Like many American product categories, most of the outdoor industrys footwear, apparel and equipment are manufactured off-shore — but there are exceptions that deserve attention. From iconic knives to environmentally-friendly socks, technical packs, baselayers and headlamps, American companies have shown that domestic manufacturing cannot only be successful, but creates a powerful competitive advantage in this evolving economy.
For example, Buck Knives introduced over 60 new products in 2009 and only one is imported. CJ Buck, CEO and president of Buck Knives, a 107-year-old American family business, describes the companys decision to increase domestic manufacturing. “For us it was a decision made back in 2002. We asked, Will we be a marketing and design company importing our product or will we maintain our manufacturing? When we made the decision to retain our manufacturing capability, we built a factory in Post Falls, Idaho.”
Located in Trenton, NJ, Princeton Tecs international sales and marketing manager Gerard Armendinger says, “In our category, technology has moved very quickly. Domestic manufacturing allows us to be more nimble. We are able to react to technology and market changes faster and easier. By producing here we are also able to pinpoint production by seasons. We can produce better and more specific products for the markets we are working in.”
Extending the manufacturing opportunities to North American borders, ArcTeryx Equipment Inc. produces climbing harnesses, technical apparel and packs at facilities in North Vancouver, British Columbia. Darcy Mercier, vice president, supply chain, ArcTeryx Equipment Inc. reports, “Having our own manufacturing allows us to pioneer proprietary manufacturing techniques that are then applied to products that truly elevate the performance standards and expectations in the field in which they are used.”
Speed to market, quality control and flexibility are key benefits to domestic production. With production processes often just a few steps away from executive offices, theres little chance for quality control surprises.
Kokatat, which employs 130 people at a factory in Northern California to manufacture drysuits and paddle sports clothing, sees the advantage.
Michael Duffy, Kokatats sales and marketing director says, “Quality assurance is very high. We know that 100% of our items are touched before they go out the door. We know the quality is extremely high and thats important to our customers. The level of quality gives us an advantage. We can also repair anything we manufacture which gives us a huge leg up on our competitors.”
With specialty retailers placing more conservative preseason orders, just-in-time delivery is differentiating brands and offering some a competitive advantage.
Duffy explains, “We can build to order rather than forecast. We have the flexibility in the plant to change from product A to product B or C in a half-days notice. Thats a huge competitive advantage. Its easy for us to respond to late season orders and a retailers customers needs.”
CJ Buck offers, “Were working to get the industry off of pre-booking and tying up their open-to-buy dollars with products they are guessing may sell and partnering with companies like us where you dont have to guess. We are so good at replenishing, you can focus on what sells. We think thats a competitive advantage.” Buck continues, “Its all about being fast, flexible and responsive to your customers.”
Ibex Outdoor Clothing has manufactured some of its product line domestically since the brand was launched. Keith Anderson, director of sales, notes, “Its definitely apparent that retailers are only doing 60-70% of their needs on pre-season. Some of the smarter retailers have said we are going to order 80% of our needs and expect you to fill the rest. The burden is shifting more towards the manufacturer to carry the inventory risk.”
Every season, some products catch fire while others fail to inspire consumers to pay the price. Flexible production strategies can help manufacturers address both ends of the spectrum. Teko manufactures a full line of technical hiking socks in North Carolina. Company CEO Chip Coe reinforces the competitive advantage in domestic production. “I can be on the phone with the factory and producing an order in 24-48 hours and delivering it shortly after,” he said. “Domestic manufacturers are geared up to smaller, quicker production runs than an overseas manufacturer who may be looking to producing one or two container loads of the same product. Lead times are dramatically better here and that plays into the trend of retailers making fewer preseason orders and more frequent just in time ordering.”
Mt. Borah produces a line of cycling apparel in California. Owner Chris Jackson reports, “We are able to turn orders much faster than our competitors who come from Asia. More importantly we have total control over what we are doing. We stock our entire line through the month of August. By producing in the United States we are able to work with dealers throughout the selling season.”
As job losses mount in a recession, the call to protect jobs by buying products made in America gets louder.
For the brands, the commitment to domestic manufacturing mixes business strategy with some patriotism.
Princeton Tecs Armendinger reports, “There are some retailers who place a high value that we are manufactured here, some place less importance. Remember, Asian factories can produce very good stuff. The more important story is producing things locally and supporting our community with employment.”
Anderson says. “Made in the USA is definitely more of a story again. Its become a selling point in the last 2-3 years. People are warming up to it again. For a while it didnt really matter where it was made. Given the current economic crisis and the preponderance of everything being made in China, it makes a big difference for our retailers that our garments are made on American soil.”
For all the patriotic fervor, the Made is USA tag may not move a consumer from one product to another. Mercier says, “There is some sentiment of keeping jobs in North America, but unfortunately at the end of the day the guy putting down the Visa card isnt necessarily willing to pay for it.”
These brands have shown that domestic manufacturing can be a viable approach. Their success doesnt necessarily suggest more overseas production will return to the United States, however.
Anderson comments, “Part of the reason why offshore manufacturer is so attractive is they offer package deals that help cash flow situations for companies Another reason is we just do not have the infrastructure to be the technical manufacturing hub that we once were. Expertise has been lost in the United States because were not investing in infrastructure.”
Even if the outdoor industry invested in building new plants, Coe suggests there is another critical issue to be addressed. “For better or worse, the workforce and skill required to build technical apparel and footwear has moved out of the United States and become anchored in Asia. Even if you wanted to start an operation it would be tough.”
Mercier offers this perspective, “Its not an industry young people want to get into. How many people are raising their children to work in a sewing factory? Maintaining staffing levels is getting more and more difficult. Were seeing our work force getting older and older. Thats a concern for us long term.”
Still, as these outdoor specialty brands have shown, domestic manufacturing is an opportunity to explore. Randy Black, PolarMax president and CEO says, “With the right mix of products and the right market strategies you can be successful here. We would like to think its a competitive advantage.”
For the foreseeable future, the majority outdoor products may continue to be produced offshore. Some niche brands, however, have established market leadership by building their lines at home.
