Gene Cariño, Founder & Executive Chairman, United Defense Manufacturing Corp.
In the dynamic realm of business, some choose to play it safe, sticking to the well-worn paths, clinging to familiarity, and shying away from risks. They tiptoe cautiously, following the footsteps of those who came before them, afraid to stray from the beaten track. But then there are the trailblazers, the mavericks who refuse to be confined by the shackles of convention and dare to challenge the status quo to forge new frontiers where few have ventured before. Armed with meager capital, audacity and fueled by ambition, they’re the ones who turn “impossible” into “It’s possible”, rewriting the rules of the game and reshaping business partnerships in the process.
While others cling to the safety of the shore, they plunge headlong into the depths, unafraid of the risks that lie beneath the surface. They understand that innovation often requires stepping into the unknown, embracing uncertainty, and confronting risks head-on. So, instead of fearing failure, they see it as an opportunity to learn and grow, knowing that each setback brings them closer to success. As the winds of change blow, they hoist their flags high, leaving a trail of innovation and sparking curiosity and inspiration in the hearts of those who dare to dream beyond the confines of conventional thinking. One such courageous entrepreneur whose diverse career across several industries showcases a remarkable journey marked by tenacity and innovation is Gene Cariño, the founder and Executive Chairman of United Defense Manufacturing Corp. from the Philippines.
Gene’s journey began at De La Salle University, where he spent his preparatory and grade school years, and then moved to La Salle Green Hills for high school. After graduating from High School, he took a turn away from a conventional Industrial Engineering diploma, opting instead for a path less traveled, one that would define his legacy in the years to come.
A Diverse and Thriving Career Across Several Industries
Undeterred by the unknown, Gene fearlessly delved into several fields, each presenting its unique set of challenges and triumphs. At the age of 20, he commenced his career at Chemical Industries of the Philippines, Inc.. Swiftly climbing the corporate ladder, Gene secured his first managerial role at 24 as the Personnel Manager of three subsidiary companies within the Chemphil Group. During this tenure, he not only maintained good relations with three labor unions but also negotiated and successfully signed six Collective Bargaining Agreements. This experience set the stage for his ventures beyond, leading him to Jakarta as a business development consultant of John Clements Consultants, Inc., and subsequently to the pharmaceutical toll manufacturing giant, Interphil Laboratories, Inc., within the Zuellig Group, the largest pharmaceutical company in the Far East.
After contributing significantly to production planning and customer relations of Interphil, he joined the First Pacific Group, serving as Director of Distribution Services at Metro Drug Corp. It was here that he crossed paths with the former Philippines Secretary of Foreign Affairs, Albert del Rosario and this marked a turning point in his journey. However, his journey came full circle when the Zuellig Group enticed Gene to get back, appointing him as Assistant to the President, and entrusting him with the monumental task of managing the company’s purchasing and inventory of multi-billion-peso pharmaceutical products from foreign principals. With his unwavering resilience and innovative mindset, Gene revolutionized the company’s inventory management system, saving millions in carrying costs and mitigating stock expiration risks. Thereafter, when given the responsibility to establish Zuellig Pharma’s subsidiary in Vietnam, Gene embraced the challenge head-on. Navigating a new market, the distinct culture and language didn’t deter Gene; instead, his excitement only grew as he saw it as an opportunity to create something from the ground up, on his own. “I enjoy greenfield businesses!” Gene enthusiastically shares, reflecting on his time in Vietnam.
After successfully handing over the reins in Vietnam to his successor, he came back to the Philippines and took on the role of General Manager of Centramed S.A., the marketing arm of the Zuellig Group. But his journey took an unexpected turn when Secretary Albert del Rosario recommended him to a headhunter, leading him to become the General Manager of Jardine Logistics within the Jardine Davies Group. Soon, he found himself shouldering even more responsibility as General Manager of United Terminals Services Inc., a company he and fellow La Sallian Nick Linao eventually acquired from Jardines through a “Management Buy-Out” scheme.
The Genesis of UDMC: A Bold Venture
Embarking on a new chapter, Gene ventured into third-party logistics services through his newly-acquired company United Terminals Services, Inc., eager to try his hand in a dynamic and challenging domain. Serving esteemed clients like Toyota Motor Philippines Inc., San Miguel Corp. and Del Monte Philippines Inc., he soon became a formidable force in warehousing, distribution, and manufacturing logistics services. At this time, his company also acquired a big management contract which lasted for eight years managing the production, packaging, warehousing and shipping of the 100% Japanese owned Asahi Glass Philippines, Inc. However, Gene foresaw the limitations of the logistics services model, recognizing it as a transitional phase towards integrating into the global supply chain. “The logistics services business model was only a transition into the integration of a global supply chain where multinational competitors would soon invade the Philippines. Since local companies would not last the global competition in a price war, our company would have a shelf life of roughly only 10 milking years,” elucidates Gene.
As such, he set his sights on something bigger; something no one else has done before. Thus, in 2006, Gene boldly ventured into an industry that few dared to tread—the arms manufacturing sector —creating United Defense Manufacturing Corp, widely known as ‘UDMC.’
Thriving in the Face of Challenges
With his ambitious business model of “Barriers to Entry”, Gene aimed to join the entrenched procurement bidding process of the Philippine military and national police, where the military firearms market was dominated by established players like Colt, Remington, SIG Arms and Israeli brands. He knew from the outset that diving into the defense industry would be much harder than his previous ventures in third-party logistics services. Yet he forged ahead, steering towards a goal that seemed distant but in the horizon. He acknowledged that pistol manufacturing in the Philippines is a crowded marketplace. Everyone was making pistols, but expanding into the manufacturing of military assault rifles and sniper rifles was a game changer. Gene thought, “Why not give it a shot?” However, manufacturing military rifles in the Philippines meant dealing with strict import and export regulations for both raw materials and finished products, under the watchful eyes of the Philippine government, and the countries of origin and destination. Adding to the complexity was the prevailing colonial mentality, which favored foreign products over locally-manufactured brands. But undeterred, Gene embraced the challenges, believing that the tougher it gets, the fewer competitors there will be. “I don’t want to do what everyone else is doing, not because I want to be different per se but because I aim to have less competition on my back so that I can focus on quality and end-user satisfaction rather than engaging in a price war like what it was before in the logistics services industry. That is my business model!” affirms Gene. It would be a model that requires integrity, honor and track record as a businessman to surmount the legal restrictions. Today, UDMC is the holder of three design patents. As we publish this, Gene has entered into a joint venture agreement with DASAN Machineries Co. Ltd of the Republic of Korea. Under the JVA, a subsidiary of UDMC, United Defense Options Corp. (UDOC), will be recapitalized and infused with fresh equity from the Koreans who will then own 40% of UDOC. In the Shareholder’s Agreement, it stated that the Koreans will supply all the raw material requirements for special alloys and machineries from Korea which are sadly not available locally. The UDMC group will now be able to aim for economies of scale.
In the drawing board is another company which is in partnership with former U.S. Navy SEALs that will be engaged in the business of tactical training and overall education of civilians in weapons proficiency, survival skills, emergency medical response, crisis response, OTB invasion, etc. which will all be directed towards civilians acting as effective force multipliers to the regular Philippine military.
A Remarkable Rise as a Global Player in Firearms Innovation
As the TPL services industry in the Philippines began to lose steam around 2009 to 2010, Gene shifted his focus toward nurturing his firearms company. It all started with a bold move—a co-development project for a gas-piston assault rifle with the Philippine Navy SEALs (NAVSOCOM). This collaboration spurred further research and development to enhance the design of conventional firearms. The effort paid off when Gene and his team successfully crafted an improved model of the M16, aptly named the PVAR System, short for the “Pneumatic Valve and Rod” gas-piston system. Their innovation earned them three Philippine patents with such patents he generously shared with the Koreans to improve further upon.
Recognizing the immense potential in the arms industry, Gene deepened his financial commitment to UDMC. Nowadays, he dedicates the majority of his working hours to making UDMC one of the two in Asia-Pacific capable of producing M4 assault rifles and M110 sniper rifles. Today, UDMC stands tall as a pioneering force in the defense industry, with a strategic focus on two key business units. On one front, UDMC manufactures NATO standard rifles, including 5.56x45mm assault rifles and 7.62x51mm sniper rifles. On the other, the company represents foreign principals, promoting cutting-edge technologies like night vision goggles, night fighting systems, force protection systems and other ground application systems to the Philippine military and national police. UDMC also stands out as the only Philippine company that supplies U.S. made Generation-3 night vision goggles to the Philippine military which speaks of its clean track record with the U.S. State Department. Further, it is the exclusive partner and distributor of TRIJICON products in the Philippines.
UDMC rifles have not only made their mark within the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) but have also garnered trust on an international scale. These rifles are now in use by maritime security forces globally, providing protection to commercial vessels and ensuring the safety of cargoes and Filipino crews in the challenging waters of the Gulf of Aden and the Indian Ocean.
A Perspective on Self-Defense and Gun Rights
Amidst the uncertainties brought about by the 2021 Covid pandemic lockdown, the importance of self-defense and gun rights became increasingly apparent to citizens worldwide. Had the pandemic persisted, the possibility of unscrupulous people resorting to invading warehouse and homes in search of food during desperate times was a worst-case scenario that weighed heavily on people’s minds. Then as the war in Ukraine escalated, the importance of defending the motherland became even more imperative. One of the scenes witnessed on TV during the ongoing conflict between Russia and Ukraine was people arming themselves for the defense of their country. It was truly a remarkable sense of duty and patriotism in the mind of Gene, something that could also happen in the Philippines at some point in time.
Gene observed that the conflict in Ukraine created three effects on the defense culture. First of all, it heightened the awareness among the general population, on both sides of the conflict, about the importance of defending their country or territory from armed attackers. This realization underscored the vital role firearms play in defending one’s life and property, fostering a mindset and need for an armed civilian population. With this mindset in place, the second effect was a renewed demand for firearms. Prior to the conflict, Ukraine had relatively strict gun laws. However, these laws were relaxed in response to the escalating conflict, leading to a surge in people arming themselves. The high demand for firearms resulted in guns and ammunition flying off store shelves, with owning a firearm becoming a necessity, especially for the territorial defense forces and civilians supporting the army. Individuals took it upon themselves to arm for defense, demonstrating a sense of self-reliance and urgency.
Gene then elaborates on the third effect, which is pro-gun legislation. In response to the crisis, Ukraine enacted pro-gun legislation, easing restrictions on firearm ownership and allowing for carrying firearms for self-protection. While controversial, these measures underscored the importance of preparedness in times of crisis. In essence, these three effects underscore the importance of gun rights, particularly for national defense and instilling a mindset of defending property and loved ones from criminals and invaders.
Addressing the difficulty of owning a firearm in the Philippines and the associated costs, Gene explains, “Relatively, it is quite difficult. However, it was much harder back in 2013 and 2014. The process had been streamlined thanks to the efforts of the PNP-FEO. But, compared to certain US states and some other countries, obtaining a License to Own and Possess Firearms (LTOPF) in the Philippines is much more challenging.”
So as conflicts abroad highlight the importance of self-defense and gun rights, Gene urges policymakers and citizens alike to prioritize proactive measures. According to him, by fostering a culture of preparedness and ensuring favorable gun legislation, societies can better equip themselves to defend against threats and protect their freedoms.
Just recently, inspired by President Bongbong Marcos’ pronouncements in protecting the exclusive economic zones (EEZ) of the Philippines against foreign invaders, the Philippine National Police who has control powers over the manufacture, sale and distribution of military grade rifles, ordered the lifting of the former President Duterte’s ban on ownership by civilians of semi-automatic rifles in calibers 5.56 NATO and 7.62 NATO, a right enshrined in Republic Act 10591 and which cannot be over-written by a mere “presidential directive” by former President Duterte. The lifting of the ban dovetails with President Marcos’ thrust in Self Reliant Defense Posture Program (SRDP) which will soon be signed into a Republic Act. Here, UDMC, aims to expand into the manufacture of other defense articles that will modernize the defense capabilities of the Philippine military and national police.
Continues Breaking Ground in the Firearms Industry
Looking ahead, Gene envisions an exciting future for UDMC with plans for their expansion and continued impact on the global firearms industry. However, the path forward is not without obstacles. Gene, however, approaches this with a keen focus on pinpoint accuracy at every level of research and development. Even in the face of complexities, Gene, with his Korean partners, U.S. principals and his local team of patriots stand strong, drawing strength from the challenges already conquered. Breaking through barriers has become Gene’s forte, and no obstacle nor shield can stand in the way with his indomitable spirit.