Getting the product ready: A small team at Jordan Manufacturing in Monticello can produce 60 to 70 masks per minute. CNHI News Indiana photo by Tony Walters
Many small businesses have been crushed by COVID-19, with many of those businesses losing customers and scrambling to stay alive.
But many have found ways to adapt, from finding funding to turning the virus into an opportunity.
Oakley Brothers Distillery in Anderson was one of those companies “honored to have the ability to provide for our community,” said Layne Carpenter, spokesperson, adding that the distillery “would not hesitate to do it, again, if the occasion arose.”
After seven years as a spirit manufacturer, ranging from everyday varieties to unique blends, Oakley Brothers transitioned to hand-sanitizer production and was able to keep all employees and two volunteers on staff.
The distillery’s 14 employees went from making spirits to lifting spirits in February when “we started seeing a shortage on the market,” Carpenter said. “We wanted to keep our front-line workers and community safe. Our team pulled together and did everything that they could to ensure our community was safe. [We] couldn’t be more proud of our employees.”
Oakley Brothers received containers for the hand-sanitizer from Prairie Farms, OI Brockway Glass Company, Inc., and Lowe’s, which transformed the project into an even broader scope of community working together for the greater good, according to Carpenter, who was beyond thankful for the generosity.
And although the company has since returned to its spirit-making because the market has, once again, become saturated with sanitizers, Carpenter said her business would not think twice about providing assistance when and wherever needed.
Jeff Everett said his company is very much aware of the need the nation currently faces, which is why Fleece Performance Engineering in Pittsboro chose to go down a different manufacturing path.
The company, founded in 2008 by Brayden and Chase Fleece, originally started by providing truck repair services and expanded into a manufacturing company that produces turbochargers, fuel pumps and upgraded replacement parts, said Everett, who serves as the vice president of sales and marketing.
“While we still provide truck repair services, our focus has been on growing an offering of innovative products for the automotive aftermarket.”
However, when the pandemic hit, he said that “as with most all other business, we were immediately impacted by overall consumer demand and saw a rapid decline in overall sales. By quickly shifting our focus and resources, we were able to reallocate a portion of staff, all the way from our engineers to assemblers, to design, manufacture and package our face shields and get them to market quickly.”
With more than 50 full-time employees, Everett said the additional production of freestanding desktop sneeze guards and disposable face shields has allowed all workers to keep earning a paycheck.
“We plan to continue to produce the items until the demand goes away,” he said, adding that the company has gone so far as to include easy-access to purchasing of face shields and desktop sneeze guards. They are “in stock and available on our website for purchase.”
While the company would definitely help out if a similar state or national situation arose down the road, he said that “the implementation of moving into a new market [healthcare vs. our traditional automotive market] required a tremendous amount of teamwork and lifting to make it quickly successful. It includes everything from setting up new suppliers, vendors and customer accounts, to packaging, billing and the actual production of the product,” said Everett.
“We saw a very strong, positive, response from our community, which in turn made for a project that everyone wanted to be involved in and be a part of. It would not have been possible without such a strong overall team effort by our employees.”
Being able to provide necessary equipment has made a difference in others’ lives, he said.
“It has been very rewarding to help those frontline workers, whom for a period of time were not able to acquire the needed PPE [personal protective equipment],” said Everett. “While hospitals had large purchasing organizations they could leverage to hunt down supplies, it was the secondary groups that really struggled to find adequate PPE. This included dentists, private caregivers, morticians, and local first responders.”
Some businesses, such as Jordan Manufacturing, which has facilities in White and Newton counties, has also gotten creative.
Typically a seasonal operation, Dave Jordan, owner, said the company chose to add to its workload. Instead of laying off employees, the manufacturer increased production by teaming up with the state of Indiana to make hospital gowns. The company also is producing face masks.
While they have been hand-sewn over the last few months, Jordan said a new machine has been acquired that will allow for 60 to 70 masks to be made each minute.
Currently, the business is operating a first and second shift. Due to the increase in demand for gowns, Jordan said there are times when employees are needed to work overtime.
“We feel good about what we’re able to do,” Jordan said.
Finding support
Fulton Economic Development Corp. Executive Director Terry Lee said he believes manufacturers will be fine in dealing with this economic situation, but “it’s the mom-and-pops that have a hard time. Most have done a good job … but a couple have had to close due to hardship.”
Twenty-nine Fulton County businesses were awarded the Indiana Office of Community and Rural Affairs grant monies and three received Duke Energy grants. Hopefully, others will qualify for the new CARES Act funds.
These businesses, including construction, which has taken a hard hit, are “taking it in stride as best they can,” Lee said.
Supporting those businesses is imperative.
As president of the Miami County Chamber of Commerce and Visitor’s Bureau, Sandy Chittum said - if there is a way to help small businesses during the pandemic, “we should help.”
So, she is encouraging businesses to take a look at the various grants and loans available during this unprecedented time.
In May, Gov. Eric Holcomb approved $30 million in federal funds through the CARES Act. These monies are geared to help restart small businesses that meet the eligibility requirements, according to the website, IN.gov.
Small business owners in Indiana outside of Marion County have until Dec. 1, 2020, to apply for reimbursement of up to 80 percent of qualified business expenses incurred between March and November of this year.
“Reimbursements for expenses may be awarded up to $2,500 or up to $5,000 for each month during that time period in which the business demonstrates a revenue loss of at least 30 percent or of at least 80 percent, respectively,” the website states.
Grants will be issued to reimburse qualified expenses up to $20,000 per company and will be issued in the order in which applications are received until funding is exhausted.
According to details on the IN.gov website, eligibility requirements are as follows:
• Business must be registered to operate in Indiana.
• Business must have had fewer than 50 employees as of Dec. 31, 2019.
• Business must have had less than $5 million in revenue in 2019.
• Business must have been profitable in 2019.
• Businesses must demonstrate a monthly revenue loss of at least 30 percent compared to pre-COVID-19 revenues.
• Must be in good standing with the Indiana Department of Revenue (DOR) or have a DOR-approved payment plan.
Based on these requirements, Logansport Cass County Chamber of Commerce and Cass Logansport Economic Development Organization Executive Director Bill Cuppy said at least 400 local businesses would not qualify for the latest program.
That’s because these companies utilized monies from the Economic Injury Disaster Loan [EIDL] or the Paycheck Protection Program [PPP] run by the Small Business Administration.
Others opted for assistance through the Logansport Forgivable Loan Program [LFLP]. However, it may be possible that usage of the LFLP would not disqualify a small business from the CARES Act grant.
Cuppy said $250,000 was made available through County Economic Development Income Tax [CEDIT] through budget appropriations. Of those funds, a small business with 20 or fewer employees that suffered financial hardship from March 18 forward could seek aid up to $5,000.
“We found a gap … most federal funds focused on payroll,” said Cuppy. “These [CEDIT] funds … helped qualifying companies toward rent, lease or insurance.” In fact, 52 local small businesses in Cass County took advantage of the CEDIT monies. The businesses would receive four disbursements. There would be a larger lump sum in the first month with the following three months at $1,000 each.
According to Cuppy, Logansport and Cass County restaurants, retail and service entities were affected the most.
Yet, “we’ve weathered the storm,” he said. “We just hope it doesn’t continue. We haven’t seen anyone not open back up, so that’s a positive thing. Companies have been realistic with the issues. They’ve adapted, but remained optimistic.”
Local support
Changing operations from in-store shopping or dining to online ordering and curbside pick-up has been the biggest switch, Cuppy said.
Chittum agreed. Other than hair salons, barbers, and spas closing, she said businesses remained open. They just became more creative, she explained, adding that many had to dip into their savings to keep their doors opened, but “they’ve pulled through and are doing okay.
“People are staying local. They’re … doing more local activities, which is great,” Chittum said. “COVID has brought families together and we’re rethinking what is important. Supporting our local community is what I’ve seen and it’s enlightening.”
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