Like the recent national trend, R-V experienced a spike in the number of people quarantined/isolated due to infection or possible exposure to COVID-19. Our total number of people out reached a pandemic high of 22 individuals in November. Fortunately, this count declined following Thanksgiving. The virus has affected the whole spectrum within our extended R-V families including young, old, healthy, and those with underlying health conditions. Please continue to protect yourself and those around you.
Managing dual priorities to keep everyone safe while meeting our clients’ needs has been a challenge this year, but we have continued to fare better than most in both areas thanks to your efforts. You have earned the designation of “essential worker” by helping our customers continue generating electricity, vaccines, food, and cardboard boxes; your work also helped store nuclear waste and perform medical research/testing throughout the world.
The Sales team achieved their fifth month > $4mm in bookings out of the past six months. They have done so despite limited demand in most markets. Our Code, Power, and Beta Star markets each exceeded $1mm in bookings and our Genesis market exceeded 50 small machine orders for the year, establishing a new annual record.
Key Performance Indicators:
November Bookings: $4.7mm (target $4.0-4.5 mm per month)
Backlog: $19.7mm (target > $20mm)
My November 9th Update outlined the plan for our company wage reviews, focusing on merit increases and change of responsibilities. Those increases will be processed as planned and effective in January. However, due to other priorities related to the spike in COVID absences, we will need until year-end to meet with everyone.
While we have not achieved our budgeted sales and profit, a combination of our YTD performance, savings from facility consolidations, and reduced expenses such as interest and medical, allowed us to achieve a solid year. To do so during a pandemic required trust and resolve from all of you. We appreciate you and want to thank you by paying bonuses on Christmas Eve (12/24). Hopefully, you can use this to do something special with your family or help someone in need.
Please let me know if you have any questions or comments.
Thank you,
Kirk A. Putt
President & CEO
Phone/Text: (484) 532-6030
Email: KirkP@rvii.com
As additional measures to comply with the PA Dept. of Health order effective 11/25, we will be implementing temperature screening for all employees tomorrow along with asking select office employees to work remotely.
Individuals within each department have been assigned to perform non-contact(forehead) temperature scans within the first hour of each shift. Anyone with a temperature of 100.4 or higher will be sent home. If you know you have an elevated temperature, please call off and do not report to the facilities.
You do not need to do anything different unless you are planning to start outside of your standard work hours. If so, please notify your supervisor so they can make alternate plans to have you checked when you arrive. Please also ensure you are wearing a mask when the screener comes to your work area/office to check your temperature.
We have a record number of people quarantined at home right now due to possible COVID exposure outside of R-V. To maintain our customer delivery requirements, it is critical everyone takes proactive steps to minimize your risk of COVID exposure both at R-V and at home.
I look forward to vaccines becoming available early next year allowing us to relax these requirements. Until then, please continue to be diligent about masks, social distancing, and hand washing along with monitoring yourself and family members for possible COVID exposure or symptoms.
If someone you interacted with has symptoms or is going for a COVID test, you need to call HR in advance of coming to the facilities. You should stay home if there is any question.
As always, you can call, text, or email me with any questions or concerns.
Kirk A. Putt
President & CEO
Phone/Text: (484) 532-6030
Email: KirkP@rvii.com
The PA Dept. of Health has issued additional COVID orders effective this week. The first order, effective tomorrow, is related to mask requirements and aligns with the mask requirements R-V already has in effect. The second order, effective Friday, requires evidence of a negative COVID test performed within 72 hours prior to returning from out of state travel, with an exception for business travel. Travelers returning without evidence of a negative test will be required to quarantine for 14 days. Several surrounding counties have also reimplemented additional shutdown measures this week to mitigate risk associated with the recent increase in COVID infections. Chester and Berks counties have not implemented additional measures at this time.
R-V has also experienced a recent increase in employees out due to possible exposure to COVID. The potential for additional exposure will increase significantly with college students returning home and families gathering for Thanksgiving.
Shutdowns related to a COVID outbreak remains the primary risk factor that could jeopardize our client commitments and the positive momentum we have achieved to date during the pandemic. I know some of you believe the virus risk is overblown, but I implore you to take it seriously because the risk to our business is real and the negative impact would be felt by the 800 employees/family members who rely upon their R-V incomes.
We need to increase our efforts to avoid this scenario. A few changes will be implemented this week:
Please continue to be diligent about masks, social distancing, and hand washing along with monitoring yourself and family members for possible COVID exposure or symptoms. If someone you interacted with has symptoms or is going for a COVID test, you need to call HR in advance of coming to the facilities. You should stay home if there is any question.
As always, you can call, text, or email me with any questions or concerns.
Kirk A. Putt
President & CEO
Phone/Text: (484) 532-6030
Email: KirkP@rvii.com
The U.S. elections are headed toward their conclusion. While some of you are happy with the results, I know many are not. Either way, I encourage you to be part of the solution and help bring our country together. Most of us share similar goals despite our political party, religion, race, or economic status. The best way to affect change is to lead by example, and we intend for R-V to continue being that example and creating an environment for everyone to succeed.
Congratulations to our Sales team. Following a low bookings month in September, they responded with $4.8mm in October bookings. This was the highest bookings month of 2020 and fourth out of the past five months above $4mm.
Key Performance Indicators
We are actively compiling our projections for 2021. This includes developing sales forecasts, capital expenditures, and staffing requirements. Due to the continued impact of COVID-19 on our markets, I do not expect a significant change vs. 2020 except we will likely not receive additional federal COVID relief such as the PPP grant that helped supplement payroll and avoid layoffs earlier this year.
As discussed during our company meetings last month, the primary company goal is to achieve >95% on-time delivery in 2021. This is a bold goal considering our current performance on equipment orders is in the 80’s. I know we can make this happen, but we need everyone striving to be a 95 percenter. What does it take to be a 95 percenter?
Achievement of this goal will help both you and R-V by improving customer retention, increasing new business, and greatly reducing chaos related to late deliveries. We will be reviewing specific goals for every department to help meet this initiative. We are also developing various reports that will be shared throughout the company so you can monitor our progress monthly.
Our Executive Team will be completing wage reviews over the next two weeks. This review will be for merit increases only as the current economic conditions do not allow us to do across-the-board increases at this time. Any increases approved will be effective in January. All employees will have an individual meeting with your supervisor to discuss your wage status by 12/11.
The Genesis team moved into their new facility on Poplar Road. Thank you to everyone who helped make this a reality. Moving facilities is always a challenge and requires a lot of extra effort. At some point in the next few months we will schedule a time to tour the facility.
While there was some exciting news today from Pfizer about the effectiveness of their COVID-19 vaccine (>90%) in trials, infections are once again on the rise in our area. I have great optimism a vaccine will have us back to normal lives sometime next year. But for now, please continue being diligent about wearing masks, hand hygiene, and avoiding prolonged close contact with others. In addition to exposure to anyone with COVID, you should also stay home if you have a cough or fever. Please call HR or your supervisor if you have any questions. We will continue to monitor/modify our protocols as necessary should R-V experience any infections.
Open enrollment for benefits ends on 11/25. Please remember to log in to Fidelity Health Marketplace to complete your elections for 2021. Call Patti ASAP if you have any issues.
Please let me know if you have any questions or comments.
Sincerely,
Kirk A. Putt
President & CEO
Phone/Text: (484) 532-6030
Email: KirkP@rvii.com
“It’s funny how it’s the little things in life that mean the most
Not where you live, what you drive or the price tag on your clothes.
There’s no dollar sign on a peace of mind, this I’ve come to know…
…I thank God for my life
And for the stars and stripes
May freedom forever fly, let it ring”
– Zach Brown
Amid all the external negativity, it is important to continue focusing on actions we can control within R-V, such as maintaining a positive attitude and sharing ideas for solutions vs. complaining. We have much to be thankful for and numerous success stories. One of these is our safety performance. We have not had a lost-time accident in the past 18 months. Safety is one of our core values and requires a total team commitment. Thank you for making that commitment to your coworkers and your families. There are a lot of distractions right now in our lives but keeping each other safe is more important than ever.
Our bookings and backlog declined vs. our prior three months; however, we remain in a solid position to win several projects in October and end the year with positive momentum.
Key Performance Indicators
The Genesis building renovations continue to be on schedule to start moving on 10/22. Thank you for everyone involved in the build/move to help to make this a first-class facility. We look forward to welcoming the Genesis team to Honey Brook later this month.
Election day is November 3rd and will occur prior to my next monthly update so I want to encourage each of you to vote. The loudest fringe elements of both parties tend to get the most media coverage, but elections provide the best opportunity for most Americans to truly influence the direction of the country. Pennsylvania will play an important role in determining the next President, so do your part and vote.
Please continue to be diligent about wearing masks, hand hygiene, and avoiding prolonged close contact with others. I know these restrictions are getting tiresome, but the colder weather will increase the risk of flu and COVID infection. The active infections in the White House show what can occur without these protective measures.
Please let me know if you have any questions or comments.
Sincerely,
Kirk A. Putt
President & CEO
Phone/Text: (484) 532-6030
Email: KirkP@rvii.com
“Freedom is never free.”
Due to feedback we received about issues with our health plan this year, we have decided to change our plan in 2021 back to a traditional carrier with a well-known national network. We have selected the Aetna network which will be administered by Meritain (we use a third-party administrator to process claims since we are self-insured).
The change to Health Now/ELAP this year was our best option to control costs that had significantly increased in 2019, along with recurring errors by Independence Administrators. This helped avoid premium and deductible increases for our members; however, our priority is to ensure you have access to the highest quality healthcare with limited issues for you and your families, which has not been the case with our current plan.
While some of you have had a good experience utilizing the Penn Network facilities and the associated enhanced discounting, too many experienced provider issues due to unfamiliarity with our plan and payment process. I am confident these issues will be dramatically reduced by moving to the Aetna network. We will need to continue searching for creative ways to control costs. We ask for your assistance by addressing any risk areas identified in our Cardio Kinetics testing before they become serious health issues.
Our two medical plan options (Copay & HDHP) will remain unchanged, as will our prescription plan, voluntary benefits, and Fidelity enrollment platform. Patti will be scheduling small-group meetings in mid-October to provide more details in advance of our open enrollment in early November.
Please contact Patti or me if you have any questions or comments.
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
In contrast to the virus outbreaks and unrest across much of the country over the past six months, R-V continues to be blessed with good health, consistent bookings performance, and a team that continues to find ways to keep us on a solid foundation.
The Sales team exceeded $4mm in bookings for the third consecutive month. This had not been achieved since 2018 and is an amazing achievement in the middle of the pandemic. All markets have contributed to this effort, securing business to support our manufacturing capacity despite a reduced level of opportunities. Please be mindful of quality and delivery commitments to ensure we meet our clients’ expectations.
Key Performance Indicators
The Genesis building renovations will be completed in early October. The current plan is to move the Genesis team starting on October 22nd.
Keeping you and your families healthy continues to be our priority as schools have resumed and we transition into Fall. Please remain diligent and communicate prior to coming to work if your children have any COVID outbreaks at their schools. We will be offering free flu shots next month onsite and encourage everyone to consider them this year to minimize widespread flu outbreaks that could create false concern about COVID infection.
Thank you for your support. Please let me know if you have any questions or comments.
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
“People will inspre you, or they drain you – pick them wisely.”
H.F. Hansen
President Trump issued several memorandums and an executive order on August 8th related to COVID-19 relief (unemployment, evictions, student loans, payroll tax).
One of these outlined a deferral of the 6.2% employee payroll tax we collect and submit on your behalf. This tax is matched by the company and both are used primarily to fund Social Security. This memorandum directed the Secretary of the Treasury to defer collection of this tax between September 1 through December 31, 2020.
There is a lot of confusion about how and whether to implement this action between the IRS, accounting firms, payroll providers, and employers. Most payroll systems are not currently setup to facilitate this change and there is significant uncertainty about how you would be expected to repay the deferred tax at the end of the year.
We do not plan to implement this payroll tax change next week. If we receive better guidance in the upcoming weeks from the IRS or our accounting firm regarding implementation and our payroll provider (Fidelity) can accurately process the changes, we will reconsider it.
I believe it would be reckless for us to create this potential tax liability for you without clear guidance on if/when it is expected to be repaid.
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
We received notice this afternoon that a family member of a Beta Star employee tested positive today for COVID-19. Fortunately, the employee does not have any symptoms at this time and has been sent home to quarantine.
Contact tracing has been conducted to identify anyone who interacted with this individual since Friday. Those individuals have been spoken to and will monitor for potential symptoms. The entire upper shop and Beta Star offices will be decontaminated tonight to ensure any exposure risk has been mitigated.
Please continue to be diligent about masks, social distancing, and handwashing along with monitoring yourself and family members for possible COVID exposure or symptoms. If someone you interacted with has symptoms or is going for a COVID test, you need to call HR in advance of coming to the facilities. You should stay home if there is any question.
As always, you can call, text, or email me with any questions or concerns.
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
The challenges of 2020 keep on coming. In the middle of a pandemic we got hit by the remnants of a hurricane, causing widespread power outages for much of our area, including a four-day outage at our Genesis facility. Clients in several industries continue to defer projects into 2021. Many of you are also dealing with stressful personal dynamics related to laid off family members or unknown school reopening plans for your kids.
Most of these issues are beyond our control; however, I encourage you to take small actions that will help you regain a sense of control. These actions will positively impact your finances and health. Target a current expense that you can eliminate and invest this money or redirect it to savings for a future vacation. Start a new exercise program – everyone can find time for a 15-minute walk or 50 pushups a day.
Despite the ongoing challenges, we continue to find ways to succeed. As reinforced during past market downturns, there is always someone purchasing equipment and we need to find them. The Sales team exceeded $4mm in bookings for the second consecutive month. This is a notable achievement in a month that looked rather bleak in the beginning. Our sales of $3.9mm were also notable and required a total team effort from accounting, processing, scheduling, purchasing, engineering, project management, manufacturing, logistics, and quality.
I realize the challenges our variable workload has caused and appreciate the flexibility to help to meet capacity needs in different areas. These peaks and valleys in our bookings will likely continue into 2021. Our partnership with Air Products continues to be a valued part of our business. Please continue to focus on first-pass quality and continuous improvement to reinforce the trust they place in R-V.
Key Performance Indicators:
The new Genesis building renovation continues to go well. Most of the work will be complete by next month and the Genesis team will move in October. Thanks to Dave Green, Keith Arbuckle, Chris Peazzoni, Mitch Seidel, Bruce Griffin, Rodney Zink, Mary Jane Brown, Bill Weitzel, Larry Pepper, Greg Reardon, Greg Littlefield, Kevin Stofflet, and Mike Bird, Jr. for your help with this project. Moving locations is never an easy task, but it will be a first-class facility to bring our pharmaceutical clients.
I would also like to recognize Greg Littlefield and Greg Reardon who have assumed additional leadership responsibilities at Genesis following Ken Riese’s (plant manager) retirement. They will manage the Genesis production schedule to ensure we maintain customer delivery requirements while transitioning facilities.
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”
Winston Churchill
Thank you for your continued support. It is a pleasure to work for such a great team of people. Please continue to let us know of any suggestions to improve your experience at R-V or assist with challenges you are facing at home.
Sincerely,
Kirk
Phone: (484) 532-6030
Email: KirkP@rvii.com
Hopefully, the arrival of Summer and easing of restrictions in Pennsylvania has allowed everyone to get outside and resume some more normal activities.
The COVID-19 pandemic continues to evolve daily, and we have gotten much better at learning to quickly adapt and focusing on controlling what we can control. The swing between positive and negative news is occurring on an almost daily basis.
New recommendations and orders have been issued by Governor Wolf and the PA Department of Health over the past week. This includes suggested quarantines related to out-of-state travel and a reversal of some reopening allowances for business. How does this affect you?
June was a very successful bookings month for the Sales team. This was the first month we exceeded $4mm since February. However, like the swings I addressed earlier, we also lost two $1mm+ opportunities. New business opportunities remain limited in most markets and we will need creative approaches to sourcing material, outside services and internal manufacturing in order to win business. We will also need to shift resources to balance demand within our various operations. Please continue to be flexible and support requests to assist with other departments and plants as requested.
Renovations for the new Genesis facility are going well. The roof replacement, parking lot, exterior lighting, shop assembly area painting and walls are almost complete, along with framing and HVAC for the offices. The Honey Brook warehouse has been consolidated into this location saving us monthly lease payments. The plan is to move the Genesis operation in September/October when our current lease ends.
We have made the difficult decision to close our daycare. The risks of having small children and our staff in a tight space was not a risk we were willing to accept. I want to thank Marlene Haws, Ina Withers and the other team members who made this a special place for our employees’ children over the years. This building will be temporarily used for customer visits and meetings but could be transitioned to an exercise facility in the future. We have purchased picnic tables for the yard that will be available starting next week to use for lunches or outdoor meetings.
Please continue to be diligent with our efforts to keep everyone safe. Regional COVID infection rates have increased along with re-openings but not at R-V. Please remember the following related to masks and politely accept it when someone points out that you are not meeting these expectations:
Thank you,
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
As Chester and Berks Counties moved to the green phase of Pennsylvania’s reopening on Friday, there have been renewed discussions internally about what that means for everyone at R-V and specifically regarding our mask requirement.
The Governor’s office clarified last week that the business requirements related to masks, distancing, and cleaning procedures, remain in place throughout all phases of the reopening.
I do not expect to remove these requirements in the next few months, even if the Governor’s office changes their position. While I understand the frustration of having to wear masks, this does not outweigh our responsibility to keep everyone safe. I have seen many of you rally to help sick coworkers in the past. Now you are being asked to help keep them from becoming sick in the first place. We have a sizable group of employees and family members who are in higher risk CDC categories for COVID-19 such as heart disease, elevated BMI, diabetes, cancer, and COPD.
Wearing masks, social distancing, and other protocols have kept confirmed infections here at a minimal level. This did not occur by accident. Please continue to:
Thanks for your continued efforts to help keep everyone safe.
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
As part of our leadership development program we want to provide a platform and input from different voices. This update is courtesy of Eric Stone, Tron Morrison, Pete Koegel, & Dave Larson.
As the world comes to grips with the life-altering pandemic, it is critical to recognize the many positives in our lives as negativity has become too common. It affects how we treat our families, the people we work with, those we are given the responsibility to lead, and the customers who trust us to provide the equipment and service they need.
We must continue striving to deliver superior products as the customers who trust us, and the family members of the person next to you rely on the execution of our mission. Part of striving is embracing the changes we have been forced into. Maya Angelou had a powerful statement about embracing challenging situations: “If you can’t change it, change your attitude.” A determined attitude can overcome some of the challenges we currently face.
Despite these challenges we continue to achieve some notable things. We were really happy to find out we were recognized as 23rd of the top 40 custom fabricators in the U.S. in the Fabricator’s top 40 list. It felt good to be recognized in that way and to know that what we do every day has earned us that recognition.
There are a lot of things in this time that could be dragging us down, but despite all these things we are looking forward, moving forward, achieving, and being recognized.
Thank you all for your efforts,
Eric, Tron, Pete, and Dave
Pennsylvania’s General Assembly passed a resolution yesterday to terminate the emergency order Governor Wolf issued in March.
Governor Wolf announced today the legislature does not have the authority to end his disaster declaration and that business restrictions would remain in place either way since they were mandated via a separate order issued by the Secretary of Health.
This dispute will likely end up in the courts and take time to resolve.
What does this mean to R-V employees?
Thanks for your continued efforts to help keep everyone safe.
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
As we enter Summer, tensions in our country are at historic levels. Frustration with the pandemic along with police brutality/racism are leading to high levels of emotion and demand for change.
R-V can continue to positively contribute to both areas. I believe R-V has been a model for how to manage the pandemic and keep everyone safe. We can also help with ongoing issues related to social justice. This starts with ensuring everyone is given a fair opportunity here to advance and succeed, regardless of your race, religion, gender, or economic status. It requires compassion for and acknowledgement of those whose experience is different from our own based on the color of their skin or background. It also requires the willingness to educate ourselves on the issues and take action to help others when they are treated unfairly.
Part of our mission statement is to “improve the quality of life for each individual we employ.” Whether you are Black, Asian, Hispanic, Native American, or White we strive to provide equal opportunity which is reinforced by our actions and not merely a slogan posted on the wall. To maximize your chances for success, our focus is to help you advance in the following four segments:
This is the reason we emphasize the 401k/HSA plans, our Safety/Wellness plans, and focus on company performance metrics to maintain jobs. We are always here to offer guidance if you are struggling with financial, work, health, or family issues.
The following paragraph is from my March 26th posting:
“The stock market has experienced historic volatility. The S&P 500 Index has lost more than 30% YTD, causing most of us to incur significant losses in our 401k accounts. I encourage you to remain invested, not because I am an investment expert, but becaues if you sell now, you will lock in those losses with little chance of recovery”
The stock market has since recovered nearly all those losses. If you were overwhelmed by the losses in your 401k or IRA accounts in March, now is the time to speak with Fidelity or your advisor to evaluate your investments and move to something more conservative.
We will start phasing office employees back onsite this week. Provided there are no setbacks, we will recall the remaining office employees over the next month. It is critical everyone understands and executes the expectations (masks, social distance, hand hygiene, etc.) to maintain the exemplary health record we have achieved since the pandemic started in February.
Sales and profits were low in May due to reduced manufacturing charge hours. This resulted from a limited number of workdays in the month, employee absences, and backlog limitations. Orders for new business (bookings) were also low at $2.4mm but credit goes to the Sales team for securing orders in the final days of the month to help us remain above the $2mm threshold.
June has the potential to be a much better month for Sales, Profit and Bookings. We have already booked over $2mm in the first week of the month and have several more opportunities. I have removed the Sales/Profit KPI’s reported below because we have no expectation of meeting original projections in these areas due to the pandemic. We have continued to remain above our revised forecast which is critical to successfully manage our way through this economic recession.
Key Performance Indicators
“For to be free is not merely to cast off one’s chains, but to live in a away thatr espects and enhances the freedom of others.”
Nelson Mandela
Please continue to email or text me your comments and questions. I appreciate your feedback.
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
As we enter the Memorial Day weekend, I want to recognize those who sacrificed their lives fighting for our country and freedom. I also want to recognize our manufacturing team members who have continued to show up daily, allowing us to keep serving our customers, and serving as an example to our state and local leaders that businesses and our economy can reopen safely. I am confident our soldiers did not make those sacrifices so we could be ordered to stay-at-home and close our economy indefinitely.
Our manufacturing leads came up with a way we can recognize and safely thank our manufacturing teams. We will be providing individual Chik-fil-A boxed lunches for all plants and shifts next week. Details will be posted on Tuesday. In addition, our hourly manufacturing team members will also be receiving a bonus of up to $500 with your payroll next week. This will be calculated based on $50 for each week you have worked at least (40) hours (including vacation) during the past (10) weeks (3/9 to 5/15). Credit will be given for the three shifts where we closed Morgantown.
To be clear, these bonuses do not mean the upcoming months will not be very challenging. They will. But I hope they serve as motivation to maintain focus on what you can control, like keeping a positive attitude when times get tough, or when you are asked to assume tasks or roles you may not enjoy.
We appreciate all of you in the office and working remotely as well, but we do not have to make the same sacrifices as our manufacturing team. We will look to get everyone back to the office as soon as it is allowed. Work-from-home and online meetings are a useful option but will not replace the in-person collaboration and urgency I believe necessary in challenging economic conditions. As has been the case throughout the pandemic, anyone with health risks or concerns will have the option to remain out.
Be safe and enjoy the long weekend with your families.
Sincerely,
Kirk A. Putt
President & CEO
Phone: (484) 532-6030
Email: KirkP@rvii.com
As we enter our third month impacted by the pandemic, I want to recognize and thank you for helping us manage the uncertainty and keep our operations functioning.
Pennsylvania now has one of the highest unemployment rates in the country and the sixth highest COVID-19 infection rate. R-V has not been immune from the pandemic’s impact, but we have been fortunate to experience limited illness and absences during this time.
Our new business opportunities and bookings have declined significantly over the past two months, but our Sales team has managed secure enough new work to maintain minimum levels we established. Beta Star had their highest bookings month of the year in April. Genesis continues to be actively engaged in potential opportunities with several of the leading COVID-19 vaccine and therapeutic companies and our Code and Nuclear markets still have some large order potential over the summer.
It is always challenging to maintain hours performance when new order activity declines, but we achieved hours savings in April on closed jobs in our Code and Custom Fabrication markets. Thank you to the Morgantown and Honey Brook shops for this effort. Please continue to maintain focus on quality and hours performance as these are items within our control.
Different departments and markets will experience slow periods over the next few months but as I previously outlined, there will not be any furloughs/layoffs through the middle of June, during the time we will be receiving federal support through the Paycheck Protection Program loan. We have a realistic plan to avoid any downsizing through the remainder of the year provided the economy reopens and new order demand recovers over the 2nd half of the year.
Key Performance Indicators
Updates
Please continue to be diligent with the precautionary measures put in place to keep everyone healthy and functioning – wearing masks, distancing, hand washing, etc. None of us enjoy wearing masks but when you don’t do so, you risk a plant closure and the health of your coworkers and their families. These are risks we cannot accept.
Thank you,
Kirk
Thank you for helping us successfully implement the new mask requirements this week as part of Pennsylvania’s recent order.
We got some extremely good news this week when we received a Paycheck Protection Program (PPP) loan. This emergency funding from the federal government will help cover our payroll for (8) weeks. Provided we retain our employees, most of this loan will not need to be repaid. Only 5.7% of U.S. businesses received a PPP loan.
This funding is important because it helps us maintain your jobs while new business opportunities and sales decline significantly due to the government shutdown of the economy. Other than our daycare, ordered closed by the Governor, no employees will face layoffs during this time, although some of you will be asked to help in different roles.
We have developed a new business plan to successfully manage the lower business volume for the next few months, with the expectation the economy will be reopened by June. This also assumes we continue to limit loss of capacity due to employee illness/ quarantine.
To help continue reducing the risk of the pandemic impact within R-V, we are implementing a screening process and form. Effective next Tuesday (4/28) we will require supervisor approval prior to anyone returning to our facilities following more than one day out for the following: remote work, vacation, self-quarantine, or business travel. The screening helps us ensure you are aware of any new safety/health requirements, such as wearing masks, and minimize the risk to your fellow workers following travel or possible outside COVID-19 exposure. Anyone returning from an illness will continue to be required to provide a doctor’s release (If you did not see a doctor, you may obtain a return release from SwiftMD, our telemedicine provider). This new Employee Return Form will be posted on the Resource section above.
I understand some of these precautions can be annoying and require extra time. We will look to remove them when government mandates and health risks allow us to do so. I encourage everyone to keep finding small ways to remain positive. I share this excerpt from Walter Wintle:
“If you think you are beaten, you are. If you think you dare not, you don’t. If you like to win, but think you can’t, it’s already a cinch you won’t.”
“Life’s battles don’t always go to the stronger or faster man, but sooner or later, the man who wins, is the fellow who thinks he can.”
Sincerely,
Kirk
(484)532-6030
kirkp@rvii.com
Pennsylvania Public Health Safety Measures Order
The Pennsylvania Dept. of Health Secretary issued an order yesterday mandating businesses to implement additional social distancing, mitigation, and cleaning protocols. We have already implemented many of the mandated actions. The new changes will be enforceable starting Sunday night at 8:00 p.m.
The following changes will be effective Monday, April 20th:
The following change will be evaluated within the next week:
The following steps will be implemented upon any future occurrences of a positive COVID-19 case:
Thank you for your cooperation as we integrate these requirements. We want to remain a leader in health and safety while continuing to keep all our locations operational. We need all of you to make that happen.
Sincerely,
Kirk
(484)532-6030
kirkp@rvii.com
We received notice today that one of our Morgantown dayshift employees tested positive for COVID-19. As we received the report this afternoon, dayshift was completing their shift and nightshift was sent home. The facility will remain closed until Thursday to ensure exposure risk has been mitigated.
Bio-One, a certified COVID-19 decontamination and disinfection company, has been contracted to disinfect the facility tonight. They will treat the workspace, lunchrooms, restroom, offices, doors, etc. Ken Brownlow and I will be there to observe the process.
Our current plan is to reopen the facility Thursday morning at 6:00 a.m. To ensure everyone continues to get paid for their lost time, we plan to process the time out (nightshift tonight and tomorrow, and dayshift tomorrow) as paid leave under the COVID-19 FFCRA Act which will allow you to be paid and the company reimbursed for this time. If you do not want this applied to your time out, please notify HR.
While we believe the risk of exposure to other Morgantown employees is limited based on the work spacing and PPE (respirator masks) worn by most employees, anyone working in Morgantown during the past week will be eligible to self-quarantine beyond Wednesday and receive paid leave for the balance of your allotted 80-hour COVID-19 sick pay. If you choose that option, please follow standard call-off procedures and complete the paid leave form located here.
This is the unfortunate situation we all hoped would not occur within our company, but as the virus has spread substantially in Berks County, it is the reality for which we have been preparing. We need everyone to remain proactive and diligent to communicate any illnesses as they arise and stay home if you have any symptoms.
I understand these can be stressful times. As always, you can call, text, or email me with any questions or concerns.
Sincerely,
Kirk
(484)532-6030
kirkp@rvii.com
Family Member Recognition – COVID-19 Public Service
We would like to recognize and thank the R-V family members who are providing critical services to help maintain the health and daily functions for our communities.
Company Update from Kirk Putt
What a difference a month makes. At the time of my update last month the U.S. was just beginning to feel the impact of COVID-19. Now all our lives have been altered. There is no minimizing the damage this virus has caused in the world. We continue to be fortunate in that we have no confirmed employee infections and have remained operational. Multiple clients have sent us letters reinforcing the need for us to continue our role in maintaining their critical supply of electricity, medicine, water, packaging, etc. Hopefully spending part of your day focused on these efforts helps balance the overwhelming negativity and panic in the news and your social networks.
I also want to recognize and thank your family members who are actively engaged in the efforts to keep us all functioning – doctors, nurses, medical technicians, retirement home staff, grocery store employees, etc. If you have a family member you would like to recognize, please send me their name, role, and relationship to you, and we will recognize them as a group.
Thanks to everyone’s flexibility and focus, March remained a good sales/profit month, but our bookings declined by 38%. We remain above our overall projection YTD, but it will be a major challenge to do so over the next few months. Please connect with and offer encouragement to our sales team. Their role has gotten dramatically more difficult in this environment but some good opportunities remain.
Key Performance Indicators
Specific Updates
You all should be proud of what you have achieved so far this year. I am not willing to watch that disappear over the remainder of the year without trying everything possible to prevent it. This will require continued flexibility and commitment to find a way to succeed when it will be much easier to fail and blame the pandemic. Attitude and effort remain among the limited things within our control.
Thank you,
Kirk
Recent Legislative Changes and a Company Update
We are approaching three weeks since the implementation of our COVID-19 Action Plan. Our company and country have undergone some pretty dramatic changes during that time and based on President Trump’s and Governor Wolf’s most recent declarations, we will remain in flux at least through April, as restaurants, group events, schools, etc. remain closed.
I am so thankful most of you remain healthy and actively employed, either remotely or on site. Our ability to successfully emerge from this pandemic relies upon continuing to serve our clients in critical industries. And for those of you who have chosen to self-quarantine due to medical issues, non-COVID illness, or childcare issues, I respect your efforts to protect your health or care for children whose schools have closed. The proactive communication and decisions to avoid coming to our facilities when illnesses or possible exposure have occurred, has been outstanding.
The recently passed Families First Coronavirus Response Act becomes effective today and provides paid leave for all employees – for COVID-19 illness or time off when required to care for children whose school or daycare has been closed due to the pandemic. The details are available on the Department of Labor postings in our plants and also on the resource section at the top of this page. This covers up to (80) hours for COVID-19 sick leave and (12) weeks of FMLA leave to care for your children. The pay rate varies depending upon the reason for your absence. This will be available until the end of the year. This does not affect any other paid leave you have available. If you require time off and meet the specified criteria, please complete the paid leave form (also available on at the top of this page) certifying the designated reason and submit to HR.
Our manufacturing capacity is currently reduced by approximately 10% due to voluntary absence. We have no plans to reduce our workforce and will be pursuing government relief funding over the next few weeks to help offset costs during the expected decline in business volume over the next few months. I ask for your flexibility during this time as we may need to assign select individuals to different roles as demand changes.
All plants have been restocked with disinfectant spray and hand sanitizer has reportedly been shipped and should be in the plants by next week. We also implemented our visitor screening form to ensure no one who is ill or has traveled to high-risk areas, comes into our facilities.
Keep safe and take time to support a local small business or individual(s) in need.
Sincerely,
Kirk
A Message from Kirk Putt, and Free Personal Financial Webcast
We all continue to adjust to daily changes, both personally and at work, due to the COVID-19 virus. I appreciate how our team has continued to keep our operations running. Many others are not so fortunate:
The stock market has experienced historic volatility. The S&P 500 index has lost more than 30% YTD, causing most of us to incur significant losses in our 401k accounts. I encourage you to remain invested, not because I am an investment expert, but because if you sell now, you will lock in those losses with little chance of recovery.
I’m not reporting these bleak statistics to increase unease or fear, quite the opposite. If you accept the worst-case scenario and develop plans how to deal with that, your outlook will improve. Accept the stock market will likely experience a few more significant (10%+) declines before it reaches a bottom, but it will recover, whether that takes six months or six years. And whether you are 27 or 67, you should be planning to generate investment income for a minimum of another 20+ years during which time the market will improve. “Safe” options such as money market funds, certificates of deposit, U.S. treasuries, etc. will likely all generate less than 1% returns for some extended period. Investors who have sold in panic will have to buy stocks again to generate acceptable returns following this crisis, which will drive prices higher along with your account balances.
Dave Ramsey, a popular financial advisor, is offering a free webcast tonight at 8 p.m. EST called “A Message of Hope” to address personal finance questions related to this crisis. I encourage you and your families to check it out https://www.daveramsey.com/
Our Pandemic Committee had a virtual meeting today. Below are a few items of interest:
Today should have been Opening Day for Major League Baseball, which along with the 1st day of Spring last week, generally lifts everyone’s spirits after Winter. While that may be delayed by COVID-19, the better weather and better times are still coming, just a little bit later than normal.
Thank you for your part to keep everyone safe and productive.
Sincerely,
Kirk
Update Regarding Governor Wolf’s Stay-At-Home Order
Pennsylvania Governor Wolf issued a “stay-at-home” order effective tonight at 8 p.m. restricting travel for residents in seven counties (Philadelphia, Allegheny, Bucks, Chester, Delaware, Monroe and Montgomery). This order does not restrict your travel to and from work at R-V. We are a “Life-Sustaining Business” and exempt from this order. No special paperwork is currently required for you to travel to work. If it later becomes a requirement, we will supply one. While not traveling to and from work you are expected to comply as outlined by the Governor if you live in one of those counties.
I know the constant stream of local, state, and federal facts and rumors is stressful and challenging to digest. We will continue to do our best to keep you informed of the facts and how they apply to you. Here are some updates:
A special thanks to our Pandemic Committee. This group has had to support some significant business changes with limited time to interpret and implement various government directives while maintaining their general day-to-day responsibilities.
May all of you and your families stay healthy as we manage these unprecedented challenges together.
Sincerely,
Kirk
A Message from Kirk Putt, R-V Industries President to our Employees
Thank you all for your cooperation as we implemented a lot of changes during the past week to keep everyone safe while continuing to service our clients. Things continue to change on a daily, sometime hourly, basis but the commitment of our company has not wavered.
Pennsylvania Governor Wolf issued an order today mandating the closure of all businesses that are not considered “Life Sustaining” by midnight on March 20.
R-V Industries is considered “Life Sustaining” under the several categories and will remain open. As part of a “Life Sustaining” company allowed to remain open we must practice social distancing and other mitigation actions as defined by the CDC. The steps we implemented last week as part of our COVID-19 Action Plan 3-13-20 comply with the CDC suggestions. For your reference, the CDC recommendations are attached (see page 6).
All of us are learning to live within this new reality of health risks, non-stop media reports, chaotic financial markets, restricted social activities, children attending virtual classes, and no sports. Despite these challenges, you have continued to adapt and make a difference every day serving our clients in critical industries. This is what makes our company and our country great – the will to overcome difficult challenges. To use a boxing analogy, we continue to get off the mat when it would be much easier to lay down and listen to the referee count to ten.
We are blessed to remain open when a lot of small businesses have been forced to close and layoff their employees. The designation of “Life Sustaining” is very fitting because not only are we serving clients actively developing solutions to prevent/treat the COVID-19 virus, we are also the primary income source for hundreds of team members and your families.
Things will continue to get more challenging in our country and our company, but we will do everything in our power to keep you safe and actively employed.
A few parting suggestions: take a deep breath, exercise, enjoy the extra time with your family, and stay in the stock market. “The darkest hour is just before the dawn.” To all employees, you can always call or email me with questions. My phone number is (484)532-6030.
Thank you for your support,
Kirk
The Pennsylvania Secretary of Health has issued a letter of guidance with regard to Governor Wolf’s recommendation to temporarily close non-essential businesses in Bucks, Chester, Delaware and Montgomery Counties. Here are links for your reference:
Because we are not a business that interacts with the general public as those listed in the recommendation, we are taking the position that we will remain open and follow our current COVID-19 Action Plan. Please take time to read the entire Action Plan below.
The global status of the coronavirus (COVID-19) is evolving daily, and R-V is taking a thoughtful, deliberate approach to the situation. Our thoughts and prayers are with the many families around the world who have been affected by this crisis. We are especially mindful of our own families for
whom this issue may be a prominent worry or concern.
We have created a very thorough Pandemic Crisis Plan. This Action Plan is intended to outline key items/activities from that plan. Our team is continually monitoring news reports as well as governmental and health agencies’ communications such as the Centers for Disease Control and Prevention (CDC) to monitor COVID-19 and is actively working to ensure that the most up-to-date CDC guidance is quickly and accurately disseminated. Below are some key actions to be taken immediately. Updates will be posted on our website and distributed via Swift 911, our emergency contact system.
A concentrated focus on prevention and precautionary measures will continue to help protect our employees:
In several prior emails, we have shared common, practical protocols to avoid illness. Best practices to help prevent or minimize illness include:
We encourage you to educate yourself on the topic to avoid unnecessary anxiety. The resources listed below may be helpful in how to best understand and explain the current crisis.
Thank you for your continued cooperation. Be assured we are focused on preventing this virus at our facilities and thoughtfully preparing for various scenarios that promote a healthy workplace.