National Presto Industries, Inc.

Climate Impact & Sustainability Data (2013, 2022)

Increased costs for raw materials, energy, transportation, and other supplies.
Reliance on third-party suppliers in Asia for housewares/small appliances, making the segment vulnerable to supply interruptions and foreign business risks.
Dependence on key customers in the Housewares/Small Appliance and Absorbent Products segments.
Seasonal sales in the Housewares/Small Appliance segment.
Challenges in developing and introducing new products.
Potential for product recalls or lawsuits.
Potential for imposition of industry sustainability standards.
Industry consolidation in housewares/small appliances.
Reliance on sales to U.S. Government entities in the Defense segment.
Potential decline in or redirection of the U.S. defense budget.
Inability to react to cost increases due to fixed-price government contracts.
Risk of product failure in the Defense segment.
Potential for subcontractor failure in the Defense segment.
Increases in costs for raw materials, transportation, energy, and other supplies in the Absorbent Products segment.
Challenges in developing and introducing new absorbent products.
Inability to operate the Absorbent Products manufacturing facility at full capacity.
Risks associated with acquisitions.

The Company makes every reasonable effort to prevent supply chain disruptions and cost increases.
The Absorbent Products segment has implemented a customer diversification program.
The Company is self-insured to specified levels for product liability claims and maintains product liability insurance for claims above those levels.
The Company vigorously protects its intellectual property rights.
The Company intends to continue its investment strategy of safety and short-term liquidity throughout its investment holdings.
The Company expects to continue to evaluate acquisition opportunities that align with its business segments and will make further acquisitions, as well as continue to make capital investments in these segments per existing authorized projects and for additional projects if the appropriate return on investment is projected.

Provides its employees with competitive salaries and bonuses, opportunities for equity ownership, opportunities for continued learning and growth and a robust employment package that promotes well-being across all aspects of their lives, including health care, retirement planning and paid time off.

Increased costs for raw materials, energy, transportation, and other supplies.
Reliance on third-party suppliers in Asia, making the company vulnerable to supply interruptions and foreign business risks.
Highly seasonal sales dependent on US retail markets and consumer spending.
Potential for product recalls or lawsuits.
Industry consolidation.
Reliance on sales to US Government entities, with the risk of contract loss or budget reductions.
Inability to react to cost increases due to fixed-price government contracts.
Risk of contract termination.
Subcontractor performance issues.
Extensive laws and regulations for US Government contractors.
Startup nature of Safety segment businesses.
Reliance on third-party suppliers in Asia and Mexico for the Safety segment.
Regulatory constraints impeding sales of Safety segment products.
Dependence on software, hardware, and wireless infrastructure for Safety segment products.
Potential for unsuccessful new product development in the Safety segment.
Risks associated with acquisitions.
Information technology system failure or security breach risks.
Negative impacts from pandemics or similar public health crises.

Maintaining conservative financial practices (no debt, adequate balances to fund operations).
Efforts to select and develop relationships with reliable vendors.
Product diversification and new product introductions.
Self-insurance and product liability insurance.
Vigorous defense of tax assessment in Mississippi.
Efforts to prevent supply chain disruptions.
Diversification of material sources in the Defense segment.
Maintaining a robust employment package for employees.