Harwick Standard CEO on business during a pandemic: ‘I communicated with everybody the best I could'

When the realization began to take shape in early March that the novel coronavirus pandemic had the potential to be more than just a small inconvenience, Ernie Pouttu knew that communication would be vital.

As president and CEO of Akron, Ohio-based Harwick Standard Distribution Corp., he began to share emails with the firm's roughly 55 employees. Most of them are based in Akron, but a half-dozen or so work at a company warehouse in Southern California, and another seven or eight sales people are spread around the U.S.

Pouttu's messages ranged from being informational to inspirational and, at times, just a collection of his thoughts. While much of the content came from him, he also drew on other sources, including Ohio Gov. Mike DeWine's briefings, writings from a variety of publications and even some videos.

"As the president of the company, I just felt the responsibility to make sure I communicated with everybody the best I could," said Pouttu. "To just sit there and not communicate, I couldn't do that. I wouldn't have felt comfortable."

One of his early missives talked about how common coffee would no longer be available. Another told of how the St. Patrick's Day celebration had been canceled.

A March 23 email explained how Harwick Standard would be deemed essential, so the doors would not be closing. That same email emphasized that the employees had a responsibility to themselves to "do all you can to not get sick." It also touched on the uncertainty of the fluid situation, with Pouttu writing: "I am not sure if I answered all our questions. I am pretty sure that no one on earth can answer all our questions."

The president of the distributor of a wide variety of chemicals, additives and elastomers said he wanted to get across information, and make sure people were practicing what they should, such as social distancing. One vendor with whom he shared some of the messages described the emails as "realistic and optimistic."

Looking back on those earlier communications some four months later, he said much of it seems a bit odd now, until he puts them in context.

"Everything to me as I look through them now are all what was going on at the time," Pouttu said. "To me they're a little bit historical because we tend to forget what we were thinking about at the beginning of April. It was all about communication, staying in touch and just letting people know they were being thought about."

Employees were appreciative, he said, particularly those not working out of the main headquarters as it helped those employees feel connected.

At the onset, Harwick Standard officials told those who could work from home that they should. Pouttu himself worked from home most of the first two months, making occasional trips into the office. Of course, those in the warehouse and others tied to operations didn't have that option. "You can't load a truck from home. Those guys have to be there," he said, noting there were times the warehouse staff was allowed to be home and still get paid.

Determining that the firm was an essential business was pretty cut and dry. Some of the raw materials it supplies are used in making parts for ventilators, while others went into a variety of medical goods.

"If nothing else, people should realize how essential rubber and plastics are," Pouttu said.

There was some thought to shutting down, but then he started getting emails from employees saying how Harwick's products were used in products that were needed, and they felt a sense of pride in the products they represented.

Customers also were keeping tabs on whether the supplier would continue to operate, as they had to make sure there would be reliable supply. One customer manufactured rubber thread and tape used in medical and face masks globally; a second was supplying GE Healthcare and Ford with ventilator parts; and yet another was producing medical compounds, films and components for a variety of medical device manufacturing.

"These were difficult choices," Pouttu said. "I felt empowered to say we need to do what we need to do. In some ways it was an opportunity to show leadership through this. I didn't want to shirk away from it. I wanted to make sure we were doing the right things."

While most employees who could work from home did, some decided not to because they didn't feel they could work effectively from home. The company allowed those people to continue working in the office because they all had individual offices, but strict protocol had to be followed.

Just because Harwick remained operational, though, didn't mean everything went smoothly. Pouttu acknowledged that sales have taken a hit, without disclosing percentages or dollar figures.

"The good news is we had a good first quarter," he said. "April hit and we thought this was bad. Then May came and it was worse."

Things did pick up a bit in June, and some more optimism came in July, when a week in the first half of the month hit about 92 percent of target.

"Now we're just trying to look ahead, as August through October are usually pretty good months," the Harwick CEO said. "In November things start to really slow down because of the holidays and companies trying to limit year-end inventory. But that usually makes for a pretty good January."

Anything to do with medical was a bright spot, as was wire and cable, he said, while sales to tire customers along with oil and gas dropped off.

Even though he has a financial background, Pouttu said much of the reporting periods are arbitrary, existing mainly because there has to be something to judge business trends.

"I tell sales people I don't care when we get the order, just as long as we get the order," he said. "We also can't make a customer buy what they don't need. In a lot of ways we don't control our own destiny. We can try to beat the competition by selling good quality products at a good price, but if a customer doesn't need it, they're not going to buy it."

Just before the COVID-19 pandemic set in, Harwick had begun with a long-needed renovation of its office space on March 1. Some employees questioned whether the construction crew should be allowed in, but Pouttu said because most in the offices were working home, it was decided to continue with the work.

The project involved remodeling 30 offices, three large common areas, three bathrooms, two kitchens, the lobby and the board rooms, along with updated lighting. He said the headquarters site hadn't been upgraded in 35 years, so the project was way overdue.

"It presents a much nicer view for our customers and suppliers," the executive said. "Plus our employees are here eight hours a day, and they deserve it. I thought spending the money was important."

Harwick hasn't laid anyone off throughout the pandemic, as Pouttu said they have tried to take care of employees. "I wanted to keep people on the payroll. It was important to keep everyone on staff and working."

And despite the continued economic uncertainty, he said there is some room for optimism.

"I think that's what everybody's looking for, just business coming back and doing some good things," he said. "Business and people in general have to be optimistic."

Pouttu's not sending out the emails as often now, only when there's something going on. Most of the Harwick staff are pretty much back working at the office, with staff being told to keep their doors shut and wear masks when they're out of their offices.

While most people work because they have to, the Harwick CEO said he is at the stage of life where he stays because he likes to. He sees there will be a transition down the road, but he has been proud to be able to lead the firm through this difficult time. He also keeps his priorities in order, saying he doesn't lose sleep over softer sales.

"I feel good about what we've done as a company," Pouttu said. "I sleep at night because I feel like I have done what I can do and we have taken care of as many people as we can."