Quality Adhesives began its operations in 1999 as a small manufacturer of adhesives that began with the introduction of a chemist to the owner while the owner was calling on a client while still in his trucking business. The two talked of the possibility of partnering to manufacture adhesives in the Midwest. The two came together and Quality Adhesives was born. The company has grown from its humble beginnings to an emerging business enterprise with customers on the Fortune 500 list.

Restructuring its operations in 2002, a strategic decision was made to close the Quality plant in Benton Harbor, replace the board and staff and enter into a strategic alliance with Specialty Adhesives and IFS. Quality placed its equipment in the Kalamazoo plant that was at that time operated by it's alliance partner. Through a joint agreement the two companies made a decision to share resources and manufacture liquid adhesives. Through an arrangement with IFS, Quality became a distributor of hot melt adhesives to mid-sized companies. These partnerships allowed the management of Quality to focus on the strengths of the proprietor, sales, marketing and service.

Changes in the economy and the purchasing practices of major organizations have had a tremendous impact on small business in the US. Quality Adhesives has been impacted as well, with the loss of its largest customer in 2003. The principal made a decision in 2003 to reengineer it's strategy and operations. Again, focusing on the strengths of the company relationships and service, a campaign was launched targeting major corporations with strong supplier diversity initiatives and companies in the food and beverage industry. The time, manpower and finances were committed to the effort and as a result relationships were developed and business was gained.

The vision and mission of Quality Adhesives remains the same. To be a quality provider of solutions that stick to the customers, it services, and to be a good corporate citizen to the community in which it resides. With the strong leadership and vision behind Quality and through its alliance with Specialty Adhesives & Coating, they have the ability to strengthening the economy and provide jobs in the Memphis community, which is the purpose behind the vision. As with all great companies, to have a business for business sake rarely leads to greatness. To conduct business with purpose and build on that business on purpose is why Quality exists and continues to grow.

There are very few minority owned manufacturing companies in the US. The reason for the lack of manufacturing businesses is due to the lack of access to capital and the technical expertise needed to build and efficiently run these operations. Manufacturing in the US is through in general, due to the foreign trade policies and the cost of doing business.

The strategy implemented last year was a costly one. It practically depleted the financial resources of the company. However, it has proved to be a risk worth taking. It is important to the principal of Quality and important to the Fortune 500 customers for Quality to be a manufacturer of adhesives. The value to the customer is not the same when the company is a distributor. Through supplier diversity and community support initiatives major corporations in this country have committed to providing opportunities and resources to people in the communities they serve. Doing business with a minority-owned manufacturing company benefits the customer in many ways:

1. They are recognized as supporting a manufacturer that is providing jobs in their local community, therefore strengthening the economy in which the citizens can buy more of that company’s products or services building customer loyalty.
2. They are recognized and get credit for the dollar value of the business that is done with that minority business enterprise.
3. They build and develop a supplier or partner that can help to strengthen their product or service offering.
4. Increased market share and often times leaner operations because the products or services can be outsourced to the MBE.

All of the above translates into more earnings.

Supplier Diversity Business Case
Quality Adhesives is located in Memphis, Tennessee whose mission is to reinvest in the BH community by providing training and employment opportunities and utilizing local businesses. Over 60% of the gross profit is reinvested in the minority community.