwear gears up for election years. Anticipating demand for political merchandise, it tells its usual clients to avoid ordering in the summertime, updates its machinery and invests in additional employees and subcontractors.
In the early months of this campaign, Cahn says, it didn’t seem worth it.
“Sales were basically anemic,” he says. “We already decided, ‘You know what? This is not going to be a big presidential year.’”
Before President Joe Biden dropped out of the 2024 election, he was losing in his rematch with former President Donald Trump – and hat sales showed it.
Though there are nuances that can affect hat sales, like a candidate running again and people already having their merch, or a candidate taking advantage of free marketing by unofficial vendors, Cahn says he can measure the popularity of a candidate by those numbers. When Hillary Clinton was projected to win the 2016 election by a landslide, the merchandise sales didn’t match up, and Cahn wasn’t sold. (Contrast that with the high-profile popularity of Trump’s MAGA hats at the time.)
“We kept reading all the articles … that basically gave Trump no chance of winning the election, and we basically reconciled those things by saying, ‘Maybe Hillary’s supporters just don’t like baseball hats,’” Cahn says. “Turns out that was probably a pretty good indicator of how well the candidate was going to perform.”
Based on that metric, Biden was not performing well. Based on other metrics, his Democratic colleagues agreed.
Following the debate between Trump and Biden on June 28, Democrats were panicked. An increasing number of politicians called for the president to drop out, while others scolded the mutiny for not sticking by their candidate. As the chaos unfolded, Cahn hedged his bet.
“When I saw the debate, I met with the team and I said, ‘I really believe he is going to drop out of the race,’” he says. “‘If Kamala takes over, we’ll have an opportunity to sell a lot of merchandise.’”
Unionwear hit the ground running, building up inventory of blanks based on the merchandise the Harris campaign sold in 2020. When Biden officially dropped out in July, Cahn contacted distributors, campaign merchandise managers and convention groups, and orders started flowing in.
“This is a few weeks before the camo had dropped. We had already sold more merch than we anticipated selling for Biden the entire year,” Cahn says. “I didn’t think that there was going to be another kind of explosion.”
When the camo hat was released, Harris’ hat sales surged in popularity as she campaigned across the country. The numbers, Cahn says, are telling.
“They just picked a great design that resonated with a lot of people,” he says. “Baseball hats are definitely a great barometer.”
When Kamala Harris picked up the phone and asked Tim Walz to be her running mate on Tuesday morning, Minnesota’s governor was sitting on a wicker chair in his St. Paul home wearing khakis and his customary camouflage hat.
“I would be honored, Madam Vice President,” replied Walz, a former high school football coach who hunts and fishes in his free time.
Soon, his Midwestern dad vibe was fueling social media memes comparing him to pop music star Chappell Roan, who has a “Midwest Princess” camo hat in her official merch line-up.
by Jessica Guynn and Bailey Schulz August 7, 2024
Source: https://www.usatoday.com/story/money/2024/08/07/harris-walz-camo-hat-trump-maga/74712737007/
Riffing off the memes, the Harris campaign designed and produced a prototype within hours. By that evening in Philadelphia, Walz had the soon-to-be-viral hat in hand and tweeted a photo wearing it.
The $40 Harris Walz hat – union-made by New Jersey-based manufacturer Unionwear – was an instant hit.
The initial run of 3,000 hats sold out in less than 30 minutes, and the campaign has rung up more than $1 million in hat sales since the merch dropped Tuesday. Thousands more hats are on back-order until October. Sales of the hats benefit the Harris Victory Fund.
“Is this real,” Roan wrote on X over side-by-side images of her “Midwest Princess” hat next to the new Harris-Walz camo hat.
Mitch Cahn, Unionwear’s CEO, said he has sold about 100,000 Kamala hats for the campaign, the Democratic party, the Democratic convention and other merchandisers since Harris launched her campaign on July 21.
About a quarter of those, according to Cahn, are the camo hats.
Cahn said he expected a bump in sales after Biden dropped out of the race last month. But getting “absolutely crushed with business” was a surprise.
“We are going to have to add a second shift and work weekends at least for the next two months with the demand that we anticipate,” he told USA TODAY.
Democratic presidential candidate, U.S. Vice President Kamala Harris and Democratic vice presidential nominee Minnesota Gov. Tim Walz walk out on stage together during a campaign event on August 6, 2024 in Philadelphia, Pennsylvania.
Campaigns often sell branded camo hats to appeal to red-state voters. These days, Carhartt-inspired camo has urban crossover appeal, as in vogue in New York cafes as it is on deer hunts in Minnesota. But can this upstart headpiece topple the undisputed king of campaign merch Donald Trump?
Campaign merch can generate “significant dollars,” said Bruce Newman, founding editor-in-chief of the Journal of Political Marketing and a professor of marketing at DePaul University.
Spending on promotional products during the 2024 election is expected to reach $115 million, a 34% increase from the 2020 election, according to PQ Media, a market research firm based in Stamford, Connecticut.
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“It’s definitely not at the top of the pyramid, but it pays some of the bills,” Newman said. “It’s also a marketing tool. You’re telling the world who you are and what you’ll do for them.”
A soda sip-off or an election?Tim Walz, JD Vance fight over the ‘Mountain Dew Belt’
Trump is in a class of his own when it comes to capitalizing on campaign merch, from golden sneakers to perfume. His iconic red MAGA hat is the stuff of merch legend.
Trump’s son-in-law Jared Kushner wrote in his memoir that the “Make America Great Again” hat brought in up to $80,000 a day during the 2016 presidential run, covering most of the campaign’s overhead costs.
“Trump wore the hat on his visit to the southern border, and it became the hottest thing on the internet,” Kushner wrote in “Breaking History.”
US President Donald Trump throws MAGA hats to the crowd as he holds a Make America Great Again campaign rally at Lancaster Airport in Lititz, Pennsylvania, October 26, 2020.
No one has mastered the meme-to-merch pipeline quite like the MAGA universe, which milks political highlights to market T-shirts and trinkets.
Even Trump’s scowl in his booking photo made its way onto mugs and NFTs in his campaign store. After he was taken into custody, the campaign sold bumper stickers and beverage coolers with the tagline: “NEVER SURRENDER!” Trump also sold pieces of the blue suit and red tie he wore in the mugshot.
A man wearing a “Make America Great Again” hat waits for President Donald Trump to arrive for a campaign rally at Williamsport Regional Airport on May 20, 2019, in Montoursville, Pa.
Trump campaign spokesperson Steven Cheung said the former president raised more than $4 million the day after he was booked at an Atlanta jail, at the time the highest-grossing day of the campaign.
The MAGA merchandise cottage industry roared into overdrive after Trump survived the assassination attempt at a campaign rally in Butler, Pennsylvania, hawking products featuring the bloodied but defiant former president clenching his fist.
From T-shirts emblazoned with the rallying cry “Fight! Fight! Fight!” to “You Missed” shot glasses, the merch was a hot seller online and at the Republican National Convention in Milwaukee.
“Make America Great Again” hats sit on a table during a campaign rally for former President and Republican presidential candidate Donald Trump at Sunset Park in Las Vegas, Nevada on June 9, 2024.
Will the camo hat be more than a folksy flash in the pan?
Unionwear hasn’t produced merch for the Trump campaign in the last two election cycles, but Cahn said the initial Kamala-Walz hat demand exceeds the initial demand for the MAGA hats his company made in 2016.
It’s not clear exactly how many MAGA hat sales are sold today. The Trump campaign did not immediately return a request for comment, and Cahn estimates that “most” MAGA hats are not sold by the campaign but by online and street vendors.
“Kamala has just completely taken everybody by surprise on this,” Cahn said. “We’ve seen so many units sold in such a short period of time. And as the merchandise gets out there, as more people see it, I think it’s really going to take on a life of its own.”
Mitch Cahn was prepared for a slow summer.
But when Biden dropped his bid for reelection on July 21 and endorsed Vice President Kamala Harris, the game changed. And when Harris announced Minnesota governor Tim Walz as her running mate on August 6, the tide turned entirely. Within 24 hours, the Harris-Walz campaign sold about 25,000 of the $40 camouflage baseball caps manufactured by Cahn’s Newark, New Jersey-based business, Unionwear, the entrepreneur says.
Source: https://www.inc.com/rebecca-deczynski/unionwear-didnt-expect-harris-walz-camo-hats-to-go-viral-then-it-sold-25000-in-24-hours.html
by By Rebecca Deczynski, Staff editor, Inc.
Cahn’s company, which he founded in 1992 after purchasing the assets of a bankrupt baseball cap factory, has manufactured political merchandise since its inception. In its founding year, it made 150 caps for the Clinton-Gore ticket, but that line of business didn’t really take off until 2000, when Unionwear nabbed a significant order from the Gore-Lieberman campaign. “The internet made it possible for campaigns to actually sell merchandise,” Cahn says.
In recent years, Cahn says that his company has received increased orders for senatorial and gubernatorial races. “Campaigns are raising much more money than they used to, and they have fewer places to spend it because there are a lot of bans on political advertising on social media,” he says. “So that money’s got to go somewhere. And I think that merch is one of the places the money ends up.”
Many political candidates, however, still see value in selling merch that’s both union-made and manufactured in the United States. Cahn says that Unionwear sees more sales from Democrats, but the company ultimately takes a bipartisan approach to business. “Unions traditionally voted Democrat so they have had to really play that up and make sure all of their merchandise was union-made,” he says. “Whereas Republicans did not specifically request union-made merchandise, although we are seeing that for the first time this year.”
Unionwear is not currently manufacturing any merch for the Trump-Vance campaign, though the company did make merch for the 2016 Trump campaign. Cahn estimates that “tens of thousands of vendors and embroidery shops” have manufactured former president Trump’s “Make America Great Again” hat since then. “The Trump campaign has allowed people to do whatever they want to get the logo and the color out there,” he says.
Unionwear doesn’t mix politics with business. “If we were a restaurant, no one would ask me if we allowed both Democrats and Republicans to eat here,” Cahn says. “We can’t discriminate against anyone who wants to buy merchandise.”
And this time around, supporters of the Harris-Walz ticket really want to buy merch.
After the June 27 debate between Biden and Trump, Cahn had an inkling that the former would eventually step down from the Democratic ticket. “That’s when we started to prepare for a potential surge in orders,” he says. The company shifted some of its production deadlines from September to October to free up capacity and made thousands of baseball caps that were ready to be embroidered; if necessary, the company could outsource that part of production to other embroidery shops to accommodate a surge.
For a typical presidential campaign year, Unionwear anticipates selling 2,000 hats a day–a rate that Cahn says Harris has surpassed. Sales of Harris-Walz merchandise have outpaced projections, he adds, but the real viral hit is the campaign’s camouflage hat, with the running mates’ names inscribed in orange.
“We were not anticipating a camouflage hat,” Cahn says. “I don’t know if they were either.” The design isn’t unfamiliar to Unionwear–the company has manufactured similar hats for hunting organizations and labor unions–but it captures a diverse demographic. The design is a play on traditional hunting gear, but for those in the know, it’s also a reference to a similar hat currently sold by the 26-year-old Missouri native popstar Chappell Roan, who has skyrocketed in popularity in recent months and, this weekend, drew the largest crowd in Lollapalooza history, a spokesperson for the music festival told CNN.
After seeing Walz in a camouflage hat on Tuesday–in the video Harris posted of the governor accepting his position as her running mate–the Harris-Walz campaign design team conceptualized the camo hat by around noon that day and developed prototypes by 1:30 p.m., Fast Company reported.
Cahn says that Unionwear messengered a camouflage Harris-Walz hat to Philadelphia–ostensibly the one that Walz himself was photographed wearing Tuesday evening–and the company prepared samples to be shot for the campaign’s website. Since Tuesday, several others, including Walz’s daughter Hope, and members of the band Bon Iver, which performed at the Harris-Walz Wisconsin rally Wednesday, have sported the design.
The hat’s original run of 3,000 hats sold out in 30 minutes, according to the campaign, and now the product is currently on preorder, with an expected ship date of October 14. In spite of the wait time, customers are still placing orders.
President Joe Biden’s decision to drop out of the 2024 presidential race has caused a ripple effect in the promotional products industry.
After selling “virtually no Biden merchandise” this year, Unionwear President Mitch Cahn says the Newark, New Jersey-based supplier’s entire inventory was cleaned out on Monday morning by the two companies that primarily handle the Democratic Party’s promotional products.
PPAI NEWS MEDIA / by John Corrigan July 24, 2024
“We had already written off the 2024 merch business, so this is definitely a shot in the arm,” Cahn says. “We assumed something was going to happen with Biden dropping out, but I didn’t expect it to happen so fast. I guess they’re really preparing for a big merch push for [Vice President Kamala] Harris.”
Shortly after tweeting a signed letter announcing the suspension of his campaign, Biden tweeted his endorsement of Harris, who has launched her own campaign and has secured enough delegates to become the presumptive 2024 Democratic nominee, ABC News reported.
Promo’s Quick Response
Considering the breakneck pace of the promo industry, it should come as no surprise that distributors began cancelling orders for Biden-Harris merch immediately following Biden’s announcement, according to Cindy Scardino, marketing project manager at Gill Studios – the No. 26 supplier in the PPAI 100.
“We haven’t received any Harris-only orders at this time; the news is too fresh in the grand scheme of things of what’s to come in the next three-plus months,” Scardino says. “I imagine once the Democratic Party has a consistent direction, the orders will begin flowing into our union production facility.”
Another Made-in-the-USA and union shop, Unionwear has been manufacturing campaign merchandise for candidates of both parties for more than 30 years. While Biden’s merch sales in 2020 were “fantastic,” Cahn says they were basically nonexistent during this election season. That may have been related to him being (at the time) the incumbent, as former President Barack Obama’s merch sales “went down considerably” from 2008 to 2012, according to Cahn.
“The political merch business is very heavy with print on demand, which really started growing in the 2020 primaries when there were so many Democratic candidates,” Cahn says. “This year, there has been a lot of blank merchandise in the print on demand business because there really weren’t any primaries. They stocked up in the beginning of the year, and now these guys are sitting on a lot of blank units.”
Cahn added there’s a lot of attention being paid to unions this election cycle because there’s a strong possibility that the International Brotherhood of Teamsters, one of the largest and most powerful labor unions in North America, could break from tradition and endorse a Republican candidate.
“We’ve seen a lot of merch companies saying it has to be union-labeled and union-printed,” Cahn says. “We’ve even had requests from the Republican side for that.”
From https://www.ppai.org/media-hub/promo-industry-expects-boon-after-biden-exits-race/
In a recent in-depth interview with Jeffrey Kanige for NJBiz Conversations Podcast, Unionwear founder and president Mitch Cahn shared valuable insights into various aspects of his company. Unionwear manufactures baseball hats, bags, and thousands of other accessories for businesses, government organizations, and industries that value Made in USA products.
Here are five expanded key takeaways from the engaging conversation:
The Importance of Made in USA Products: Unionwear emphasizes the significance of manufacturing products right at their Newark facility, ensuring every item they produce carries the Made in USA label. This commitment to quality and integrity holds immense importance for their diverse clientele, which includes political campaigns, military organizations, and major American brands like GM and Budweiser.
Business Decisions vs. Patriotism: While Cahn admits that patriotism alone doesn’t drive the sales of Made in USA products, businesses choose Unionwear because they appreciate the company’s alignment with their own branding goals. Clients want to convey that they support the US economy and American workers, which Unionwear’s products express effectively.
Embracing Automation for Growth: Unionwear is actively integrating AI and robotic solutions to enhance their manufacturing processes and remain cost-competitive. With the help of NJEDA’s Manufacturing Voucher Program (MVP) grant, the company plans to install the first fully automated tote bag production line in North America by 2024. This forward-thinking approach ensures that Unionwear stays ahead in the industry while adapting to new technology-driven trends.
Reshoring and Manufacturing in New Jersey: Cahn acknowledges the challenges of running a union shop in New Jersey due to high costs, but he remains positive about the benefits offered by the state’s infrastructure. The population density, skilled workforce, and access to ports make New Jersey an ideal business location for Unionwear. Moreover, Cahn points out that the company has managed to capitalize on supply chain disruptions and leverage New Jersey’s robust infrastructure to maintain a competitive edge.
The Perfect Storm for Made in USA Products in the Next Five Years: Cahn is optimistic about the growth potential for Unionwear’s Made in USA merchandise, particularly over the next five years, describing it as a “perfect storm” for the company. Besides the 2024 election year driving demand for their products, Unionwear will benefit from other significant events, such as the 250th birthday celebration of the United States, the World Cup coming to New Jersey, and the Olympic Games in Los Angeles. These events are expected to bolster the popularity of Made in USA products, presenting ample opportunities for Unionwear to thrive and expand.
Overall, Unionwear’s commitment to producing high-quality, Made in USA goods, combined with its willingness to invest in advanced technologies and adapt to market trends, positions the company well for continued success in the years ahead.
News 12’s Syma Chowdhry and photojournalist Matt Nash visited Unionwear in Newark for their Made in NJ series. They focused on Unionwear as a national company that makes things for union members to wear. Full video here.
Since its inception in 1992, Unionwear has been committed to preserving the art of American craftsmanship by manufacturing high-quality and durable baseball caps and sewn bags. Known for its unwavering dedication to authenticity and reliability, Unionwear is the trusted choice for businesses, athletes, and the promotional products industry. In today’s competitive global landscape, Unionwear stands out by leveraging innovative processes and advanced technology to create premium products while embracing the unique value of products made in the USA. Needle’s Eye has written a great piece on Unionwear, summarized here:
The Journey of Unionwear:
Unionwear faced challenges when the fashion industry moved production offshore. Initially, the company focused on producing caps and hats for popular fashion brands like Polo Ralph Lauren, Izod, Gant, Barneys, and several skateboard and hip-hop lines. As the fashion industry shifted production towards countries with lower labor costs, Unionwear adapted by targeting B2B clients who value the “Made in USA” label and offering custom products with a competitive edge.
Automation and Lean Processes:
Unionwear recognized the need to evolve in order to survive in the challenging and competitive market. The company invested in automation, advanced technology, and lean manufacturing to streamline production processes while maintaining high-quality standards. Automation has allowed Unionwear to reduce overhead costs, enabling the company to manufacture locally at competitive prices.
For example, Unionwear now utilizes Pathfinder’s M5-180 multi-ply cutting system in its production processes. This has resulted in a 30% increase in fabric utilization compared to traditional die-cutting methods. With only two people manning the Pathfinder system, Unionwear now produces 3,000 hats and 2,000 bags per day, whereas seven people were needed for the same output previously.
Embracing Lean Manufacturing:
Lean manufacturing is another key component of Unionwear’s strategy for success. Amid significant global competition, the company has adopted lean manufacturing principles to eliminate waste, reduce lead times, and ensure maximum efficiency. This approach focuses on creating value for clients by streamlining processes, reducing inefficiencies, and optimizing resources. This has enabled Unionwear to expand its product offerings, respond quickly to market demands, and ensure consistent, high-quality products.
Continuous Improvement and Growth:
Unionwear’s commitment to continuous improvement has led to the company’s growth and expansion over the years. In 2017, Unionwear successfully restructured its operations, raising funds to add new product lines, expand web offerings, and automate labor-intensive processes. The company has also ventured into new niches like medical packaging, travel gear, safety products, and workwear to cater to emerging market demands.
The Future of Unionwear:
With a strong foundation in automation and lean manufacturing principles, Unionwear is taking confident strides towards a promising future. As the era of cheap imports comes to an end, the company is well-positioned to continue its upward trajectory and further establish itself as a leader in American manufacturing.
The success of Unionwear is a testament to the power of innovation, dedication, and the unwavering commitment to domestic manufacturing. By investing in advanced technology, streamlining processes, and prioritizing customer satisfaction, Unionwear has managed to survive and thrive in an ever-evolving market.
Conclusion:
Unionwear is a shining example of how American businesses can revolutionize their operations and remain competitive in the global market through automation and lean processes. The company’s unwavering commitment to quality, innovation, and American craftsmanship has set them apart from others and ensured lasting success. As a customer of Unionwear, you can trust that you’re supporting a truly American brand that values its communities, workers, and the future of the American dream. Together, we can continue to uplift and support domestic manufacturing and promoting genuine, high-quality products made in the USA.
Joe Biden has made a point of highlighting products made in the USA. One such example is Unionwear, a brand passionate about delivering high-quality and durable baseball caps and sewn bags, with a focus on supporting the American workforce and local communities. The President has clearly taken notice, as he’s been spotted proudly sporting various Unionwear hats on multiple occasions.
It’s no surprise to see our Commander-in-Chief favoring Unionwear hats, showcasing some of the finest work that American craftsmanship has to offer. Biden has been spotted in four different Unionwear models within the past year, including the UAW hat, the Beau Biden Foundation hat, and two distinct commander-in-chief hats. Unionwear is truly honored to have the leader of the free world modeling their American-made products.
This spotlight on Unionwear proves that when it comes to quality, durability, and versatility, choosing homegrown products can make all the difference. Despite facing challenges and an ever-evolving market, Unionwear’s unwavering commitment to excellence sets them apart from the competition. Their dedication to supporting the American dream, both for their workers and consumers, has caught the attention of none other than President Biden himself.
Embrace the Unionwear difference today and join the prestigious ranks of those who wear these authentic, straightforward, and resourceful American-made products. If it’s good enough for the President, it’s good enough for all who believe in the industrious and patriotic spirit of America.
The New Jersey Society of CPA’s has written a great article about Unionwear’s pandemic “hustle and grit”.
In the age of globalization, domestic manufacturing often takes a backseat to cheaper alternatives. But the coronavirus pandemic has proven that prioritizing local sourcing and production is essential for ensuring long-term national security and fostering sustainable economic growth. Unionwear, a Newark-based manufacturer of union-made hats, bags, and binders, is leading the charge in championing US-based production. Their powerful story of resilience during the pandemic demonstrates how embracing innovation, collaboration, and a lean manufacturing mindset can propel a small business towards growth and success.
Lean Manufacturing: The Backbone of Unionwear’s Resilience
Unionwear has maintained a competitive edge in the market for over 25 years, despite facing stiff competition from low-wage countries. At the core of their resilience lies a lean manufacturing mindset that focuses on eliminating bottlenecks, streamlining production, and optimizing resources. This approach enabled the company to pivot quickly during the pandemic, supplying healthcare workers with personal protective equipment (PPE), keeping the majority of their workforce employed, and protecting the business from collapse.
Overcoming challenges through collaboration and innovation
When faced with unprecedented challenges during the pandemic, Unionwear relied on the hustle and grit of its employees and external partners to overcome obstacles. The company developed innovative workarounds, such as sourcing supplies from other industries, collaborating with competitors, and engaging local communities to find home-based sewers.
They didn’t simply sell PPE or flaunt their “Made in USA” label; they sold determination and resourcefulness. By taking calculated risks, sharing best practices, and embracing change, Unionwear positioned itself as a bastion of hope amidst an uncertain economic climate.
Adapting and thriving during the pandemic
Navigating the uncharted waters of a global crisis required Unionwear to rethink its strategy, leading to a substantial shift in workstyles and priorities. The adoption of remote work for administrative staff necessitated a strict adherence to process, while employees showcased an increased focus on safety, accountability, and shared responsibility.
Although budgeting and projections proved difficult during the pandemic, the company seized the opportunity to invest in growth by building a new government business segment and eagerly anticipating a resurgence in demand for event-related merchandise.
Lessons learned and a brighter future
Unionwear emerged from the pandemic as a testament to the power of adaptability, creativity, and perseverance. The experience highlighted the importance of remaining open to new opportunities, fostering an agile production environment, and fostering a results-oriented culture.
Now poised for long-term success, the company remains vigilant in monitoring market trends, anticipating challenges, and capitalizing on opportunities for growth.
Conclusion
Unionwear’s story serves as a shining example of resilience in the face of adversity. By remaining true to their roots and embracing innovation, they are not only contributing to America’s rich manufacturing legacy but also inspiring other small businesses to follow suit.
As we move forward in a post-pandemic world, companies like Unionwear remind us that we can overcome any challenge by working together and committing to a common goal. By investing in domestic manufacturing and prioritizing quality, we can create a sustainable economy that works for everyone – one meticulously-crafted hat and bag at a time.
According to an analysis by Reuters, the global supply chain crisis could finally start to unwind towards the end of 2022.
But trade channels have become so clogged up it could be well into next year before the worst-hit industries see business remotely as usual, even assuming that a new turn in the pandemic doesn’t create fresh havoc.
Kellogg CEO Steve Cahillane told Reuters, “I wouldn’t think that until 2024, there’ll be any kind of return to a normal environment because it has been so dramatically dislocated.”
Time to accelerate reshoring manufacturing.
News station 11Alive sheds light on how Team USA’s uniforms were made.
In a statement, the company said the uniforms are a “modern and fresh take on sportswear,” created with sustainability in mind. With the help of a company called Skyscrape, the outfitter added intelligent insulation.
According to the company, the outfits are comprised of a mid-layer jacket, pant, gloves and boot. All of the garment pieces are made in the United States and include recycled polyester fiber made with post-consumer plastic bottles.
Furthermore, Ralph Lauren said the apparel to has the ability to transition through three-seasons, and from indoor to outdoor environments.
A recent Reshoring Institute survey of nearly 500 Americans asked if they prefer “Made in USA” products. According to the survey, nearly 70% of respondents prefer American-made products. And, slightly more than 83% said they would pay up to 20% more for products made domestically.
However, in my experience, what people say and what they do are frequently at odds. As I said in a previous post, there has to be another reason to buy in America that goes beyond where it is made.
For instance, if people believe the items are higher quality and will last longer, customers might be more inclined to pay a premium. Frankly, made in America is a secondary consideration.
For the most part, people want quality products at a reasonable price. They would not buy a made in USA product if it was perceived to be inferior quality, no matter where it was manufactured.
One big competitive advantage domestic manufacturers have is in the supply chain. We never worry about delayed shipments due to the pandemic or other unforeseen supply chain disruptions. We also have the advantage of addressing manufacturing challenges immediately, compared to those who have to deal with overseas suppliers.
So while made in USA is sometimes a marketing advantage — especially with political campaigns and government contracts — quality and consistency will be most buyer’s primary motivation to pay a small premium for domestically produced goods.
As the holiday season approaches, consumers are increasingly deluged with gift ideas. You could spend an eternity on Amazon alone searching for the perfect gift for your loved one. Where to begin?
We at Unionwear believe that it is important to buy made in USA. Although finding gifts that are made in America can be difficult, we found a resource that might make it easier for you.
From Wilson footballs to Crayola crayons to Weber grills to Airstream trailers, this website lists a wide variety of gift ideas from companies that are made right here in the USA.
Unionwear manufactures hats & caps, bags and winter knits that you can customize for the holidays, making them a perfect gift.
So, if you believe in supporting domestic manufacturing, you now have a resource at your disposal.
Every so often, we come across a story that causes us to reflect on how far ahead of the curve Unionwear has always been when it comes to creating American jobs.
Recently, we came across a story from 2015 in Slate Magazine on how our 100% made in USA manufacturing facility has changed America’s presidential campaigns, and how every candidate has to buy made in America products. Democrats and Republicans both agree that good-paying American manufacturing jobs have been disappearing for decades and that bringing jobs back to the US needs to be a priority. And, since the pandemic, both parties agree that reshoring PPE and pharmaceuticals are an urgent national security issue, not just a campaign slogan.
Unionwear has been a unionized manufacturer since 1992, and we have always supported creating good-paying American manufacturing jobs. Let’s hope the politicians in Washington get to work bringing jobs +back to the US and not just using made in America as a once-every-four-years campaign slogan.
#govote #elections2020 #madeinusa #americanmade #promogoods
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:
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
US Senator Tammy Baldwin, Democrat from Wisconsin, reintroduced legislation that strengthens Buy American requirements for the federal government’s purchase of ships. It does this by expanding current law to cover all federal agencies, all classes of ships and more shipboard components.
The CEO of Fairbanks Morse, George Whittier, praised the bill. Fairbanks Morse is a US-based manufacturer of power systems for large contracts.
“The Senator’s proposed Made in America Shipbuilding Act will not only strengthen the defense industrial base by providing American-made components for U.S. taxpayer-funded ships,” Whittier said. It “will give American shipbuilding suppliers the confidence to invest capital and add high paying middle-class jobs.”
As of right now, the status of the bill is unknown. But it is good to see senior politicians are taking made in USA more seriously.
A few years ago Adweek wrote an article explaining that made in America is no longer a pipe dream but is slowly becoming a reality. American factory jobs grew to 12.3 million by 2016. And, according to the nonprofit Reshoring Initiative, no fewer than 576,000 factory jobs have returned to America since 2010.
While carrying the made in USA label is a feel-good move for many consumers, businesses are wondering what it means for the bottom-line. Because it might feel good to say your products are made in America, that isn’t the main driver for the return of American manufacturing. It almost certainly doesn’t change buying habits.
Why are companies reshoring now? The reasons are varied and complex, ranging from growing labor costs in Asian countries to quality control. Rarely is the branding opportunity a factor. For better or worse, unless someone has a very strong incentive to buy made in USA products (such as political candidates or government contractors) where a product is manufactured rarely factors into a purchasing decision.
Bayard Winthrop, founder of American Giant, a brand that manufactures hoodies in North Carolina, says geographic proximity is what matters most. “There’s a huge benefit to being able to hop on a plane and talk to the people who are spinning my yarn and weaving my cloth,” says Winthrop, who’s based in San Francisco. Winthrop says Made in America marketing is an add-on, not a reason people buy. “I don’t believe consumers are willing to pay at the cash register for [American-made] things—I really don’t,” he says. “What consumers are willing to pay for is great brands and great quality.”
According to the Adweek article, the vast majority of people are not going to pay a much higher price for made in America. One of the main reasons they make everything domestically is quality control. Indeed, according to David Hamilton, fourth-generation owner of Hamilton Shirts, domestic manufacturing is essential for quality control. Hamilton’s shirts start at $265, and many of them are made to order. Production of a luxury product like that cannot be trusted to something being made halfway around the world. “If I’m on the phone with a customer [who has an issue],” he says, “I can walk into the factory and research the problem and resolve it.”
The same thing goes for large brands. 3M’s Post-it barely mentions that their sticky notes have been made in Kentucky for the last 33 years. Why? Distribution. An American plant is both closer to pulp suppliers and to retailers. “It’s a shorter supply chain,” explains global business manager Adrienne Hovland. Made in America is “not one of those key messages we use,” she says. “We have a lot of other things that are compelling to communicate.”
It’s worth noting that the Adweek article was written before the Covid-19 pandemic disrupted global supply chains. I imagine we will see major reshoring in the coming years because of the issues described in this article as well as government mandates. But companies will not reshore manufacturing to enhance their branding, even though that might be an added benefit.
At the end of the day, made in America isn’t a huge driver for reshoring manufacturing. Quality control, supply chain management and holding people accountable for customer service challenges are major reasons for bringing jobs back home.
Due to popular demand for rush orders and small orders of our union made in USA baseball caps, Unionwear is now offering a stock program to our advertising specialty resellers. Orders ship in 24 hours with minimum orders of one dozen blanks.
While we still offer thousands of made to order styles, we selected our best selling eight styles of union made in USA baseball hats for rush and under minimum orders, and we are committed to keeping several thousand in stock. These include solid-colored blank hats in navy, black, red, and putty (like a “stone”). All four colors come in both 100% cotton low style structured with a Velcro closure and 100% cotton unstructured with a tri-glide closure. All hats have a woven American flag label on the back strap.
Unionwear still embroiders in-house on thousands of different made to order styles, and we can embroider these stock hats too.
Did you know that “union made in USA” can be more affordable than just “made in USA”? How? Why? Check back here for a future blog post.
These blank hats can be ordered from Unionwear’s promotional product distributors, who can also handle the decoration if it is not done by Unionwear.
We don’t have this info up on our website yet but you can download a white-label, Client-Safe sell sheet HERE
Distributors please email PPESales@unionwear.com, call 973 497-0102, or fill out this FORM to resell.
Unionwear continues to make political merchandise for candidates covering the entire political spectrum. We’ve expanded production to ensure that “Made in USA” and the reshoring of the supply chain to the United States are available to the growing number of buyers who recognize how critical domestic manufacturing is to our economy.
The short video in this blog post shows our factory embroidering the front “panels” of the Biden Harris hats. One of the advantages of manufacturing here is we can embroider cut parts flat, which enable us to duplicate logos perfectly with embroidery.
Remember to vote!
The entrepreneurial mindset means there is never returning back-to-normal. Our business will definitely change from pre-crisis to post-crisis. With any luck, we will be better than before. At the moment it seems we will go back to our original business while keeping PPE business, depending on demand and other factors.
Regardless, there will be vastly increased demand for Made in USA products.
One of the main advantages is that we are making reusable materials that are actually cheaper than the disposable items made overseas. This is good for everyone. It increases domestic jobs. It protects our environment since we aren’t filling up our landfills. And, our customers are saving money on purchases while getting high-quality, reusable merchandise. Literally everybody wins. Including us.
Mitch of Unionwear discusses this topic and more in this video interview.
Back in 2016, PocketNow, an online website focused on all-things portable tech, reported that Foxconn was considering opening factories in the USA. Thus far, the result has not panned out as our leaders wanted.
A little background: Foxconn is an electronics contract manufacturer with headquarters in Taiwan. It is the world’s largest provider of electronics manufacturing services and the third-largest technology company by revenue. They are also one of the largest employers worldwide with over one million employees. Foxconn’s consideration to open factories in the USA was not motivated by patriotism or even marketing. Rather, like most businesses, their decision was motivated by politics and economics.
Unfortunately, as of late-October 2020, Foxconn’s promise to open American factories has not panned out. And the whole project has turned into a surreal battle for tax cuts and a blame game in Wisconsin. A great quote from this articleillustrates how weird the situation has gotten: “As the divisions bickered, bored employees would come down from the Milwaukee headquarters to race the carts around the empty building, until the batteries finally died.” For their part, Foxconn disputed the report’s claim that the company hired employees only to achieve tax incentives.
This story highlights the challenges associated with reshoring. There needs to be a strategic and business reason to do so, such as better quality control, saving money on shipping costs, and avoiding supply chain disruptions.
Companies like Apple have to factor in all the costs and benefits to see if it makes sense to manufacture domestically, otherwise the initiative will likely fail. Tax breaks cannot be the only reason to do so.
On March 24, Unionwear made a rapid transition from accessories to manufacturing face shields and has made over half a million face shields for state governments in response to the pandemic.
Our face shields are sturdier than most, using the high quality elastic we use in stretchfit hats, sturdy foam we use in backpack straps, and a 17 mil PET-A for the clear shield. Using the hot stamping we normally use in our portfolio business we are able to apply a one color imprint anywhere you would like on the shield.
Face shields are the choice PPE for essential workers working in a loud, outdoor environments—such as construction, transportation, manufacturing, and education–because they provide virus protection without inhibiting communication. They are also preferred when working in close proximity to clients, such as salons, physical therapy, and dentistry.
These shields are Union Made in USA and are available with a very rapid turnaround time.
All our face shields are available from Unionwear’s promo products distributors.
Download a white label, Client-Safe sell sheet here.
Distributors please email PPESales@unionwear.com, call 973 497-0102, or fill out this form to resell.
Just in time for Labor Day and Election Day, Unionwear introduces a broad selection of face masks that are union made and union printed in USA with a removable union label.
Choose between larger imprint areas or more contoured shapes
Unionwear has three shapes to choose from—a rounded front with a perfect fit for breathability and comfort, a flat front for a full-bleed, full-color sublimation print, or a pleated flat front that combines the best of both.
Brushed 100% 7-ounce cotton twill.
All of our masks are made from high quality woven fabrics-not knits. Heavy but soft, this woven fabric provides up to 10 times the droplet blockage of porous t-shirt or handkerchief materials, while withstanding hundreds of home washings. Unionwear presently stocks this fabric in 24 colors.
Pick the right mask for your budget.
Unionwear offers quality levels from blank, flat singly ply masks with elastic earloops to full-color prints on a contoured face mask with adjustable pull-through ear loops and a second ply with filter pocket. All union made in USA.
All our face shields are available from Unionwear’s promo products distributors.
Download a white label, Client-Safe sell sheet HERE.
Distributors please email PPESales@unionwear.com, call 973 497-0102, or fill out this form to resell.
The company was purchased in 1992 with a fully-unionized workforce. Early on, and for largely idealistic reasons, we decided to keep the workforce unionized, because we believed that people should benefit from their hard work. We quickly figured out that working with the union was to our benefit.
When we first bought the company, our number one customers were labor unions, so we changed our name to Unionwear. To expand our customer base we dipped our toes into manufacturing fashionable baseball caps and hemp hats back in the early 1990s, long before they were cool or popular.
But then, around the year 2000, presidential campaigns started buying our hats as well. That’s when things really took off for us. Because it doesn’t look good when politicians talk about creating American jobs while buying hats from overseas.
For this and many other reasons, having a unionized workforce has been a strategic advantage for us. As you will see in later posts, it literally saved our business during the Covid-19 pandemic.
How unions help our employees and our company
In a lot of ways, government mandates have minimized the need for unions. The minimum wage is increasing incrementally for starters. Even more, companies with over 50 employees are now required to offer health insurance benefits and PTO (paid time off.)
For us, it has been much easier to deal with unions rather than negotiate with 180 employees individually for benefits. And, it is much less expensive to offer health insurance through a union which can use its bargaining power to bring those costs down.
And there are other advantages to working with a union. Having a unionized workforce brings in significant political and government business, especially for portfolios and tote bags. Most government employees are union members, which gives us a leg-up in securing government contracts. In fact, that represents 30% – 40% of our business.
So, although there are some disadvantages to working with a union, we have turned it into an advantage. We planned on treating our employees well anyway, so we have a good, rather than adversarial, relationship with them. It brought down costs in some areas. And it led to a lot of new business
See the interview here:
ACG New Jersey earlier this year named Unionwear a winner of its Corporate Growth Award. Mitch Cahn, CEO of Unionwear, recently spoke with ACG Global CEO Tom Bohn for a video on GrowthTV about how Unionwear won ACG New Jersey’s award, the ways the company has pivoted since the start of the COVID-19 outbreak, and why presidential campaigns across the political spectrum order Unionwear products.
What led up to Unionwear winning ACG New Jersey’s Corporate Growth Award?
What has Unionwear done to pivot during this crisis?
How was Unionwear able to keep operations running while also protecting workers?
Unionwear makes all of its products here in the U.S., but one would imagine that the supply chain has to be global. How has that held up through all of this?
See the full article HERE
Many people ask, “Mitch, how does Unionwear — a unionized manufacturer in Newark, NJ compete with China? Your real estate and labor costs are among the highest in the world.”
The fact is, Unionwear cannot compete with China on cost. In fact, Unionwear is the most expensive manufacturer in the world for their product categories.
So they changed the game.
Instead, Unionwear competes on value.
There are a lot of misconceptions about competing on value. Here, Unionwear CEO Mitch Cahn clarifies what it means to compete on value.
1. Manufacturers cannot create value with work in process, because parts have no value until clients are willing to pay for them.
2. Manufacturers cannot create value by cutting labor costs. If manufacturers cut labor costs with lean manufacturing but do not redeploy that labor to another task, there is no value created.
3. Manufacturers cannot create value by focusing on profits. Using productivity as a tool to increase profits is the other side of the labor cost equation, and a NJ-based manufacturer cannot compete on labor.
4. Manufacturers cannot create value by having people work faster. If they are working fast without adding value to the product, they are destroying value.
Manufacturers only create value when their finished product sells for more than it cost to manufacture. Otherwise, you are not creating value, but are just moving it around.
This is the game Unionwear plays: knowing what it means to add value and focusing on that instead of decreased costs.
Discussion from 2:58 – 4:56:
Face masks hinder workplace communication and don’t protect the eyes or provide a liquid barrier. So why aren’t clear face shields ubiquitous? Because the traditional “foam + elastic + clear sheet” face shield was designed as disposable splash protection for surgery–not every-day use.
We’ve reimagined the Face Shield to be something comfortable and truly reusable.
Unionwear is the leading domestic manufacturer of baseball caps. Our products sit comfortably on heads all day, every day. And we’ve been making traditional face shields since NYC’s quarantine started, continuously upgrading our product based on client feedback. We are now launching the Replaceable Universal Face Shield (the “RUF Shield”). Features:
No Foam: Foam is why traditional face shields are disposable. You can sanitize the clear shield but how do you clean spongy foam that’s been pressed up against a sweaty forehead? You can’t. We use a black cotton baseball cap sweatband, removable for washing.
No Bulk: Traditional face shields are bulky. Bulky to ship—especially with FedEx and UPS new penalties for dimensional weight, bulky to store, even bulky to dispose of. The RUF Shield ships disassembled, flat.
No Latex: Latex sensitivity and allergy affect a sizable portion of the population, and due to skyrocketing demand for elastic for masks and shields nearly all available elastic right now contains latex.
No Sizes: Elastic face shields are not one size fits all, which means you need to order in sizes-but who knows his or her face shield size? Unknown size ranges require excess inventory.
No Scratches: All of our fronts are protected with film—made possible because the shield is not attached until it is ready to be worn. Without this protection PET is bound to scratch during shipping or handling.
The clear shields are sold by Unionwear’s promo products distributors with an MSRP of $1.45 (s) each. The plastic visor/cotton headband that holds the shields are $3.50 (s) each. Case size is 100 units.
Download a white label, Client-Safe sell sheet here.
Distributors please email PPESales@unionwear.com, call 973-497-0102, or fill out this form to resell.
You can also purchase retail online from RUFshield.com.
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, 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.
Although many factors have contributed to the manufacturing returning to the USA, the main driver is what drives most decisions: money. A mere 10 years ago, items made in the USA would have cost 200% more than items made in China. Now, it’s down to 25%.
There are two major reasons why this is happening:
Labor cost: not long ago, China faced an overpopulation crisis. In response, they set out on a One-Child Policy. Because of this, there are now fewer people entering the workforce. And, those people who are entering the workforce want to work for Apple, not work in factories. This shortage of labor has driven up wages.
Politics: the Foxconn factory in Shenzhen, China employs 1 million people, making tons of American goods. A series of investigations found horrific labor violations. As a consequence, employees received two, back-to-back 40% wage increases over two years. They also reduced the number of hours worked from 100 to 60, leading to 25% – 30% wage inflation year over year. At first, Foxconn and other factories responded by cutting corners, leading to many product failures, such as poisoned pet food, thus increasing expenses anyway. Companies tried moving out of China to “cheaper” places like Bangladesh, but those countries didn’t have the infrastructure, raising prices even more.
So, when you factor in shipping and other associated costs, the economic benefits to overseas manufacturing has all-but evaporated, leading to a resurgence of domestic manufacturing.
We are the primary brand chosen by political campaigns. Here are the details:
“JOE” on Navy, 100% cotton baseball cap with size-adjustable back strap.
Purchase is a donation to Biden Victory Fund.
Orders ship within 10 days.
Union Made and Made-In-USA.
To view and purchase, please click HERE
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.
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
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 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.”
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.
Mitch tells us how, a month ago, orders for political campaign hats and items evaporated as the Democratic presidential field consolidated. So, Unionwear needed to pivot and they started calling hospitals to find out how they might be able to help by making personal protective equipment (PPE) to help in the Covid-19 crisis.
Read more here
Under normal circumstances, Unionwear is the leading manufacturer of union, made-in-USA headwear, bags, accessories, work wear and safety gear. 2020 was shaping up to be a great year for the New Jersey-based company – between the presidential campaign, the Olympics, the US Census and other events, Unionwear’s employees would be busy all year.
But when the Democratic presidential campaign abruptly ended and the coronavirus pandemic arrived, circumstances became anything but normal.
“A lot of our jobs were canceled,” says Mitch Cahn, Unionwear President. “We do a lot of event merchandise, and a lot of events were canceled and some of our military projects were scaled back to make funds available for emergency relief.”
Like many companies coping with the challenge of operating with mandated social distancing amid sharply reduced economic activity, Unionwear quickly went from trying to keep up with orders while working at full capacity to not having much to do at all. The company cut their staff, sent workers home and tried to figure out how to succeed in a world changed by COVID-19.
Then they decided that they needed to come up with a new business model to carry them through the crisis.
The pandemic created a huge demand for personal protection equipment (PPE) to keep front-line health care workers, law enforcement and essential employees safe. Unionwear not only wanted to shift production to keep operating but also to make a difference.
Read more here
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.
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
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
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
According to Philadelphia Magazine, a new kind of union leadership is changing Philadelphia, and getting results.
Jerry Jordan of the Philadelphia Federation of Teachers, Chris Woods of AFSCME 1199C, and Ryan Boyer of the Laborers District Council are making their mark. Jordan’s PFT spent north of $340,000 on political campaign contributions last year; Boyer’s Laborers spent more than $2 million. When the pandemic hit and hospital workers at Temple demanded hazard pay, Woods promptly called all of his political allies to let them know about his membership’s plight. Hazard pay arrived shortly thereafter.
What is notable here is that all of these union leaders are black. “We’re forced to be much more than a labor organization,” says Boyer. Indeed, the unions are getting squarely involved in social justice issues as much as bread-and-butter labor union ones.
To stay relevant, some labor unions are going beyond bread-and-butter economic issues for their members. The PFT also assembled in front of the Comcast Tower, demanding free internet so students whose families couldn’t afford access could still attend virtual school during the pandemic.
And it’s why AFSCME 1199C reemphasized its campaign for social justice during the George Floyd protests. “We want to be in conversations not just as relates to police, but to the whole criminal justice system,” says Woods. “Because these are issues that affect our members.”
Donald Trump and Bernie Sanders aren’t exactly close on the political spectrum.
But at the Unionwear hat factory in Newark, New Jersey, they’re side by side.
Unionwear has been making campaign merchandise for US presidential candidates for nearly three decades.
The company caters to both Republican and Democratic candidates of all political stripes. This election cycle, the company has made campaign hats for Trump, Sanders, Joe Biden, Michael Bloomberg, and Elizabeth Warren, among other candidates.
Garment worker Maria Gallardo expressed a common sentiment: “We have to make money for our families, whether we agree or disagree with their message,” she said.
This year’s crowded field of candidates has been good for business. Cahn said Unionwear makes between 2,000 and 3,000 hats in a single day, with most orders coming from campaign-affiliated agencies or groups of supporters.
The 2016 election cycle was a particularly busy time for the company — Cahn said the company was surprised by demand for Trump’s famous “Make America Great Again” hats.
“Demand overwhelmed the supply,” he said. “And there are only a handful of factories in the United States. Everyone was working on that hat for Trump.”
Political campaigns often prefer merchandise companies that are based in the US, making Unionwear a go-to option.
Yet the candidate it’s provided the most merch for isn’t Trump, or Sanders, or even Bloomberg and his seemingly endless campaign budget.
That honor would go to Andrew Yang, the Democratic entrepreneur who dropped out of the race in February. Unionwear made many of the 30,000 “MATH” hats — that’s “Make America Think Harder — that Yang sold during his longshot presidential bid.
Its first political hats were for Bill Clinton’s 1992 campaign.
Political swag is at least as old as the presidency itself — buttons bearing George Washington’s initials were sold at his first inauguration in 1789.
But the merch business really took off in the mid-1990s, when Cahn was just getting started with Unionwear.
Cahn started the business in 1992. His initial attempts to sell to high-end clients like Neiman Marcus and Ralph Lauren were successful but short lived when the garment industry started to migrate to China en masse in 1994.
“We were left with a baseball hat factory and a lot of employees,” he said. “And not a lot of places to get business from.”
He didn’t have to look far for new clients, though. He began selling to American unions, which were looking for products made by unionized businesses like his. He also began selling to military agencies, some of which are required to buy US-made products.
Then came the political campaigns, starting with a small order of 150 hats for Bill Clinton’s first presidential campaign in 1992. But Cahn said business didn’t really take off until Al Gore, then vice president, ran for president in 2000.
“We sold probably more hats than we had ever sold for any one particular client,” Cahn said. “It was probably 200,000 hats overall.”
All of Unionwear’s production takes place at its New Jersey plant. That makes the company an attractive option for political campaigns, who often want to hire US-based companies to make their merchandise.
Unionwear contributes to a multibillion-dollar political marketing industry. Campaign managers and political strategists are increasingly looking to merchandise like hats and other apparel as powerful branding tools, according to New York magazine. Trump’s campaign alone has made $45 million off his “MAGA” merchandise.
So what happens to Unionwear’s supply of hats once a candidate drops out, like Democrats Klobuchar and Pete Buttigieg did recently?
“We have this down to a science. We are producing in small batches,” Cahn said. “Someone would have to drop out really unexpectedly for us to get stuck with anything.”
Fox News’ Alex Hogan reports from Unionwear where nearly every candidate for the 2020 presidential election has chosen to manufacture hats and bags. Candidates choose made in USA products for their campaigns to demonstrate their support for the American worker and domestic economy.
Despite all of the political differences between republicans and democrats, both parties have turned to Unionwear in Newark, New Jersey to manufacture their campaign hats during election season, since 1992.
“We’ve worked with virtually every campaign since we started the business. One of our first orders was for the Bill Clinton campaign in 1992,” said Mitch Cahn, President of Unionwear.
For the 2020 campaign season, Unionwear has manufactured hats for most of the democratic candidates as well as various support groups of President Trump.
According to Cahn, it is during presidential campaign years when many businesses turn to American manufacturers to produce their promotional goods to ensure their products are “Made in USA”.
“We have all sorts of businesses who order promotional products for their business thinking “This is made in China, maybe I should get this made in the USA, I don’t want us to look bad,” said Cahn.
For Cahn, whose company has manufactured products for entities like the U.S. Coast Guard and the U.S. Census, manufacturing “Made in USA” items with the highest standards of production is an obligation that has set Unionwear apart from the rest.
“When consumers buy products “Made in USA” they know that the workers who produce those products are supported by the same labor laws and environmental laws that the consumer benefits from,” said Cahn.
———-
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Who says that the only way for a manufacturer to make money is to send production outside of the USA? Not Mitch Cahn. After graduating from Wharton and working on Wall Street, Mitch decided he wanted to create something. So, in the early 1990’s he bought the distressed assets of a hat manufacturer and very purposely brought back the unionized workers that had been employed there. Twenty-eight years later, Mitch’s company, Unionwear, is the only manufacturer of American made baseball hats produced by unionized employees. In fact, he is the go-to source for every presidential campaign and anyone who wants the world to know that they care about where their merchandise is made and who makes it.
Listen here:
https://www.therighteouscapitalists.com/podcastepisodes/ep012mitchcahnunionwear
Fox News’ Opened the First-ever Made in America conference with live broadcase from Unionwear’s booth at the Indianapolis Convention Center. Carly Shimkus was suprised by the depth and quality of Unionwear’s product line and discussed how USA made products demonstrate their manufacturers’ commitment to the American economy.
The Reshoring Initiative and SEAMS, the domestic textile manufacturing association, presented their inaugural Manufacturing Reshoring Award to Unionwear for bringing cut and sew jobs back to the USA. Unionwear’s 180 workers in Newark, NJ make baseball hats, backpacks, and other bags for the promotional products, fashion, and uniform industries.
Unionwear’s technological innovations have leveled the playing field with imports by highlighting small batch, quick turn manufacturing. Unionwear’s predictive configuration tool at http://www.trillionhats.com allows it to sell custom made products using a traditional webstore experience rather than a cumbersome online configurator, while its mobile ERP platform automates purchasing, production scheduling, manufacturing, and shipping. The result is “made to order” as seamless as ordering from Amazon.
The baseball cap industry’s mass relocation to China since the 1990’s, and Unionwear’s success in keeping manufacturing stateside throughout, was thoroughly explored earlier this month in the three part serial podcast documentary “American Icon” on iHeartRadio’s Red Pilled America podcast.
The Reshoring Award was presented at SEAMS’ annual conference in Savannah,GA on May 9, 2019. At the event, Contempora Fabrics won the Textile Reshoring Award and Mara Hoffman Designs won the Brand Reshoring Award. SEAMS members had reasons to celebrate, with domestic textile manufacturing showing strong, sustainable growth to $70 billion and over 100,000 jobs, numbers that will continue to climb due to the recent tariffs and the upcoming presidential election, when interest in “USA Made” traditionally peaks.
Red Pilled America took a deep dive into the history of the baseball cap, and used the story of offshoring ballcap production to tell the story of American apparel manufacturing.
Episode 24 focuses on Unionwear’s history. Founded as a fashion industry contractor, Unionwear was nearly shuttered when unintended consequences of trade deals resulted in most of the textile business moving to China in the mid 90’s.
Unionwear took a systematic approach to seek markets that would only buy American: starting with unions, moving to political campaigns, the US government and military, then other manufacturers and nonprofits, and now back as a fashion contractor.
Hosts Patrick Courrielche and Adryana Cortez intersperse Unionwear’s story with a fascinating analysis of the economic, regulatory, and systemic changes that resulted in American manufacturing losing its edge, and what it would take to regain it.
The podcast has started a kickstarter campaign to sell a Red-Pilled America cap, pictured above.
The podcast is broadcast by iHeartAmerica and is available on Apple Podcasts
How did Leader Bag Co come to be?
Leader Bag Co was born from a love of beautiful design, and the desire to create a family-centered product that is truly missing from the marketplace.
When Meghan Nesher was pregnant with her son, Julien, she went shopping for a diaper bag that would work for both she and her husband. Coming up empty-handed, she opted for a Brooklyn Industries messenger bag; great for function, not so much for fashion. After a few months of use, she switched to the Fjällräven backpack; stylish and more comfortable, but not super functional. It was around this time that Meghan and her sister-in-law Liz Elliott, also a new mom, had their lightbulb moment: Why isn’t there a diaper bag that is beautifully crafted, simply designed and practical for both mom and dad?
Meghan, Liz and third sister-in-law Jess Nesher formed and funded Leader Bag Co as a family business in 2013. Since inception, we’ve enlisted the help of technical designer and manufacturing guru Jay O’Neill to bring our idea to life, and the uber-talented Lotta Nieminen to create our brand aesthetic.
Your brand is still only a year old, but what’s been the biggest challenge you’ve faced so far?
As a team of four, we all bring different strengths to the table, but at the same time, we all have strong opinions about pretty much every aspect of the business. We value playing to each other’s unique talents, but it’s not always easy with lots of cooks in the kitchen. We are constantly perfecting our team’s balance.
Manufacturing in the US – we were totally warned over and over that this was going to be difficult. All of us are perfectionists, and we’re all demanding, and I don’t think Unionwear knew we’d be so high-maintenance. Lucky for us, they have tons of pride in their work and are always striving to exceed expectations – which they did and continue to do.
Best thing you’ve learned?
Mistakes are opportunities, either to learn from or to create something new.
Your signature diaper backpack, the Julien, is a slick answer to a universal need; what kind of R&D did you pursue in the early stages?
Since we were all new moms, we did a lot of research for ourselves in the diaper bag market. We spent time looking at bags we didn’t like – even bought a few to compare. At the same time, we collected non-diaper bags we liked too, mostly based on modern aesthetics and strong craftsmanship.
We made lists of all the gear we stuffed into our baby bags and measured everything to make sure we designed the right size storage. We talked through where we would take the bag and what features we might need; for example, a hook to hang it in a bathroom stall while you change baby at a restaurant.
We collected tons of images on shared Pinterest boards – including inspiration for the brand, the bag and the lifestyle we wanted to promote.
Jay led us through multiple rounds of bag sketches – all different flavors and styles – until we settled on one we liked. He took the sketches to technical drawings, collected materials and had samples made. We went through at least three rounds of samples with Unionwear before we got our pack just right.
We put our samples on everyone’s backs, asked for feedback and took photos. We were careful to remove any design elements that seemed “girlie”, and made sure the shoulder straps were long enough to fit a really tall dad.
What features make the Julien awesome for carrying baby essentials?
The fact that it’s a backpack is key. We are all about leaving both hands free for tending to baby and being fully involved in family activities. Style-wise, the backpack is better for dad too – he’ll feel much more comfortable than if he were asked to carry a one-shoulder bag.
Ultimately, the Julien is awesome because of its storage and organization. We loved the idea of doing a drop-in “pouch” that can house some basics like a change mat, a few diapers, diaper cream and wipes. This way, you can just reach in and grab it for a quick change while you’re out.
We also made sure there were tons of compartments for all the essential gear. Outside, there are four decent-sized pockets for easy access, plus a clasp for hanging your keys. We also added stroller straps and hooks so you can easily hang it on your stroller when you don’t want to carry. Inside, there are four baby bottle (or water bottle) pockets, a sleeve for the change kit (or even a computer or iPad), a zipper pocket, and a few other larger pocket compartments. It’s wipe-clean and very utilitarian, but you wouldn’t necessarily know it from the outside.
When you’re running on no sleep and wearing the parental uniform of tracksuit pants and an old t-shirt, why is a luxe bag like the Julien important?
Being a parent isn’t always an elegant, effortless job. Especially when you’re a new parent running on empty and feeling overwhelmed.
The Julien immediately elevates your look: leather and canvas with rose gold details, all mixed with fine Made in the USA craftsmanship. And it’s effortless – it looks great with everything, is comfortable and keeps you organized so you can focus on what’s important: being present for your kid. There is absolutely nothing more chic.
Who else is making rad baby-related carry? Who inspires you to be better?
No one, in our opinion, is making a great diaper bag we’d want to carry! We do like Fawn and Cub’s change mat, and Ida Ising’s change mat/bag design.
Accessory and clothing companies outside of the diaper bag industry inspire us to be better, and companies that are producing their goods in the USA: Clare Vivier, Emerson Fry, Mansur Gavriel, Marine Layer, imogene + willie, etc.
What’s next for Leader?
There is a ton of room for us in the baby market right now. We see a lack of simple but beautiful and useful design, especially in kid accessories – which creates a whole lot of space for Leader to play.
What do you personally carry daily? And why?
Our Leader bags, of course!
TRANSCRIPT: Bill Clinton, Al Gore, John Kerry, John McCain, Barak Obama, Hillary Clinton, Bernie Sanders, and Jeb Bush all have something in common: the White House, yes, but also, this baseball cap factory in Newark, NJ, and more specifically, this guy:
“What they do is incredibly dexterous, I can’t do once what they do all day, which is take that thread and just throw it through a little hole.”
In 1992 at the age of 25 Mitch Cahn quit his job on Wall Street and bought a bankrupt hat factory in Jersey City at an auction sale. The idea was to make baseball hats for the fashion market including brands like the Gap. It was a trend at the time, but there was a hiccup. By 1994, American manufacturing was fleeing to cheaper manufacturing overseas and undercutting Mitch’s prices.
Mitch needed a new plan, so he turned to groups with vested interests in manufacturing goods in the US, and at the top of that list was political campaigns which is where this story gets interesting.
Cue James Carville: “Bush is buying up to $10 million in printing in Brazil. The president don’t buy American for his campaign.”
Making campaign gear offshore created the potential for a political scandal.
Cahn: “We are making hats for almost all the candidates, we are doing work for Hillary Clinton, Bernie Sanders, Jeb Bush, If someone is having a hat made here, then they are making a decision to use American Labor.”
Campaigns aren’t the only clients who rely on Mitch’s US based factory.
There are socially complaint companies and non-profits who want to avoid any possible connotation that their products could be made in a sweat shop. The US Military. Promotional gear for labor unions and other companies looking to cobrand with the USA Made label. And the fashion industry.
But political campaigns are where Mitch has really dominated the market. Now located in Newark, his factory has been pumping out millions of hats from behind these doors, manufacturing for every Democratic primary candidate since 2000, as well as John McCain, George W. Bush, and Jeb Bush.
The bad optics of a made in China label aren’t the only thing driving political business to Mitch.
“The market is moving to small batch customization”, said Cahn. “Consumers are expecting to get products that they order in 2 or 3 weeks and you can’t wait 60 or 90 days for goods to come in on a ship. Your generally have to order a much larger quantity of goods when you bring things in from China, than you can domestically, and there is no way you can get things turned around a week or two.”
Which is key in the ever changing landscape of politics. Campaigns rarely have the luxury of folks ordering a set amount of products months in advance. They rely on quick turnarounds and flexible order sizes while replenishing their online stores. A bonus for the campaigns, especially those seeking much needed endorsement from a big union: Mitch also uses organized labor.
Once mostly the norm amongst textile manufacturers, Mitch’s pro union stance is a rarity these days, which is something he is proud of.
“Any difference in wages is made up of any increased productivity by our workers who are generally more content in their job. This was a union shop since the day we opened.
I believe over half of our people have been here for at least over 15 years.”
As manufacturing costs remain relatively flat in the US while rising dramatically in places like China, Mitch’s pro labor stance could become more prevalent. It is possible other manufacturers will follow Mitch’s lead and we’ll see more textile work come back to the USA. For now Mitch’s made in Newark factory is still producing the vast majority of the hats you see in the presidential campaign trail. But the most popular hat he has ever produced, you might have a guess if you have been tuned into the 2016 campaign season.
“Probably the hat we make the most here is the hat that says Make American Great Again which was made popular by Donald Trump and we are making that for the company selling the Made in USA version of that hat.”
Trump unsurprisingly uses a non union factory in California to produce the authentic version, but with all the polarization these days. It’s nice to know so many other politicians on both sides of the aisle can agree on thing. Newark is a great place to make hats.
When they came face to face with an angry broker whose business was threatened by their new website, Maker’s Row, Matthew Burnett and Tanya Menendez knew they were on to something.
“He came to our office and threatened to shut down the site because that was his livelihood,” Burnett said in the Brooklyn, New York, office of Maker’s Row, the site they believe is making it easier and cheaper for entrepreneurs get their products made in the U.S.
“It was a telling sign of the disruption that was going on in the industry,” Menendez said. She recalled the incident had left her looking both ways when leaving the office. “This is like a big guy, who comes in … huge presence. We felt really uncomfortable, but it was also really enlightening for us.”
Despite the decline in U.S. manufacturing, a “Made in the USA” label is still desirable in global markets.
It brings a certain assurance that products are made according to high production standards, using safe materials. Over the years, that label has also become synonymous with high labor costs. But the cost of foreign labor is on the rise, and it’s beginning to level the playing field for U.S. manufacturers.
Finding a domestic manufacturer, however, can be time consuming. Most brands don’t like to share manufacturing information because they don’t want to help their competition. “It was almost taboo to ask,” Burnett said.
Plus, many older manufacturers don’t have their own websites, which only compounds the domestic sourcing challenge.
One way to find a manufacturer is to get help from a broker, if you can find one. They aren’t always easy to track down. If you can afford the broker costs, you buy a list of manufacturers that might be able to make your product. It’s a system Burnett found troublesome.
“Some of these consultants were basically hoarding the information and charging $5,000. It’s impossible. Five to $10,000 for any small business?” Burnett said. “I would never pay that. I couldn’t pay it. I’m paying $10,000 for maybe my first run of products.”
Before starting Maker’s Row, Burnett founded two small businesses. He studied design in school and was lucky enough to design watches for Marc Jacobs and DKNY. It was a dream since his childhood in Detroit, where he saw his grandfather make watches.
In 2007, he began to market his own brand, Steel Cake. Using connections he’d developed through big designers, he had product made in China, which presented hurdles. Larger orders get priority, and it can take months for shipments to arrive in the U.S. So Burnett had to build inventory without knowing whether it would sell.
He also couldn’t afford to have staff on site to monitor the process for quality control. One costly mistake was enough to put him out of business, “There’s this manufacturing error that occurred in about $35,000 worth of lost merchandise. I couldn’t take it,” Burnett recalled. “It ended up being just too much of a gamble being so far away from my manufacturing facilities.”
So he got out of watches and began crafting leather goods, sourcing materials and manufacturing locally in New York City. His new brand, Brooklyn Bakery, began to take off, but the search for manufacturing help took months, diverting his attention from designing, marketing and selling goods.
Enter Menendez. She’s a marketer with experience at Google and Goldman Sachs. She not only helped Burnett find manufacturers, but also helped build a direct-to-consumer business, bringing Brooklyn Bakery to shopping sites and eventually building a consumer site of its own.
Together, Burnett and Menendez saw the power that local production brought to small business owners.
“We’d get the shipment back within a few days, and it was amazing. It was a very low-risk, very profitable type of business,” Menendez said.
Burnett said that managing the size of orders was the key to their success. “When I was producing domestically, I wasn’t producing a thousand of each product. I was producing a dozen of each product. That means that I’m able to test the market. See what works and press the pedal to the metal, when I see that something is moving.”
As they met with manufacturers and other entrepreneurs, especially the start-ups selling their wares on websites like Etsy and Shopify, Menendez and Burnett began to realize that the search for manufacturing help was a constant issue. So they decided to do something about it.
Maker’s Row went live in November of 2012. Within months, they learned it wasn’t just small businesses that needed help finding U.S. manufacturers. The problem was much bigger than that.
“Big brands are having this problem, too. We see that Wal-Mart is signing up. We see that Burberry is signing up. These are the kings of industry that we’re looking at here,” Burnett said. Big brands using Maker’s Row was a big surprise “because if anyone was to have this information, we thought that it would be the big brands.”
Supporting local manufacturers
The timing is certainly good for Maker’s Row.
There’s a lot of confidence among U.S. manufacturers these days. A recent survey by the Boston Consulting Group revealed that 16 percent of the 252 U.S. manufacturers who responded are reshoring jobs from China, a 20 percent jump from a year ago, and more than double the number from February 2012.
Back then, Burnett and Menendez were just beginning to wonder how they could find enough manufacturers to make Maker’s Row a success. It was a tough sell at first, but they began to list manufacturers on the site for free, which turned out to be a smart move because some of them saw almost immediate results.
“People started to see leads before Maker’s Row asked them to sign up for their service,” according to Mitch Cahn, who runs Unionwear, a maker of baseball caps and bags in Newark, New Jersey. With leads in hand, it became much easier for Burnett and Menendez to sign up other manufacturers.
“We get several inquiries a day from Maker’s Row,” said Cahn, who bought a former baseball cap factory in nearby Jersey City in 1992, when, he said, there were about 400 baseball cap manufacturers in the United States. These days, he said, there are only about four but he believes the playing field for domestic manufacturers has leveled because the cost of labor overseas is climbing dramatically, making “Made in USA” more of a reality, than a lofty ambition. “There had been interest before but it was really a lot of talk,” he said. “Now that the price differential is so much smaller, people are saying, ‘Hmmm, I may spend another 20 percent to get a product ‘Made in the USA.’ Five years ago, it might have been another 100 percent.”
Local governments have gotten on board to help Maker’s Row, hoping to help their local manufacturers at the same time. They’ve had a large number of sign-ups in Los Angeles and Chicago, too. In about two years they’ve signed up approximately 5,000 manufacturers. A good thing, because there are also about 50,000 brands using the site to look for help. Subscriptions to Maker’s Row begin at $25 a month.
Shifting manufacturing
It’s a similar story at Genil Accessories in Brooklyn, where Gina Bihm and her staff make bow ties and neckties for the likes of Vineyard Vines and Marc Jacobs. Despite her big-name clients, Bihm says she also tries to help the little guy create a sample, if they can find her. “I don’t turn away no one. No one,” she said.
Bihm said the recession that began in 2007 nearly put her out of business. At the time she was shipping out about 20,000 pieces per year. In 2008 and 2009 work was hard to come by. Her entire staff, once numbering about 20 full-timers, was cut to zero. She needed a loan to pay the rent on her work space. She still has only 11 full-time employees, but she says business is better than ever. With bow ties back in vogue, they’re making about 4,000 units per week now, and that was before she found Maker’s Row. They’re practically around the corner from each other, but Bihm only signed onto Maker’s Row during the summer. “The phone calls doubled. I picked up about seven new customers and they all came from Maker’s Row,” Bihm said.
The 2-year-old website also works for entrepreneurs, including Andrew Kessler, Ari Klaristenfeld and Alexa Nigro, who began making their scarf product, called the “Scough,” with built-in carbon breathing filters, by hand in Brooklyn last winter. Within months they were having trouble keeping up with demand. They looked two months for a manufacturer before trying Maker’s Row. Two weeks later, they’d found MCM Enterprises, nearby in Brooklyn.
“We found that it was cheaper for us to manufacture here in the U.S. than it would be for us to produce in China or India,” Klaristenfeld said.
“We’re starting to send thousands and thousands of Scoughs to China which is this really interesting anomaly, where we’re making something in Brooklyn and, uh, it’s going to China because there’s brand, quality assurance that a lot of Chinese manufacturers can’t get,” Kessler said.
Those are the same reasons that Burnett believes Maker’s Row has seen some foreign businesses come online looking for U.S. manufacturing. “We’re looking to change the rule of thumb,” Burnett said. “We’re changing that mindset by showing people where they can produce and manufacture locally because this is a global shift right now.”
—By Andy Rothman.
When they came face-to-face with an angry broker, whose business was threatened by their new website Maker’s Row, Matthew Burnett and Tanya Menendez knew they were on to something.
“He came to our office and threatened to shut down the site because that was his livelihood,” said Burnett in the Brooklyn, New York office of Maker’s Row, the site they believe is making easier and cheaper for entrepreneurs get their products made in the U.S.A
“It was a telling sign of the disruption that was going on in the industry,” adds Menendez. She recalled the incident had left her looking both ways, when leaving the office. “This is like a big guy, who comes in … huge presence. We felt really uncomfortable, but it was also really enlightening for us.”
Despite the decline in U.S. manufacturing, a “Made in the USA” label is still desirable in global markets.
It brings a certain assurance that products are made according to high production standards, using safe materials. Over the years, that label has also become synonymous with high labor costs. But the cost of foreign labor is on the rise, and it’s beginning to level the playing field for U.S. manufacturers.
Finding a domestic manufacturer, however, can be time consuming. Most brands don’t like to share manufacturing information because they don’t want to help their competition. “It was almost taboo to ask,” Burnett said.
Supporting local manufacturers
The timing is certainly good for Maker’s Row.
There’s a lot of confidence among U.S. manufacturers these days. A recent survey by the Boston Consulting Group revealed that 16 percent of the 252 U.S. manufacturers who responded are re-shoring jobs from China, a 20 percent jump from a year ago, and more than double the number that were doing so back in February 2012.
Back then, Burnett and Menendez were just beginning to wonder how they could find enough manufacturers to make Maker’s Row a success. It was a tough sell at first, but they began to list manufacturers on the site for free, which turned out to be a smart move because some of them saw almost immediate results.
“People started to see leads before Maker’s Row asked them to sign up for their service,” according to Mitch Cahn, who runs Unionwear, a maker of baseball caps and bags in Newark, New Jersey. With leads in hand, it became much easier for Burnett and Menendez to sign up other manufacturers.
“We get several inquiries a day from Maker’s Row,” says Cahn, who bought a former baseball cap factory in nearby Jersey City back in 1992, when he says there were about 400 baseball cap manufacturers in the United States. These days, he says there are only about four but he believes the playing field for domestic manufacturers has leveled because the cost of labor overseas is climbing dramatically, making “Made in USA” more of a reality, than a lofty ambition. “There had been interest before but it was really a lot of talk,” he says, “Now that the price differential is so much smaller people are saying, ‘Hmmm, I may spend another 20 percent to get a product ‘Made in the USA.’ Five years ago, it might have been another 100 percent.”
Local governments have gotten on board to help Maker’s Row, hoping to help their local manufacturers at the same time. They’ve had a large number of signups in Los Angeles and Chicago too. In about two years they’ve signed up approximately 5,000 manufacturers. A good thing, because there are also about 50,000 brands using the site to look for help. Subscriptions to Maker’s Row begin at $25 a month.
Shifting manufacturing
It’s a similar story at Genil Accessories in Brooklyn, where Gina Bihm and her staff make bow ties and neckties for the likes of Vineyard Vines and Marc Jacobs. Despite her big name clients, Bihm says she’ll also tries to help the little guy create samples, if they can find her, “I don’t turn away no one. No one,” she says.
Bihm said the recession which began in 2007 nearly put her out of business. At the time she was shipping out about 20,000 pieces per year. In 2008 and 2009 work was hard to come by. Her entire staff, once numbering about 20 full-timers, was cut to zero. She needed a loan to pay the rent on her work space. She still has only 11 full-time employees but she says business is better than ever. With bow ties back in vogue, they’re making about 4,000 units per week now.. and that was before she found Maker’s Row. They’re practically around the corner from each other but Bihm only signed onto Maker’s Row during the summer. “The phone calls doubled. I picked up about seven new customers and they all came from Maker’s Row,” Bihm said.
Those are the same reasons that Burnett believes Maker’s Row has seen some foreign businesses come on line looking for U.S. manufacturing. “we’re looking to change the rule of thumb,” Burnett said, “we’re changing that mindset by showing people where they can produce and manufacture locally because this is a global shift right now.”
The MSNBC show Your Business helps Yadabags find domestic manufacturer Unionwear to produce their bags more cost effectively than China.
TRANSCRIPT
JJ Ramberg, Host: We first met Janet a year ago, at a conference for entrepreneurs in Nashville.
Janet Goodman: My business is YadaBags. YadaBags is a purse that’s designed to carry medical equipment for people with chronic disease, so people with diabetes can put all the paraphernalia in it and actually find it.
Host: She came to us to ask a question on camera about getting funding for her business. Once she felt she got the design right she hired someone to do a small but costly production run to see if people would actually buy the bag. After getting some sales, she was optimistic and ready to produce more. But when she looked into manufacturing in China which she thought would be cheap she found that she would have to make a thousand bags to get the right price. That put her in a chicken or egg situation.
Janet Goodman: I am not willing to risk retirement, if I didn’t get orders and I have to put money in to get product that I know is going to sell I would do that in a minute.
Host: With an order for a thousand bags unlikely at this point, we set out to find a solution for her chicken or egg problem by doing what she thought was impossible, finding a domestic small batch manufacturer that was cost effective. And we found just the people to help us out. Janet, I want to introduce to you Matthew and Tonya.
In front of Unionwear’s Newark Factory
Janet Goodman: Hi Matthew, hi Tonya.
Host: They are the founders of Maker’s Row.
Matthew: So Maker’s Row is an online market place and we connect businesses, small businesses and big businesses with American manufacturers to produce products here in the United States.
Host: Maker’s Row did a little homework for us, within introduction to Mitch Cahn the President of Unionwear. They helped us surprise Janet and Fred with the tour of the Newark, New Jersey based factory where the order minimum is 300 pieces. A much easier pill to swallow than a thousand units being made overseas. Mitch.
Mitch Cahn: Hi nice to meet you.
Janet Goodman: Hi nice to meet you also Mitch, this is quite a place you know.
Host: Let’s see your bag. Tell us how much it cost to make this one.
Janet Goodman: For putting it together was $60 and not including material. It was labor only.
Host: Okay.
Janet Goodman: Right, okay.
Host: That’s your bag.
Mitch Cahn: Okay here is our bag. (Produces redesigned bag)
Janet Goodman: Oh very nice.
Host: And the total cost to put it together?
Mitch Cahn: Around $47 and the material should cost no more than about $7 or $8.
Janet Goodman: Total?
Mitch Cahn: Yes.
Janet Goodman: Everything?
Mitch Cahn: Yes.
Janet Goodman: Oh I could love him.
Host: Would you like to give him a hug?
Janet Goodman: Totally.
Host: Mitch explained that the approach to manufacturing in China were labor inexpensive is less efficient than the way they tackle a bag like Janet’s here in America.
Mitch Cahn: We took almost about 60 steps in manufacturing the bag and that’s how we are able to lower the cost.
Host: With all of these resources at hand we gave Janet a challenge. Pull this all together to re-launch YadaBags by November. Just in time for American diabetes month.
Host: So this was a big day.
Janet Goodman: Oh wow, really big. I think it’s really moving in the direction that I envisioned.
Host: What did you learn?
Janet Goodman: Oh wow, I think the biggest piece for me if feeling like I have some support in developing that and somebody to think with as opposed to trying to figure all this up, all of this stuff out myself which I can’t do because I don’t know a lot of it.
Host: But by the way you have done an amazing job. With no manufacturing experience, no design experience and you created a bag.
Janet Goodman: I did, right I got there.
Host: You didn’t yet create a business.
Janet Goodman: Well, I should have got there, but didn’t get there.
Host: Right you got a bag business.
Janet Goodman: I got a bag.
How to make the most of selling products made in the U.S.
By Brendan Menapace for Promo Marketing Magazine
There are plenty of products that were made in America that we should all be proud of—Bruce Springsteen, baseball, movies where Nicolas Cage navigates an elaborate scavenger hunt made up of national monuments to find a historic treasure. The list goes on, but what stands out the most are the many promotional products manufactured in the U.S., and the business opportunities they present. By providing products made domestically, distributors can create business with new clients. Here’s how.
OPEN NEW DOORS
Aside from providing jobs in the U.S., domestically-made products can give distributors the chance to work with clients that otherwise may not have been available. David Bronson, national accounts manager for Unionwear, Newark, N.J., said that many companies only will purchase products that are made in the U.S. He named nonprofit, government and military organizations as potential clients that [usually] purchase domestically. “More and more, large domestic manufacturers, food processors, tech companies, and other corporations that promote themselves as ‘Made in USA’ are requiring their logo gear to also be consistent with their domestic mission,” he advised. “Unions and political campaigns generally have domestic sourcing requirements, which will boom in the upcoming presidential primaries and general elections.”
Bronson, who has been a distributor for a decade, added that using items made in the U.S. makes sense from an economic standpoint. “Domestic manufacturing is beginning to make sense economically in a number of areas,” he noted. “In particular, small-batch customization allows buyers to save on overhead, such as sampling, tech packs, sourcing, prepayments and lead times, that can dwarf the unit costs of importing fewer than a thousand units.”
Tim Boyle, president of JournalBooks/Timeplanner Calendars, Charlotte, N.C., explained that buying domestic ensures the protection of U.S. labor and manufacturing laws. “The U.S. has much stricter laws and regulations regarding safety and compliance,” he said. “When distributors sell U.S.-made products, they do not have to worry as much about factories using child labor or unsafe materials.” He added that distributors should still evaluate a company’s code of conduct and compliance safety standards. “Compliance and safety are top concerns for end-users,” he said. “Although the standards for compliance are improving globally, it becomes much trickier for distributors once they go offshore.”
HANDLE INTERNATIONAL COMPETITION
Some distributors may be hesitant to choose domestic products over imports, as they say they can often get products from overseas at a cheaper price point. However, importing products can come with a high price tag that some distributors might not take into account. Factors such as duties, fees, shipping and port delays can throw a monkey wrench into the process and end up costing more than it than saves.
Bronson also explained that some clients would even be willing to pay more for domestic products. “Even when import pricing can still result in significant savings, there are many end-users who will still pay a premium to co-brand with the most powerful brand in the world—Made in USA,” he said.
Boyle he believes the global competition is a good thing for U.S. companies. “It’s hard to compete with importers on price, but not impossible,” he said. “We are constantly exploring new ways to increase manufacturing efficiency and decrease material costs, and we can often be competitive with import items, especially custom projects. Price is only one aspect of the equation.”
The best way to compete is to produce a better product. Bronson said that many imported items are made with cheaper materials and unnecessary labor, which creates an inferior product. “A common example is tote bags coming out of China that have a seam along the bottom,” he detailed. “This adds labor cost to the bag and also weakens the bag at its biggest stress point.” He explained that the sum is there because cutting large panels into smaller pieces provides a greater yield for the manufacturer.
“If a bag has $40 in materials in either China or the U.S., but it costs $4 to sew it in China vs. $8 in the U.S., the end difference will be $44 versus $48,” he continued. “And that $4 difference will be more than eaten up by shipping, fees and duties.” Bronson added that the gap between the price of imports and domestic products has decreased every year for the last six years, and he believes the trend will continue.
GIVE THEM WHAT THEY WANT
According to Consumer Reports, when given a choice between a U.S.-made product and an identical item sourced overseas, 78 percent of Americans prefer the American product. Boyle and Bronson are optimistic about the demand for domestic products.
Boyle said that he sees the demand for U.S.-made items himself. “My opinion is that the demand for U.S.-made products has never been stronger,” he said. JournalBooks, which has manufactured in Charlotte, N.C. since 1971, has taken steps to keep up with the increased demand. “We do whatever it takes to keep up with demand, whether it is adding the necessary equipment or adding members to our team. JournalBooks has a modern, 90,000-square-foot facility with plenty of extra capacity for additional growth.”
In Newark, N.J., Unionwear is having its best year to date. “The demand is higher than ever,” Bronson said. “It has been a challenge to continually increase capacity.”
He attributed much of the success to Unionwear’s ability to offer detailed customization. “Small batch customization is one area where improvements in order processing and set up times can have big payoffs,” he expressed. “We can make any of our bags in any color combination customers want at low quantities. This is what China does not offer the industry.”
Manufacturing is booming in Newark and other American cities after decades of decline. Newark has over 400 active factories that employ over 10,000 people. Cities like Newark are reaping the benefits because there is already an infrastructure in place from the 70s. With concentrated labor, the center of transit hubs, and proximity to ⅓ of the population, the City is a great place to manufacture goods.
American Manufacturing Is More Competitive
After 20 years, Maker’s Row preferred manufacturing partner Unionwear is finally competitive with imports again. Unionwear sold primarily to entities like the government and military because they required that products be “Made in the USA” and, at the time, there were really no other markets willing to pay a huge premium for goods.
The price of imported textiles has been growing at 25% per year for the last four years while the prices for domestic goods have remained flat. As the premium paid for Made in USA shrinks, more markets implement and enforce labor and sourcing standards, and the benefits of Made in USA increase in value. A lot more people will buy Made in USA when it is 25% more expensive than when it was 200% more expensive.
The 7 Reasons Why People Buy Made in USA:
Support American economy
Fair Labor & Product Quality Standards
Economics—small batch manufacturing
Buy Union
Buy Eco Friendly— consumers don’t want to be part of the problem
Locality
Convenience
Manufacturers have learned to localize supply chains from the food movement. The underlying motivations are different and more related to worker rights. The closer production is to consumption, the less acceptable worker exploitation becomes and the more likely goods are produced using labor and environmental standards that the consumer benefits from.
The international worker rights movement is an issue in manufacturing; Bangladeshi factory collapses, inadequate minimum wages, and deep-seated inequalities. Consumers want to know that they are not contributing to the problem–that the products they buy are made at factories that comply with America’s core labor standards. This is important for domestic manufacturing because what actually causes buyers to connect with “USA Made” are deep convictions about issues that support of domestic manufacturing can cure.
Along with localism and worker rights, environmentalism and the maker movement are also affecting the American manufacturing landscape. All four of these factors are much deeper convictions than patriotism. That sentiment is rooted in business-to-business markets since companies are sensitive to being judged on their commitment to everything, from helping rebuild our economy to the working conditions at their vendors’ factories. Putting a Made in USA label on your product enables a small business to co-brand with the most powerful ‘brand’ in the world—America!
The most exciting aspect of American manufacturing right now is the confluence of pricing being competitive, deep seated convictions driving sales, and cloud computing and ERP (Enterprise Resource Planning) making small batch manufacturing a reality.
A special thanks to Unionwear’s Mitch Cahn. This post was inspired by Cahn’s TED talk and various other discussions on American manufacturing trends.
Source: https://makersrow.com/blog/2015/04/7-reasons-why-people-really-buy-american-made-goods/
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.
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.
Mitch Cahn is the owner and founder of Unionwear, an apparel and accessories maker—all exclusively made in the U.S. Despite years of panicked manufacturing headlines—Japan is making everything! No, It’s China!—Cahn has kept his business open for 21 years and counting, all on American soil.
The company’s first core customers were unions that wanted to support union wages and “Made in USA” goods. Then more recently, a new crop of customers began ringing Unionwear headquarters in Newark, N.J.
East Coast fashion designers—including those in NYC’s garment district—were shopping for U.S.-based contract manufacturers. With labor costs in China rising and that country’s own economy accelerating, small U.S. shop owners couldn’t get the attention of overseas manufacturers. In an ironic twist, they couldn’t afford a “Made in China” strategy.
“Now we have five to 10 callers a day about doing that kind of contract work. It’s a groundswell,” Cahn said. “And it’s not patriotism. It’s economics that’s prompting them to call us,” he said.
Cahn’s changing business points to the shifting global economy. With labor costs in China forecast to climb further, more small-business owners are benefiting from, or actively pursuing, domestic manufacturing rather than overseas options, sometimes called reshoring.
And small shop manufacturers aren’t just dusting off shuttered businesses, locked up after jobs moved to countries such as Japan in the 1970s. Young entrepreneurs are innovating from scratch, creating new online communities such as Maker’s Row—and even turning to emerging platforms such as crowdfunding—to bankroll U.S. manufacturing operations.
(Read More: Made in the USA: More Consumers Buying American)
After Bangladesh
After the deadly collapse of a garment factory building in Bangladesh, more people have been asking questions about overseas-made apparel, often linked to sweatshops and unsafe working conditions. (Read More: How to Bring Ethics to Your Closet)
Some top European apparel labels includingH&M have signed a safety-standards pact. But other major U.S. companies including the Gap and Walmart are pursuing independent solutions. They haven’t signed the group safety accord, which binds retailers to improve safety at Bangladesh factories.
But searching for ethically-sourced goods in a global economy is tricky. And what percentage of a good’s raw materials and labor must originate from the U.S. to merit a “Made in the USA” label?
“Right now there’s no common, national definition for ‘Made in the USA,’ ” said Harold Sirkin, a senior partner at Boston Consulting Group.
Even if you wanted to make American-made products, sourcing domestic raw materials is challenging in part because most online manufacturing resources are Asia-focused. But one Brooklyn, N.Y.-based start-up is changing that trend.
(Read more: The ‘Opportunity’ Entrepreneur Returns)
Maker’s Row
Maker’s Row is an online matchmaker that connects designers with industry-specific factories and suppliers—all based in the U.S. Product designers and small businesses can join the website for free, while manufacturers pay $200 a month.
Maker’s Row founder Matthew Burnett is a designer and Detroit native. He relocated to New York City to work for major apparel labels, before launching his own watch line. His grandfather was a watchmaker so he’s been around small shop manufacturing all his life.
But manufacturing his designs overseas was a costly headache. Orders and tweaks, shipped abroad, took weeks to resolve. “You add import taxes and it becomes such a gamble manufacturing overseas as a small business,” Burnett said.
Maker’s Row was launched in 2012 and breaks down the manufacturing process for small- to medium-sized ventures. The site allows entrepreneurs, many first-timers, to plug into a U.S. supply chain including factories in all 50 states.
Participating businesses straddle apparel and accessories. “It’s harder to find a manufacturer in the U.S. than in China,” Burnett said. Maker’s Row plans to add other industries, and is wrapping up their seed round of funding.
The site includes about 10,000 small-business owners and roughly 1,800 manufacturers, including Cahn of Unionwear.
And a vibrant U.S. manufacturing sector means more domestic jobs. For a $1 million backpack order, for example, Cahn estimates he’s able to hire 35 to 40 New Jersey workers. Less than 10 percent of American jobs come from manufacturing.
(Read More: US Manufacturing Shrinks for First Time in Six Months)
Of course not everyone can afford American-made goods. U.S. consumer spending fell in April for the first time in almost a year, as personal income growth was flat. But attitudes are changing.
Earlier this year, Walmart announced it will boost sourcing of U.S. products. And more American and Chinese consumers are willing to pay a 10 percent to 60 percent premium for “Made in USA” goods, according to BCG research released last fall.
Meanwhile, a shift in manufacturing away from China will begin to take hold around 2015, according to BCG forecasts. Rising labor prices there will create a ripple effect.
Certain industries—in which labor is a lower percentage of total product costs—are more likely to pack up overseas for North America, including Mexico, where labor costs are stable. Product categories likely to reshore first include appliances and electronics, transportation, machinery, plastics, furniture and chemicals, BCG’s Sirkin said.
But as the global economy evolves and shakes out new winners and losers, consumers are connecting the dots between inexpensive, overseas goods and evaporating U.S. jobs.
The recession has been especially brutal on chronically out-of-work or underemployed Americans. Unemployment that counts the discouraged and underemployed, sometimes called the “real” jobless rate, is still above 10 percent in many states.
“People used to thumb their nose at manufacturing jobs,” said Unionwear’s Cahn. But when the recession gripped the U.S. and the manufacturing sector was among the first to stand up and create jobs, many gave the sector a another look.
“As a country we can’t all be servicing each other,” Cahn said. “You have to have manufacturing.”
—By CNBC’s Heesun Wee; Follow her on Twitter @heesunwee
The resurgence of domestic apparel manufacturing (including Unionwear) featured on the Wearables Fashion Sense Channel this month. All of these brands are available from your local promotional products professional, screen printer, or embroiderer.
With labor costs continuing to skyrocket in China, transportation costs trending upward, and importers piling on currency hedge premiums, a number of promotional items have become less expensive to produce domestically. Four places to look:
1. Products made out of expensive materials. Pricey leathers and performance fabrics make the difference in labor costs insignificant. This bag uses $40 worth of leather whether it’s made in China or New Jersey. If labor costs are $9 domestically and $3 overseas, the FOB price will be $49 vs. $43–and the shipping, duties, taxes, cost of capital and other import headaches will more than eat up the cost savings. That’s why so many leather bags are made in the USA or in places even more expensive, like Italy.
2. Bulky products that are expensive to ship. Look for hard cases, coolers, laptop bags, products that don’t ship flat or nest. We recently made a hard case that was three feet wide by two feet high–it was more cost effective for the client to buy domestically than to pay to ship mostly air around the world.
3. Products with unnecessary bells and whistles. When labor was almost free, the Chinese often engineered products to “make work”, and little has changed. Evolved US factories re-engineer, eliminating unnecessary labor from imported products and build dedicated, lean production lines to keep labor costs low in a high wage environment.
4. Small batch customization. Import unit pricing may still be cheaper on most items, but there is a large overhead with every transaction. Language differences require tech packs. Sample approval and product development cost a fortune. As a result, customization in small quantities is cost prohibitive. Not domestically: you can do all over prints, custom dye lots, custom patterns, and panel embroideries by the hundreds–not tens of thousands.
Another day, another study that 75% of Americans are willing to pay more for USA Made merchandise.
Corporate logo apparel magnifies this phenomenon since companies are sensitive to being judged on their commitment to everything from helping rebuild our economy to the working conditions at their vendors’ factories. Here are six situations where a company will pay a small premium to see Made in USA on a promotional product that features its logo:
Company Store Catalogs/Fulfillment Programs
Companies that charge employees for corporate logo gear at far more likely to offer Made in USA options because it’s a risk free way to test their employees’ willingness to shell out a couple bucks extra for USA Made, while showing their support for domestic manufacturing. These companies may continue to buy their giveaways overseas unless they are…
Domestic Manufacturers
USA manufacturers such as GM, GE, John Deere, and Harley Davidson are already aware of the rapidly shrinking premium paid for USA Made. Most push “Made in USA” in their marketing and want to avoid appearing hypocritical saving money by putting their logo on an overseas product.
Other Industries Identifying with USA Made
Companies that promote their commitment to adding value with US labor in industries such as food processing, bottling, construction, energy and even technology, graphic design, and web development buy USA promos for the same reasons as domestic manufacturers.
Regulated Utilities/Telecom with strong Unions
Public Utilities and cable and phone giants such as AT&T and Verizon have been at the forefront of buying USA made wearables for their workers, as a nod to both the gigantic unions who represent their field workers and the politicians who must approve the usage of public bandwidth, easements, and other resources.
Trade Justice, Green, and other Social Ventures
Corporations with Social Ventures departments and/or a strong stated commitment to the environment or workers rights will buy USA Made–or at least avoid associating with countries known for sweatshops and lax environmental regulation.
Companies with Clients Highly Sensitive to “USA Made”
Unions, federal and state governments, the military, and political campaigns take issue with anything not USA Made, so companies giving away merch at events that cater to these industries take pains to endorse “USA Made”. Examples are financial services companies that cater to unions, military contractors, and DOT vendors.
Sources:
http://www.crainsnewyork.com/article/20130203/RETAIL_APPAREL/302039979
Inside, Outside U.S.A.: Presidents of American Apparel, Unionwear, Jensen discuss the economics behind the surge in domestic apparel production.
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