After a slow 2009, this work wear manufacturer tells Manufacturing Digital it expects a big recovery in 2010 with new product lines
Written by Gabe Perna & Produced by Xan Wynne-Jones
Many presidents and executives of multi-million dollar companies find it hard relating to every single worker within their organization. Dan Clarke, President of Helly Hansen Canada Limited, does not count himself among that group. In fact, he can proudly state he worked his way up from the bottom to the top and knows all departments of his company.
“I started with the company as the Accountant / IT Manager for six years and then became the Vice President of Operations in 2003. I was promoted to President in April of 2008. Before Helly, I worked in the technology industry doing turnkey system sales, internet consulting and internet based marketing. Before that I worked in a can factory as a line worker,” says Clarke. He even went back to university in 1997 to receive his certified management accountant designation.
Considering Clarke now oversees the type of manufacturing plant he used to work in, things certainly have come full circle. “I worked on a shop floor as a laborer. I worked in sales, middle management, financial management and now executive management. I can definitely empathize with any issue in any part of our business.”
This background allows Clarke to apply a more employee-friendly management strategy. “I believe in the concept of management by walking around and not management from an executive floor office. That’s why I’m always on the move when I am in the building,” says Clarke.
It is no wonder why Helly Hansen Canada (HHC) is a smoothly run operation with revenues exceeding CAN$25 million a year. The company, which sells workwear ranging from flame retardant suits to thermal layer gear and a full line of marine safety products, can rely on strong leadership from Clarke as well as other executives and managers in the company.
BIG DIFFERENCE
In order to understand Helly Hansen Canada, it is necessary to differentiate it from Helly Hansen based in Moss, Norway. While Helly Hansen Canada Ltd. manufactures and distributes Helly Hansen branded workwear, rainwear and marine safety products, it is not actually a part of the Helly Hansen Global family. Helly Hansen Canada Ltd. is a privately-held Canadian company.
Helly Hansen Canada Ltd. (HHCL) operates under a long-term license agreement with Helly Hansen in Moss. However, it also owns and sells other brands, such as Nautilus by Protexion and Buoy O Boy. These are well-established brands in the life jacket, personal flotation device and survival suit market. Another way to differentiate Helly Hansen Canada from Helly Hansen Global is that HHCL continues to operate a manufacturing facility in Canada to respond to the ever-changing Canadian climate.
Helly Hansen opened a sales office in Nova Scotia in 1981 and within five years transitioned the operation from corporate owned to a licensee operation. Helly Hansen Canada Ltd.’s current owner purchased the license in 1991. The company runs a manufacturing plant and headquarters in a 100,000sf location in Dartmouth, NS. Due to the demands of growth, in the last 12 months, a larger distribution facility has been added in British Columbia and a helicopter transport service operation was added in St. John’s, Newfoundland.
HIT BY SLOWDOWN
Since Manufacturing Digital last talked to Clarke and HHC in September of 2008, the company has continually improved its product line. A look back indicates 2009 was a mixed bag for the workwear company. While it enjoyed success from traditional product lines such as its long underwear and thermal flame retardant products, it also suffered a drastic slowdown.
“In January of ‘09, we saw an immediate slowdown, a drastic stop of a lot of our major clients as they experienced a hit on retail. When their traffic drops rapidly, we see an immediate impact,” explains Clarke. The company even deferred the launch of its cold weather flame retardant outerwear line until 2010.
MOVING FORWARD
Despite the past year’s struggles, Clarke and Helly Hansen Canada say there’s hope for the upcoming year. Business has picked up and new product lines will debut. Safety was a big issue a year ago and that focus will continue in 2010.
One of the major projects over the past year for Helly Hansen Canada was the redesign and retrofit of their survival suits. Almost 2,000 suits are slated for modification and all work will be done in the Dartmouth plant.
Winter 2009 will be the first time the company will use Canadian sources for fabric for their under wear and thermal layer products. “This fall/winter season is the first full year working with these Canadian suppliers. We’re actively pursuing other sources of fabric supply in North America to shorten our supply line and to take advantage of NAFTA rules for U.S export where possible,” explains Clarke.
Clarke expects themes of functionality to remain in its future product line. This includes layering and inter-seasonal wear. According to Clarke, “We’re looking at ways internally that we can be more innovative in times of continuing rising costs.
“All in all, 2010 will signify the beginning of a turnaround if all goes according to plan. This past year has been a year of holding down the fort. Now, as the economy turns around, we’re ready to go on offense with new products, services and to start building new customers again,” concludes Clarke.
FACTS AT A GLANCE
COMPANY NAME: Helly Hansen Canada Ltd.
PRESIDENT: Dan Clarke
OPERATIONS: Workwear garments and marine safety products
ESTABLISHED: Under current ownership, 1991
EMPLOYEES: 115
REVENUE: +$25 million
www.helly.ca
View Digital Corporate Profile of HellyHansen in Manufacturing Digital December 2009