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Business & Tech

Local Manufacturer Fights to Survive

The Bragley Manufacturing Company has had to fight competition a broad and a difficult economic environment at home.

"My father started this business," says Neil Lurie, owner of Bragley Manufacturing Company, one of the last manufacturing companies left in Prospect Heights.  "From the age of 12 or 13 I was in a machine shop with him so that's where I learned how to do this.  These are generational businesses and once they're shut down, they're gone.  They never open up again."

Lurie's frustration with the current state of US manufacturing is apparent almost immediately. Straddled with increased competition abroad and an ominous economic environment at home, he's witnessed the industry's downward spiral as America transitions into a service-oriented economy first hand.  

"I used to wake up and I couldn't wait to come to work because I was going to accomplish something," Lurie said.  "Now it's like how much do I have to peddle backwards in order to go forward a little bit."   

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Founded in Manhattan in 1942, Bragley manufactures custom made reusable cases and packaging used to ship aerospace products, broadcasting and motion picture equipment, and computer hardware, to name a few.  "We also build cases for mascots and puppets," added Lurie. 

"We did an enormous job for many, many years with the Children's Television Workshop. Now Walt Disney owns them and we do work for them from time to time."  

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Looking to decrease overhead, the company moved into a 20,000 square foot space on Bergen Street between Classon Avenue and Franklin Avenue in 1985, fifteen years before Prospect Heights' real estate resurgence.          

"We invested in this area before it was viable," Lurie said.  "We've seen the unbelievable change in the area.  Once the neighborhood became a more viable area for residential, subsequently any manufacturing that was here, the people sold out and they converted the buildings.  So we're pretty much one of the few companies left that actually make something."

While witnessing Prospect Heights rapidly improve since moving to Brooklyn, Bragley's, like thousands of manufacturing companies across the country, experienced rapid industry decline. 

US manufacturing's slice of the economic pie has plummeted over the past 40 years.  By some measurements, manufacturing accounted for 53 percent of the economy in 1965. In 2004, as a result of globalization and technological advancements, manufacturing accounted for only 9 percent.

"I have no competitors left. In NYC at one time there were probably a dozen case manufacturers," Lurie said.  "Now I'm the only one standing."

According to industrial search engine, ThomasNet, New York State case manufacturing companies have dwindled to three major players: Rose Trunk Manufacturing in Lynbrook, Fibre Case Corporation in Manhattan and Bragley's.

The current "Great Recession" further complicates the company's operations.  Numerous suppliers and customers have gone out of business due to the economic downturn. Lack of supplier commitments and difficulty sourcing materials has made it nearly impossible for Lurie to commit to Christmas and Spring season orders.  Subsequently, the company was forced to cut it's roughly 50 person unionized workforce -- many of which are neighborhood residents -- down to 20 employees. 

Bragley's continues to weather the financial crisis by diversifying into various areas.  The company now builds custom made wood packaging.

"We have several different customers that buy wood packaging," said Lurie.  "And not only that, now wood is looked at as being very green because it's a renewable resource.  People love a wood box.  A lot of people never throw them out and it's great advertising and that's something that's also becoming very popular again."

Lurie also acquired NYC approved child safety window guard manufacturer, Alumi-Trim, during a bankruptcy auction. The company even makes garbage cans now. Nimble diversification has kept cash flowing and people working, but unemployment and real estate tax hikes continue to thrash it's balance sheet. 

New York state increased unemployment payroll taxes to 0.74 percent in 2010, a 22 percent increase over 2009, as it repays $3.2 billion in outstanding loans to the federal government. Since thousands of businesses were lost, the burden of replenishing the coffers falls directly on those still standing. Bragley's was forced to tap existing credit lines just to pay increased unemployment taxes.      

"The real enemy here was government itself because they raised taxes," Lurie said.  "They're getting the money from people who can least afford it at this time, which is business. I literally couldn't buy materials [one] month because I had to pay $10 thousand in unemployment taxes."

Lurie's maintained employee morale by providing transparency. He's open with his workforce about the current state of the company, informing them that much of their work is done for zero profit, as Bragley's continues to search out new revenue streams.

"The bottom line is I don't know who my next biggest customer is," he said. "He hasn't walked through the door yet. As long as you can keep the door open, it's almost like buying that lottery ticket. But if the door closes there is no more opportunity."  

The daunting economic climate continues to plague Bragley's operating environment.  Despite a seemingly constant barrage of new challenges -- severe shortages of suppliers and customers, increased unemployment taxes and looming real estate tax increases expected with the arrival of the Atlantic Yards project -- Lurie continues to fight to maintain position, one order at a time. 

"You're not coming to work to progress forward," he said. "You're just trying to keep it where it is and keep the insidious forces around you from devouring what you've got.  It's a level of defense that you can't even imagine."    

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