C O V I D - 1 9 I M P A C T O NM A N U F A C T U R E R S

M A N T E C . O R G / C A R E S

1 0 M O N T H P R E L I M I N A R Y R E P O R T

J A N U A R Y 2 0 2 1

O V E R V I E W

M A N T E C . O R G / C A R E S

163QUESTIONNAIRES

COMPLETEDMANUFACTURERS

7COUNTIES

121

Page 2

94IN-DEPTH

INTERVIEWS

Since the COVID-�� pandemic started in March 2020, MANTEC has strategically

worked with South Central Pennsylvania manufacturers. In the initial wake of PPE

needs, MANTEC coordinated with a sizable list of manufacturers who could modify

their processes for PPE production.

Since that time, MANTEC has kept a pulse on manufacturing in the region and is

providing services to ensure this vital industry sector recovers. The following pages

capture input from questionnaires and in-depth interviews.

M A N T E C . O R G / C A R E S

Page 3

In reviewing the data, there were minor changes in the aggregate reported impact

COVID-�� had on businesses. There are shifts in the last 4 months that have mixed

trends. These are the changes from the September 2020 report:

Two graphs highlighting the total impact versus past 4 month of responses

There were 47 new responses since September

All quotes were updated from participants in past few months

Written changes are noted in green font with an arrow.

MANTEC Cares projects are noted on page 10

U P D A T E S I N T H E R E P O R T

“ We are expanding our cross-training programfor manufacturing and distribution teams. Weare simplifying several brand offerings toimprove inventory management. We are goingto enhance the marketing of several key brands.We will focus on filling the company with thepeople that support our core values.”

M A N T E C . O R G / C A R E S

An overwhelming majority of the questionnaire participants saw a negative impact

on sales as a result of COVID-��. Many cited the shutdown for this impact. The

percentage of the decrease varied by industry. The average sales loss was 40%.

Companies that were in the supply chain of an essential business fared better.

37% of companies moved into offering new products. Some started in PPE needs

while others expanded medical connections.

S A L E S A F F E C T E DB Y C O V I D - � �

74%

19%

7%

Negatively Neutral Positively0

25

50

75

Page 4

“We are seeing upwards to a 20% miss onexpected sales for 2020 directly related toCOVID-19.”

69.5%

24%

6.5%

Negatively Neutral Positively0

25

50

June 20 - Jan 21 Data Sept 20 - Jan 21 Data

S T A F F I N G L E V E L S A N D F I N A N C I A L I N C E N T I V E S

M A N T E C . O R G / C A R E S

12.5%

27.5%

13.75%

38.75%

7.5%

Furloughs Layoffs Retain Issues Maintained Increased0

20

40

T h e n e w e r d a t a i n d i c a t e s m o r e i s s u e s i n s t a f f i n g .

How has COVID-19 impacted yourstaffing levels?

19% 17%

64%

Temporary Increase Rewards None0

25

50

6 4 % k e p t p a y s t a b l e . 3 6 % i n c r e a s e d p a y o ro f f e r e d g i f t c a r d s o r P T O i n c e n t i v e s .

Are you providing any additionalincentives to the workforce?

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Staffing was impacted for half of the respondents. The furloughs and layoffs are particularly of interest when considering the manufacturing

industry already had a labor shortage. Issues cited include younger workers not having access to daycare, the unemployment bonus and older

workers choosing to retire early. Companies that were financially stable did offer hazard pay or other incentives to keep employees working

during uncertain times.

“Have had temporary layoffs, and difficulty keeping employeesdue to the ups and downs of business. Have had great difficultyfinding new employees.”

6.5%

34.75%

21.75%

37%

0%

Furloughs Layoffs Retain Issues Maintained Increased0

20

14%20%

66%

Temporary Increase Rewards None0

50

June 20 - Jan 21 Data

Sept 20 - Jan 21 Data

June 20 - Jan 21 Data

Sept 20 - Jan 21 Data

S A F E T Y A N D W O R K I N G R E M O T E L Y

M A N T E C . O R G / C A R E S

Safety is of the utmost importance during the pandemic. Manufacturers have adapted to meet guidelines for social distancing and PPE. By the

nature of manufacturing, most floor workers are not able to work remotely. Many companies did extend remote working to customer service,

sales, administrative and IT staff.

What measures have been implementedto keep the workforce safe?

S a l e s a n d o f f i c e s t a f f a r e a b l e t o w o r k r e m o t e l y .

Do you have staff workingremotely?

66%

34%

Yes (66%) No (34%)

C o m p a n i e s h a v e p u t i n t o p l a c e a l l n e c e s s a r yp r e c a u t i o n s a s i n d i c a t e d b y t h i s W o r d C l o u d .

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“ Sales and some admin support continue towork from home but most have returned tonormal operations.”

*No change in data between timeframes

S U P P L Y C H A I N D I S R U P T I O N S A N D C O N T I N U I T Y

M A N T E C . O R G / C A R E S

A global pandemic certainly impacts supply chains and disrupts the way business is done. There was a shortage in many raw materials including

adhesives, food and packaging supplies. In general, lead times were increased and there is uncertainty in the marketplace. Some companies

consistently require PPE to work safely. The PPE shortages during the pandemic caused great concern for these companies. Some organizations

had taken steps to diversify prior to the onset of COVID-��. Organizations that did not have a continuity plan in place or one that didn't address a

pandemic are reviewing ways to improve the company response to a crisis.

62.5%

37.5%

Yes (62.5%) No (37.5%)

S u p p l y c h a i n s d o n o t a p p e a r t o b e i m p r o v i n g . M a n y c i t e r a w m a t e r i a l s , l o n g l e a d t i m e s a n ds h o r t a g e s t h a t c a n p a s s e d t o e n d c u s t o m e r s .

Are you experiencing anydisruptions in the supply chain?

T h e S e p t - J a n u a r y r e s p o n s e s i n d i c a t e e v e n l e s sp r e p a r a t i o n f o r b u s i n e s s d i s r u p t i o n s .

Do you have a Business ContinuityPlan?

30%

20%

50%

Yes- a useful plan (30%)

Yes- but didn't help for COVID (20%) No (50%)

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“Longer lead time on maintenance parts vendors,unpredictable deliveries on value added service providers.”

June 20 - Jan 21 Data Sept 20 - Jan 21 DataJune 20 - Jan 21 Data Sept 20 - Jan 21 Data

69%

31%

Yes (69%) No (31%)

24%

14%62%

Yes- a useful plan (24%)

Yes- but didn't help for COVID (14%) No (62%)

M A N T E C . O R G / C A R E S

O T H E R C O N C E R N S

T E C H N O L O G YI M P R O V E M E N T S

H U M A NR E S O U R C E S

F I N A N C I A LI M P L I C A T I O N S

Companies also shared other areas of improvement and concerns that are a result of the pandemic.

Page 8

ERP system needs to be

accessible remotely

Virtual meeting platforms

Temperature checks

More laptops and remote access

Training new employees and following

safety protocols

Staffing issues- using Temp agencies

Keeping up with regulations

Communicating expectations

Access to capital

Filling capacity again

Ensuring enough cash to meet payroll

“We are creating a stronger cross training environmentand career path for operational employees and are re-writing various protocols to allow inter-departmenttraining to be able to back up those affected byCOVID-19 separation.”

M A N T E C . O R G / C A R E S

More companies are reviewing ways to utilize technology. 80% of companies will be

investing in a blend of technology, training and expanding product mix.

What changes do you foreseemaking to the business based onCOVID-��?

49%49%49%

41%41%41%

39%39%39%

22%22%22%

Technology

Training

Product Mix

None

0 20 40

O R G A N I Z A T I O N A L C H A N G E S

Page 9

“We are looking at improving our systems to allow formore timely communications and visibility to projects andstatus updates. Also looking to develop a number of newproducts as well as improving on existing products.”

June 20 - Jan 21 Data Sept 20 - Jan 21 Data

55%55%55%

41%41%41%

33%33%33%

29%29%29%

Technology

Training

Product Mix

None

0 20 40

M A N T E C . O R G / C A R E S

1 Continue conversations

to understand

changing needs

N E X T S T E P S

2 Strategic

diversification

3 Continuity

Planning

4 Utilize available

training grants

5 Supply chain

assessment

Page 10

6 Operational

improvements

An investment through the NIST-MEP Emergency Assistance Program is supporting a wide

range of manufacturing services.

The opportunity to attain support will remain open until the funding supporting the

services is no longer available. There is no formal application process– a facility’s inquiry

into receiving services starts with a no-cost COVID-�� Impact Questionnaire available at

mantec.org/cares.

12SALES ANDMARKETINGSTRATEGIES

AUTOMATION &CYBERSECURITY

79WORKFORCE

RELATEDASSISTANCE*

6

4BUSINESS

CONTINUITYPLANS

“We have have a roadmap for the future, with clearlyidentified objectives. We could certainly use MANTECsupport on a number of those!”

M A N T E CC A R E S P R O J E C T S

*Projects, Online training and webinars

M A N T E C . O R G / C A R E S

T H A N K Y O U

MANTEC

600 North Hartley Street

Suite 100

York, PA 17404

717-843-5054

mantec.org

Page 11

SALES ANDMARKETING

PROCESSIMPROVEMENT

MANUFACTURINGTECHNOLOGY

WORKFORCEENGAGEMENT

Strategically expandyour market share.

Improvemanufacturingprocess efficiencies.

Integrate advancedtechnologies.

Engage, train, andretain a skilledworkforce. 

MANTEC, and our team of partners, is here to help create astructured plan to respond to many potential businessinterruptions and become more resilient moving forward. 

Connecting specialty solutionsfor manufacturing because ourwork makes your work better. 

mantec.org

Don't Wait for Disruptions- Reduce Risk

717-843-5054Are you ready to grow?