Cheers!
Dear Friends and Customers,
In the months since our last newsletter, our world has irrevocably changed. I am sure few could have foreseen the scope of change back in January nor do I believe anyone truly knows what will happen in the next months and year. When Hong Kong first went into lockdown, the shops experienced runs on toilet paper which would be repeated around the world. As the virus spread beyond the borders of China, demand for helmets dropped due to stores being closed. We consulted closely with key customers and many felt that the demand would drop and would not recover until next year, 2021. Based on these discussions, we froze all hiring, reduced warehouse space, shut down two of our 9 facilities. I recall lying in bed many nights not count sheep but counting our cash reserves and evaluating how many months we could get thru an unknown future. I fervently wished that as there was a run on toilet paper, there would also be a run on safety helmets.
Be careful for what you wish for, if one remembers the moral of Aesop’s tale. The first indications came at the end of April when a few orders trickled in but with rushed delivery dates. By early May, that trickle became a torrent and by mid May, that torrent became a deluge! During that time, we were doing our Virtual Taipei Show Video chats. What started out as a review of business and both sides wishing for better days in mid April when we started but by early May was discussion on capacity and delivery.
Having survived the lock down, we have been toasting customers our industries good fortune. We are mostly appreciative of everyone’s good health. After all, we all survived the lock down in good health and for the most part, good spirits due to the booming industry! We also miss seeing everyone at Taipei and Shanghai. Just 8 months ago, who would have thought that we would have no customers at the factory and all shows cancelled. Well, as customers cannot come to see us, we will go see YOU! Virtually anyway. Aside from business discussions, it has been great to catch up on what everyone has been doing and then enjoying a quick drink to celebrate our survival of the lock down.
We have been working hard to stream line our production, push our machinery and production lines to increase productivity to meet the challenges of the greater demand. Some of our colleague grumble of the increase work load but we remind them of the unfortunate industries that have suffered terribly during the lockdown such as food service and hospitality. Senior management meet 3 times a week reviewing work schedules and productivity. Everyone is encouraged to think creatively to help manage the situation. Some of the ideas were born out of the current pressures but also, projects that were already in place, the productivity pressures just sped up the process such as the implementation of piece rate pay for every step of the production process which has been underway these last years but some production departments held out to pay based on time but these months, we have fully implemented piece rate pay throughout the facility. We continue to work hard to build our expansion factory in Huizhou and will make every effort to move up the construction plan to be fully operation Q2 2021.
We remain committed to our customers who support us through the crisis. We are doing our utmost to face the challenge. Also, if anyone is in need of face masks, feel free to ask our sales staff and we will arrange to send to you as truly, Protecting Life is not just a slogan!
Strategic looks not only to fill the orders on hand, but we look ahead to plan ahead! We are planning our Virtual Eurobike! We will be contacting you soon for an appointment so that we can meet at the shores of our Virtual Bodensee! See you soon! Bis Bald!
Norman Cheng