July 2014

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Page 47 of 67

Business Recovery 46 | www.cedmag.com | Construction Equipment Distribution | July 2014 there will be no way to find out after a disaster, because you won't be able to get an electrician to come out. It is, of course, possible to purchase permanent back-up generators for your buildings, but this can be a very expensive capital investment. In addition, if your building is destroyed or damaged in such a way that you need to temporarily move locations, an in-place generator will have no value at all. If you rent or purchase a portable generator, you can take it with you to your new temporary location. Communications According to Boyd, few small busi- nesses have a communications strategy in place for a disaster. "They don't think it's important," he said. "However, when a disaster strikes, the traditional ways of communication may not work. These include e-mail, because power is out. And you may not be able to use cellphones, because towers may be down. You need to identify some other ways to communicate with employees, customers, and vendors." One option is to utilize portable, battery-operated computers. Another is to purchase satellite phones. Your Supply Chain After a disaster, you don't want to be faced with customers having to wait for equipment and supplies. You need to identify strategies to make sure that you're able to take care of your custom- ers in the event of a disaster. "There have been several disruptions to supply chains in recent years," said Nelson. "In fact, even events in other parts of the world can impact supply chains in the U.S." Examples include the tsunami in Japan in 2011, which caused significant delays in shipments of equipment and other products to the U.S. from Japan. "It is prudent to review the health of your key suppliers and ask if they have disaster and business continuity plans in place," said Nelson. How financially viable are these suppliers? Also, do you have any single- or sole-source suppliers? If so, consider lining up some alternates. Investigate some other strategies that may keep your supply chain strong, such as expanding safety stocks on critical materials. Duration You need to consider the impact to your business if you are not able to conduct business as usual for a period of time. "All organizations have some level of tolerance for disruption," said Nelson. "For example, recent experi- ences with severe weather across the nation have resulted in late openings, early closings, power outages, and less than full staffing situations." Take some time to consider your tolerance for disruption of business continuity. Set a target that you cannot exceed – one that would result in a severe impact or loss of PRODUCTIVE, DURABLE, VALUE. ® GRAPPLES LOWE MANUFACTURING COMPANY, INC. 18903 High Point Road Viola, WI 54664 PH: (888) DIG-LOWE (344-5693) FX: (608) 538-3995 www.LoweMan.com Lowe @ LoweMan.com TRENCHERS AUGERS GRAPPLES GR GRA RAP APPLES PPL PLE LES ("What Would You Do If It Happened To You?" continued from page 45)

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