Nancy R. Fullbright, SETAAC, contributed the following case
study showing how SETACC helps Southeastern manufacturers compete
with imports:
Mack and Mack, a Greensboro, N.C.-based women's apparel
manufacturer, is something of an anomaly. It is a U.S. cut-and-sew
manufacturer in a country where nearly 91 percent of the 20.8
billion garments purchased in 2006 were imported. It has increased
employment in an industry where employment decreased from 585,700
in 1998 to 204,800 in 2007. And it has managed to do all of this
while the U.S. trade deficit soared to $62.2 billion in July
2008.
"We design, cut and sew better women's wear for distribution to
some 65 specialty boutiques throughout the United States. Our
entire operation - administration, design, production, shipping,
receiving and a retail outlet - is housed in a single,
7,300-square-foot building in downtown Greensboro," explained John
Davis, co-owner (with his wife Robin) of Mack and Mack. "The
textile and apparel industry, once prominent elements of our local
economy, has moved offshore to take advantage of huge cost savings.
We have established a niche market, but until we become a household
name we will always work on narrow margins. And that is where the
SETAAC program has been a great help."
The Southeastern Trade Adjustment Assistance Center (SETAAC),
based at Georgia Tech's Enterprise Innovation Institute in Atlanta,
helps manufacturers develop and implement turn-around strategies to
better compete with imports. SETAAC project manager Mark Hannah
conducted an initial review of Mack and Mack and helped the company
prepare an application for the U.S. Department of Commerce. Once
the company was approved for funding, Hannah developed an
adjustment plan that detailed projects to receive funding support,
including assistance in marketing and sales, new product
development and equipment training.
Firms that are accepted into the SETAAC program pay for 25
percent of the diagnostic visit and report. The Department of
Commerce generally pays half of the cost of project implementation
for activities to benefit the company. Private sector consultants
submit quotes for implementing the identified projects and the
company chooses which consultant to hire to execute the outlined
changes.
"With SETAAC defraying most of the cost, we were able to have
one of our newly-hired designers trained on our pattern digitizing
equipment, which would have cost us around $4,000," Davis said.
"Normally, we would have depended on the limited in-house
experience available, along with our outdated help manuals.
Instead, we were able to have a trainer spend a week at our
facility with our designer, giving her invaluable insight into the
latest techniques."
Mack and Mack's equipment digitizes garment patterns and prints
them on perforated paper; sizes can automatically be scaled in the
computer. According to Davis, it is not feasible to send the
patterns to overseas factories for production because of their
strict quality control.
"Admittedly, our business model is unusual. We have a very
attractive boutique in the front of our facility and, once you get
further in, there are glass doors through which you can see people
at sewing machines making the clothes that are on the sales floor,"
he said. "Almost all the clothes hanging in the store are made in
black - because that's a color we know we can always sell - and you
can try them on. You choose the style and color, and in two weeks
you can pick up the clothes that have been made specifically for
you. Making one outfit at a time is one of our best selling points
and, at the same time, one of the things that is most challenging
in terms of growth."
SETAAC has also helped Mack and Mack upgrade its Web site, a key
component of the company's marketing strategy. Davis notes that
having the Web site configured for e-commerce has allowed Mack and
Mack to increase its sales and diversify its revenue sources. In
fact, the company exceeded $1 million in sales last year for the
first time since 2003 and increased its workforce from 12 to 17
during the same time period.
"It's partly natural business growth, but I do feel the growth
was abetted greatly by having the assistance provided by the
program," Davis said. "We have created three jobs - two in
production and one in administration - and retained all of the jobs
we already had. Having the additional help has allowed my wife and
me to focus on the bigger picture."
Mack and Mack was founded in 1995 by Robin Mack Davis who
started out cutting garments on a ping pong table in her parents'
basement. After five years, the firm relocated to its current
location in the historic district of downtown Greensboro. The firm
has grown over the years, and now sells its original designs in 65
upscale boutique clothing stores nationwide. According to Davis,
SETAAC's assistance will help the small manufacturer continue to
grow and compete in a global economy.
"I can think of few other government programs for small
businesses where the intended benefits are so well-targeted and so
effective," he said.
To learn more about SETAAC and how to get started, visit the SETAAC
website.