Business Description
Chicago Rivet & Machine Co. was incorporated under the laws of the State
of Illinois in December 1927, as successor to the business of Chicago Rivet
& Specialty Co. The Company operates in two segments of the fastener industry:
fasteners and assembly equipment. The fastener segment consists of the manufacture
and sale of rivets, cold-formed fasteners and parts and screw machine products.
The assembly equipment segment consists primarily of the manufacture of automatic
rivet setting machines, automatic assembly equipment and parts and tools for
such machines.
The principal market for the Company’s products is the North American
automotive industry. Sales are solicited by employees and by independent sales
representatives.
The segments in which the Company operates are characterized by active and substantial
competition. No single company dominates the industry. The Company’s competitors
include both larger and smaller manufacturers, and segments or divisions of
large, diversified companies with substantial financial resources. Principal
competitive factors in the market for the Company’s products are price,
quality and service.
The Company serves a variety of customers. Revenues are primarily derived from
sales to customers involved, directly or indirectly, in the manufacture of automobiles
and automotive components. Information concerning backlog of orders is not considered
material to the understanding of the Company’s business due to relatively
short production cycles. The level of business activity for the Company is closely
related to the overall level of industrial activity in the United States.
The Company’s business has historically been stronger during the first
half of the year.
The Company purchases raw material from a number of sources, primarily within
the United States. There are numerous sources of raw material, and the Company
does not have to rely on a single source for any of its requirements.
Patents, trademarks, licenses, franchises and concessions are not of significant
importance to the business of the Company.
The Company does not engage in significant research activities, but rather in
ongoing product improvement and development. The amounts spent on product development
activities in the last two years were not material.
Demand for our products is directly related to conditions in the domestic automotive
industry, which is highly cyclical and is affected by a variety of factors,
including regulatory requirements, international trade policies, and consumer
spending and preferences. The domestic automotive industry is characterized
by fierce competition, and has undergone major restructuring in recent years
in response to overcapacity, narrowing profit margins, significant pension and
health care liabilities and excess debt.
84.63 %