Leadership lessons emerge from the metal fabricating community during this pandemic

Plenty of metal fabrication and manufacturing leaders are emerging during this COVID-19 crisis. Here are some lessons that any fab shop manager should keep in mind. Getty Images

Good leadership in a robust economy keeps people focused on goals and engaged in their everyday tasks. Good leadership during a crisis keeps the entire organization from falling apart. These are the days in which confident and capable leaders are needed.

In metal fabricating, you don’t have to look far to see some outstanding examples of leaders making the right decisions for their organizations. In some instances, these decisions have helped to keep operations going even as competitors struggle. At other times, a small action has helped to keep employees informed and hopeful while current business conditions aren’t the greatest.

As Vince Lombardi, former coach of the Green Bay Packers, once said, “Leaders aren’t born, they are made.” Well, plenty of them are making their way during this COVID-19 crisis. Here are some lessons that any aspiring leader should copy.

1. Lean on experts

Steve Banker, a contributor to Forbes, wrote a revealing story on how AGCO was able to keep its Chinese factories stocked and ready to roll once government-mandated shutdowns ended. The secret was listening to its own employees on the ground. As a result, the multinational agricultural equipment manufacturer wasn’t caught with its pants down.

AGCO’s supply chain leadership team meets once a week to go over supply chain issues, improvement activities, and performance. In mid-January it heard from its Chinese employees about what would become the coronavirus crisis. By the third week of January, company leaders had assembled a task force team to manage the crisis. That team is still meeting today.

As China was beginning to institute a shutdown, AGCO was already preparing for what would happen when factories ramped back up when restrictions were lifted. That meant assembling enough personal protective equipment not only for their own Chinese plants, but those of their key suppliers, who pledged to work on AGCO orders before those of other customers.

Factories in China, outside of Wuhan, opened up on Feb. 10, after a two-week shutdown. After getting used to social distancing rules for production and breaks, AGCO started to hit pre-shutdown production levels by the third week back.

Obviously, developing an agile supply chain like this doesn’t occur overnight. But a culture of trust and empowering people to make decisions based on the right information often leads to the right decisions being made. That’s something a company can start working on right away.

2. Honesty is a good policy

People don’t know what to make of the current economic environment. Everyone knows someone who no longer has a job because certain businesses can’t operate when social distancing is the remedy to stop the spread of the coronavirus.

Those that do have jobs, however, they are wondering if they might be next. That’s where it helps to get the latest information and honest assessments from company leaders.

“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,” said David Berdass, president, Bermo Inc., a contract metal fabricator and stamper in Circle Pines, Minn.

Senior Editor Tim Heston shared Berdass’ perspective in a recent blog. The fabricating company leader wanted to ensure that employees aren’t left in the dark, left to fill in the gaps of information with gossip or ill-informed opinions. With facts, people can operate without fear, even if reality may be tough for the moment.

To succeed, a fab shop needs everyone working together. When they have the facts, they can come together and get the job done without being sidetracked by doubt or innuendo.

3. Show some empathy

Sometimes it helps to know that people really care. Sure, it doesn’t immediately solve a dilemma, but sometimes just knowing that someone has your back makes it a little easier to get through a day.

When municipalities in the Santa Clara Valley enacted shelter-in-place orders for people working in “nonessential” businesses, Eric Friederichs, owner of Master Metal Products, San Jose, Calif., already had one front-office employee working from home because he was undergoing chemo treatment. Soon others were sent home. Three of the company’s 14 employees remained as of early April as they performed some important work, but after that, Friederichs said he would only respond to those customers that had “essential” work, parts related to a key supply chain.

“I won’t allow my guys to work on those other projects right now,” he said.

It’s about keeping the work family safe and healthy. After all, they are the company, not the building, not the equipment, and not the inventory. Leaders recognize the importance of that, and people choose to follow those with that perspective.