Patrick Industries has extended the suspension of operations at some of its plants an additional one to three weeks.
The manufacturer and distributor of component and building products for the RV industry had previously announced one- to two-week suspension of operations.
“The estimated length of the suspensions is determined on a plant-by-plant basis, depending upon customer operating schedules or government requirements,” Patrick Industries President and CEO Andy Nemeth said. “In addition, we proactively enacted measures related to cost reductions in order to align our cost structure with ongoing expectations and fluctuations in industry demand.”
Certain Patrick Industries plants in various parts of the country have remained operations, he said.
The company implemented cost containment and financial management measures prior to the initial suspension of certain operations. The measures included wage reductions for the entire executive management team and other salaried employees across the organization, furlough of certain team members at operations that have been shut down due to stay-at-home orders, a reduction in quarterly fees paid to the board of directors, and a reduction in non-essential spending.
“We will continue to evaluate the environment surrounding the COVID-19 pandemic and have a playbook with detailed tiered plans to enact further disciplined measures as the situation dictates,” Nemeth said. “Our capital structure and financial position remains strong, with ample liquidity and availability to manage this crisis for the foreseeable future, and we remain poised to quickly pivot and execute on our strategic plan and initiatives once stability returns to our markets.”
The company believes it is well-positioned to continue to support the needs of its customers and be able to take advantage of opportunities in its markets as they present themselves, he said
