What's New at Independent Can - 2016

As we enter 2016 it is important that we take a look back to enable us to truly move forward.

In the World around us in 2015 there were some really good things that occurred, as well as some really troublesome events.

• Syria- the conflict and war
• ISIS
• Terrorist attacks in France and around the world
• The Pope visited the USA
• Cuba- Opening relationship
• USA- Citizen/ Police unrest
• European refugee crisis
• USA- Presidential Election season began
• USA- Low inflation
• USA New employment- 5.2 million hired
• USA Job Openings- 5.4 million

Our world as we know it today is more affected by world events now than any other time in history. If China reports a change in their economy our stock market goes up/down the next day. It is more important than ever that we learn to deal with information overload.

With this said we all must commit to activities that we are able to control and manage.

Today Independent Can Company is more focused on our Mission Statement and what it means:

To Be The Best – Not The Biggest

The Definition:

If all members of the Independent Can Company family do the best at their respective task each and every day then the following expectations should result:

 Loyal customers, loyal employees, employees’ expectations fulfilled, Company growth, job security and profits sufficient to meet reinvestment needs and a fair return.

 Thank you to all of our customers and employees for helping make us a strong and focused company.

What will be our focus in 2016?

 The greatest focus will be on:  Dates Matter

What does this mean?

This means that our intention is to manage our order book to meet the customer’s expectation every time. This is a big statement and in a nut shell it says- When we agree with our customer to ship an order on a specific date our goal is to be ready to ship on that date. We will be establishing tracking systems to measure our effectiveness.

What are we doing to achieve this goal and how long will it take us to make this reality?

• We are emphasizing on training throughout the business from our sales force through to the shipping department
• We are working on bar coding and location systems throughout manufacturing
• We have lean projects focusing on specific areas of the manufacturing processes to improve changeover effectiveness and quality.
• We will be asking customers to provide realistic forecasts, order and delivery dates and to release goods per this schedule. When schedules change let us know so we can adjust.

As I asked above- How long will it take to achieve this goal at a very high level?

• Lithography: One year ago we installed a scheduling process that has provided predictable results. We will now build upon this model to add additional capacity.
• The can plant is a much more complex process. Commitment to the installation and integration of this process has been embraced by all four of our can manufacturing plants.
• We are forecasting an 18 – 24 month timeframe to accomplish all of the goals which we believe will allow us to become World Class.

Safety, quality, productivity, investment, innovation etc. are very much part of this journey of activities which we must manage throughout the process. We have every intention of thriving and growing through these tumultuous times. We are asking our ownership, employees and customers to provide continuous input and feedback as to how we are living up to their expectations and to challenge the leadership to constantly improve performance and results.

Also in 2016, in the interest of growth and planning for the future, Independent Can’s Distribution Division is being relocated from Ontario, California to Tolleson, Arizona. This new facility in Arizona is 35,000 square feet, resulting in an expansion of 14,000 square feet of space. Our commitment to offering customers product variety while absorbing the logistic challenges, now and in the future, has been strengthened by this move. The facility opened on January 4th 2016.

Thank you for your part and I welcome any questions, concerns or input as to how Independent Can Company can be a more responsive company.

Rick Huether

President and CEO