Outdoor Retailer - Summer 2020 - 9

SOCK CENTRAL
K-Way Manufacturers
in Cape Town

These unforeseen challenges are layered
on top of the business-as-usual reasons
many companies choose to move manufacturing, including seeking the right price
points, cutting labor costs, accessing certain material technologies, expanding into
new markets and doubling down on existing ones, and bringing production back to
the U.S.
Last year, Black Diamond laid off 70
manufacturing employees in Utah to machine climbing hardware like carabiners,
crampons, and wall irons overseas, where
that technology is more advanced than in
America. Other big brands who have done the
opposite and moved some production to the
U.S. in the last decade include Keen, Chaco,
Balega, and SOG.
One argument for weathering the storms
with existing manufacthe administration for
turers is to maintain and
tariff relief during these
nurture long-lasting
difficult times."
relationships. Jonathan
Thousand founder
Frederick, Rab and Lowe
Gloria Hwang was planAlpine country manager,
says the companies have
ning to diversify out
stuck with their manuof China by the end of
-JONATHAN FREDERICK, RAB AND
2020. Now she's having
facturers throughout
LOWE ALPINE
to push the expansion to
Asia, despite COVID-19
next year because of the
complications and tariffs.
pandemic. "Because there's a lot of restrictions
"We don't make decisions on what factoon travel, people can't actually travel from
ries we're going to work with based on who
China to other countries to set up new factocan make something for us cheaper or who
can make something for us quicker," he says.
ries," Hwang says. She also has experienced
"These are relationships we've been building
delays with getting the right materials-like
for 20 or more years. As we have grown, the
buckles-in time for the launch of the brand's
factories have been able to grow." O.R.
second helmet, the Chapter.
CONSOLIDATED CLOTHING
The pandemic accelerated
SheFly's supply chain choices.

Left to right: Courtesy Charlotte Massey, Courtesy Balega

"AS WE HAVE GROWN
THE FACTORIES
HAVE BEEN ABLE TO
GROW."

PUMPING OUT PPE

Many outdoor companies are folding personal protective equipment (PPE) into
their everyday manufacturing plan as demand remains steady. Here are a few going
above and beyond.
* Flowfold halted production of all gear to make PPE for its home state of Maine.
* Outdoor Research donated 8,000 masks to retailers and staff after converting
its onshore manufacturing facilities over the last 60 days to address the national
shortage in the medical and defense communities (see page 32).
* BlackStrap, which was already making headwear and balaclavas for outdoor
activities, is donating one Civil Face Mask for every one purchased. -A.A.

SOUTH AFRICA ON THE RISE

Could it become the next outdoor gear
manufacturing hub?
Tanya and Bert Pictor started their sock brand
Balega in 2003 in South Africa simply because
it was their home country. It also happened to
be home to a manufacturing market capable
of the high needle count needed to make their
cushioned performance socks.
The country is capable of much more than
producing socks. Over the last decade, the
South African government has offered capital
grants and incentives to help companies develop into bigger and more vibrant international
suppliers to the world market. One example of
those efforts is K-Way Manufacturers, an outdoor gear factory and retailer based in Cape
Town, which is poised to take on more business, according to director Bobby Fairlamb.
"We have been largely manufacturing for our
own local market. However, our manufacturing
industry is ready and gearing up to start working with international markets," Fairlamb says.
"U.S. brands would be high on our wish list to
work with."
Fairlamb says they already manufacture
fleece tops and jackets, soft shells, down
jackets, seam-sealed rainwear, ski jackets and
pants, and activewear and workwear-which
they sell through their retail arm, Cape Union
Mart. Bert calls them the REI of the South
African market.
Their success hasn't come without challenges. Between 1995 and 2005, Fairlamb says,
the industry was decimated due to retailers offshoring to China and cheaper countries. Since
2010, however, the industry has bounced back.
Bert says there are numerous advantages for
gear brands wanting to relocate their manufacturing to South Africa, including a favorable exchange rate, no language barriers, and less competition. The minimum order quantities (MOQs)
in China limit the smaller guys, he says.
"I know all these players; they are good solid
people and they're all local," Bert says. "They're
not just outsiders coming and dropping down
machines. They're trying to keep a sustainable
industry going." -A.A.

Summer 2020 / OUTDOOR RETAILER 9

Outdoor Retailer - Summer 2020

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