INNOVATION, POSITIVITY, AND EVOLUTION:
HOW THREE BUSINESSES ARE NAVIGATING THE PANDEMIC
F
or insight into how manufacturers and businesses that rely heavily upon supply chains have been impacted by COVID19, we connected with a few of our clients to hear about their experiences over the last several months. We interviewed Bobby Serrano of Serrano Industries, Inc., a locally owned and operated computer numerical control (CNC) machine shop that produces products for defense, aerospace, and space programs; Chris Long of Drop Labs, a shoe company that relies heavily on an international supply chain, to produce a unique Bluetooth-enabled shoe that delivers ground vibration sensations; and Richard Bergrin of LumaForge, a supplier of custom computer servers that relies on American supply chains for their parts and assembly. From shutdowns and furloughs to innovations and opportunities, here is what we learned.
DEALING WITH COVID-19 Not surprisingly, our clients experienced a range of financial and sometimes emotional blows during the governmentmandated shutdowns because of the pandemic. LumaForge’s customer pipeline has been in a state of hibernation, as many businesses put off buying servers and cut expenses. Serrano Industries has pushed orders out to 2021-2022 nearly across the board. Additionally, aerospace makes up 40% of its current business. That industry suffered immensely due to canceled flights and travel, which in turn impacted Serrano Industries, as they produce custom parts such as airline food trays. Drop Labs had to furlough staff and cut salaries of all employees on payroll by 30-70% to survive the period. The furloughs and pay cuts to their valuable team members took a toll.
POSITIVE IMPACTS AND INNOVATIONS Pictured: Serrano Industries, Inc. 14
KROST QUARTERLY VOL. 3 ISSUE 2 - THE MANUFACTURING ISSUE
Not all hope was lost during this period, as each of these