Textiles are a dying industry across Europe, yet for Eagle K-Wear of Mriehel the future is bright thanks to a remarkable turnaround that involved European Union funding and a market-oriented philosophy.
In the early 1990s, the company, which celebrates its 50th anniversary next year, faced serious financial problems.
"We got caught with a lot of stock when we took on a big contract from Iraq before the invasion and this could not be delivered because of the embargo," managing director Alex Aquilina said.
Today the company, set up as Eagle Knitwear by Alex's father Frank and two brothers, Charles and Emanuel, is the market leader in the supply of school uniforms, supplying 65 per cent of the market - over 120 state, Church and independent schools. Knitwear today accounts for just 10 per cent of the company's business.
"We were known as 'tal-Eagle', so we kept it as part of our name," Mr Aquilina said. As early as 1984, the company started to diversify because of changes in the market and the cost of production.
"We realised that the production scenario was changing," he said. "We never depended on a foreign parent company, unlike many other local set ups where Malta was used as a production facility, which was moved to a cheaper location over time."
Eagle K-Wear also produces other uniforms (it has just won a five-year contract to supply the uniforms for public route bus drivers) sportswear and casual wear, mostly for the local market but also for export.
"We do a lot of business-to-business work, dealing directly with the end client - clubs and purchasing managers," Mr Aquilina said.
Apart from his background in operations, he has also honed his marketing skills.
"Production and marketing do not usually see eye to eye. I was in a good position to strike a balance.
"We have a good team in marketing and they are the spearhead of the organisation. I encourage teamwork, sharing problems with my people. We are very supportive and that keeps you going, especially when it gets tough. There is a strong element on the shop floor," he said.
The company now employs 35 people taking on a dozen or so part timers in peak months.
One challenge was to smooth out production, with schools all starting at the same time and demand peaking at the beginning of the scholastic year.
"So we have arranged that primary schools sell their new uniforms in May before the end of the third term," he said.
That enables Eagle K-Wear to focus production of these uniforms between March and May, with secondary school uniforms going into production between June and September. From October onwards it handles repeat orders. January and February are the 'slow' months.
"Our greatest strength is our flexibility and our ability to handle small runs of as low as 30 pieces," Mr Aquilina said.
"Our prices reflect the quantities, so the higher the run the lower the unit cost. We focus on niche marketing and all our products are bespoke, made to the customer's specification in terms of design, materials, sizes and quantities.
"Another of our strengths is continuity in design. We never say 'this item is no longer in fashion' or 'the colour has been discontinued'. We guarantee continuity as long as the item is wanted. We create colours for our customers and we have two suppliers for all the important fabrics we use so that, if one does not have, we can buy from the other.
"The sports clubs that Eagle K-Wear supplies would lose their identity if they had to change their style and colour."
The company believes strongly in relationship marketing - and keeps customers fully updated on the progress of their order - not only when things are going well but also when problems crop up. One indication that the textile industry in Malta is weak is the disappearance of local suppliers.
"We have had to start sourcing sewing threads, buttons, zips and all attachments directly from abroad. This gives us total control of our end product, whereas before we relied on a local agent."
Next month Eagle K-Wear is to start refurbishing its offices, which are on a 900 m2 site.
The company also plans to employ five people in administration, marketing and production. The target: a turnover of Lm500,000 in its 50th anniversary year.
"Little did we know that 50 years after the company was founded Malta would be joining the euro. We are now looking to the future with optimism."
Eagle K-Wear goes for niche markets, like kits for netball teams.
Spotlight on a turnaround
Four years ago Eagle K-Wear applied to IPSE (the Institute for the Promotion of Small Enterprise - today Malta Enterprise) to join the MEDA Programme, an EU-funded programme.
The programme offered technical and financial support for the reform of economic and social structures in Mediterranean partner countries.
"We had to put together a three-year business plan for 2004-2006, involving a capital investment of Lm50,000 to make the company more competitive, which IPSE approved," Mr Aquilina recalled.
"This meant a total restructuring of the company both from the HR aspect to our IT systems. This was a very important stepping stone for us. MEDA financed 50 per cent of the investment, which encouraged us to make the jump and go for it."
Then, in 2006, Eagle K-Wear applied for a grant under the European Regional Development Fund programme.
"Initially our project was not approved," Mr Aquilina said. "Then there was a second call for applications because not all the funds were spent and our project was approved."
This involved revamping the company's website, www.eaglek-wear.com; conducting market research in the UK market, one of its target markets; and conducting a matchmaking exercise to identify companies and potential clients.
"We realised from the market research that there was strong demand for authentic bespoke (customised) clothing, mostly sportswear," Mr Aquilina said.
"The textile industry in the UK has largely disappeared."
Last year the company took part in the Incentive Scheme Show, a fair at the NEC in Birmingham. Its confident approach got an immediate response.
Primate Merchandise Ltd of Bristol, a company which sells specialised sportswear including netball kits, was about to shift all its production to Turkey.
"We convinced them to use Malta since we are an EU member and our lead times are just three to four weeks, as opposed to six to eight in Turkey.
"It is growing and has a lot of potential," Mr Aquilina said.
In the past year, Eagle K-Wear has dispatched two boxes by courier every Thursday.
"We are developing more designs for them. A particular tracksuit, with special features that no other supplier in the UK was able to come up with, is being launched next month by Super Netball League team, Brunel Hurricanes, which ended third last year." Primate Merchandise has just won a contract to supply sportswear manufactured in Malta to the team. The most recent development, announced earlier this month, came thanks to the company's revamped website. Eagle K-Wear has been appointed sole local distributors of Simon Jersey, a UK company that specialises in the design and distribution of corporate clothing.
"Simon Jersey were looking for new local distributors, after having been on the local market for the past 15 years. We initially took it on for six months as we wanted to take things one step at a time, and to understand Simon Jersey, appraising how reliable and serious they are. We didn't want to bite off more than we could chew." "This was a very important strategic move for us," Mr Aquilina said.
"We are leaders in schoolwear. With this new strategic partnership, we are going to become leaders in the design and distribution of top quality corporate wear. Our marketing mission statement is: 'To be the number one uniform supplier in Malta and Gozo'."
In the early 1990s, the company, which celebrates its 50th anniversary next year, faced serious financial problems.
"We got caught with a lot of stock when we took on a big contract from Iraq before the invasion and this could not be delivered because of the embargo," managing director Alex Aquilina said.
Today the company, set up as Eagle Knitwear by Alex's father Frank and two brothers, Charles and Emanuel, is the market leader in the supply of school uniforms, supplying 65 per cent of the market - over 120 state, Church and independent schools. Knitwear today accounts for just 10 per cent of the company's business.
"We were known as 'tal-Eagle', so we kept it as part of our name," Mr Aquilina said. As early as 1984, the company started to diversify because of changes in the market and the cost of production.
"We realised that the production scenario was changing," he said. "We never depended on a foreign parent company, unlike many other local set ups where Malta was used as a production facility, which was moved to a cheaper location over time."
Eagle K-Wear also produces other uniforms (it has just won a five-year contract to supply the uniforms for public route bus drivers) sportswear and casual wear, mostly for the local market but also for export.
"We do a lot of business-to-business work, dealing directly with the end client - clubs and purchasing managers," Mr Aquilina said.
Apart from his background in operations, he has also honed his marketing skills.
"Production and marketing do not usually see eye to eye. I was in a good position to strike a balance.
"We have a good team in marketing and they are the spearhead of the organisation. I encourage teamwork, sharing problems with my people. We are very supportive and that keeps you going, especially when it gets tough. There is a strong element on the shop floor," he said.
The company now employs 35 people taking on a dozen or so part timers in peak months.
One challenge was to smooth out production, with schools all starting at the same time and demand peaking at the beginning of the scholastic year.
"So we have arranged that primary schools sell their new uniforms in May before the end of the third term," he said.
That enables Eagle K-Wear to focus production of these uniforms between March and May, with secondary school uniforms going into production between June and September. From October onwards it handles repeat orders. January and February are the 'slow' months.
"Our greatest strength is our flexibility and our ability to handle small runs of as low as 30 pieces," Mr Aquilina said.
"Our prices reflect the quantities, so the higher the run the lower the unit cost. We focus on niche marketing and all our products are bespoke, made to the customer's specification in terms of design, materials, sizes and quantities.
"Another of our strengths is continuity in design. We never say 'this item is no longer in fashion' or 'the colour has been discontinued'. We guarantee continuity as long as the item is wanted. We create colours for our customers and we have two suppliers for all the important fabrics we use so that, if one does not have, we can buy from the other.
"The sports clubs that Eagle K-Wear supplies would lose their identity if they had to change their style and colour."
The company believes strongly in relationship marketing - and keeps customers fully updated on the progress of their order - not only when things are going well but also when problems crop up. One indication that the textile industry in Malta is weak is the disappearance of local suppliers.
"We have had to start sourcing sewing threads, buttons, zips and all attachments directly from abroad. This gives us total control of our end product, whereas before we relied on a local agent."
Next month Eagle K-Wear is to start refurbishing its offices, which are on a 900 m2 site.
The company also plans to employ five people in administration, marketing and production. The target: a turnover of Lm500,000 in its 50th anniversary year.
"Little did we know that 50 years after the company was founded Malta would be joining the euro. We are now looking to the future with optimism."
Eagle K-Wear goes for niche markets, like kits for netball teams.
Spotlight on a turnaround
Four years ago Eagle K-Wear applied to IPSE (the Institute for the Promotion of Small Enterprise - today Malta Enterprise) to join the MEDA Programme, an EU-funded programme.
The programme offered technical and financial support for the reform of economic and social structures in Mediterranean partner countries.
"We had to put together a three-year business plan for 2004-2006, involving a capital investment of Lm50,000 to make the company more competitive, which IPSE approved," Mr Aquilina recalled.
"This meant a total restructuring of the company both from the HR aspect to our IT systems. This was a very important stepping stone for us. MEDA financed 50 per cent of the investment, which encouraged us to make the jump and go for it."
Then, in 2006, Eagle K-Wear applied for a grant under the European Regional Development Fund programme.
"Initially our project was not approved," Mr Aquilina said. "Then there was a second call for applications because not all the funds were spent and our project was approved."
This involved revamping the company's website, www.eaglek-wear.com; conducting market research in the UK market, one of its target markets; and conducting a matchmaking exercise to identify companies and potential clients.
"We realised from the market research that there was strong demand for authentic bespoke (customised) clothing, mostly sportswear," Mr Aquilina said.
"The textile industry in the UK has largely disappeared."
Last year the company took part in the Incentive Scheme Show, a fair at the NEC in Birmingham. Its confident approach got an immediate response.
Primate Merchandise Ltd of Bristol, a company which sells specialised sportswear including netball kits, was about to shift all its production to Turkey.
"We convinced them to use Malta since we are an EU member and our lead times are just three to four weeks, as opposed to six to eight in Turkey.
"It is growing and has a lot of potential," Mr Aquilina said.
In the past year, Eagle K-Wear has dispatched two boxes by courier every Thursday.
"We are developing more designs for them. A particular tracksuit, with special features that no other supplier in the UK was able to come up with, is being launched next month by Super Netball League team, Brunel Hurricanes, which ended third last year." Primate Merchandise has just won a contract to supply sportswear manufactured in Malta to the team. The most recent development, announced earlier this month, came thanks to the company's revamped website. Eagle K-Wear has been appointed sole local distributors of Simon Jersey, a UK company that specialises in the design and distribution of corporate clothing.
"Simon Jersey were looking for new local distributors, after having been on the local market for the past 15 years. We initially took it on for six months as we wanted to take things one step at a time, and to understand Simon Jersey, appraising how reliable and serious they are. We didn't want to bite off more than we could chew." "This was a very important strategic move for us," Mr Aquilina said.
"We are leaders in schoolwear. With this new strategic partnership, we are going to become leaders in the design and distribution of top quality corporate wear. Our marketing mission statement is: 'To be the number one uniform supplier in Malta and Gozo'."