SE Grand Rapids News

The business world was turned upside down in March with the onset of the COVID-19 pandemic, and now Michigan companies are being forced to navigate without a roadmap.

The situation has left behind uncertainty as losses continue to pile up for many companies. With little in the way of experience to draw on, company leaders are in the position of guessing what the future holds and tying their optimism to the successful installation of social-distancing procedures.

Bridge Michigan reported the first cracks in business performance due to the coronavirus have begun to appear in first-quarter financial results from 20 companies throughout a number of sectors within the state.

“There is no playbook to navigate the environment we face,” J.B. Brown, CEO of Ally Financial in Detroit, told Bridge Michigan.

Changes in the way companies do business have been made on the fly, such as a workforce conducting business remotely for the first time. The pandemic began to force changes within the state’s business community in March. Since that time, supply lines have come to a standstill, workers have been laid off or furloughed, and technology is having a greater impact on businesses. An influx of online sales have taken the place of in-person sales.

When it begins to turn around into something resembling "normal" is the question on everyone’s mind.

Bridge Michigan reports that Ford is projecting losses in the amount of $5 billion by the end of June, while CMS’s Energy is down 20 to 25%. Masco expects sales to drop by 25% in June, and that is with closed facilities opening throughout May and no new restrictions, its CEO Keith Allman said.

The stories are a sampling of what most companies are experiencing. To combat the rising tide of economic setbacks, Michigan companies have resorted to a variety of measures, from freezing salaries to seeking out different sources of credit.

Not all companies have suffered, and one of the challenges is to determine which consumer trends are reactionary and which will have a lasting impact on the economy as it moves forward from the pandemic.

“How fast will businesses bounce back?” CMS Energy CEO Patti Poppe asked Bridge Michigan. “How soon will people gather in public places? How quickly will manufacturers be able to start making nonessential goods again? Will the government stimulus help so that the small businesses can come back after this? At this point, there are just too many unknowns.”