Memo: Update from Ozone HQ
Date: March 27th, 2020
Subject: Operations, COVID,  etc.

 

First, we hope everyone is healthy and adapting quickly to the new challenges we’re all facing.  With all of the uncertainty lately, we thought it would be appropriate to check in and give a brief rundown of how things are going.

Operations & Production

As you know, China was the first country affected by the outbreak and was on lockdown following Chinese New Year.  After about a month shutdown people were allowed to return to work. Thankfully, nobody in the company has been sick. We did lose some employees due to travel restrictions as the lockdown prevented people from returning to work

We are currently 80% staffed and are still able to outperform the demand. Before the shutdown, we were anticipating a slowdown and had taken steps to reduce production.  We came into Chinese New Year slightly overstaffed, and the unexpected loss of the people who were unable to return actually prevented possible layoffs. We see no problem fulfilling our orders on time.

Brian has not been able to return to the factory, but he is managing remotely. Our 15-year veteran staff who have done a great job. For the last two years, Brian has been working with Tony, our most senior factory manager, preparing for continued operations in a prolonged absence. The factory continues to run smoothly, we have put the Volare into production during the past month.

Our online parts store is operating and shipping, thanks to Wendy and Julie. Cameron is also taking orders online from stock paddles via palafamala.com

Shipments

We have had some delays in shipment schedules, due to sea freight cuts. Shipping companies have been canceling sailings.  Transit times from the factory may be longer than usual.

The most recent update from Young Brothers is that all non-essential interisland shipping in Hawaii has been paused (including canoes and surfskis on flatracks). This will cause delivery delays to outer islands.  If you have questions regarding 267HA, please contact Wendy or Naim.

Future Forecast

Paddling events such as World Sprints, M2M, Wild Buffalo, etc. has been canceled. Also, future races, including The Gorge Race, have been put on hold until June 1st.

The health and safety of our friends and family definitely outweigh economic concerns. However, it is prudent to expect a slowdown as a result of the global situation we are all facing. This is not business as usual. That being said, many are turning to alternative modes of health, exercise, and connection to nature. We all know the benefits that paddling brings to our lives, and so, during these times, we encourage you to slow down, keep your loved ones safe, and jump in the water when you can. Share your passion for the sport (at a distance). Let’s respond to these new challenges by seeking ways to adapt. Jim Foti’s virtual race series at Kanaka Ikaika is a great example of ways we can connect during these changing times.

We will do our best to keep you updated on our status with regards to changes, new models, POs, and shipments. However, please reach out if we can answer any questions or support you in any way- we’re all in this together.

Mahalo,

Outrigger Zone