Boston Common - Niche Media - A side of Boston that's anything but common.
Issue link: http://digital.greengale.com/i/174813
SPIRIT OF GENEROSITY TOP LEFT: A worker pressing shirts. LEFT: Profits at Industrial Revolution II support programs for children in Haiti. ABOVE: Rob Broggi takes a hands-on approach to product manufacturing. 70 increase worker productivity as well as profits. "It's not only good for them, it's good for our business," says Broggi. With lower turnover, the company can invest in more job training, which will allow workers to create higher-quality garments. Industrial Revolution II has also invested heavily in new technologies such as digital printing, which allows it to create apparel other companies can't, giving the company even more of a competitive edge. The strategy is a gamble, but if anyone is qualified to make it, it's —ROB BROGGI Broggi, who spent decades analyzing the efficiency metrics upon which companies live or die. After running the numbers, he sees this as a more viable alternative than offering higher wages, which would upset the price structure in the region. By creating incentives for workers tied to company profits, he's hoping that they will be more invested in the company's success. "We are not trying to be paternalistic about this; we are trying to empower them and their families. This is not about being a charitable person who is taking care of a lowly Haitian; [the workers] need to understand they have a responsibility, too." The company began renovating a dormant factory in late 2011, along the way signing up heavy-hitting fashion mogul Donna Karan, who has helped promote Haitian fashion designers since the earthquake and added her apparel industry expertise as an advisor to the company. Even with her added gravitas, says Broggi, the factory was still a tough sell to some brands, many of continued on page 72 PHOTOGRAPHY COURTESY OF INDUSTRIAL REVOLUTION II continued from page 68 After the earthquake that decimated Haiti in 2010, he saw how badly some aid resources were managed, and he began wondering along with his colleagues if business might be a better vehicle than charity to improve the lives of ordinary Haitians. "At the end of the day, any aid program is a money program, figuring out how to get the best return on investment," he says. "I have been analyzing that for years and years and years." Broggi and Damon put up the initial money along with four other investors—Haitian businessman Richard Coles, Canadian humanitarian Joey Adler, Partners in Health cofounder Todd McCormack, and Habitat for Humanity general counsel Liz Blake—and Broggi jumped ship from Raptor to run the new company. Their hope is that they can create a recognizable brand that fashion labels could tout as an essential ingredient to their clothes—a sort of "Intel Inside" for the apparel business. Particularly after the fire in Bangladesh earlier this year that cast a spotlight on the harsh conditions of garment workers, they are banking on customer interest in buying more ethically manufactured clothes. But there's a catch: From the beginning, the partners agreed they would not only treat workers humanely, but also compete on price. "We are trying to create this brand in a category that essentially doesn't exist—one that would emphasize quality just as much as social and environmental integrity. If you can offer the same quality product at the same price you are going to win a tie-breaker nine out of 10 times." In traditional factories, he argues, workers are ground down by fatigue and hunger, leading to low productivity and high turnover. Their hope is that by investing in programs for workers, they will create a virtuous circle that will "We are trying to create this brand in a category that doesn't exist—one that would emphasize quality just as much as social and environmental integrity." BOSTONCOMMON-MAGAZINE.COM 068-073_BC_SP_SpOfGen_LateFall13.indd 70 9/17/13 5:30 PM