New Era Cap Company notified its Western New York employees Friday of its need to consolidate its two manufacturing facilities in that area in order to help maintain a competitive position in the marketplace. The headwear company will transfer operations from its aging Buffalo location to its Derby facility.
A consolidation of the two facilities is necessary due to excess capacity and the physical condition of the aged Buffalo facility. The Buffalo manufacturing plant is an old, five-story building with outdated mechanical systems and a poor design that does not lend itself to modern manufacturing practices and cannot easily be upgraded.
“The age of this facility and our excess capacity are forcing us towards this consolidation,” said
New Era President Pete Augustine. “It is imperative that we find ways to make ourselves more operationally sound and competitive given that the vast majority of headwear companies do not operate manufacturing facilities in the United States.
The move would merge as many Buffalo facility employees as possible with the Derby operation. New Era is headquartered at its Derby location and the production workers there would not be displaced in this process. The consolidation will not have an affect on New Eras Alabama facilities.
“Our first concern is for all of our employees in the Buffalo facility,” said Augustine. “As we work through this process we will do everything in our power to make this transition as smooth as possible, and offer the opportunity to relocate as many people as possible to Derby. We will actively work with the Buffalo union to provide benefits, job retraining, and other essential services to all Buffalo facility workers who are not provided an opportunity in Derby.”
The details of any consolidation, such as how many workers would be transferred, and the benefits provided to dislocated workers, will be negotiated between New Era and the union representing its Buffalo employees.
