n the website quora.com, people replied to an invitation to fill in the blank, “When life gives you lemons, ___________.” One enthusiastic young guy from India responded, “Ask for more. Become a lemon trader. Sell lemons at a price lower than the prevailing market price. Build a company which sells lemons. Become an international lemon selling brand. Have profits in billions. Keep asking for more lemons.”
That, of course, is a winning attitude. Jeff Haas, president of Cleveland Metal Exchange, and Hugh McNenly, president of CME’s Aluminum Division, are two leaders of a team that went through some dark days before they could figure out what to do with the “lemons” given to everyone by the coronavirus outbreak.
In the beginning of lockdowns, during early spring, barely controlled chaos ruled the day. “We worked from home almost three months. I would get a call from one sales rep, then another, then I would call the first one back, then the other. I was spinning in circles, and my head would pop off at the end of the day,” Haas recalls. After being pushed out of his home office into the basement by his young son, “I turned into Jack Nicholson from ‘The Shining,’” he jokes. “But what came with that was creativity.”
Due to the slowdown in activity as a result of the pandemic, “We were able to look at the business up at the 30,000-foot level and spend time thinking more strategically—and differently—on how to arrange the puzzle and how to best buy and sell and interact with customers.
“We had never looked at videoconferencing or other similar platforms before this. So we started using them to ‘visit’ customers,” he says. “We are now creating a studio in our conference room with multiple cameras, microphones and speakers to be able to conduct better touch points. We will use the space to conduct webinars.”
This is a way for customers to see CME’s people, says Haas. Sales reps can go through the marketing material and answer questions live. “We aren’t just a telemarketing voice on the phone. This is something we should have done before.”
What also leapt out of the creative process is a virtual showroom. “We sell metals to people who make things. We are gathering products that our customers make. I have a mobile camera in the virtual showroom. So after a meeting ends, we can take the mobile camera and show viewers the products made by our customers and the industries we serve.”
Meanwhile, says Haas, “We are trying to give customers a miniature trade show, show them what we are. This is better than a voice over the phone.”
“As long as there are good therapeutics or a good vaccine rolling out, the second half of 2021 will go through the roof,” Haas predicts. CME already saw two of its best months in September and October, as measured by order entry rates. “Everyone knows where they are, so things have stabilized for the moment.” Many customers have already signed first-quarter supply contracts while some are taking a wait-and-see approach despite the current pressures on the supply chain.
Haas believes there is pent-up demand for everything. “Think about hotels that sat empty and repairs that have to be made. Restaurant equipment and food service-related industries are still in the midst of a slowdown. But at some point next year, there will be a massive explosion in demand.” Perhaps restaurants will be smaller, and they’ll do more carryout business, but even that scenario requires new equipment, he says.
CME’s leaders are bullish. “We have seen hints among our customers. We are here to support them.” The company provided extended terms, held inventory longer and accommodated smaller shipments to help customers weather the dry spell.
CME leaders discovered ingenuity inside the company, and deployed a strategy toward a rebalancing, Haas says. “All scales need to be calibrated multiple times, and we keep learning from our experiences.”