Byline: Jeff Rundles

What with all the flag waving going on these days - a national election that sometimes seems to be about who can be more American; an Olympic effort where athletes have been asked to tone down their patriotism and increase their skill shooting jumpers - it's a wonder that there isn't more demand for apparel that is Made in the USA.

Clearly, clothing made overseas now dominates the apparel, and promotional apparel, marketplace by an overwhelming degree, winning the often contentious battle for hearts and minds with the simple allure of a lower price. Even bastions of strength for Made in the USA - labor unions, democratic political institutions - are beginning to balk at the price discrepancy between home-made and imported apparel, and are starting to be less strident on the what constitutes "American" in the content and manufacture.

And, of course, in what may be the very definition of Catch 22 these days, since more American manufacturing jobs are going overseas, the number of people employed in manufacturing - jobs that tend to be unionized - has dropped, lowering the overall core demand for American-made goods.

And yet, to the few remaining stalwarts who supply Made-in-the-USA apparel to PPDs in the promotional channel, American-made and union-made garments still represent, for the most part, a viable, and profitable niche.

Still significant

"I think the overall demand for union-made and Made-in-the-USA is down from when I started (here) seven years ago," says Roger Carroll, vice president of marketing for Grandview, Mo.-based King Louie International, whose line is largely union-made in the USA. "But it's still significant."

King Louie offers three lines to the promotional marketplace, one of which, the King Louie label, is entirely union-made in the USA at two plants in Kansas. The company's TimeOut line of apparel is all imported, and its TimeOut for Her is a mix of USA-made and imported styles, those made here designated by a American flag in the label.

"I think it's (the American-made business) holding its own," adds Michael Robinson, a principal in Chicago-based UnionLine, which exclusively manufactures union-made, USA-made goods. "Obviously, price is still an issue, but we're hanging in there. There are still businesses out there who worry about the balance of trade."

Finding the niche

To fight the battle, however, companies must find the niche or have an angle that importers find too challenging.

Lynn Anderson, national sales manager for Spartanburg, S.C.-based Aprons, Etc., finds her edge in turnaround times.

"In the promotional marketplace, (PPDs) usually need a quick turnaround," she says. "We don't have that import time. Also, small quantities; we're able to take lower-quantity orders. That's helped us to stay pretty competitive.

"Ive had a lot of people tell me they've had problems with the import companies," Anderson adds. "If they're out of stock it's 6 weeks before you can get anything."

Maryann Costillo, executive vice president and partner in Clinton, Mass.-based Tyca Corp., which specializes in American-made and embossed jean jackets, among other things, also see advantages vis a vis imports in her situation.

"The advantage we have," she says, "is that no one does exactly what we do. We had to create our own niches out there. Unions can be an advantage. The souvenir business is an advantage; foreign visitors are looking for American-made product. And there are consumers out there looking for USA-made product. When Americans travel they take an American-made jacket over there.

"We can't compete on price," Costillo adds. "We have to compete on quality, on service - and on quantity; you can order as few as 6 jackets. That's our niche: a very unique decorating process, custom logos at a very small quantity in a reasonable timeframe at a reasonable price."

Tricia Hipsher, marketing manager for Atlanta-based Boxercraft, which brings American-made loungewear, spiritwear and, through its Atlantic Afghans division, blankets to the promotional marketplace, says her company's niche is a desire for American made.

"With the products we carry there's more of a drive for American-made," she says. "(The PPD's) customers won't accept foreign-made. It's a win-win - they're willing to pay a higher price for higher quality."

Hipsher notes, however, that is doesn't work in all cases. As of September 1, Boxercraft is offering its first import product, a 10-oz., 80% cotton/20% poly hooded sweatshirt.

"Maybe with the one item there is some (competitive) pressure," Hipsher admits. "That hoody would have been extremely expensive as American-made."

Still, she says, American made makes a difference to many people. "If there's a need," she says, "we're the people who'll fill it."

Compromises

There are, however, compromises that have to be made in order to maintain the Made-in-the-USA and union-made label in apparel.

"The challenge is coming up with a quality product at a satisfying price point," says King Louie's Carroll. "People are willing to pay a little more because they understand that (American-made companies) pay a living wage. But there comes a time of diminishing returns.

"It's (any garment, foreign or domestic) going to be a quality garment," he adds. "But it might not be as fashion rich if it's made here. The fancy zipper pulls, cord locks. You can't put as much labor into it. American-made is the same quality, just not the same complexity."

Carroll notes that even though his domestic product is union-made, the company emphasizes the American-made aspect and tones down the union references "because some people have a problem with that."

And he adds that nearly everyone is making compromises these days. "It used to be that you had to be union-made," he says. "Then it was American-made. Then the fabric had to be made in America. Even the unions themselves make more and more compromises."

Carroll is not alone in his compromise assessment. UnionLine's Robinson says "The unions are not as good about buying union-made as they used to be.

"They have to deal with price too," he adds. "In some cases they'll accept USA made over union made."

Robinson says the mainstay of his market remains the manufacturing and trades that tend to be union-oriented - industries like automotive, construction and electrical - as well as in niche areas like safety garment required by OSHA regulations. Still, he admits that it is diminishing.

"A lot of industry has seen significant layoffs," he notes. "The percentage of people still employed is falling."

Pessimism

Not everyone is high on the direction American-made apparel is heading.

Rick Feiertag, president of Sardis, Ga.-based Ramstar Mills, says "the writing's on the wall.

"We don't see companies like us surviving for a long time," he adds. Ramstar Mills product line is all-American-made, and includes the popular and innovative high-performance Hydrowick apparel under the company's AmeriTees label, along with high-visibility gear, girl's rib tees, and lounge wear.

"The market is really price-driven," says Feiertag. "I don't see the manufacturing coming back to the U.S. You look at the WTO (World Trade Organization), it's all going to China.

"We're shrinking every year," adds Feiertag. "We're not growing. We're not getting the phone calls anymore from ASI. We'd get calls from people looking for American-made, but now it's all price-driven.

"I'm a U.S. manufacturer," says Feiertag proudly. "When I can no longer make a profit, I'm closing down. I'm not going to go off-shore."

Made in the USA suppliers

In spite of some pessimism and the loss of American manufacturing jobs, there is still demand for union-made and/or American-made apparel out there, in nearly every city and hamlet in the country, that promotional products distributors can profitably serve.

To assist our readers in meeting the demand from a supply point of view, Wearables Business offers a list of industry suppliers (see page 15) who feature such goods for sale to PPDs. We have strived to make the list as comprehensive as possible, however from time to time, as we discover others who should be on the list, we will reprint the entire, updated list of Made-in-the-USA suppliers so that PPDs may have a handy, up-to-date reference. Any suppliers we missed may contact Wearables Business Editor Jeff Rundles by e-mail, jrundles@primediabusiness.com, to be included.

Made-in-the-USA Suppliers

*AKWA - jackets, knits, wovens, bags (80% USA made) 888-289-2592 and www.akwa.com.