Your Business & Covid 19 | Tod Nestor, CFO, Energy Focus

CFOTL: When it comes to the Corona virus, what steps are you taking to prepare and manage your business going forward?

Supply Chain Snags: First China, Now the U.S.

Nestor: We so happen to have a fair amount of our product sourced out of China. So we’ve been thinking about this for quite some time. The impact of it, basically since the country became aware of it and what we’ve learned is that on the supply chain side it has had an impact, but I would say it’s been more of a deferral, a timing impact that it hasn’t ceased shipments or any of that. We also did contingency planning and we moved some production to other countries. That was critical, as far as timing goes. But as it relates to just China itself, we have found that they were able to get their factories back up and running through a very robust certification process that they did in China. And then, the real problem was downstream with the suppliers. It took a little longer. So as people returned back to their factories to work, the production got ramped back up and, and we did see timing impacts, but nothing permanent or longterm on the supply side going forward.

CFOTL: And clearly you’re continuing to monitor, not just China, but other parts of your supply chain as well?

Nestor: Yes. The other locations that have a significant presence of Corona Virus, other than China’s is the U.S. where we source out of. And clearly we don’t understand the impact of that yet. Each area of the U.S. is dealing with this differently and it’s real time. Honestly, my biggest concern right now is the customer side and what this does to psyche of a buyer, what it does to the customer. And I say from that perspective of there’s been such a response to this that it concerns me a little bit from the customer side. As a leader in an organization, I can’t afford to panic. Nor do I want to. I want to send a strong signal to the organization that we are calm, we are thoughtful and we are taking this on in a very well thought out manner.