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Minnesota-based Erdman Automation Will Remain Open to Provide Essential Services

Leadership at Erdman Automation issued the following statement:

We, at Erdman Automation, are continuing to assess the current business climate. Our business is comprised of 95 percent Window/Door/IG related work. As such, we are a supplier to a sub-sector of the economy that has been deemed essential to the welfare of our society and social health.

We have two sides to our business: equipment sales and parts/service. While we do have continued capital orders, the rate of those orders the last three to four weeks have slowed to approximately a third of the previous year. Prior to this, we were on pace with last year, which was our high watermark of 40 million. We have 150 employees and 200,000 square feet to service customer needs. I have not spoken to a customer in the last week who was not trending up this year. I have not spoken to a customer who is experiencing soft sales even today. I do understand the lag in orders and closures in our business, however, the indicators are encouraging for a quick return to strength after this wave of pandemonium subsides.

The Governor of our state of Minnesota has declared a “Shelter-at-Home” for two weeks starting this Friday. Erdman Automation Sales Parts and Service will remain open, as specified in the mandate, a supplier of essential services, with parts and service, as well as the ability to travel to service on an emergency case-by-case basis. We will do this and maintain a safe environment in our plant for our personnel.

Our production will halt on Friday, March 27 and will be re-evaluated upon the two-week completion of the government’s mandate. We are trying to balance the need of our customers, in accordance with the government’s direction. Erdman Automation has been in business for 27 years, surviving four significant economic setbacks. While none was of the variety of the present, we have thrived after each. This will be no different, as our formula is basic. We have no debt, so we have no need to service it. Our cash flow is easily balanced and we have a reserve. We will downsize, as needed, and subsequently upsize to meet customer demand.