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We talked about salt manufacturing the US, I should say the President in the White House talks.
About it a lot, and the important of just really one hundred percent manufacturing have targeted big tech companies who still have manufacturing elsewhere and they really just want to be everything one hundred percent made in the USA.
Yeah, and there's been a lot of attracting investments into the US is certainly a big theme here in twenty twenty five. So our trade deals, changing global flows top of mind for investors, which is why it's kind of a great time to check in with our next guest, whose company does manufacturing in the United States has been doing so for one hundred and sixty years, is a great read to on the US economy, US business and also consumers. So it's nice to have back with us.
Ross wid Moyer. He is president and CEO of Barabau Mill. He also held a senior merchandising roles are several I should say, at Target and he joins US from Minnesota. Ross good to have you back with us? How are you?
I'm well, thanks for having me on today.
So you know, I was thinking about this, We were thinking about this and getting ready for you to join us. I think we talked in July. Tell us about the past few months. What's changed in terms of process, strategy, outlook and really your outlook too. On the US economy.
Yeah, I would say a couple of things on that front.
Number One, you know, for us as a US manufacturer, it's been business as usual, and I think other manufacturers I've talked to, not only here in Minnesota, but around the country, it's been anything but business as usual. So you know, from that standpoint, it's it's been a good thing for our company. It's been a good thing for
our employees, you know. I think the the other piece I would add to that is, you know, with all of the noise around tariffs and what that's going to mean not only for manufacturers and consumer products, but also for the consumer, there's a lot of noise and I think it's caused a bit of an undercurrent of economic uncertainty, which heading into the holiday season, you know, can be a little bit scary for those of us who are
in the retail business, particularly a fourth quarter driven retail business. But we're still despite all that, really optimistic about the upcoming holiday season.
Your company has reported record revenue growth for around four consecutive years and launched over one hundred new products. What's driving that momentum and what lessons do you wish to parlay to those who are saying that it's impossible for things to be one hundred percent made in the USA.
Yeah, well, you.
Know, I wouldn't say it's impossible because we've been doing it for one hundred and sixty years here in Minnesota, and we have a proven product. We've been perfecting our woolen cotton blankets that we make here in Minnesota also in Maine, I should say over that course of time, so you know, made in America is we were doing
made in America before made in America was cool. But I would say that they're really with a new found investment in American manufacturing, developing the workforce, reinvigorating a plant
like we did here in Minnesota. We put a multiple million dollar effort and investment into our mill here in the States with new equipment to help modernize us and get us not only out of the nineteenth century, but into the twentieth and eventually the twenty first century, and that's really kind of helped us gain this new found momentum we have as a company as a brand, and we're really excited about it and we'd love for others to follow in our footsteps as well.
And you've recently been able to lower prices permanently also, which is something very rare in the manufacturing space. Can you walk us through any specific changes that you've made, whether it's technological or more procedural, that made that possible.
Yeah.
No, I think that's been the big news coming out of fairboughm Minnesota, is that we've been lowering prices while others are raising prices, especially in this hyperinflationary environment we've experienced over the last up of years. And we've been able to do that all the while raising wages here with our workers in Minnesota.
Which're really proud to have done that.
But really for us, it's about the investment in new equipment and helping automate the manufacturing of a craft.
That we've been doing for one hundred and sixty years.
And I think sometimes automation is a bit of a dirty word particularly if you're in the workforce, it oftentimes means replacing workers with machines. We're doing anything but that where we're continuing to grow employment here at our plant in Minnesota and in Maine, but we're able to make more product as a consequence.
Of the new high speed, high.
Tech machinery we've invested in invested in over the last couple of years, and that's allowed us to make blankets more cheaply, and rather than pocket all that game, we wanted to pass it on to our consumers because we know that they're getting pinched from all corners of their life and it's the least we could do here as a great American and in the great American company.
Hey, you know, I am curious too about selling, Like I'm on your website right now. I mean, how much is direct to consumer? How much is and forgive me for not knowing like retail or do you have partnerships that you sell at you know, existing retail?
Yeah, we do it all.
We you know, we've really over the last five years made a strategic pivot from a long run contract based manufacturer into more of a short run, nimble, customizable direct to consumer marketer and merchant merchandiser, and that's really helped us grow our business. You talked about our top line sales growing over the last four years. We're expecting this to be a record year number five for US. But we also do a lot of partnerships with different brands around the country.
Coach and Supreme have been too that we worked with.
Not to mention the fact, we've been making blankets for the US military since before World War One, and we were just awarded a five year Army contract, so now we make blankets for both the US Navy and the US Army, so anybody who enlists will get a blanket made here in Fairbeam, Minnesota. So it's a multi channel approach to retailing that we do, driven largely by direct to consumer as you mentioned, but strategic wholesale and contract manufacturing as well.
What's the biggest part of your revenues and revenue growth? Is it the direct to consumer?
It is the direct to consumer, and that really starts with product. You know, I've been around a lot of consumer product companies over the course of my career, and newness is the lifeblood of any consumer product company. Newness and unique product, and we have a lot of unique product, which makes me really optimistic about the holiday season because I think regardless of any consumer uncertainty, those retailers that have unique, differentiated product are poised to win.
And we think we fall in that category.
With our city maps, our flag blankets, our artist collections, we have a lot of unique products you can't find anywhere else, all of which is made here in the United States.
It seems like matter if your peers are facing margin pressures and arising input cost but you're striving and if you must. What would you say is the biggest pain point when you produce and manufacture everything in the US? Is it labor? Is it just competing with overseas prices? Is it just the cost of these materials? What would you say it is?
Yeah?
I think you know, historically it's been cost it's been more expensive to produce here in the United States that it has been let's say in China, because of what we pay our workers, and we pay our workers a good and a fair wage here. We want them to be able to sustain good middle class lifestyles here in Farbough, Minnesota and also out in mom With, Maine, where we produce our cotton blankets, so it's an important part of
our mission as a company. But I will tell you with the tariffs in place, that cost gap has shrunk. We have a proven product that we've been making for over one hundred and sixty years, and we're made here in the United States. So if you go back to the old operational middle of winning on cost, quality, and flexibility, we think we can wear on all three aspects of that of that model. And that's why we're really excited about where we are today and why we're really excited about the future.
You know, we talk a lot with you and also in general this year, certainly with President Trump and the White House about you know, manufacturing coming back to the United States. You know, what would make manufacturing easier for you in the US?
Is it?
I mean, you want to pay workers what they're worth, you know, especially in an economy where we talk about a ca shaped economy where not everybody's doing so well and people can't afford to, you know, put food on their table or provide housing. I mean, it's just really tough for a lot of Americans, not just a few, but a lot of Americans. So when you look at this, what would make it easier.
Yeah, I think, you know, I talked to a lot of manufacturers and I chair the Manufacturer's Council here in the state of Minnesota, and the number one issue I hear from manufacturers and we feel it as well, is is finding not only workers and a workforce, but a skilled workforce that can do the type of work we need them to do with state of the art machinery
that we've invested in over the last two years. So I think I think there has to be a renewed focus on investing in education in this country, particularly vocational education, starting not only a two year vocational schools, but all the way to high schools and even middle schools.
So you don't need so you don't need somebody necessarily with a college degree.
No we I mean, you know, I tell people all the time, if if you post on indeed for a weave technician, you're gonna be sitting by your computer a long time waiting for people to.
Fill that out with experience. So we train people. It's an apprenticeship business.
And so what we need are people with mechanical aptitude, who are willing to work, who are willing to learn, who are curious. And I think those are skills that can be trained, certainly in middle school all the way to high school and if need be.
Up to two year vocational colleges as well.
What about looking ahead? You said that you've been making things in America even before it was cool. Well, now that is cool or what is encouraged? Do you believe that the current momentum in US manufacturing here is sustainable? Like what if everyone really does manufacture in America? Is that something that can.
Be Yah, Well, we have enough workers, especially if.
We need work materials and everything.
Yeah, that's the key question is I think do we have the workers to do that? I think workers coupled with state of the art technology, you know, where you can have the same number of workers like we do here, but if we have the right technology, we can actually produce more product.
You know.
That's kind of the secret sauce, and that's what we have to figure out as a country, as a society. It's not going to be an easy task. I don't think it's going to be as easy as maybe it's sometimes made out to be in the media. But those of us who are doing it are working at it really hard, and we're working at it with like minded companies as well, because it's good for our companies, it's good for our communities, it's good for our investors too.
All Right, we're gonna have to leave it there. Ross. Always good to get some time with you, Ross, and maybe we can get another chat with you as we get closer to the holidays, because the season is just around the corner. Although we have to get through.
Halloween first Halloween, and Thanksgiving.
And Thanksgiving, but you know how it goes around here. It's like Christmas or the holidays, all of it's coming. Ross Win Moyer. He's President CEO of Ferrebau MIL joining us from Minnesota.