Posted February 17, 2015
By John McCurry
Arthur Pottash loves going into work every morning and putting in a full day. At 79, an age when most people are long retired, Pottash still helps guide the fortunes of Artex Knitting Mills, a small but fast-growing manufacturer of knit headwear located in Westfield, N.J. Artex is the largest producer of knit hats in the U.S. and has become a big success story over the past several years.
HEADY STUFF
Artex Knitting survives and thrives with American-made products
Pottash is president and co-owner of the company along with Bernard Gerbarg, who is the son of the company’s founder. Gerbarg is also 79 years old and serves as vice president of the 89-year-old firm.
“My partner and I both enjoy the business, otherwise I would be retired and turn it over to my son-in-law, who is also in the business,” Pottash said.
Artex is a true textile industry survivor as it heads into the home stretch toward its 100th birthday. It has evolved its product mix several times as consumer preferences and business conditions changed. The company was founded in Philadelphia in 1926 and moved to its current 80,000-square-foot plant in Westfield in 1991. There are a few other knit hat makers in the U.S., but competition mainly comes from Asian manufacturers.
Knit hats remain foundation of operation
Artex began its manufacturing operations by producing trimming goods for the booming Philadelphia apparel industry in the late 1920s. In the 1960s, the company started making cotton and wool knit ties for various brands in the U.S. When knit ties started to go out of style, Artex turned to the burgeoning market for knit hats. That remains the foundation of the company’s manufacturing operation.
Headwear includes cuff hats, watch hats, headbands and bandanas in various styles and with an assortment of performance characteristics. Artex also products cable-knit legwarmers, face masks and blankets. Pottash noted that the company still has several knit tie machines and if they ever come back in style Artex will ramp up production again.
“We’ve had some big years with our leg warmers,” Pottash said. “Now, our hats and our scarves are our big products. Our knit ties were big for us through the 1980s, the ties with square ends. Not many people wear them today, although we still do some retail business with it. We always
Artex executives are (L-R) Gary Rothschild, COO; Arthur Pottash, president; and Joel Cohen, national sales manager.
have to look for new products to manufacture. You have to if you are going to grow. I probably spend about 20 percent of my time looking for new products we can make and new yarns that we can use.”
American-made movement boosts sales
Artex ended 2014 on a successful note with sales up by more than 25 percent. The trend among U.S. consumers to prefer U.S.-made products apparently also includes hats as Pottash gives much of the credit for the company’s fast-rising sales to the preference of customers for goods made in the U.S. The customer mix includes both wholesalers and retailers. Among them are well-known names such as Urban Outfitters and Carhartt. Artex also sells to some small retail chains. The U.S. government is also a significant customer.
“We’re promoting that our goods are made in the U.S. and that we deliver on time,” Pottash said. “Our country is waking up to support American manufacturers. Our customers support that.”
Sales have grown every year for more than 25 years, but sales have been especially strong for Artex over the last several years. In fact, employment has nearly doubled, going from around 80 a couple of years ago to 150 now. Pottash said New Jersey has been a good location for the company. It has provided a good, steady source of labor and, while real estate taxes are high, he said other taxes are relatively low. It also helps that knit hat manufacturing is not a labor-intensive process. Artex can also respond quickly when a cold winter hits the U.S.
Artex has been a unionized plant for more than 40 years. Pottash said the company has always had a good work force. Recruiting has often been by word of mouth. “One person brings in a friend or a relative. We have nice working conditions. People like working here. We’ve had some turnover over the years, but not a lot.”
Artex primarily uses acrylic yarns in its products. Some are 100 percent wool and some mohair, alpaca and cotton yarns are used. Some products utilize more technical yarns such as Coolmax, which is used for its moisture management capabilities in some products. Artex supplies hats and knit accessories to private label brands and is capable of making custom style based on a client’s artwork.
Embroidery is another of the company’s capabilities. Artex has a large in-house embroidery department, which Pottash said is capable of placing any design or logo on any of the company’s products. This has become a growing business over the last several years.
Company continues to grow, expand
Pottash said he believes 2015 could be as profitable for Artex as 2014. The company is buying new equipment, including more knitting and sewing machines. It currently operates about 100 knitting machines. Some of the machines were acquired though the years from other knit fabric manufacturers that closed.
While the growth has been rapid, there is still plenty of room at the Westfield facility to add equipment without expanding the plant. The company also uses a nearby warehouse.
Pottash said he has no plans to retire. He started with Artex in the 1970s as a salesman when the knit tie business was strong. He bought out the daughter of founder Louis Gerbarg in 1985 to become co-owner of the company.