Page 2
A Chat With
The Chairman
We often hear it said,
“I am one. I am only one. What can I do?” That’s not an
unusual lament. We have big business, big government, big in
stitutions and big organizations. What can one solitary person
do? Does one human being really count? We say with certainty.
“Yes, one person does count.” One human being counts more
than all the bigness in the world.
America’s system of government was founded on fundamen
tal human dignity, assuring the right of the individual to
precious freedoms and God-given liberties. As Alexis De Toc-
queville put it, “America is great because America is good.”
And America is good because her people are good.
Our system is called “free enterprise” because it is a method
of conducting business through private ownership which, coupl
ed with our democratic form of government, allows the in
dividual to benefit from his own efforts, his own ingenuity and
his own desire for risk taking, and to achieve those goals in life
which he alone has set for himself.
People, as indidivuals, have rights to individual freedoms;
personal, social, political, economic, religious. But freedoms
are not free. Every freedom has a responsibility - the greater
the freedom, the greater the responsibility. That responsibility
- and those freedoms - don’t reside mainly with groups or in
stitutions, but with individuals.
We believe in the power of one, “I am one. I am only one. But
I will do what I can do.” The power of one is awesome. And the
more people know it, the stronger America will become.
In order to work, our economic system must be freed of all
but the minimum of government control. It must allow men and
women to work as they see fit and to do those things they want
to do and do best. Only with these basic freedoms has the free
enterprise system been able to develop over the years, beyond
any doubt, into the greatest economic system on the face of the
^rth. Are we taking it for granted? Are we about to lose it? If it
is to be preserved, whose responsibility is it to fight for its
preservation?
It all begins with the power of one ... You. “Why me?” you
say. Why not? You’re the best there is, aren’t you?
yp
The President’s
Corner
As we start the second quarter of our fiscal year, I would like to share with
you our picture of the economy at this time. It is no secret to many of you that
business conditions have been slow for the past several months. To understand
the current conditions, it is perhaps beneficial to review the last two years.
Coming out of the recession of 1982 retailers found their inventories depleted
and had a very difficult time having the proper stock to satisfy consumer de
mand. Business was very strong for them and for us throughout the entire year
1983. Because of the success of 1983 most of our customers planned for sales in
creases in 1984 in excess of 10 percent over 1983. Some of them even planned for
increases in the range of 15 percent and made purchases during 1984 to support
these sales plans.
In the Fall of 1984 it became evident to most of them that the sales increases
would range only in the area of 6 to 8 percent, and they would be overstocked. At
that time they slowed their buying, and many of you will remember that they
dramatically cut their prices to move this inventory out of their stores. This was
the cause of many of our customers having disappointing earnings for 1984.
Unfortunately this price cutting done by them for Christmas of ’84 did not
completely reduce the inventory bulge that had been created at the retail
counters. Throughout the first quarter of 1985 they have continued to cut inven
tories. Although some of our customers have done better than others, in general
their sales have shown a modest increase during this period of time. To reduce
their inventory, they have had to curtail their buying a great deal more so that
intake could remain less than their sales.
It is our belief that the end of this inventory reduction is near. Although it is
never possible to pick an exact time that conditions will improve, it is our belief
that there will be some noticeable improvement around May or June of this
year. Even with this improvement expected, it is my belief that the turnaround
will not be sudden or dramatic, but will be a gradual, moderate pickup through
the summer months.
Many economists are predicting an overall growth rate for the U.S. economy
of 3 to 4 percent for 1985. Although this is growth, it is slower than 1983 or 1984. If
the economists are correct, what we may have in the long run is a rather steady
business without the violent ups and downs of the past, with very little inflation.
In the meantime, it is our job as suppliers to these customers to be more
aware than ever of our service, our quality, and our productivity. In these ex
tremely competitive conditions, there will still be successful companies and
they will be the ones who perform those three things the best.
Elsewhere in this p>aper is an announcement of our 1984 earnings, with which
combined with Silver Knit’s earnings, give our Corporation all-time record pro
fits for last year. It is important that we understand that these profits will be
part of the funds we utilize to do some heavy investing in new equipment in the
next few years to make us even more productive and competitive.
M entire new generation of hosiery equipment is being made available to our
m ry. It is very expensive, but those companies who wish to remain in our
business will have no choice but to invest in this new technology. As we go for-
war wi our plans for the new equipment, I will share with you more informa
tion about it in future columns.
/)l,
$ What Profits Do $
Amco News
Introduces
The “bottom line” or the profit
picture is something which all
businesses must watch closely.
But who profits from profits?
People do!
Let’s look at the record;
jsis/x
AMCO NEWS
AprU 1985
Vol. 41. No. 1
AMCO NEWS is edited and
produced quarterly by
Adams-Millis Corporation, 225
North Elm Street, High Point,
North Carolina. Contributions,
comments and suggestions
are always welcome by your
production staff.
Jackie Barnard, Editor
1. EMPLOYEES PROFIT. If
employees make a good product
that people want to buy, and it is
sold at a price they are willing to
pay, sales go up and good jobs are
assured for those who want to
work.
2. OWNERS PROFIT.
American businesses are mostly
owned by individuals who buy
shares of stock and expect to get
a return on their investment.
With their money, the
“company” is able to expand its
facilities, increase its sales ac
tivities, conduct research and
more. When companies make
profits, more investors will want
to buy their stock. There’ll be
more money to expand and more
jobs created.
3. SUPPLIERS PROFIT. When
suppliers sell more of their pro
ducts or services to companies,
they create more jobs for their
employees and the process
benefits everyone.
4. NEIGHBORS PROFIT. Pro
fitable companies pay taxes to
support local, state and federal
governments. Profits are
distributed through taxes to
schools, highways, recreation,
the needy, etc.
5. CONSUMERS PROFIT A
healthy company, making a
reasonable profit, is able to im
prove products and offer better
products for less money. So the
consumer benefits.
Then, who profits?
Five sets of people:employees,
owners, suppliers, neighbors and
consumers.
A profitable company creates
jobs, which create more sales for
suppliers, which mean more tax
money for the community, which
means more people invest in
business, which results in a bet
ter product...and so the wonder
ful circle continues.
The system works! Profits
benefit everyone.
Without profits, businesses
shrivel and die. So do companies.
And so do communities.
People and profits...Together
they make business possible.
Reprinted from CAI
Management News letter
JoAnn John.
JoAnn is receptionist
in Kernersville.