The Corona Effect is Here to Stay

“Mul-T-Lock is an international corporation with ten subsidiaries and approximately a hundred distributors around the world. 70% of our production is destined for export, which meant that our exposure to the coronavirus crisis was gradual – influenced by what was happening in Israel and what was happening in the countries in which we do business around the globe, each of which responded in its own way to the spread of the coronavirus. As a consequence, we asked all of our teams around the world to act first and foremost in accordance with the guidelines and expectations of their home country. In those countries where regulations were felt to be insufficiently serious, we asked them to align with the policy here in Israel, which was particularly strict in its interpretation. As manufacturers, our top priority in responding to the crisis is protecting our employees. That is why we introduced social distancing, wearing masks and gloves, and using alcogel at a very early stage in all our branches, including in France, Italy and the United Kingdom.

“At present, we are in regular contact with all of our companies around the world, and every manager is required to send us a daily report regarding the situation in their branch, including economic and health updates from their country. In Israel, we expect the market to open far more substantially within the next week. After all, one consequence of people being quarantined at home is that it largely puts burglars out of work, and therefore likewise locksmiths, who are the proof that good can come out of bad. Since the beginning of the crisis, there has been a decrease in demand for doors in the private sector, however there has actually been an increase in the public and institutional sectors. There is significant demand today for new and special doors for hospitals, care homes and other public institutions, and manufacturers are working around the clock to rise to the challenge.

“So the world has gradually shut down, and now it is reopening in the same way. Schools are reopening and people are slowly returning to work – and soon so will burglars. The whole process will take two or three months at a minimum, because the phrase “return to normal” is misleading. What has been is not what will be, especially in the short term – until a vaccine or an effective cure is found.

Until then, it will come and go in waves. There are insufficient studies available at present to definitively determine, for example, whether the body develops an immunity to the disease after contracting and recovering from it. So the corona effect is here to stay, leaving us on the brink of a global revolution that is changing our entire system of behavioural norms and will continue to do so. The indefinite introduction of the term ‘social distancing’ until recently would have been almost unthinkable for Israeli people, the kings and queens of crowding.

“The shifting circumstances require company executives to prepare accordingly, changing how they think and respond and becoming more dynamic and flexible. We are working out what we mean by ‘after the coronavirus’ as we go, and that is happening as we speak! Who are our clients in the new world that is opening up before us, and how do we reach them? What are the distribution channels of today and tomorrow? Which of our products should we continue to develop, and what are the products that we should now begin to develop? What business opportunities do we foresee opening up? These are questions that every forward-thinking board of directors should be asking itself.

“In the immediate and short-term, this is merely a tactic – adjusting to the situation on the fly. It does not constitute a strategy. We are living in the moment and reacting to shifting market conditions. That is the reality of business activity during the coronavirus. What is important is to adapt the strategy of the group, or the family, to the changes that will take place after this period. It goes without saying that some things will change – social distancing as one clear example. On the other hand, this crisis is also rapidly changing and developing the whole e-commerce sector. That is happening as we speak, and those who are to slow to recognise the consequences of it on their business will be left behind. The present crisis is expediting the existing shift towards sales moving online and via telephone, Skype or zoom – and that shift is here to stay.”

The writer is the president & market region manager of Mul-T-Lock