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Mqnufocturers

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Sold lhrcush fobber to Lumber Yads Only and guests then treated themselves to a litile ,,fun on the town',a dinner dance and floor show at San tr rancisco's famous Bimbo's 365 Club in the heart of the North Beach entertainment belt.

New AWI Survey Puts 9potlighr On lUlillwork Profit Fqctors

The Architectural Woodwork Institute has completed a detailed member-company survey of 28 factors contributing to millwork profits. The result is tiUed "A Study of F-,actors Affecting profits in Special Millwork Plants.', It has been published in chart form and is available free from the AWI, a trade association of leading architectural millwork plants, with its active members drawn from virtually all parts of the U.S. and Canada.

Early in 1960 members were asked to submit sales, profit and other figures answering'a detailed questionnaire, with the returns being made through an independent C.p.A. firrn which removes all identity. The data, in turn, was analyzed and interpreted by a committee of millmen experienced in problems peculiar to the industry. A high percentag'e of the AWI membership cooperated, and the study is believed to be one of the most accurate and comprehensive ever presented in the millwork field.

In each of the 28 factors covered, the chart gives an upper quartile figure which is half-way between that for the plant at the top and the median point; a lower quartile figure, half-way between the plant at the bottom and the median, arrd the median figure. Rates of profit are shown, as is the ratio between high and low.

It is expected that presentation of the figures in this manner will make the chart equally valuable to larg'e or small plants, and to those where profit figures need bolstering as well as to others reporting a satisfactory net.

The chart shows a median figure of 2.64/o profit on sales for all companies, before Federal income tax, and says: ..This is the yard- stick of success by which all factors were tested."

The upper quartile figure for this factor was i.7/o: the lower quartile figure was 0.4Vo. The commentary accompanying the chart mentions further:

"The percent of profit on sales figure is very low by any standard. I'ortune Magazine gives for all manufacturers last year (1959) a percentage almost exactly that shown in our upper quartile figure. Our median figure is about half that for all industry."

AWI ofreers emphasize that careful analysis of all the 28 fao(Continueil on Page 45)