Grayson: We mourn loss of New Era and move on

Published 4:57 pm Wednesday, January 27, 2010

The New Era Cap Company today announced a tentative agreement with the Communications Workers of America (CWA) to retain New Era’s Derby, NY plant as the company’s sole U.S. manufacturing facility. A final agreement is contingent on the Derby employees’ ratification of a new contract, which represents operational efficiencies and cost savings. If the agreement is ratified, New Era said it will close its plant in Demopolis, Alabama sometime in the second quarter of this year.

Today’s announcement follows New Era’s decision last November to consolidate its domestic manufacturing operations in the wake of significantly reduced consumer demand for its U.S-made products. The company has previously announced the closure of its Jackson, Alabama plant.

“We need to employ Nick Saban’s 24 hour rule,” Demopolis Mayor Mike Grayson said Wednesday afternoon. “We’re going to take 24 hours to mourn this loss and we’re going to get up in the morning and work on Plan B. The textile industry seems to be one that’s going away – or going overseas – and it doesn’t look like they’re coming back,” he added. “That’s not sour grapes, it’s just a national trend. What we’ve got to do is find an industry that wants to be in the City of Demopolis and one that can be suited by that facility. We’re going to be aggressive. Make no mistake about that.”

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