Thu, Feb 06, 2003 page11

• Flag sales soar on the winds of war

  PATRIOTIC PROFITS People who make and sell the Stars and Stripes are expecting a big boost in business if the US actually goes to war with Iraq

  • REUTERS
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  The winds of war are likely to renew the post-Sept. 11 sales boom experienced by the makers and vendors of American flags, and this time they are ready to meet the increased demand.

  After the attacks on New York and Washington in 2001, flags flew off the shelves as a wave of patriotism swept across the US. Now, with an US-led attack on Iraq possible within weeks, stores are again overflowing with flags and other items decorated with the stars and stripes.

  

  A US flag waves above a group of soldiers in the Kuwaiti desert, 18km south of Iraq. Scenes such as this are fueling the kind of patriotism that makes Americans want to show their true colors.

  PHOTO: AP

  "If there is a war, we will sell close to what we did after Sept. 11 as there will be a real surge of patriotism -- I am sure," said Mary Leavitt, also known as the Flag Lady, owner of the Flag Lady's Flag Store, in Columbus, Ohio.

  The Flag Lady sold 573 flags during the first 20 days of January, considerably fewer that the 1,793 flags last January, but about four times the 119 flags sold in January 2000.

  "On Sept. 11, our store was packed. It was like a funeral. People came in crying; the country ran out of flags in 48 hours," said the Flag Lady. "We were not prepared at that time, but we've learned an awful lot about how we could do better this time."

  Big stores, also caught off guard by the sudden demand in 2001, are now ready for war. Home Depot, the No. 1 home improvement retailer, said it is keeping a significantly higher inventory than in 2002, a record year for its flag sales.

  Both Home Depot and Wal-Mart Stores, the world's largest retailer, said they carry only US-made flags, a significant factor for many customers and a boost for the US flag industry striving to fight off cheaper foreign-made imports. The country imported 112 million US flags, with China as a leading supplier, in 2001 -- a big jump from an annual average of about two million in the mid 1990s, according to the US International Trade Commission.

  Annin & Co, the largest and oldest US flag maker, said it sold a record of number of flags in 2002. While declining to be specific, the company -- founded in 1847 -- put the figure in the millions, adding that the number could double if it had enough raw materials and enough machinery.

  Roseland, New Jersey-based Annin, which before Sept. 11 employed about 500, hired 200 temporary workers and had most plants working in shifts shortly after the attacks. About 100 of those turned into staff jobs because of the sustained increase in demand.

  Flag makers say the demand has been resilient partly because after Sept. 11 many new flagpoles were erected around the country.

  "There are more flag poles and more flags flying, and those flags will wear out and need to be replaced," said Randy Beard, vice president of sales at Annin.

  Valley Forge Flag, the No. 2 flag maker, based in Womelsdorf, Pennsylvania, has also added workers and is prepared to deal with any sudden burst of orders.

  "This is what they live for. Having a reason for people to buy flags is very important to flag makers, which usually do not have high profits," said Carolyn Marvin, professor at University of Pennsylvania and co-author with David Ingle of the 1999 book Blood Sacrifice and the Nation: Totem Rituals and the American Flag.

  Flag makers, which are privately held companies, decline to disclose their profits.

  People aren't just buying traditional stick flags to wave at departing troops or to fly outside their homes and offices. Consumers are now looking for more offbeat items, such as dog collars with stars and stripes.

  PetEdge, a catalogue pet supply distributor, said patriotic dog collars and leashes are now in its top one percent lines out of 10,000 items.

  "People think of pets as family members. They feel proud about expressing their patriotism in this way," said PetEdge president Andy Katz.

  Even outwardly tough bikers are not to be outdone in the patriotism stakes. The American IronHorse Motorcycle Co, which specializes in customized bikes, said its 75 percent jump in sales of $30,000 bikes last year was helped by patriotic designs including flags, Twin Towers silhouettes and fire fighters.

  "People think about their own vulnerability after Sept. 11 and they said `Let me do what I enjoy I most -- let me ride.'" said Beth Owens, the American IronHorse Motorcycle Co marketing vice president.

  The company plans to almost double its annual motorcycle production to 3,000 from 1,750 last year, anticipating a huge demand for military-oriented designs featuring insignias and other patriotic themes.

  But some uncertainty remains in the flag-making world because -- if military action against Iraq goes ahead -- the war, as well as the ensuing production boom, may be short-lived.

  Also, because so many people and companies have recently purchased flags, they are not yet likely to need new ones.

  "Millions of people who had never bought a flag before had bought one. Not everyone is going to replace it," said Tibor Egervary, sales director at Valley Forge Flag.
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