Communication crucial for fab shops navigating a crisis

David Berdass, president at Bermo Inc., poses by a photo of his grandfather, company founder Fred Berdass.

David Berdass has ramped up his staff communication efforts in a big way. During any crisis, and particularly an unprecedented one like COVID-19, communication is extraordinarily critical.

Berdass is president of Bermo Inc., a contract metal fabricator and stamper in Circle Pines, Minn., just north of the Twin Cities. “We take it day by day,” he said, “and the news changes every day. I try not to go on the floor so much, and neither does my plant manager. But I keep employees informed with regular postings, every few days or even every day. We tell everyone the orders we have, what’s changing, and what we’re seeing down the line. And I tell them we appreciate what they’re doing. I make sure they’re not left on an island, where they don’t know what’s going on.”

Like many fabricators, Bermo has been deemed an essential business, considering its connection to critical supply chains. Even so, Berdass doesn’t sugarcoat the situation. Orders have slowed significantly, even from some suppliers of critical equipment.

Part programs are being put on hold. Sometimes it’s because of economic uncertainties, sometimes because of the physical limits of social distancing. One rehab wheelchair manufacturer—a business about as critical as they come—has orders on hold simply because therapists can’t physically fit the severely handicapped into new equipment. It’s difficult to fit a paralyzed person into a high-end wheelchair without physically touching the patient.

Bermo has filled out initial paperwork to apply for the Small Business Administration’s Paycheck Protection Program, a key component of the recently passed government stimulus. It’s aimed to give business loans worth up to 2.5 times average monthly payroll costs (up to $10 million) to cover payroll, interest, and rent. If at least 75% of it is used for payroll expenses, and if headcounts and salary levels remain stable, the loan will be fully forgiven. Layoff is a last resort at Bermo, like it is at many fabricators, considering the hiring challenges the industry faces during normal times. So applying for the short-term loan made sense.

The company’s sales team is now laser-focused on critical supply chains, medical or otherwise. Meanwhile Bermo is using these slower times to ramp up process improvement and training. “I’ve asked our plant manager about housekeeping projects, cleaning, training, and continuous improvement. That’s how we’re weathering the storm.”

During the storm, the fabricator has spaced out its operations, especially in grinding and assembly, to ensure everyone follows physical distancing protocols. Equipment is wiped down, and staff are given gloves and other personal protective equipment so that they can stay safe.

“And obviously, we have policies in place if people have fevers or other symptoms,” Berdass said. “We have monitors in place.” So far, no one at Bermo has tested positive for the virus.

Before Minnesota ramped up its lockdown and closed schools, Berdass met with company leaders to develop a scheduling strategy. They were prepared to change shift hours and even ramp up weekend work to accommodate people's schedules and parenting requirements. “By the time the schools closed, we had no requests,” he said, though he said the company would gladly accommodate. “Everyone has come to work, and no one has complained. I had expected to implement a hodgepodge of work schedules to accommodate employees, but so far we haven’t had to do that.”

“Accommodate employees” is perhaps the key phrase there. It’s always better to face challenges together, something that custom fabricators are keenly aware of. The shop floor depends on good information from the front office (job travelers with no surprises, for instance). Everyone looks upstream and down. The process chain—cutting, bending, welding, grinding, coating, assembly—is only as good as its weakest link. People work together or not at all.

Beating the virus demands physical distance, but not social distance. Teamwork, timely information, and openness have never been more important, and at Bermo, all three are alive and well.