Derry-based clothing company, Hunter Apparel Solutions, has been in business since 1936. Originally it was a specialist shirt-maker. Today, it makes bespoke corporate clothing, uniforms and footwear, and has an international customer base that includes Emirates, Kuwait and British Airways, Body Shop International, the British Airports Authority, An Post and An Garda Siochána.

Managing director Simon Hunter is the third generation of his family to run the business. His wife, Roisin, is financial controller and his brother, Jeffrey, is IT manager .

Hunter succeeded his father as managing director in 2009 just as the recession bit hard.

“It was difficult enough facing the ‘normal’ recessionary effects, but there was also a severe global cotton crisis at the time. The cost of cotton rose by 180 per cent. This obviously had a major impact on our cost base,” says Hunter.

“On top of this the cost of manufacturing overseas was also rising. In southeast Asia, for example, labour costs are jumping by around 30 per cent per annum. Most of our business is in fixed price contracts, so I had something of a baptism of fire.”

The company has weathered its share of challenges in its 77-year history and this recession is another it has had to overcome.

“It has been difficult, but we have possibly fared better than some because we reacted very quickly to the downturn. As soon as we saw the first signs, we cut costs and overheads. We ‘right sized’ within months and cut our workforce from over 100 to 60,” says Hunter.

Opportunity
"We also took swift action to get rid of all long-term and medium debt in the company. During the boom, our path to growth had been part-financed by borrowing and we didn't want to be constrained by debt when facing the competitive challenges that lay ahead."

He saw the recession as an opportunity to initiate an in-depth review of the entire business. As a consequence the supply chain management system was completely changed and steps were taken to streamline other aspects of the operation, using innovative IT solutions to drive efficiencies and automate manual tasks.

Some 10 per cent of the company’s employees work in its IT department and it designs and develops its own systems.

“Ironically, the recession has been good for us because it forced me to review every single system and process to reduce waste and overheads,” says Hunter.

“The constant question in my mind was: ‘Is this the best way and does it add value?’ We stripped out the things that didn’t and added in the things that did. The aim was to become lean, agile, effective and very customer responsive, putting a customer-centric vision at the heart of what we do.”

This involved a number of new initiatives including developing and launching a secure, automated website for contract customers. Customers can log on and place orders. Garments are delivered directly to the point of need. This cuts out layers of administration (and cost) and greatly speeds up the ordering process.

As part of its review, Hunter Apparel also took steps to plug its skills gap through recruitment and training.

“We made a number of significant middle and senior management appointments that have been transformative,” says Hunter, who recently completed Institute of Director exams in the UK, topping his class in company leadership.

Hunter Apparel has been to the forefront in embracing new “smart” fabrics and its products are driven from its technical department where, Hunter says, “comfort, fit-for-purpose design and attention to detail are skilfully combined”.

The company has had a licence to use Gortex fabrics in its workwear for a number of years but, in 2012, it secured a licence for the utility sector, which Hunter says opens up new market opportunities.

“Turnover has dropped each year since this recession began because companies are not recruiting and are making garments last longer, so we are keen to find and develop new lines.

“That said, we are in a position to do this because we have taken steps to put the business on a stable financial footing and have invested for growth. We are in a good position when business picks up.”

Manufacture
While cheap overseas competition wiped out a huge amount of clothing manufacturing in Ireland, Hunter Apparel bucked the trend by keeping a small production unit open in Northern Ireland.

This may have worked to the company’s advantage. "We are using the unit more not less and are actually expanding there,” says Hunter.

“Price, volume and speed generally dictate where you manufacture but having the unit means we can design and produce new products very quickly and this keeps us ahead of the game.

“With escalating labour costs in China in particular, coupled with transport and duty costs, the case for making more at home is becoming stronger. It is early days yet but it may well be where the competitive advantage could lie in the future.”