In today’s global economy, customers expect and demand better products at lower costs. This is true of all customers, and they have access to a ready base of alternative suppliers from around the globe. This is the environment that manufacturers and management will continue to face throughout the 21st century.

At EMG, our business is value creation. To create value in this environment, our companies must reduce costs, generate cash, pay down debt, and invest in new innovative products, processes, and technologies – regardless of the business cycle or where products are manufactured or sold.

In underperforming companies, high costs are invariably the root cause of poor financial performance. That’s why we focus first, foremost, and every day on being superior cost managers. At our portfolio companies, we institutionalize continuous cost improvement by teaching and training incumbent management the most aggressive, creative, and disciplined cost management techniques.

Cost management is the foundation of our business system – it’s not a program, a project, or a short-term activity. We work hard to improve quality, because poor quality means higher cost. We insist on meeting and exceeding delivery schedules, because being late adds cost. And we involve all employees in the process of cost reduction, because employees are the best source of cost improvements. The customer challenge to be globally competitive dictates continuous cost improvement.

Cost down, cash up, debt down, and prudent investment in future growth will remain our focus. Through pursuit of this strategy and by creating strong business men and women, we build strong companies with healthy balance sheets that are well positioned for organic and acquisition growth. We will remain selective and patient about acquisition targets. After acquisition, we will never put our companies, employees, and customers in harm’s way by taking on too much debt.

Staying focused, being patient, managing costs – these are the linchpins of fulfilling our responsibilities to our investors and our lenders, to our employees and our customers, in today’s global marketplace.

B. Edward Ewing
Chairman & CEO