Committed To Successful Independence

JandJ Industries Inc., Dalton, Ga., is committed to independence. According to Jim Jolly,
chairman and CEO: “Our whole focus is on our marketplace and is driven by a desire to meet the
needs of our customers. “We feel that this can best be done by remaining independent. This
independence permits us to be very flexible and quick on our feet as well as allowing us to work
with all of the various distribution systems currently in place.” Jolly feels this flexibility
serves the firm well and helps to deliver the very best in product and service to its customers.
Performance Objectives And LeadershipAnother key component supporting the firms independence is its
participation in training and development of leadership and succession within the company.
Management has continued to place more and more emphasis and commit more resources to training
within all levels of the organization. Along with the training and other resources, JandJs
leadership team shares a mutual vision. The company has set four key objectives for this year:
10-percent growth in volume, increased speed to the marketplace, elimination of barriers between
departments and leadership development. Management still holds the key to success or failure in
business. Whether fate drops an opportunity in your lap or hard work has paid off, it still takes
decision-making skills to continue prospering. JandJ has always had a strong leadership team, but
larger efforts to broaden and strengthen began in March 1999 with the promotion of Jim Bethel to
president and chief operating officer, along with the promotion of Bob Hubbs to vice president of
service and customer relations, and Louis Fordham to vice president of human resources. Those,
along with current officers Fran Brantley, vice president of products and planning; Lee Martin,
vice president of sales; Ray Moss, vice president of manufacturing; and David Jolly, vice president
of marketing and contract services, make up the top leadership team.”I am extremely proud of this
team and am gratified to serve with them,” Jolly said. “Our team represents a tremendous number of
years of experience as well as providing some youth and vitality for balance.” JandJ has also
embarked upon a program that is called Leadership 2000, where a core group of associates are
involved in a comprehensive leadership development program which will last through 2002.
Environmental Issues

“In our business of calling on various specifiers of our product, we are dealing with the
most environmentally conscious group of people anywhere,” Jolly said. “We are continually quizzed
and pressed about our commitment to and role in environmental issues, and we certainly have many
different initiatives underway. “We have dramatically reduced our solid waste streams to the
landfill and are now delivering 16 percent as much solid waste as we did in 1992 when we initiated
this effort.” In recognition of these accomplishments, JandJ received the national Keep America
Beautiful award in 1996. The firm has also substantially reduced its environmental impact by
eliminating the hazardous waste generated from parts washers and by removing methanol from the
adhesive that is sold for glue-down applications.Continuing to work hard on its Buy Recycled
program, JandJ has increased the percentage of recycled items purchased dramatically year by year.
“Our solution-dyed nylon, Encore® SD Ultima®, is manufactured with a minimum recycled content of 15
percent,” Jolly said. “We continue to work with key suppliers to encourage their supply of recycled
content products.”In addition, JandJ is actively involved in the Georgia Pollution Prevention
Partners Program and with all of its fiber suppliers in recycling used carpet, thereby keeping
these products out of the landfill a major accomplishment. Increased VisibilityHistorically known
as the “quiet company” within the industry, JandJ decided there was a need to do a better job of
promoting the company and its products to the public. “We have embarked on a major program during
the past year to increase our advertising activity both with JandJ Commercial and with Invision
Carpet Systems,” Jolly said. “We have also performed a complete redo of our sample portfolios and
product presentations within each division. We are committed to being more involved with the public
relations aspect of our business.”The firm has always had a great public relations image within the
local community. “We have a very active leadership role in many civic, industry and church
organizations, but we have not had equal recognition and appreciation where our products are bought
and used,” Jolly said. “In my opinion, we have made great progress in this area and will continue
to do so.” Products And Marketing

JandJs largest market within both lines is the corporate office market. The firm enjoys an
ideal situation with the two lines in that they are very complementary rather than being in
conflict with each other.Invision is a beautifully styled, exciting, boutique-type product, whereas
JandJ Commercial represents one of the finest values across the board within the industry. Invision
price points begin where the JandJ Commercial price points end. This gives a very broad range,
meets the needs of customers and brings great synergy to people in the marketplace. “We continue to
invest in the machinery that gives us the necessary technology and capability as we continue to
serve a marketplace that demands more and more texture and pattern,” Jolly said. Machinery And
EquipmentTo continue its growth and prosperity as an independent within the carpet industry, it has
been necessary for JandJ to vertically integrate to the maximum extent and become as
self-sufficient as possible. Thus, the firm is involved in all steps of the manufacturing process
from fiber extrusion forward, with the exception of yarn spinning. A major expansion is being
completed in the twisting and heat-setting facility, which supplants any need for a yarn-spinning
plant. JandJ uses Card-Monroe Corp.s (CMC) latest technological achievement YARN-trONICS
(Computerized Yarn Control System). Unlike a typical scroll attachment, the system has rolls which
are accessible and spaced so that hands fit between, and the operator can thread in seconds. For a
typical 96-roll scroll, the YARN-trONICS has 672 fewer primary wear points than existing scroll
attachments. Controlled entirely by electronics, the system uses a programmed floppy disk for
transfer of pattern information to the computer. In fact, the system is user friendly for the
operator, mechanic, designer and management. A Bright FutureAs a leader in the industry, JandJ
provides customer-driven performance improvement solutions through quality consultation, products
and services. When the downstream distribution began three and a half years ago, a tremendous
amount of uncertainty existed with everyone. Specifiers and designers were caught in the middle
with making recommendations. But things always have a way of working out, and interestingly enough,
JandJs business during the past three years has been the best in its 43-year history. “We have been
fortunate to have been profitable in each of our 43 years, but the last three have been our
strongest by far,” said Jolly. “I dont know whether these distribution alignments by others have
helped our business, but they certainly havent hurt us.” This firm is one that generates profits
and cash flow, eliminates items that do not help the bottom line and diversifies only within the
companys core competencies. With a top-notch management team, proper training for key employees,
vertical integration, the right products and the ability to match customer demand with planned
production and inventories, the future does indeed look bright for JandJ.

June 2000