The boss of a small family business in Boucherville forced to close its factories three weeks is caught in a logistics nightmare and financial, that will bleed of millions of dollars.
“We’re going to lose a good two million dollars in the next three weeks, says Stephan Julien, CEO of the SME operable partitions Moderco, on the South Shore of Montreal. You must also get a project of twenty millions of $ on the ice. “
On Monday, Quebec has ordered the closure of the factories non-essential to try to slow the spread of the coronavirus. The next day, Stephan Julien thanked his operators, who earn between 14 $ and $ 14.50 an hour, and more with seniority.
Overnight, these workers are forced to live with 55 % of their pay cheque with the employment insurance, by completing the rest of their vacation.
“We are told that the system will not be able to process their application prior to the 6 April. This will be really not funny if people don’t have money to buy something to eat, lance the leader. These three weeks will hurt a lot of businesses. “
Maintenance of machines
For Moderco, the closure of its two plants in Boucherville and Longueuil, depriving him of sales of two million dollars. Not to mention the logistical headache.
“If there is no return to work in two and a half weeks, we will see if we send a maintenance team to ensure that the equipment is ready. We could even restart the machines just to make them run, ” says Mr. Julien.
Machinery maintenance, electricity, rent, gas… The company should continue to extend thousands of dollars during these last three weeks to sustain life in its factories.
More importantly, Moderco will need to maintain good relations with its u.s. customers, which account for nearly 75 % of its annual sales of $26 million.
“Our customers are predominantly in the United States, then it is necessary to keep a link with these distributors there. It is necessary to make shop drawings, specifications, techniques “, explains the businessman, who comes to devote a team to this task in telework.
Avalanche of calls
A headache that knows the CEO of Sous-Traitance industrielle Québec (STIQ), Richard Blanchet, who is bombarded with calls from members worried since two days.
“If your client is open while you are closed, it may be tempted to go elsewhere. Conversely, if you leave again, and that suppliers are not there, it can cause you problems, ” analysis-t-it.
According to him, the factories that manufacture equipment for the defence, security or the medical field, will do better than the others, who live in the concern.
“There are plants that do not stop on a ten-cennes, he insists. For example, a plant of injection of plastic can open and close fairly easily, but machines of chemicals, we can’t stop and start like that. “