C.F. Martin & Co. 2023 Impact Report

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C. F. Martin & Co. remains forever committed to being a socially responsible organization, and we want to share that commitment with the world. To that end, we have developed this annual impact report, which details some of our efforts to care for our employees, our community, and the environment. This report serves as a framework to advance these efforts and provide an update on annual progress. Table

THOMAS RIPSAM

Dear Martin Community,

In 2023, we celebrated the company’s 190th anniversary. Throughout its history, caring for employees, giving back to the community through charity and volunteerism, and protecting and honoring the environment have been and continue to be an important part of our core values.

Every year, our entire team at Martin strives to further increase our impact in those areas, and I am pleased to share Martin Guitar’s 2023 annual impact report that highlights many of the accomplishments and milestones for the year that’s just passed.

We continue to invest heavily in our people, whether it’s training, continuing education support, health and benefits, or wellness programs. Our support of the community through charities and volunteerism covers a variety of causes, including education, community service, arts and artists, culture and humanities, and the environment. And speaking of the environment, last year’s accomplishments include the first carbon-neutral guitar in the industry, a solar solution that generates sufficient energy to power our 100,000 square foot warehouse, many examples of the 3 R's (Reduce, Reuse, and Recycle), and hosting our 8th annual wood summit focused on the current and future state of tonewoods.

The journey continues, and we will do our part! We will continue to focus on unleashing the artist within and building the world’s best guitars, ukuleles, and strings.

Sincerely,

Thomas Ripsam President and CEO

For nearly two centuries, the one constant that has made C. F. Martin & Co. special is its people. Without the dedicated employees who show up every day and take pride in making the best acoustic guitars and strings in the world, we would not be thriving today. And we know this will be true for centuries to come. So, it is no surprise that nurturing our valued employees is at the top of our priority list. Here, we will share a few programs in place to ensure our coworkers’ well-being.

employee

WELLNESS PROGRAM

Martin’s wellness program incentivizes employees to participate in wellness activities by reducing their healthcare premiums by 31-79% for an average annual premium reduction of $480.

$480 AVERAGE ANNUAL HEALTHCARE

PREMIUM SAVINGS

WORKER HEALTH and safety

In 2023, we installed an automated friezing machine to carve the channel around the guitar body where the binding is installed. Automating this process protects employees from the discomfort and potential injury of repetitive motion.

HEALTH-RELATED SERVICES new

In 2023, we moved to all non-tiered medical plans, offering coworker deductibles, coinsurance, and copays for services provided. We also increased our employer contributions into Health Savings Accounts across all High Deductible Healthcare Plans.

PLAYER BENEFITS

GUITAR LESSONS

Martin encourages employees to learn to play the guitar by reimbursing them for guitar lessons.

ARTIST SUPPORT

We support our artist employees by actively promoting their gigs to the rest of the company.

EMPLOYEE DISCOUNTS

All Martin employees enjoy a significant discount on two guitars per year, one of which can be shared with a friend or family member.

training OPPOR

In 2023, all people managers were offered leadership training. Managers were offered training in the areas of effective communication, active listening, coaching, goal setting, and leading in an inclusive manner.

TUNITIES continuous IMPROVEMENT PROGRAM

Martin’s Continuous Improvement Program encourages employees from all areas of the organization to develop projects that improve upon our processes. Participants can win a group trip to New York City to see a Broadway play and enjoy a family style dinner together.

$4,000 ANNUALLY FOR CLASSES education

REIMBURSE MENT

We provide employees up to $4,000 annually for classes and $750 annually for books.

competitive COMPENSATION

In 2023, we conducted a nationwide salary study and increased wages across the organization to stay competitive in the marketplace and adjust for recent cost-of-living increases.

At C. F. Martin & Co., we know that we would not be successful without the tremendous support of our customers and the many organizations we partner with to produce our instruments and strings. We are also incredibly grateful to all the musicians across the globe who put their trust in our instruments to bring joy to the world through their music. With this gratitude, we feel a deep sense of commitment to giving back to our local community and the greater music community. Here, we share a few organizations that we supported in 2023.

FEATURED CHARITIES

OLD TOWN SCHOOL OF FOLK MUSIC

The Old Town School of Folk Music teaches and celebrates music and cultural expressions rooted in the traditions of diverse American and global communities. Founded in 1957, the Old Town School of Folk Music provides a wide range of music, dance, theater, and visual arts courses to people of all ages, abilities, and backgrounds. Whatever one's interest, the Old Town School provides broad access to more than 700 accredited class offerings, private lessons, and workshops that span an array of artistic genres. It is the largest community arts school in the country. It currently serves 13,500 students, puts on 7,500 neighborhood programs and 200 concerts in Chicago, has 6,000 school programs, and hosts the Annual Fretboard Summit, for which Martin is a sponsor.

oldtownschool.org

WOODSONGS

WoodSongs is a live audience celebration of grassroots music and the artists who make its broadcast on over 500+ radio stations, on American Forces Radio Network twice each weekend in 177 nations, on every military base and U.S. Naval ship in the world, in millions of TV homes as a public TV series, and Fridays on RFD-TV America’s Most Important Rural Network. In addition to supporting WoodSongs financially, Martin Guitar is the official guitar of the SongFarmers of America Front Porch Movement – a national community of front porch musicians spread out over 97 chapters in U.S., Ireland & Australia.

woodsongs.com

MEALS ON WHEELS LEHIGH VALLEY

For over 50 years, Meals on Wheels of the Greater Lehigh Valley has been passionately committed to serving seniors and adults with disabilities, fostering a sense of well-being and connection within our community. Meals on Wheels of the Greater Lehigh Valley is a private, nonprofit organization serving all of Lehigh and Northampton Counties and portions of Carbon County in Pennsylvania.

mowglv.org

MILLER-KEYSTONE BLOOD CENTER

At Miller-Keystone Blood Center, our mission is to save lives by partnering with our community to provide a continuous supply of blood products and services. Miller-Keystone Blood Center is a member of America’s Blood Centers, a national network of independent, nonprofit community blood centers that provide approximately 60% of the blood products transfused in the United States.

giveapint.org

COMMUNITY MUSIC SCHOOL

Since 1991, Community Music School has proudly served the region by providing music education and performance experiences for people of all ages, abilities, and economic circumstances. Community Music School’s Trappe location holds 20 teaching studios and a 200-seat performance hall. With more than 500 students participating in music programs each week, Community Music School has become the region’s premier resource for the highest quality music education.

cmsmusic.org

FOX CHASE CANCER CENTER

Fox Chase Cancer Center, part of the Temple University Health System, is committed to clinical excellence, research expertise, and community health, and earned a National Cancer Institute (NCI) designation as one of the first comprehensive cancer centers in the country and one of only 51 in the nation to earn this full designation by the federal government’s principal agency for cancer research and training.

foxchase.org

MARTINdonations COMMITTEE

The Martin Donations Committee is a dedicated group of Martin employees who meet quarterly to determine which local and national charities to which the company will donate money. These donations are in addition to the funds donated through the Martin Charitable Foundation. In 2023, the donations committee awarded $186,339 across dozens of charitable organizations, including Northampton Community College, American Red Cross, and New Bethany Ministries.

$186,339

TOTAL DONATIONS

NCC FAB LAB – LUTHIER PROGRAM

The Luthier Program at the Luthier Lab at Northampton Community College (NCC) combines old-world craftsmanship with modern manufacturing to guide participants through the fine art of building a stringed instrument that is both rich in sound and beauty. The course curriculum is comprehensive yet challenging. It encompasses all aspects of guitar building from basic woodworking skills to custom-designed bodies. The program is designed to ensure you master the skills and knowledge needed to be a successful luthier.

AMERICAN RED CROSS – LEHIGH VALLEY HEROES BREAKFAST

The Lehigh Valley Heroes Breakfast, the American Red Cross Pennsylvania Rivers Chapter honors individuals for acts of great bravery, dedication, and service to the community. Proceeds from the breakfast benefit the programs and services of the American Red Cross Pennsylvania Rivers Chapter.

NEW BETHANY MINISTRIES

New Bethany offers hope and support to people who experience poverty, hunger, and homelessness, beileving that all people, regardless of circumstances, should be treated with dignity and care without judgment. No one who seeks help is turned away.

EMPLOYEE donations

Each year, we match up to $250 per employee for any local or national charity that is close to their heart. In 2023, we collected and matched over $47,850 in charitable contributions for organizations that included United Way, Meals on Wheels, and the YMCA.

$47,850

GUITAR donations

Throughout the year, we donate guitars to support organizations that provide much needed environmental awareness education and provide music education and tools to aspiring musicians who may not otherwise have the opportunity. In 2023, we donated guitars to Reverb, Save The Music Foundation, GAMA, and IBMA.

REVERB.ORG

Leading the green music movement since 2004, REVERB is a 501c3 nonprofit that partners with artists, festivals, and venues to reduce their environmental footprint while empowering music makers and millions of music-lovers to take action on today’s most pressing environmental issues.

SAVE THE MUSIC FOUNDATION

As one of the leading music foundations in the United States, Save The Music Foundation supports their partner communities by donating instruments and music technology, providing support services for teachers, and advocating for music education.

GAMA

The Guitar & Accessories Marketing Association (GAMA) is a trade association comprised of manufacturers, wholesales, and distributors of guitar and guitar-related prodcuts. Their mission is to grow the guitar community by promoting greater access to learning and playing guitar.

INTERNATIONAL BLUEGRASS MUSIC ASSOCIATION (IBMA)

The IBMA is the nonprofit music association that connects, educates, and empowers bluegrass professionals and enthusiasts, honoring tradition and encouraging innovation in the bluegrass community worldwide.

SANGHA MUSIC SCHOOL

We donated acoustic guitars, a drum kit, guitar strings, and t-shirts to Congolaise Industrielle des Bois (CIB) in support of Sangha Music School. This cultural initiative brings the joy of guitar playing to all ages.

community ACTIVI TIES

UNITED WAY’S DAY OF CARING

Each year, Martin employees participate in United Way’s Day of Caring. In 2023, the project was to help spruce up the South Allentown Early Education and Childcare Center's outdoor space by staining the pressure-treated wood. The center provides programs for infants through school age, where they offer a full-day, engaging, and fun-filled summer school-age program, along with transportation during the school year. The South Mountain location has space for both indoor and outdoor gross motor recreational activities. The infants and toddlers have a dedicated space. The preschool and school-age children have a well-equipped gym. Both spaces are perfect for rainy day gross motor exploration. They also have two age-appropriate outdoor fenced-in play areas for safe, outdoor adventure: one for infants and toddlers and another for preschool to school-age children.

UNITED WAY’S LEADERSHIP EVENT

Nearly 140 United Way of the Greater Lehigh Valley Tocqueville Society and Leadership Circle donors gathered at the Martin Guitar Museum in Nazareth for an evening of appreciation. The evening included an exclusive factory tour, a first look at the Joan Baez Exhibit, and a performance by Craig Thatcher.

ANGEL TREE PROGRAM

Each year, we buy Christmas presents for underprivileged local families using The Salvation Army's angel tree program. In 2023, we had 5 vehicles stuffed full, and we were able to sponsor 42 children.

HOLIDAY OPEN HOUSE

Each year, we open our doors to the community for free tours, live music, delicious cookies, and even a chance to meet Santa.

TOYS FOR TOTS

We provide a collection box for employees to contribute to the Toys for Tots program.

Protecting the environment is of utmost importance to C. F. Martin & Co. Whether it is supporting reforestation projects, using alternative tonewoods, minimizing waste, or saving energy throughout our facilities, we keep sustainability at the forefront of every decision we make. We were the first guitar manufacturer to implement an environmental policy in 1990, achieving Forest Stewardship Council® (FSC®) Chain-of-Custody certification (License Code FSC-C008304). Ever since, we have collaborated with numerous environmental organizations because we strive to be good stewards of the planet and because, at Martin, every day is Earth Day.

REFORESTATION support

WE PROVIDED FINANCIAL SUPPORT TO A REPUBLIC OF CONGO HOSPITAL

WE ALSO SUPPORTED REFORESTATION EFFORTS IN NICARAGUA, COSTA RICA, AND PENNSYLVANIA.

WE PROVIDED FINANCIAL SUPPORT FOR CENTRAL AMERICAN REFORESTATION

that serves the indigenous population where we source FSC®-certified ebony, sipo, and sapele wood. of cocobolo and rosewood through Hearne Hardwoods and Diamond Tropical Hardwoods.

NATIVE TREES PLANTED IN MEXICO

We participated in one of the biggest green movements in Navojoa, Sonora, Mexico, where we planted guamuchil trees, a local tree that produces fruit of the same name. Other organizations that participated include the Red Cross, the Lions Club, and the Rotary Club.

In addition to providing financial support, Martin employees helped the Wildlands Conservancy plant 700 native trees in 2023. That's the largest tree planting in Wildlands Conservancy history. The trees will grow up to support habitat, improve water and air quality, reduce erosion, and beautify the landscape.

700 NATIVE TREES PLANTED IN ONE DAY

PARTNERSHIPS and events

PREFERRED BY NATURE CERTIFICATION

Martin received Preferred by Nature Sustainability

Framework certification for the Martin OM Biosphere guitar, making the company the first to achieve this certification in the U.S., and only the second worldwide.

8TH WOOD SUMMIT

We hosted our 8th Wood Summit at our headquarters in Nazareth. Pa., with the purpose of bringing like-minded organizations together to discuss the current and future state of tonewoods. This year’s summit focused on Tonewood Species Under Pressure and included representatives from U.S. Fish and Wildlife, the World Resources Institute, ForestBased Solutions, Preferred by Nature, the International Wood Products Association, and the Environmental Investigation Agency.

REDUCE RECYCLE

SOME HIGHLIGHTS INCLUDE:

• We implemented post-consumer recycled cardboard resale cartons.

• We replaced poly mailers with cardboard and Henkel cushioning and mailers.

• We installed solar panels at our Commerce Lane distribution center.

• We added an Electric Subaru to our fleet of corporate vehicles.

• We upgraded our electric meter in our Navojoa facility and partnered with a supplier that has a larger percentage of renewable energy (hydroelectric) in their portfolio.

• We changed our instrument hang tags to recycled paper.

• Employees completed 67 continuous improvement projects in 2023. More than 50% of these projects had sustainability benefits. This is a 30% increase over last year. On top of saving hundreds of thousands of dollars for the company, these projects also helped our employees, communities, and the environment.

FSC-C008304

OM BIO

Launched the second in models made with FSC® certified wood and are 100% plastic free bag is made from hemp—a Martin first.

The Forest Stewardship Council® (FSC®), founded in 1993, is an international, nongovernmental organization that was established to create global standards for responsible forest management, with the goal of protecting forests for future generations.

a word from

CHRIS MARTIN

Two things I’m proud of: starting the Martin Guitar Charitable Foundation 28 years ago and my personal commitment to embracing alternative materials to make Martin guitars.

The Martin Foundation is a strong leg of what I like to call the three-legged stool approach to giving.

The foundation gives, the company gives, and I give personally. Together, we make a significant contribution to our local community and the larger community of guitar builders and players.

Championing alternative materials is my way of acknowledging that the term "rare and exotic hardwoods" is very true today. Unfortunately, many of the exotic woods we use are becoming rarer.

I want to encourage you to be generous when you can. I also want to encourage you to consider a guitar that is built using alternative and more sustainable woods the next time you buy a guitar.

Sincerely,

C. F. Martin IV Executive Chairman