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COMPANIES Phoenix Textiles and Apparel: Staying Competitive, and Vertical, in a Horizontal Business
| Phoenix Textiles and Apparel: Staying Competitive, and Vertical, in a Horizontal Business |
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| Friday, 29 May 2009 14:20 | |||
 Over the last two decades, much of the growth experienced in the uniform industry has come about horizontally; that is, companies have generally bought out their competitors. Vertical growth or integration has been much more complicated, primarily due to outsourcing and globalization. The dictionary defines the vertical integration of a company as "relating to or involving all stages from production to sale," an industry rarity for certain. But there are a handful of truly vertical uniform companies out there, and for them, the model provides a competitive advantage, giving these businesses greater control over the supply source and a higher certainty that the end result – the finished product -- will be quality and top notch. "Handful," might actually be an overstatement. "I know of only one other company with all USA manufacturing who does what we do, and they're out on the west coast," says Harry Candland, president of Phoenix Textiles and Apparel, the only vertical UniformMarket was able to find. Located in Middlebourne, West Virginia, Phoenix Textiles and Apparel is a 35,000 square foot facility with approximately 40 employees. For the most part, it operates as a one stop shop in a world that is increasingly segmented and specialized. "The yarn comes in one door and out the other as a finished product. We buy raw yarn, knit it into greige goods, then dye, cut and sew," continues Candland. "We don't pay someone to do things for us." As a result, customers save big on shipping and manufacturing costs, and turnaround time is reduced. Delivery is generally 3-4 days on small orders, ten days on orders of 5,000 units or better. And with over 100 embroidery heads on site, costs are further reduced. "We're competitive because we're vertical," notes Candland. "We have good knitters and an experienced staff which is hard to come by these days."  The 42-year-old manufacturer is best known for its pique knit shirt line, made through a unique process that gives shirts a full, rugged texture. "It's the most durable knit fabric there is," adds Candland. The line is sold exclusively through dealers and is best suited for the hospitality, food, industrial and work wear markets. Phoenix Textiles also carries woven line, but buys, rather than makes, the fabric for these products. Designed for today's workers, shirts are washable, stain resistant, and color-fast.The surge of imports first from Japan and then other parts of the world catapulted the company into action long before others saw a need to react, and is another reason behind their success. "Long before China there was Japan, who was exporting shirts and selling them cheaper then we were here," explains Candland. "Then came China, with its large and inexpensive labor pool. It was a wake up call, and we decided to do something about it." The only way to compete with a $1 per day overseas worker is to reduce labor costs, and Phoenix Textiles accomplished this through automation. They invested heavily in equipment, purchasing machinery specifically tailored to their concerns. "We have equipment that nobody else has," Candland says. Pressed for details, he quite rightly declines to comment. The payoff has been a business that is a model of efficiency. While in the past, one knitter was needed to run three machines, that same person can now operate six or seven. While China's ability to deliver large quantities of the same item is unmatched, it has great difficulty producing the customized designs that are so popular in the markets serviced by Phoenix Textiles. And it is precisely in this area where the company shines, having the ability to easily provide a unique look right on its premises. "In about 15 minutes, we can add a pattern or stripe to a collared shirt simply by changing the yarn on a knitting machine," notes Candland.  Though they've managed to remain competitive, the company hasn't escaped the effects of the recession. Sales are down 20 percent from last year, resulting in a shorter work week for employees when warranted to cut costs. "End users aren't ordering from dealers, and in turn, dealers aren't ordering from us, which puts us all in a holding pattern," says Candland.To spark sales, Phoenix Textiles has pursued new markets and is in the midst of launching additional products, including a line of shirts for higher-end hospitality markets manufactured from imported Egyptian poly/cotton yarn. They're also trying to tap the school apparel market, drawing on Candland's previous experience in the men's and children's wear industries. What they won't do, says Candland, is sell direct. "Never," he says. "It just doesn't make sense." There is a minimum required order of 24 shirts. You can learn more by calling 888-466-7008, or emailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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| Last Updated on Monday, 01 June 2009 10:47 |
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