This is part one of a two-part series focusing on the manufacturing practices of regions and countries hardest hit by COVID-19. Check back next week for part two, which will focus on U.S. manufacturing.
Although COVID-19 continues to impact many areas of the world, Spain—one of Europe’s hardest hit countries—is beginning to lift restrictions on workers and citizens. Now, as product manufacturing slowly comes back online, companies are adapting their response to this new reality.
Spanish outdoor furniture company Point, which is currently operating at 50 percent capacity, is focused on reducing the impact on sales while also protecting jobs. “Our teams must be ready to resume their activities effectively and efficiently,” says production manager Pepe Juan Pons. Point is also strengthening its online sales channels, in addition to implementing an aggressive marketing plan to recover the market shares lost during the slowdown.
Tasked with mitigating or preventing major income losses amid a new normal is one of the biggest challenges for Spanish furniture supplier Viccarbe. The company is “balancing the cost structures and the natural decrease of income during these weeks, with the sole purpose of maintaining our whole team,” says founder and president Victor Carrasco.
In fact, the company created a specific fund to protect jobs after the last recession in 2008 in the case of an unexpected black swan event like COVID-19. “Companies need their human value to exist,” he says. “Our colleagues have always been a top priority for us. Viccarbe does not have employees, it has coworkers. In this case, the difference is important.”
The company also benefited from exporting over 90 percent of its own goods, which helped keep production active. (The Spanish government issued an exception to its mandated factory shutdown to enterprises with contracts abroad.) Similarly, lighting brand Vibia was able to ship orders to the U.S. and Canada on a daily basis. “Our business in this market is stronger than ever,” says CEO Miquel Colet. “Our team will keep providing the service and support that our customers and partners expect from us.”
Marset’s factory in Terrassa, Spain, on the other hand, was shut down until April 11th, but has been fully operation since April 28th. With very few commercial and hospitality projects in the U.S. on hold, “specifiers have been as busy as they were before, but not able to meet in person,” says national sales manager Deiane Abajos.
“We don’t expect major changes in the hospitality industry for now,” Abajos continues. “The upcoming months will be a time to rethink where new business opportunities will arise and how hospitality is adjusting to it.”
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