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M A G A Z I N E
August 2005
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National News - August 2005


Superior Uniform Group Reports Second Quarter Results

Seminole, FL, July 28, 2005 (PRNewswire-FirstCall) -- Superior Uniform Group, manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2005, sales were $34,858,915 compared with 2004 second quarter sales of $35,400,090. Net income was $646,533 or $.09 per share (diluted), compared with net income of $1,277,333 or $0.17 per share (diluted) in the 2004 second quarter.

For the six months ended June 30, 2005 , sales were $66,716,004, compared with sales of $69,165,310 in the six months ended June 30, 2004 . Net income for the six months ended June 30, 2005 was $785,975 or $.10 per share (diluted) versus a net income of $2,407,801 or $0.32 per share (diluted) in the first six months of 2004.

Michael Benstock, chief executive officer, commented: "During the first quarter of 2005, the difficulties that we experienced with the implementation of our upgraded warehouse were very tough on the company and on our customers. While we were able to correct the operational problems at the beginning of the second quarter, our sales results were impacted as certain customers reduced their volume of business at that time. We recognize that this has resulted in a loss of certain business in the short-term, but we believe that this upgrade in warehouse technology will help to keep our company in the forefront of distribution technology and will give us the competitive advantage that we need to better service our customers in a very competitive marketplace in the future. Despite the current setback in our customer base, we are continuing to focus our efforts on building a world-class sales force and top grading our organization.

"Earnings for the quarter were improved in comparison to the first quarter of this year. However, they are still down significantly from the second quarter of 2004. Lower sales and manufacturing volumes available to absorb fixed overheads have negatively impacted gross margins. Management is focused on the overhead structure of the company and has implemented staffing reductions that are expected to result in annualized payroll reductions of over $1.4 million, while still allowing the company to achieve improved results in the future."

Superior Uniform Group, through its Signature marketing brands -- Fashion Seal®, Fashion Seal Healthcare(TM), Martin's®, Worklon®, Sope Creek® and UniVogue(TM) -- manufactures and sells a wide range of uniforms, corporate I.D., career apparel and accessories for the hospital and healthcare fields; hotels; fast food and other restaurants; and public safety, industrial, transportation and commercial markets, as well as corporate and resort embroidered sportswear.

Perfection Uniforms Expands Staff

Brentwood , TN , July 17, 2005 (Company Release) - Perfection Uniforms today announced that the following industry professionals have joined the Perfection team:

Steve Gilkeson, vice president of marketing and merchandising. Steve has over 15 years experience in the tailored uniform and career apparel industry. Steve will be responsible for the continuing development of the Perfection Uniform product line and will office in the Brentwood , TN headquarters. He may be reached at 615-309-9330 or unisonsmg@aol.com.

Dan Collins, independent sales representative. Dan has worked in the tailored uniform business for many years. Dan’s territory is Maine , Vermont , New Hampshire , Rhode Island , Connecticut , Massachusetts , New York State (with the exception of NYC/Long Island), Central and Eastern Pennsylvania , and Washington DC . Dan may be reached at 717-779-8038 or sac9103@cs.com.

Jim Clifton, independent sales representative. Jim has experience in the tailored uniform industry as well as at the distribution/dealer level. Jim’s territory is Illinois , Wisconsin , Minnesota , North Dakota , South Dakota , and Iowa . Jim may be reached at 630-212-5054 or jim@cliftonsalesgroup.com

These additions to the Perfection team bring a wealth of industry knowledge and experience to one of the nation’s fastest growing uniform companies.

Perfection Uniforms is based in Brentwood , Tennessee , and manufactures high quality, functional image apparel that is distributed through a national network of full service uniform dealers

To find out more, visit www.perfectionuniforms.com, or contact Cheryl Pate at 800-476-4964.


Navy’s Test Uniforms Prove Popular

July 29, 2005 (NavyTimes, as reported by Mark D. Faram) - Sailors wear-testing the Navy’s test uniforms are telling service officials they want to keep wearing them as long as possible.

“Ninety to 95 percent of wear-testers are telling us they don’t want to switch back to their old working or service uniforms,” said Command Master Chief Robert B. Carroll, the senior enlisted member of the Navy’s Task Force Uniform, which is charged with overhauling the Navy’s seabag. “They are telling us that these uniforms are more professional in appearance and function for them, and the response has been overwhelming.”

Officially, the wear tests end Aug. 31, Carroll said, but the data collection phase is now in high gear, with an online poll of active-duty and Reserve service members.

The questions will assess the fleet’s likes and dislikes of the proposed new working uniforms for all ranks, as well as service uniforms for E-6 and below, both of which are being wear-tested.

In addition, there are questions about:

• Enlisted and officer dress and dinner dress uniforms.

• Service uniforms for E-7 and above.

• The Navy’s existing stock of outer garments such as pea coats, bridge coats and the all-weather coat.

• What sailors wear for physical training and whether the Navy needs to adopt a special uniform for that purpose.

Investor-Backed Textronics Inc. Spins Off From Invista

Wilmington, DE, July 5, 2005 (Textileweb) - Textronics Inc., a new electro-textile materials and system integration company, has secured investor financing and announced its spin-off from Invista, one of the world's largest integrated fiber, resin and intermediates companies.

The new venture was formed with the closure of a Series A investment round led by NGEN Partners, a Santa Barbara-based venture capital firm specializing in materials businesses. Other participating investors include New York-based SAS Investors, Santa Barbara-based Unilever Technology Ventures, and Invista.

"The convergence of electronics and textile science is opening up exciting new markets for fabrics that conduct, illuminate, sense and warm," said Stacey Burr, chief executive officer of Textronics. "With a strong technology portfolio and powerful backing, we are well placed to play a leading role in exploiting this potential. Our goal is to integrate electronics in ways that make textiles the 'provider' rather than the 'container' of new functionality."

According to Burr, the infusion of capital will enable Textronics to expand its workforce, accelerate development of patented technologies, and drive commercialization of promising applications in the apparel, home, transportation and industrial textiles sectors.

"The time is right to transfer our investment in electro-textiles to a dedicated entrepreneurial company," said Jim DiAndreth, Invista director of corporate technology. In addition to acquiring Invista’s electro-textile intellectual property assets, the new company will receive transitional support from Invista including access to its textile development facilities.

The new company demonstrated a prototype under-garment that senses heart rate and respiration at an international conference in Barcelona earlier this year.

"Textronics has the opportunity to revolutionize and functionalize the textile industry," said Peter Grubstein, NGEN managing partner. "It has an extremely capable management team with a proven track record of launching fabric innovations into major consumer textile markets. Textronics has the capability to take electronic textiles into apparel, home and transportation markets to address consumer desire for wellness, convenience and connectivity."

The Textronics management team is led by CEO Stacey Burr, who brings extensive experience in the apparel industry. Burr has filled senior positions in business development, marketing, technology and operations at DuPont, including leadership of the North American ready to wear sector of the LYCRA(R) spandex business. Chief Business Development Officer Dr. Qaizar Hassonjee, also a former Invista manager, brings specialist knowledge of textile development, supply chains and global markets. Other executives have expertise in target market sectors such as biomedical, military and automotive.

Greco Apparel Selects New Generation Computing's RedHorse ERP System

Miami , FL , July 5, 2005 , (PRNewswire) - New Generation Computing Inc. (NGC), a wholly owned subsidiary of American Software, today announced that Greco Apparel has selected NGC's RedHorse, a comprehensive enterprise-resource-planning (ERP) system designed specifically for apparel and sewn products enterprises.

Greco Apparel Inc. will install the system at its Pennsylvania and Dominican Republic facilities. The system will help the company increase speed to market, reduce costs, manage by exception and enhance workflow.

"We're excited to initiate NGC's RedHorse system to support our explosive growth and continued superior service to our clients," said Joseph Greco, president of Greco Apparel. "With our global sourcing expansion, real-time info rmation allows us to increase value to our clients. We can now provide dependable transparency into our supply chain with the installation of NGC's RedHorse. This flow of quality info rmation will help reduce turn around time and inventory costs while increasing order fulfillment to the end users."

RedHorse is a component of the NGC SQL Series, a software suite for the sewn products industry that is built on Microsoft's SQL Server technology with integration to Word and Excel.

RedHorse consists of 12 software modules: Customer Order Processing, EDI Information System, Invoicing & Accounts Receivable, Finished Goods Inventory Control, Purchasing and Receiving, Components Inventory with Requirement Planning, Accounts Payable, General Ledger, Import Management, Remote Plant Management, Production Planning and Screen Printing & Embroidery.

Since 1951, Greco Apparel has been a family-owned and -operated company with a history and tradition of quality service and production. The company serves as the "manufacturing department" for its clients from product development to full packages sourced globally. Greco Apparel produces a wide range of woven and knit garments from tailored clothing to work wear serving the career, uniform and retail markets. For more info rmation, visit www.grecoapparel.com.

New Generation Computing Inc. (NGC), a wholly owned subsidiary of American Software Inc., has developed and marketed software for the apparel industry since 1982. Brand managers, manufacturers, importers and retailers use NGC's business applications to meet all of their global sourcing visibility and product lifecycle management (PLM), enterprise resource planning (ERP) and shop-floor control needs. For more info rmation, visit www.ngcsoftware.com.

Key to Discourage Identity Theft Lies in Destruction of Critical Data

Lafayette, LA, July 16, 2005 (Daily Advertiser) - What do a hammer, a paper shredder and a $250,000 truck that can pulverize paper and metal have in common?

They are just a few of the ways the Federal Trade Commission will allow businesses to comply with its new rules for disposing of consumers' personal info rmation as part of the Fair and Accurate Credit Transactions Act. The 2005 law is one of several moves by Congress to protect businesses and consumers from fraud and identity theft.

Since June 1, businesses have had to adhere to new FTC rules on destroying consumer records such as credit reports and financial data or face civil penalties.

The idea is to prevent "Dumpster diving" - in which criminals look through trash and discarded business files to obtain personal info rmation on customers.

The rules apply to both large and small organizations that use consumer credit reports in business transactions. Among those who must comply are banks, car dealers, employers, landlords and debt collectors.

While a paper shredder purchased at a local office supply store may do the trick, the FTC is allowing some companies who store data on computer disks to smash magnetic material or "pulverize it." Many businesses are just turning to professional data management and document destruction companies.

"It's been absolutely incredible, because we weren't even here 10 months ago - and now we have 165 customers and a couple hundred thousand dollars in business," said Mike Callihan, owner of Document Destruction in Cincinnati.

Cintas, a leader in the uniform apparel industry for several decades, entered the document destruction field three years ago and has seen sales grow to more than $40 million a year.

"The industry was growing before FACTA came in, but we've seen more activity now that these new rules are being put into place," said Todd Schneider, vice president of Cintas' document management division.

Shredding about 130 million pounds a year, Cintas is in 57 of the largest 150 U.S. markets and expects growth of about 30 percent annually, said Pam Lowe, corporate communications director for the Mason, Ohio-based company.

"Our margins in document destruction are about the same as uniforms, so it is doing very well for us," she said. "It's a $3.6 billion industry right now in the U.S. , but we think it will grow to as much as $8 billion very soon."

Schneider said the key to Cintas' growth has been cross-selling with its uniform and safety sales people, as well as the company's ability to purchase trucks with high-end shredders and other destruction equipment that can handle computer hard drives, CD-ROMs and other nonpaper items that store consumer data.

Cintas and other companies charge about $60 a visit. The Cintas trucks can destroy 4,000 pounds of paper per hour.

"These trucks cost $250,000 each, and they can handle just about anything that needs to be destroyed," Schneider said. "We show up at the business, haul the documents in a locked container out to the truck and destroy it right on site. It doesn't get easier than that."

U.S. Senate Approves CAFTA

Washington, July 1, 2005 , (Emerging Textiles) - A crucial vote last night in the US senate saw senators give their thumbs up to CAFTA - the Central American Free Trade Agreement. The battle will now pass to the House in July where the outcome is expected to be closer than that in the Senate where the vote was eventually won 54-45.

President Bush was personally "appreciative" of the bipartisan support in the Senate which saw ten Democrats and an Independent join 43 Republicans in voting for the pact. This ensured its successful passage after heated debate.

Although supporters of CAFTA are clearly delighted that the Senate has given its support, a trickier time beckons in the House where it is far from certain that the pact will succeed in gaining the support it needs.

The margin of victory in the Senate was significantly smaller than for previous free trade agreements with countries such as Australia and Chile . The dissent of 12 Republican Senators voting against the pact weakened the majority. A concerned U.S. Trade Representative, Rob Portman, however attempted to alleviate worries for its passage in the House. He said "We received more Democratic support than anyone expected".

According to one Democratic Representative, Ben Cardin, CAFTA will fail in the House should members vote the way they have expressed themselves.

Some estimations predict that around 190 Democrats and 40 Republicans in the House may vote against CAFTA thus more than the 218 votes to ensure its defeat.

Realizing this, the Bush administration has been busy in shoring up wavering voters by promising a range of deals to appease unhappy Representatives.

Supporters hope to press their point that CAFTA would strengthen the area in face of Chinese exports, notably in textiles where Central America predominantly uses U.S. cotton. The White House believes that by removing trade barriers between the U.S. and Guatemala , El Salvador , Honduras , Nicaragua , Costa Rica and the Dominican Republic , 44 million consumers of American products would help boost U.S. exports.

This is a sentiment shared by the two North Carolina Senators Elizabeth Dole and Richard Burr, who voted in favor of the agreement. Dole said that CAFTA now contains provisions that addresses the concerns of the textile industry. Burr added "I am pleased that the side agreements addressed my initial concerns about CAFTA's textile provisions" .

Two N.C. Plants Cut Jobs Making Dress Uniforms

Raeford, NC, July 15, 2005 (WRAL.com) -- The military's declining need for dress uniforms has prompted Burlington Industries to cut at least 350 jobs, a company spokeswoman said.

The plant in Raeford, which produces yarn to make military dress uniforms, will lose 200 jobs, spokeswoman Delores Sides said Friday.

Demand for those uniforms has decreased because soldiers are fighting in Iraq and Afghanistan , Sides said.

The company also plans to cut 150 to 200 jobs from its Richmond County plant, where workers weave yarns into fabrics for the uniforms, Sides said.

Sides would not say how many people are employed at either plant.

Blind Workers Make Some Army Uniforms

San Antonio , TX , July 24, 2005 (Arizona Daily Star) - Making the Army's new camouflage uniform isn't easy for Dorothy Velez, who has been blind since birth.

She can't see the needle on the custom sewing machines, so she checks her work by feel before handing each piece to another visually impaired woman - among several dozen sight-impaired people working on the uniform for troops in Iraq and Afghanistan .

"This is a little more complex than a lot of the stuff we sell out there," said Enrique Delgado, a project manager at the San Antonio Lighthouse, the nonprofit agency for the blind that employs Velez. "If I had to put it on a scale between 1 and 10, I'd say 10."

The arrangement was made possible by a decades-old law requiring the military and other federal agencies to purchase products made at competitive prices by agencies that employ the blind and people with severe disabilities.

The Army contract calls for about 60,000 pairs of trousers to be made by San Antonio Lighthouse this year and 120,000 pairs at El Paso Lighthouse for the Blind.

Similar work, along with production of the accompanying uniform jacket, is being done by sight-impaired workers in North Carolina , New York , New Jersey and Pennsylvania , according to the National Industries for the Blind of Alexandria, Va., which oversees the contract.

The three-year contract is worth about $15 million to the participating nonprofit agencies, said Jim Gibbons, the group's president. Workers in San Antonio get $8 to $13 an hour plus benefits, Delgado said.

Soldiers Not Satisfied With New Uniforms

Atlanta , GA , July 18, 2005 (Cox News Service) - Soldiers in the 48th Brigade Combat Team were thrilled to be the first to march off to war wearing the Army's new mint-green, digital camouflage uniforms.

But after almost two months in the sands of Iraq , the reviews on the new duds are decidedly mixed.

Some Georgia Army National Guard soldiers say the uniforms are falling apart and aren't ready for prime-time combat operations.

"They're just not holding up," said Staff Sgt. John Shaw, 43, as he stitched pants seams in two of his four uniforms. "Six uniforms might last a year over here. I doubt four will."

Georgia Guard soldiers were supplied in February with four uniforms each. They say the seams wear out first, followed by the material in the seats. In addition, the Velcro used to affix rank insignias, name tags and unit patches creates problems because it gets clogged with sand.

Army officials said they will stand behind the uniforms until they have evidence that the problems are widespread and not isolated to a few soldiers. They said the changes in the Army's battle clothing were not purely cosmetic, but were designed to improve a soldier's performance in combat.

Officials who work for the Army's soldier equipment division suggested that the 48th's complaints are surfacing because Guard soldiers are not used to wearing any uniforms around the clock and have unrealistic expectations of normal wear and tear.

"I will tell you that I will be the first one to be called a goat if these uniforms don't work out," said Sgt. 1st Class Jeff Myhre, a member of the 2nd Infantry Division's Stryker Brigade from Fort Lewis , Wash. , which tested the uniforms in Iraq from October 2003 to October 2004.

Lt. Col. John Lemondes, who heads the Army agency that developed the uniform, said the new 50 percent cotton, 50 percent polyester uniforms are made of the exact same material and have the same thread count as their old summer-weight predecessor.

“For many of these Guard soldiers — this is the first combat uniform they have worn," Lemondes said. "They have no basis for comparison."

Myhre said that Stryker Brigade soldiers, when given the new uniforms — known as the ACU for Army Combat Uniform — for testing, preferred them over the old Desert Combat Uniforms, now worn by most soldiers in Iraq.

Soldiers from the 48th Brigade are the only ones wearing the new uniforms in Iraq . However, all soldiers are likely to begin wearing them within a few years. Having a single uniform rather than one with a green, woodland camouflage and the other with a tan, desert camouflage, was the whole point of developing ACUs.

The uniforms differ from their predecessors in about 20 ways. Buttons are gone; zippers are in. Slanted chest pockets and shoulder pouches were designed to make them more accessible while wearing body armor. Velcro patches mean soldiers don't have to sew name tags, insignia and unit patches.

But 48th soldiers say that in addition to filling with dust and dirt, the Velcro frequently snags on other material and loses its fastening ability in harsh desert conditions.

Sgt. Timothy Hass, 33, of Kennesaw said the Velcro has another drawback.

"Every time I take my flak vest off, I end up inadvertently removing unit patches," said Hass, a police motorcycle cop. "Sewing them on would be a lot better."

Myhre said soldiers get specific instructions for cleaning the Velcro patches with a small green brush that comes in their weapons cleaning kits. "For the guy who is doing this every single day it becomes these little tricks of the trade. These are all learned behaviors," Myhre said, referring to uniform maintenance habits.

The Army Combat Uniforms are more expensive — about $88 a set, $30 more than the old style.

But Lemondes said the no-iron fabric and Velcro patches end up saving money — as much as $6 to $20 per uniform for patches and even more in laundering costs since no professional care is required.

Hass said the new uniforms are well-designed but could have been made a bit tougher.

"It's not strong enough," he said. "I like looking cool, but it ruins the effect when you sit down and the crotch seams rip."


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