1983 FIN – ‘Black Ink Brings Glow to Chicago Rivet’
8/15/2009 5:20:00 PM
FASTENER HISTORY
June 1, 1983 FIN – Crain’s Chicago Business featured Chicago Rivet & Machine Co. for cost cutting leading to profits.
Under the headline “Black Ink Brings Glow to Chicago Rivet,” the May 16, 1983 Crain’s reported the manufacturer’s first quarter show a 4% decline from the same period a year before to $6.9 million – but did report a small profit.
For all of 1982, sales were $25 million – down about one fourth from those racked up in 1981 – and net income was $387,397, compared with 1981’s record net income of $1.7 million.
Staying in the black has called for some drastic cutting by the company of both personnel and inventories. The workforce is now 550, down from a peak of 950 employees in July 1981.
At the same time inventory has been reduced about $2.2 million to around the $5 million level.
One bright spot has been productivity, which chairman John Morrissey attributes to installation of $835,052 in capital equipment. Both president Robert Brown and Morrissey see better things ahead for the rivets and fasteners, which the company produces, but they are only cautiously optimistic about an improvement in the auto business, which accounts for about 40% of company sales.
In the future they plan to keep a close check on costs and inventory levels and they also are going to be doing some paring to turn around the losses at Chicago Rivet’s Steel & Wire Company subsidiary in Chicago. 1983/2009 Fastener Industry News.
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