Arkay: Proudly Made in America
In 1922, Max Kaneff – an immigrant from Ukraine and already devoted to his adopted country – opened Ar-Kay Printing on Thames Street on the Lower East Side of New York. From this initial beginning, the company moved uptown to Hudson Street, then out of the city to Hauppauge, New York, and eventually to a manufacturing facility in the shadow of the Blue Ridge Mountains in Roanoke, Virginia. During this trajectory it became Arkay Packaging and went from the grandfather Max to the son, Howard Kaneff, to the grandson, Mitchell Kaneff.
Today – on the threshold of a 4th generation of leadership and into our 2nd century in business – Arkay is one of the most renowned premium packaging companies in the United States, where we have always had a home and always done our product manufacturing.
It’s generally accepted that manufacturing in the United States comes with a mix of advantages and disadvantages, shaped by economic, logistical, political, and social factors. During our entire 100+ year history, Arkay has been a 100% Made in America manufacturer. Here is our assessment of the current environment and the reasons for our enthusiastic embrace of domestic manufacturing.
Pros of Manufacturing in the United States
American manufacturing is fundamental to sustaining our country’s economy and communities. The phrase "American-made" brings to mind the craftsmanship that has long been a hallmark of products that are manufactured in the United States. There are many upsides for business owners as well. Here are the ones we believe are the most important.
- High-Quality Standards and Innovation
The U.S. has a reputation for stringent quality control and advanced technological capabilities. We benefit from access to cutting-edge research, a skilled workforce, and strong intellectual property protections. This environment encourages innovation, allowing us to develop new products and improve existing ones faster than we could outside of the United States. For example, we developed Paint on Press®, our trademarked and registered printing method that enables us to perfect the designs we receive from our customers. By enhancing them with one-of-a-kind special effects – in tandem with developing the most cost-effective production methodology available – we open up a new world of possibilities that help our customers to sell their products more efficiently and with greater appeal. - Proximity to a Large Consumer Market
The U.S. is one of the world’s biggest consumer markets, with a GDP exceeding $30 trillion and a population of over 340 million. Manufacturing domestically provides Arkay with shorter supply chains, faster delivery times, and lower shipping costs to American customers. This is an advantage for businesses dependent on speed to market, such as our customers in the cosmetics and personal care industries that must adapt quickly to developing trends. - Reduced Supply Chain Risks
Recent global disruptions (i.e. the Covid pandemic, the blockage in the Suez Canal, pirates attacking ships in the Red Sea, etc.) have disrupted international supply chains, exposing the vulnerability of relying on these far-flung modes of transportation during times of global volatility. We experienced it first-hand during the Covid restrictions when we didn’t have to rely on overseas suppliers or explain shipping delays to our customers. Currently it mitigates against the risk of geopolitical conflicts and potential tariffs. - Skilled Workforce and Productivity
The U.S. workforce, while perhaps not the cheapest, is highly productive thanks to education, training, and automation. Workers in advanced manufacturing sectors—like robotics or precision machinery—bring expertise that’s hard to replicate in lower-cost regions. The Bureau of Labor Statistics notes that U.S. manufacturing output per worker remains among the highest globally, which can offset higher labor costs over time, which we can attest to. - Brand Appeal and “Made in America” Cachet
Products labeled “Made in the USA” often carry a premium perception of quality, patriotism, and ethical production. Surveys show that consumers will pay more for American made products. This can boost sales, especially among consumers willing to pay more for goods perceived as supporting American jobs. To achieve this, Arkay has capitalized on its domestic strengths, demonstrating to our customers the advantages of faster production of their packaging. We even have our own trucks so we can provide quick and personalized transportation. - Regulatory Stability and Infrastructure
The U.S. offers a predictable legal and regulatory environment compared to some nations where policies can shift abruptly. Plus, the country’s infrastructure—roads, ports, power grids—is top-tier, facilitating efficient production and distribution. This reliability can be a lifeline for industries requiring consistency and – with our reliable and fast connections to our customers’ locations and our comprehension of their culture – Arkay understands and acts on this need. - Support for Sustainability and Ethical Practices
Domestic manufacturing can also align with growing demands for sustainability, an advantage very close to our innate culture. Shorter shipping distances mean a reduction of our carbon footprint, and U.S. labor laws enforce better working conditions than in some offshore hubs. Companies - like Arkay - who are looking to appeal to environmentally conscious or socially responsible consumers often find this a distinct advantage.
Perceived Cons of Manufacturing in the United States
While the United States manufacturing sector has long been a global leader in innovation and industrial capacity, it still faces some perceived weaknesses such as high labor costs, burdensome regulations, and significant overhead. Our perspective is a little different.
- Higher Labor Costs It is generally accepted that for labor-intensive industries costs may be more expensive. In response, we point to the established high product quality advantage we have due to our talented team. We also offset any extra costs for domestic workers with our ethical treatment of employees, leading to lower turnover and better outcomes for our customers.
- Regulatory and Compliance Burden U.S. manufacturers face a web of federal, state, and local regulations—OSHA safety standards, EPA environmental rules, labor laws, and more. Compliance requires time, money, and expertise, which can be a hurdle for smaller firms. At Arkay, however, we welcome the regulations because they are further proof of our expertise, and our skill in successfully dealing with them. We take pride in following these guidelines, and this pride is evident in our workmanship and dedication to our customers.
- High Overhead Costs Operating in the U.S. sometimes means grappling with pricey real estate, utilities, and taxes. Industrial space in states like California and New York can be costly, and energy prices, while lower than in Europe, still outpace some emerging markets. However, once again, Arkay’s experience in all areas of the manufacturing process helped us make excellent decisions for our future success – and the success of our customers. We are always researching ways to lower costs. In 1996, we moved our entire manufacturing facility from New York to the Roanoke Valley where we knew we could enjoy greater output with lower overhead costs. We now can’t imagine manufacturing anywhere else and – while other countries may have sought our business – our decision to stay and grow within the U.S. was one we will always honor and always benefit from.
Putting It All Together
At the end of the day we celebrate our “Made in the USA” label and are proud to be a domestic manufacturer and provider of highly-skilled manufacturing jobs, supporting the country that supported us when we first began over a century ago. The environmental benefits, the speed to market advantage, the skillset of our workforce, the overall culture of our company – steeped in the rich legacy of coming to America and creating, step by step, year by year, this resilient and successful business – is deeply ingrained in who we are and how we see ourselves for all the years ahead: proud American manufacturers producing the highest quality American made products right here in our home country!
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