DSML Executive Search services many different industry sectors through our Chicago and Boston offices and, without exception, all of our clients’ businesses have been impacted as a result of the COVID-19 pandemic, some with a loss in demand for their products and services and others with a severe disruption to their supply chain.
The medical industry, at the onset of the pandemic, was the first to experience the challenge of supply and demand as there simply was not enough PPE (personal protective equipment) and other patient care equipment available. This caused a sudden boom for some industries, like those supplying ventilator devices, hospital beds, etc. Yet other industries, because of production plant shutdowns found that their “just in time” supply chain programs left them desperately short of parts and equipment to meet demand. The sports and recreation industry, especially bicycles, is just one example of the dual impact of “supply chain issues” and a sudden huge “surge in demand” related to the COVID outbreak.
Having the right people in place
The executive search industry, thankfully, was not impacted as much as people would have anticipated. While our team experienced a holding pattern on some searches, most of our initiatives, especially those at the senior level, continued unabated, as clients appreciate the importance of having the right team in place to drive their business in the United States.
Thankfully with the introduction of effective COVID vaccines, many businesses are resuming their operations and are also looking towards future remedies, such as considering alternate supply sources, partnering with non-traditional manufacturers – (Auto OEM’s manufacturing ventilators; alcohol brands making hand sanitizer; clothing brands to creating face masks, for e.g.), and embracing new technology and new ways of doing things.
Moving operations closer to the US
Some companies, with production facilities abroad are rethinking their logistics and some are moving their operations closer to the U.S. “And it’s not just U.S. companies making these calculations. Increasingly, foreign companies are building plants in the U.S. and in nearby countries to be closer to the world’s biggest economy — and to position themselves strategically for growth”. Source
Questions for the future
Who would have thought that a tanker would get stuck in the Suez Canal for a week blocking the movement of 360 ships full of cargo? What other unforeseen delivery hazards could your business face? Quoting from a recent World Economic Forum article, “While many businesses have been extremely nimble, companies that have not already done so should prioritize analyzing their supply chains now.”
Some questions business leaders should ask:
- Does your business have the ability to react and adapt quickly?
- How nimble is your business? Do you have an emergency plan in place?
- Have you prioritized risk management for future unforeseen situations?
- Are you protected legally in your contractual obligations?
- What are the employment implications for your team?
- Will there be relocation costs?
- Do you have the right people in place?
Resilience, Recovery & Renewal
Baker & McKenzie has created an excellent podcast series designed to strengthen your businesses ability to react and recover to production disruptions. It features virtual conversations with leaders from some of the world’s most innovative companies discussing how employers can welcome the changing nature of work amid business disruption. (Other podcast topics relating to Resilience, Recovery & Renewal include Brexit, Sustainability, Shifting Investment Landscapes, Diversity & Inclusion, for e.g.)
Time to rethink the leadership of your US subsidiary
The US economy is rebounding rapidly.
Are you concerned about having the right sales and management leadership personnel in place within your US subsidiary? Contact DSML Executive Search for a no-cost consultative conversation on how we can assist you in growing your business in the United States.