Made in the USA: A Case Study, Part 2 of 2 except CUSTOM VELCRO PATCHES

Reviewing the cap production and embroidery procedures of Texas-based American Made Cap Co

. In the March 2013 concern of Impressions (" Made in the USA: A Case Study, Part 1 of 2"), I blogged about a pair of buddies, Greg Bednarik and Rickey Eavenson, who made a decision to sustain their neighborhood west Texas economy by buying American Made Cap Co., a struggling cap producer that had actually gone through several adjustments in ownership throughout the past three decades, with several workers persevering with the company's rough times.

With the new CUSTOM VELCRO PATCHES entrepreneur came new expect the company, which I had collaborated with throughout the "gimmee-cap" boom of the 1970s. During my first visit earlier this year, I determined a number of locations for enhancement, however the biggest challenge continued to be discovering adequate consumers willing to pay a little bit much more for a top notch, American-made cap. Recognizing a complementary item the business could produce or embellish to create additional earnings was a secondary challenge.

Bednarik disclosed that some essential employees modifications essentially have actually changed the complexion of their business. At the time of my previous visit to American Made Cap Co., brand-new Production Manager David Stutts had simply begun dealing with the business. Stutts was experienced with production in a various market, and also was familiarizing himself with the process of production as well as decorating headwear.

I might tell from his questions that Stutts is a really quick study and also, as of press time, has gotten a strong understanding of all stages of manufacturing. One of the discoveries he made is that during a previous proprietor's tenure, the embroidery device thread trimmers had actually been switched off to improve stitch outcome. This profited machine operators, that were on a motivation program. Unfamiliar with the needlework process and machine capacities, this issue was just exposed after the firm paid thousands of hours of overtime to workers executing trimming responsibilities.

In addition, a couple of other brand-new workers are actually making an influence. One has visuals arts skills and also display printing experience, and is being trained to give back up to digitizer Wanda Eavenson. An additional brand-new staff member is making payments in the location of information technology as well as also is being cross-trained for various other duties. Both new employee also follow up on new service leads.

Progress at the top of the employees chain additionally assisted to make changes that enhanced the staffing in other methods. One of the lessons found out by the ownership is that certain workers are not always important. It's a common worry amongst local business owner and management that everything will stop if several essential employees leave the business. In my experience, nonetheless, this is rarely the situation. American Made Cap Co. found that in spite of losing a couple of team members-- consisting of a supervisor-- that manufacturing was maintained without avoiding a beat.

NEW PROCEDURES, BUSINESS

By simply observing as well as making adjustments to organization methods, Eavenson as well as Bednarik have decreased their day-to-day operation costs by $500-$ 600 each day. This has actually dramatically boosted cash flow and also can be credited to several vital adjustments.

A large modification is structured documents, which was achieved by taking a close take a look at paper flow within the firm and also making changes that aided improve effectiveness. Monitoring likewise put emphasis on bank card payments for clients, which lowered the administration costs connected with invoicing and collection.

In the brand-new service arena, four fascinating and also significant cap manufacturing chances have actually been introduced to American Made Cap Co. from companies in Colorado, New York, California and Texas. At press time, some brand-new accounts were still in the process of being expanded, however the new company is offering the cash flow required to create a healthy and balanced organization account. Among the brand-new accounts sends its very own patterns and materials to American Made Cap Co., which supplies cut-and-sew plus embroidery services. Maintaining the needlework devices humming adds to paying the total overhead prices for the plant.

Another payment to the company's success is its organization with the Go Texan program, where it has actually reaped significant benefits. Through affiliation with this program, sponsored by the Texas Department of Agriculture, a firm's name is associated not just with American-made products, but also Texas-made items. It was a red-letter day in July when Texas Department of Agriculture Commissioner Todd Staples saw the business. He identified American Made Cap Co. for its use material made from American Cotton Growers (based in neighboring Littlefield, Texas) in the company's caps, aprons as well as tote bags.

The greatest and most appealing advancement the business has experienced during the past couple of months is the enhancement of a complementary product line. The item-- light-weight, flame-resistant garments-- is used extensively by companies with workers in oil and also gas fields. These firms likewise utilize great deals of headwear, making sales calls two times as effective.

" It's a bonus that the United State government requires workers in specific sectors, consisting of seismic employees, to use flame-resistant garments," Bednarik claims.

As part of the clothing program, the firm includes up to 10,000 stitches of embroidery in its pricing. The company also makes headwear from the unique material. Stutts found that the staff can stitch it making use of normal production methods, providing more orders to maintain the needlework makers running regularly. The company even began a brand-new internet site, americanfrc.com, that includes the product.

WHAT'S NEXT

Rejuvenated by the incredible progression the business has actually made in recent months, Bednarik and Eavenson eagerly anticipate implementing plans for further development. Initially, they intend to enhance its on the internet existence and possibly launch a line of themed caps. American Made Cap Co. still takes part in a give program that can assist offer funds to boost its Internet existence and also advertising and marketing in general. They likewise would like to produce a program with a major account to create caps for inventory throughout sluggish times.

Bednarik intends to fill up the plant's manufacturing capacity as well as begin a brand-new, enhanced incentive program for staff members. "I 'd instead pass even more money to the staff members if I can jam this place with quantity," he states.