textile manufacturer prefers israeli workers - absorbent

by:Demi     2019-08-29
textile manufacturer prefers israeli workers  -  absorbent
Today, making textiles sounds like an unrealistic idea.
With Delta moving all its production activities to neighboring Arab countries, other companies prefer to make them in China-Arad towels continue to make towels and uniforms for the World institutional market.
If you are staying at the Marriott hotel recently, the towels you use are likely to be produced in ALAD, Israel desert city, the main supplier (60%)
Marriott hotel chain and other leading hotel chains.
Gary Hayman, founder of the company, is co-founder of the companyowner (
With his brother. of an all-
The annual turnover of American textile empire Standard Textile Company is US $0. 6 billion.
Arad towel is the main subsidiary of Standard Textile and is responsible for 20% of its sales.
Heyman, 54, was born in Cincinnati and lives there today.
He first came to Israel at the age of 22 as part of the "serving the people" program.
"As the son of the family of Holocaust survivors, I want to know what Israel is," he said . ".
In his first year in Israel, he lived in the northern towns of Neve Ativ and Kiryat Shmona.
When he was in the Golan Heights, the Yom Kippur War broke out, and he immediately volunteered to serve in the elite artillery units of the IDF.
After the war, he decided to build a factory in Negev, "The future is there, for example (
David, Israel's first prime minister)Ben-Gurion believes.
The factory was established in Arad in 1976.
The first few years were tough, but an investment by Delta helped the company, which bought about 40% of Arad Towel.
At that time, standard textiles sold and distributed only to the US market.
Arad towel is its first manufacturing factory.
"Today our products are available in almost every hotel.
The hotel has a star rating or higher in the military and hospitals, "Hayman said.
Delta later sold its stake in the company.
In 2002, after operating as a listed company for 10 years, Hyman removed the company from the stock market.
"I was asked too many questions too deep," he explained . ".
"We are so happy today.
We don't need to withdraw or finance in order to expand, so we don't have a plan to issue bonds.
Hayman was appointed president of standard textile company in 1998.
Today, the company has 24 factories in 14 countries and is considered the first
A textile company in the United States and Europe has a market share of more than 60% in hospitals.
It is the third largest textile manufacturer in a US hotel.
Heiman is one of Israel's most famous Zionist investors.
Before he was 45 years old, he used to go to Israel once a year as a soldier and nursing staff to volunteer for the reserve.
Even in the most difficult times of the uprising, he refused to transfer the production of the company from Israel, and was not tempted by the low manufacturing costs in the east.
He has an apartment in Tel Aviv and is fluent in Hebrew.
The holding company employs 3,600 employees, 800 of whom are in China and 1,000 in Israel.
The Arad factory produces 85% of the company's towels, and the rest are made in factories made in China, the first foreign company to enter the market without a local partner.
The company's products are sold in 57 countries, with customers including Accor, Ritz, Hyatt, IHG and Emmys chain hotels.
Our towels have become the largest supplier of hospital and hotel towels and bedding.
Eight months ago, the company entered the retail market for the first time, opening three stores in Arad, Dead Sea and Eilat.
It is also expected to open two stores in Tel Aviv and northern Israel by the end of the year.
In 1992, following the former Soviet Union, Heiman established a workwear factory called "standard textile Israel" in Migdal Ha'Emek, which was later merged with Arad towels.
The factory mainly provides work clothes for operating rooms and hospitals.
Arad Towels has two other factories in Irbid, Jordan.
The annual sales of the Migdal HA'EMEK plant are approximately $40 million.
The clothes were designed and cut at the factory and then sent to Irbid, where they were sewn and sent back to Israel.
The Jordanian factory was established under the QIZ agreement, which allows Jordanian and Israeli companies to cut taxes in the United States.
Since it is a private company, Arad Towels did not report its revenue, but Heiman said, "We are very proud of our profits in Israel.
Before the company went public, the pre-tax profit was 13%-
16% of income (
Company pay 31%-32% tax)
I can tell you that today's profit is not lower than that.
According to these figures, the total profit of the company is about 11-
One year 12 million
The company sells towels for $830,000 per worker.
According to Heiman, "When I mentioned the numbers, people thought we were a hightech company.
"Can Israeli textiles make a profit?
"Yes, I did not complain, thank God.
Our profit is very good.
"But the rest of the industry is fleeing the country.
Are you asking what our secret is? Non-
Stop innovation.
Here, for example, the customer can wash the towel and prepare it for use.
These institutions do not have to wash the towels after receiving them in the washing machine, and can be delivered directly to the room immediately after removing the towels from the carton.
"Because we use longer cotton fibers, our towels are easier to absorb, which also creates a more pleasant touch.
To improve and reduce the cost of our customers, our engineers are involved in all of our manufacturing processes.
"Won't you have a better profit in China?
"We have something new to offer to our customers every three or four weeks.
At our speed and the service we provide, I don't think we will make any more money in China.
Everyone thinks it's best to go to China, but things have changed.
"We got a 13% VAT return when we entered China, but today the situation is getting worse and you can only get a 9% return.
It's still worth making there, but people don't think so. "Pakistan?
Who knows what will happen there tomorrow?
India is a more stable country but still not organized and the order is facing a problem with the schedule.
Labor costs in Turkey are rising and they are never reliable in terms of quality and supply.
So we work in the US, Europe, Israel and Jordan-a stable strategic place, so I am very optimistic about the future of the company.
It is not understood that, given the rise in energy and raw material prices, labor costs are no longer a major component of prices, which is equivalent to 60%-70% of the cost.
Therefore, work efficiency, manufacturing process and products are the most important.
"A few weeks ago, during his last visit to Israel, Israeli production increased by four times, and Hyman met with President Shimon Peres and decided to lead an action that encouraged Jewish businessmen to invest in Israel.
"They don't need to do it like I do, and they don't need to build factories.
"It would be enough if they bought Israeli products and served as Israeli ambassador, it would help to develop the economy," he said . ".
Heman is trying to set up a Jewish business group that invests in Israel and is trying to convince other business people to invest in the country.
Perez will attend the meeting and will encourage them.
So why do other manufacturers transfer production abroad?
"I think the difference between them and us is that others look at the overall numbers.
For example, the cost of workers in China, Vietnam, Cambodia or Thailand.
They don't look at the net numbers.
"For example, we talked to a Pakistani company about making products there.
It turns out that the output of each of our looms is four times that of theirs.
The same machine, the same equipment, but the output here is 4 times the original.
"In China, they make general products (
Simple textile products
We produce quality products for hotels, hospitals and even the retail market in Israel.
Special products of technology and innovation, in Thailand, Vietnam, China or Pakistan, cannot be produced with the same quality and efficiency, which has nothing to do with the country you invest in.
"Do you have any examples?
"Sankei, for example, a synthetic fiber that we have developed, in which each horizontal line you put in is basically equal to 96 fibers.
In order to prepare to put this fiber into the machine at work, you need to be high
Quality technicians, not to mention the operation of the machine.
We do not produce Sankei technology anywhere else.
"In China, we mainly produce sheets and bedding.
Our factory is one of the largest in China and it also has the same loom as Arad.
We tried to produce the same towel there a few weeks ago.
We tried and tried until we gave up and realized that our technology could not be transferred to the Chinese.
"We sent technicians and the machine worked when they were standing next to the machine, but three days after they left, the Chinese had to adjust the machine and the problem started. You understand?
In China and Israel, the same loom, the same company, the same procedure, but no one, it doesn't work.
Other examples? "Yes.
Another problem we have not been able to solve in China is: towels are taken out of the Loom, automatically cut, sew, bleach, wash and dry until they are ready to be delivered to the hotel, there is no need to clean them before they are delivered to the guest room.
"In Arad, towels came out of the snow --white.
In China, on the same machine, its color is cream, even light blue, must be cleaned at a cost of 25-
30 cents more per towel.
So we only let the Chinese produce blankets and sheets that need simple weaving.
"So, Mao is really cheaper and paid less, but on the Internet, I make a good profit when I use what I can get in Israel --
With energy, innovation, quality, and intelligent manpower, they are proud of what they do.
Both Israeli workers and managers want to be the best.
Their level cannot be compared to other places.
"We recently received a huge order from a large international hotel chain.
They asked us to make products in Israel after visiting all our websites.
If you ask me for a towel that is stronger, absorbs water, is more durable, feels more comfortable and has a better pattern, I can make it in Israel but not in China.
"Is the Arad worker a contractor worker or a company employee?
"They are all employees of the company and have all the social benefits.
The average cost of employees in the company is about 10,000 NIS (about $2,490)a month.
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