From the News SentinelThree local manufacturers that supply products to handbag and accessories company Vera Bradley Designs will start laying off employees in May.Phoenix Sewing, 9823 Indianapolis Road; Summit Production Systems, 1530 Progress Road; and Mercury Manufacturing, Marciel Drive; will close and lay off a combined 537 people. Phoenix will lay off 190, Summit 200 and Mercury 147.Monica Edwards, senior director of marketing for Vera Bradley, said Thursday night that the layoffs are linked to Vera Bradley’s decision to consolidate all of its domestic production in-house by early 2009 in the interest of quality control.The layoffs are expected to be complete by September.
What the article fails to inform us is Vera Bradley will now be hiring 500 employees.
AWB
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- Get your condo! - Financing is available for The Harrison - January 5th, 2009
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- What is America's true form of government? - January 2nd, 2009

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the next item up, is the economic realities of the textile industry. Vera Bradley is going to need to convert to Vera “Chang”, ASAP. they’re idea of Burmese refugee sweatshop labor is going out the window, because the imported asian labor has fugured how much $5.85 per hour really buys after taxes. I see them all the time, like locusts at the mobile bread line/produce wagons from the nearly exhausted food bank.
China, vietnam, Malasia, Phillipines- all have abundance of labor, which in a flat world global economy can beat the pants off vera bradley(that would be a sight-giggle)with respect to labor costs, overhead, and so on. Asian sweatshop concerns? Vera Bradley can put fort wayne on the global map, by making sure its asian handbag stitcheries are the best, cleanest, safest asain handbag manufacturing plants in the world.
See, Vera Bradley hasnt yet grased the realities of the “flat earth” model- not only will they be able to save overhead costs,compared to the USA (these jobs only pay minimal- after all- and industrial sewing is NO FUN!)but they are particularly well suited to air-freight shipping- light weight- easy to pack a bunch of handbags into a airfreight container, and even near JIT delivery- making a shipload available at the annual roll-out sales a snap!
And by being located overseas, it will give another American rust belt city a foothold in the overseas markets, where Made in America means more there- a luxury status symbol. theres a billion chinese. a billion Indianas. Russia is flush with petro-euros(the dollar is worthless). but that doesnt mean that these 1.5 billion females, roughly, wouldnt want to buy a quality, American designed handbag, or purse, from a quaint, curious, obscure midwest american city.
And according to the flat-earth business model- the corporate offices, design, sales, marketing, and support could remain in Fort Wayne- the highest value added jobs. until we send the IT support , and accounting to India, and the corporate offices to an offshore banking/commerce tax haven. Ok. so we have a handbag ful of jobs left here in fort wayne- the owners, the founders, and the board members, and a branch sales office, to handle the global e-commerce on e-bay, and alibaba.com.
So move it or lose it, Vera Wang. Hi Thach manufacturing, and the flat earth economy is nipping at your heels. now if we could only do something about all the federal commerce and state dept laws that restrict click-on global e-commerce, and trade, and travel….
but its not MMM’s fault! unless you count his ignorance of the flat-earth business model, and his ability to “think 4th dimensionally, marty”!
“Three local manufacturers that supply products to handbag and accessories company Vera Bradley Designs will start laying off employees in May.”
Well boys, here’s what we would have done in the ol’ days (instead of these pussified 21st century times).
First of all, We would NEVER have structured our company to supply only ONE customer. Most suppliers learned long ago that is pretty fucking stoopid, cuz if your ONLY customer goes “tits up” you’re screwed.
Secondly, we would send out a salesman or the owner or the cleanup guy if we had too, to drum up another account and maybe diversify our services or product line a tad and keep the company going.
Vera Bradley ain’t the bad guy here. More plausible is that the three suppliers that set up shop to service only one account had no intention of ever sticking around to begin with.
Um….Tim…..
As much as it pains me to admit it, Dave Roach is closer to the mark than you are on this one. The people in the sweatshops here locally ARE immigrant hires, with little knowledge of local language, and nothing but the most rudimentary conveniences in their concrete floored, cavernous industrial buildings filled with piecework sewing machines.
And the three suppliers–quoted in the article as having set up shop years ago….planned on sticking around. They were organized by a former employee of the company to take advantage of the need for semi-skilled labor at a low price. (And possibly to keep illegals at arms’ length? I hope not, but you never know….)
The company was structured that way because it was a de facto arm of VB. And it’s ‘losing’ it’s best customer because….why? Well, time will tell if they really DO hire everyone back under the corporate umbrella, or if the original, and now labeled as ‘misspoken’ quote from the Rochester plant about sending work to China is accurate. Either way, it should be interesting to see where those expensive handbags end up being sewn.
Just my .02.
The following statement is ridiculous:
“The layoffs are linked to Vera Bradley’s decision to consolidate all of its domestic production in-house by early 2009 in the interest of quality control.”
Look at the labels in Vera Bradley products - many of them now say “Made in China.” The company is harping about quality control and then outsourcing to China. Come on, how many of you really buy those statements?
And just exactly what does “in-house” mean? Could it be more outsourcing to China?
If the company is laying off 537 and hiring 500, that is simply a wash. And where are the 500 located - here or China?
I am slow to criticize a company for layoffs for the simple reason that I have not personally created any jobs.
What people fail to realize if companies lacked the ability to layoff or fire workers, they would be much more reluctant to hire them in the first place.
in an at-will state, why do we have such a thing as unemployment insurance, hearings, unemployment payments, administrative law judges, and judgements against companies?
in an “at-will” state- work is a gamble. ever read that 10 paragraph disclaimer at the bottom of your job applications?
and look at what these minimal “at-will” employers demand:
A. 200 question “personality”/psychological profile screening exam( i was asked less questions to join the military)
B. perfectly clean police record- no felonies(ok)no misdemeanors(well- there were those 2 alcohol related offenses)(and that one domestic misunderstanding-nobody got hurt)
C BMV record- mines long as my arm- no accidents-no injuries(see OWI above) and 38(!) points at one point in time.
D. credit report- ok- I admit it- I’m never going to pay those rotten slum lords a penny ever, if I can avoid it. EVER! first job i do get that they might be able to garnish my wages, I’ll declare chapter 7 before they get to it.
my owi attorney- I’m paying him.
other items? i’m unemployed- how do i pay them?
I’m self-employed- How do I afford it?
its the bank presidents, and high government officials that steal billions.
Oh- so I’m going to risk getting sent to michigan city over a few dollars at a minimum wage job?
E. which is my point- these local/corporate/big box employers want the world, but dont want to pay for it, and dont pay much and demand NAZI-esque(godwin) feality, loyalty, and sworn corporate oath, signed in blood?
F. and anything you have ever said, or ever will say, anywhere, in print, internet, blog, or gossip,rumor, or hearsay will be held against you , from hereafter ever after( and before)
G. then we have the “100 stupid interviewer questions”-
sooo(lumberg)tel me about your self..reply-what do you want to know?
whats your greatest strength- my patience not to scream at other peoples stupidity.
whats your greatest weakness- losing my patience with stupid assed interviewers, and others like you.
do you have any questions? yes- when do I start? will I be making more than a congressman, pay-perks, benefits, etc? no- the job pays 5.85 an hr. toxic breathing fumes. 12 hr shifts 7 days a week, with mandatory overtime, continual heavy lifting. for “AT-will”-
no perks, benefits, insurance, stock options, profit sharing, nor education training.
oh- you do get vacation after 1 yr(if you live that long)but we’ll only keep you 89 days at a time- due to the evil govt. and then deny your unemployment lawsuit.
just like china? I thought lincoln abolished slavery?
All the macro-micro friedmanesque flat earth comparisons aside, the simple fact is, whoever Vera Bradley hires to sew their bags or sweep their floors is their own damn business. If ANYBODY feels their hiring and firing practices are immoral, they have a simple choice NOT to patronize that business and the problem is self correcting.
I don’t want the government running my business, I don’t want to live in a socialist society. If I wanted the government to tell me who to hire, how much to pay them and how long I have to pay them (until death) I’d moving to frickin’ France. We are over-regulated, overtaxed and over-burdened with politically expedient and correct bullshit. Let the market work and quit trying to protect every single citizen from every damn thing that might cause them discomfort. Jesus, this country has absolutely no nads left.
And while I’m at it, Roach. You have the right to apply for a job, but you don’t have the right to get the job. You have the right be free, to move, to apply anywhere in the country or world you think might offer you a better life. The right to pick a different vocation, to change lifestyles, to reinvent your way of life any way you see fit. You also have the right to bitch & complain endlessly about your lot in life. The tricky part is setting aside the bitching, and moving on with your life.
Those that think some sort of atrocity has occurred here are the same group that rallies against NAFTA, thinks we should be paying for every lazy-ass, out of work unmotivated putz’s health care, think you should hug your tree when you leave for work, watch “Live Like Ed” on HGTV, really believe that Obama, Gore, Edwards and Hillary are better for this country, think a woman has a right to kill an unborn baby, think that illegal wetbacks should get social security and drivers licenses, AND shop at Wal-Mart in the middle of the night so they won’t be seen buying all of those goodies “Made in China”.
Get my point?
I think it is newsworthy that it is pointed out. Yes, of course they can do business however they want. The newsworthyness of it all is that 700+ people in the region will be changing what they do soon and it shows Vera Bradley has implemented the strategic planning they sought when they moved near GM and built their new warehouse.
Some of those jobs will be absorbed by corporate, some of those people will be looking elsewhere. The fact that 700 some jobs will be affected by one company is amazing. Vera Bradley is bigger than a lot of people realized. This illustrates that point.
Is there an address for Vera Bradley that will actually reach the owners in order to express concerns about ‘outsourcing’ to China?? Thanks.
Vera Bradley won’t answer email or phone calls. They are well known for this which leaves us to think that they couldn’t care less.
One of the things that motivated me to buy Vera Bradley is that they were made locally. While they have the right to have their product made anywhere, I also have a right not to buy their product. I’ve also sold any of their items that I owned. I know it isn’t going to break them that they’ve lost me as a customer but I don’t give them a thought anymore because I did what little I could do to protest their actions.
I have not been able to contact Vera B to express my concerns soooo I have done what I can, insignificant though it may be. In the past 20 yrs I have purchased over 40 Vera Bradley items for myself or for MANY gifts (I kept part of each tag so I know the number I purchased). Since March 2008 I have not purchased ANY Vera Bradley - I have not even bothered to look over their items in the stores. Part of their appeal was that they were a small town, USA company that had been extremely successful. Their products were excellent quality and made unique gifts. Too bad they ‘had’ to take their business overseas. I’ve actually found equally nice bags, handmade, in different areas of northern Indiana — “Farmer’s Markets”, flea markets, craft sales. So, NO MORE Vera B. for me!!