PLYMOUTH, Mich., Oct. 26 /PRNewswire/ -- When Hurricane Floyd caused
massive flooding in eastern North Carolina last month, roads, airports,
bridges, phone lines and power plants shut down. But the "human spirit"
didn't, and at Simpson Industries' (Nasdaq: SMPS) Greenville plant, an
amazingly resourceful group of people pulled together and solved a
manufacturing challenge that threatened to shut down production lines across
North America.
Simpson Industries manufactures engine products and chassis components
found on most cars and trucks sold today. A key supplier in the automotive
industry's manufacturing chain, Simpson executives found the Company's
Greenville facility surrounded by floodwaters in the days following Hurricane
Floyd. Bridges were closed, highways barricaded, and the airport was under
water. The governor declared a state of emergency. But worst of all,
devastated residential areas meant that plant employees were in serious
trouble too.
"We had 18 people who lost everything," says Mike McCall, plant manager of
Simpson's Greenville Plant, "and many others who were evacuated and couldn't
get back to their homes. For me the worst part was just trying to find out
about our people."
Management had closed the Simpson plant the night before the storm hit and
made advance shipments to Simpson's customers to cover for the shutdown. But
when rivers reached 500-year levels after the storm, flooding cut the region
in half and threatened to halt production shipments indefinitely. McCall
quickly got his team together and discovered how a company, its employees and
customers could work through and overcome disaster.
One Problem at a Time
The machinery at the Simpson plant was unharmed by the hurricane, and
floodwaters did not get inside. Instead, the flooding surrounded the plant,
isolating it from roads and employees. Highways were closed for miles around
and all but one bridge in Greenville was impassable. The Greenville airport
was 12 feet under water. Employees were stranded at inland shelters far from
home. Yet, if management could get employees into the plant, Simpson could
make product. But then, how would they ship?
At Simpson headquarters in Plymouth, the call immediately went out
company-wide for contingency workers. Part of a plan put in place in 1997 to
ensure that Simpson deliveries would not be interrupted, the voluntary
staffing plan recruited 35 people -- including salaried, "front office" staff
and hourly workers -- from other Simpson plants. The company flew them in to
nearby Rocky Mount, secured lodging for them and arranged helicopter transport
to the plant. By Wednesday, the contingency workers were oriented and trained
to supplement the plant's workforce, which had been operating two 12-hour
shifts since Monday -- right in the middle of a federal disaster area.
As more regular employees found their way back, production ramped up,
reaching 80% capacity Wednesday and 100% capacity Friday, eventually topping
all previous production records. Air shipments continued for five days.
A relief fund was established to accept contributions from employees at
all Simpson locations. Simpson doubled the contributions with 100% matching
funds. In addition, Simpson President George Thomas established a fund from
which the company provided significant cash gifts to each of the Greenville
employees who lost their homes. Additional assistance to North Carolina
employees came from Cummins Engine, Mack Truck, and several suppliers who sent
a flow of cash, food, clothing and other goods to help.
Strong Relationships Make the Difference
Simpson customers Consolidated Diesel, Delphi Automotive and Mack Truck
were vital in working through the mountain of logistical problems Hurricane
Floyd created.
"There are two ways a customer could respond," says Thomas. "One is to
say, 'Give us your parts.' The other is to say, 'How can we help? Let's work
together to solve the problem.'
"Simpson was fortunate that all of the companies in the supply chain
worked together. Our customers stayed the course with us. They understood us
as a supplier and had confidence in us. Moreover, the people at Delphi
Automotive, Consolidated Diesel and Mack Truck were exceptional in their
concern for our employees."
Jim Lyons, general manager of Consolidated Diesel Company, knew firsthand
the difficulty Simpson faced. "We'd had the same conditions in Rocky Mount
two days before," he says, "so we had already set up a contingency plan in
case they had to shut down. But it didn't happen. They did everything to
keep us going, like getting a helicopter to transport people. Both of our
plants experienced nearly four days of hurricane and flooding and still, we
were able to deliver 98.8% of our customer requirements. I'm proud of our
company, but I know we couldn't have done it without Simpson Industries."
Pulling Together
"What impresses me the most," says Roy Parrott, Chairman of Simpson
Industries, "is the commitment on the part of our people. Despite their own
horrific conditions, they were concerned for each other and came in to get the
plant running."
"People made extraordinary efforts during this time. Some were living in
shelters and continued to report to work. I credit exceptional people and
excellent communication between Simpson and Delphi with getting this disaster
under control. Now we're trying to help our employees get back on their
feet."
"Simpson's been great to us," says machine operator, Willie Darden. "They
fed us lunch for over a week. They paid us mileage to get here. They paid us
for time lost and extra for work on the weekend. They helped people get to
the Ferry and find out how to get to work."
Rusty Dennis, a machine operator and 12-year employee, makes similar
comments. "My family is living in an RV now," says Dennis. "We were
evacuated three times in all ... Simpson met most of our financial needs.
They told me to take all the time off that I needed. They brought us food and
water. And everyone keeps asking, 'What can I do? When can I help you work
on your house? Do you need any money?' From the office to the floor, people
have just stepped right in."
"All of our employees are back now," says Mike McCall. "We've exceeded
all expectations and even found new productivity. For me, the whole
experience has really shown what the human spirit is able to accomplish."
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy duty
diesel engine markets. Simpson's products are focused in three groups: noise,
vibration and harshness, wheel-end and suspension, and modular engine
assemblies. Simpson's manufacturing units are located in the United States,
Canada, Mexico, Brazil, England, France, Spain and South Korea. Information
about Simpson is available on the Internet at http://www.simpsonind.com
SOURCE Simpson Industries
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Related links:
http://www.simpsonind.com
Company News On-Call:
http://www.prnewswire.com/comp/107165.html or fax,
800-758-5804, ext. 107165
CONTACT:
Don Myhan of Simpson Industries, 734-207-6625
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