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04 Annual Report >> Segment Review : Residential | Commercial | Aluminum | Industrial | Specialized   Glossary

Industrial Materials     We are North America’s leading supplier of drawn steel wire, and a major producer of welded steel tubing. About half of the wire we produce and roughly one-quarter of our tubing is used by other Leggett businesses. Other customers include bedding and furniture makers, mechanical spring producers, and automotive seat manufacturers. Our businesses also produce specialty wire products (things like cotton bale ties, and boxed and shaped wire), and equipment used for baling agricultural products and recyclable waste. We also cut, form, and paint steel tubing used for automotive seat and ATV frames, components, and recreational vehicle accessories. Competitive Advantages High quality products and service, and low cost make us the leading producer in the markets we serve. Cost advantages result from our internal production of steel rod (the material used to make wire), high volume purchasing, economies of scale, efficient facilities, use of automation, and low labor content. Consistently delivering one of the industry’s highest levels of product acceptance, coupled with our focus on customer service, allows us to meet and exceed customer expectations. Key Strategies The core strategy of our wire and tubing businesses is to efficiently supply other Leggett businesses’ raw material requirements. Growth, to a large extent, will occur as our internal requirements expand, both domestically and abroad. We will also grow as we work with trade customers on programs that improve their efficiency (for example packaging multiple components supplied by other Leggett operations). Finally, we will expand our capabilities to add value through forming, shaping, and welding of our wire and tube. This may occur through start-up operations or acquisitions. Major Product Groups • Steel wire • Specialty wire products • Welded steel tubing • Fabricated tube components