It is a widely held industry belief that the cap is the essence of any good uniform program, for without it, no look would be complete. For Chicago-based Midway Cap Company, its recent acquisition of Arkansas' Bancroft Cap may be just the deal it's been looking for to complete its reputation as one of the leading headwear manufacturers in the industry.

Well known for its high quality brands and product offerings – the instantly recognizable checker board cap worn by the Chicago Police Department springs to mind. Midway recently purchased the naming rights and Class A division of Bancroft Cap Company, the troubled manufacturer that filed for bankruptcy early last year.

The acquisition works to solidify Midway's standing in the airlines industry, with Bancroft's Class A division serving as a complement to Midway's Superior Cap division. It also shores up its reputation in the military arena, a market which the company views ripe for growth. "Our Luxenburg division focuses on the military, but the Bancroft product line is better known and the purchase enables us to use the branding," says
David Lajb, vice president, Midway. "From a strategic standpoint we are diversified within all markets of the uniform industry."

Founded in 1941, Midway Cap Company offers a comprehensive line of uniform caps for the police, fire, transportation, security, military and career apparel industry segments.
The aforementioned Superior Cap division is the premier manufacturer of caps for airline captains, first officers, police commanders and fire chiefs nationwide. Unlike other caps, which are assembly line produced, each Superior Cap is custom crafted and put together with meticulous hand work. "It's the bread and butter of our business," notes Lajb. "We customize our caps to fit the requirements of each department or agency."

Lajb is a relative newcomer to the uniform business, and was until three years ago an executive in the banking industry, when he was recruited by his mother-in-law and Midway's owner Merle Sbertoli to serve as vice president. Family-owned, Midway had fallen into a state of flux after the death of Ed Sbertoli, that's when Merle stepped in, buying out a former partner and installing herself as president and CEO.

During his short tenure, Lajb's financial background has helped Midway remain competitive both here and abroad while positioning itself for growth. Lajb quickly worked to leverage Midway's status as a majority female-owned business, a move which opened the doors to small contracts and set asides. "It's not without its pitfalls," cautions Lajb, who notes the program is mired in paperwork and red tape. "It's sometimes better to let the lawyers handle it."

The company also made the decision to move its 22 employees to a 16,000 square foot manufacturing plant in the industrial corridor of Chicago. "As in real estate, location is everything," notes Lajb. "Once we moved to the new facility, our visibility rate increased."

And so did their ability to recruit employees. Midway hasn't suffered the labor shortages felt by some in the industry; in fact, they are able to choose those workers best suited to the company's corporate philosophy and business plan. But retention is a separate matter. To retain quality employees, Midway has set up several incentive programs, including a cash entitlement to those workers who refer family or friends who stay with the company. "The cost of training just one employee far exceeds the cost of this program, so it's well worth it," notes Lajb.

Of course, employees may also be drawn by the fact that Midway is a made-in-the-USA union shop, with the wages and benefits that go along with such a standing. The employees' labor union, UNITE HERE, is a group with which Lajb readily admits Midway has had its ups and downs. "They are very good at working with us when issues between employees and management arise, and they are particularly helpful in resolving problems that result from language barriers," says Lajb. But he is dismayed by what he views as the union's luke-warm support of made-in-the-USA products. "I wish they'd encourage more agencies to require buying American," he laments.

The Bancroft acquisition was decidedly a hush-hush, back door deal arranged with another company. Through undisclosed contacts, Lajb learned of Jensen Apparel's interest in buying the beret side of Bancroft. "Since we were interested in the Class A division, I contacted them and we structured a deal," says Lajb. Jensen purchased the company out of bankruptcy, and Midway made the purchase from Jensen. In the end, Midway walked away with the naming rights and the Class A side of the business.

Touring the Arkansas facility was an eye-opener for Lajb. "I was in awe of how well it was put together - it was such a well structured organization." He notes that the manufacturing process was done differently, sparking new ideas and options to offer Midway customers. "Some of their equipment was strategically modified for the making of uniform caps," he continues. "Being able to utilize that equipment enables us to streamline costs and remain competitive."

But it can be difficult to maintain that competitive edge in today's uniform marketplace, particularly if you're one of the few domestic manufacturers left in the country. How has Midway survived? One of the key elements, according to Lajb, lies in the company's purchasing decisions. "If you produce goods in the USA, you have to know how to buy better, which means purchasing quality products at lower costs and sometimes purchasing product with other manufacturers to take advantage of quantity discounts," he notes. It also means there are times of having to work off reduced margins in order to buy or maintain market share. "That's just the reality of the market place nowadays."

It helps, too, to be in a space that hasn't been saturated with foreign goods. The headwear requirements at each of the nation's departments and agencies requires a unique, specialized approach, making it more difficult for overseas firms to tap. "Our real competition is right here, at home," Lajb notes.

Trends, lifestyles and a changing customer base can also affect the bottom line. As boomers approach retirement, they are being replaced by a workforce that is decidedly more causal in its approach to clothing. Much like the career apparel industry two decades ago, the law enforcement industry today is grappling with the effects of this dress craze, as departments across the country switch from a Class A uniform to the more relaxed, and some would argue, more practical, Class B. What will be the impact on companies like Midway, who tout a more formal appearance in uniform dress? "It's a concern, of course, but even where the departments have made the switch to a Class B for everyday uniforms, they still have a Class A for formal occasions."

Yet while styling options change, one element of the uniform industry remains constant: its unyielding emphasis on customer service. It is perhaps the industry's greatest asset, the one thing that keeps companies like Midway Cap in business no matter the trend or threat from global competitors.

This point is illustrated by Lajb, who recounts the story of Midway's role in assuring that officers have what they need in times of tragedy. Midway will place orders on hold, to prepare headwear for funerals or ceremonies. On one occasion, the items were accidentally shipped three-day UPS, a fact that would result in the caps arriving too late for the funeral. "We processed the order again the next day, and shipped it overnight," says Lajb. "I would have put them on my truck and driven them to Louisiana myself if I had to, that's how important our customers are to us."

It's a safe bet that the response would have been different in another industry, but here in the uniform industry, service is as important as the economy is in the political arena. "The key is getting the product to the customer quickly, and for us, we'll do whatever is necessary even if it costs a little more," says Lajb. "We have 22 families who count on this company for their livelihood. I don't allow myself to lose site of that."