The Dovetail: Good News: You’re Busy. Bad News: You’re Vulnerable

By Lindsey DiGangi, Director of Corporate Marketing

Business is busy right now, and that’s doubly true for the lumber industry. For much of the industry, there has been record growth over the last couple years. However, this success has not come without many pain points. With persistent supply chain delays, your clients may be struggling to find the supplies and inventory they need to keep their businesses moving forward. On top of supply chain issues, the Great Reshuffling has disrupted the labor market and may have caused them to operate short-handed. With so many competing priorities, we understand that urgent issues demand their immediate attention. However, it is critical that they do not neglect their normal, day-to-day risk exposures.

Here are some key areas to share with your clients to help them keep safety top of mind.

So the good news? You’re busy. The bad news? You’re more vulnerable.

At Home

Safety and maintenance at your operations need to remain top priorities. You might be inclined to run machinery longer or more frequently to keep up with demand, but don’t overlook routine maintenance and housekeeping procedures. Make sure that all equipment receives proper maintenance and repairs when a breakdown does occur. Equipment failure can bring all operations to a standstill. With supply chain issues also impacting your ability to replace parts or equipment, the loss can be compounding.

Take the time to walk the floor. This time, not to see where you might need to lend a helping hand, but to see what hazards may turn into a preventable accident. Check for extension cords, oily rags, open breaker panels, open flammable liquids, an accumulation of dust, and anything else that might present a fire hazard. Check for uneven surfaces, spills left unattended, out of place inventory, and anything else that might present a slip, trip, or fall hazard for your employees, customers, or vendors walking around.

Don’t forget to check outside! Both fire hazards and fall hazards are present year-round. As we come out of the winter season, the cold weather may have impacted the integrity of paved surfaces. Cracks or holes need to be properly marked and promptly repaired. Dead brush will begin to dry out and can create a fire hazard. Make sure you’re keeping as high a level of housekeeping standards outside as you are inside.

Make sure that employees are following safety protocols at all times. Whether it’s following housekeeping and cleaning guidelines, utilizing protective equipment, or operating heavy machinery properly, one cut corner or distracted moment can create a catastrophic loss.

Hint: PLM sees many losses around loading and unloading practices involving forklifts. Are your employees using proper safety precautions every time they get behind the wheel of a forklift?

The health and safety of team members need to take precedence over any other challenges that arise. Make sure that fire systems are maintained, inspection schedules are followed, and employees are adhering to safety protocols.

On the Road

Labor is scarce, and well-trained employees are more valuable than ever, particularly when looking for new drivers. As business owners quickly move from one task to another, it can be easy for leadership to forego or expedite the training of new team members. Due to the labor shortage, less experienced candidates are being hired, and they need more attentive training than what was previously required. Ensure all team members are not only trained for the jobs they are assigned but also receiving regular refresher training on general safety and operational knowledge.

While it’s important to maintain high standards when looking for new drivers, it’s equally as important to ensure that your current drivers are still safe on the road. Continuous MVR monitoring will help ensure that you maintain an elite group of drivers. Aside from continuous classroom training, also consider implementing telematics into your vehicles with Azuga. A telematics program allows you to monitor driver habits and correct risky behaviors to avoid preventable losses.

Hint: Any technology is only as good as your usage. Don’t stop at implementation. Set up routine times to monitor and review information. Look for trends and hold subsequent training sessions.

When your employees are busy, they may be inclined to quicken their pace or multi-task during deliveries, both of which can cause major losses. When heavy machinery and heavy loads are involved, major loss can mean loss of life and loss of reputation. Don’t put yourself or your employees in that position. Consider mobile phone blocking technology, such as LifeSaver, to remove the temptation.

Are you struggling to attract new drivers in your organization? Check out our Tips from the Toolbox for some considerations and best practices.

All Around

Internal operations are not the only vulnerable aspect of a business during this period of volatility. Cybercrime remains an increasing threat, and technology is continuing to become more advanced at an expedited rate. According to IBM’s 2021 Cost of a Data Breach report, data breaches now cost companies $4.24 million per incident on average. Most cyberattacks targeted user credentials and took advantage of common mistakes like weak or reused passwords. As a company, you’re as vulnerable as your weakest person or your weakest access point. Regular cybersecurity training with team members and inspections of sensitive systems should be prioritized, especially as the cost of a data breach continues to increase.

Check out our Cyber Corner in this edition of the PLM Lumber Memo for a quick tip on common tactics of cyber criminals.

Risks at home, on the road, and everywhere in between not only present insurable threats, but also risks to your reputation. As a business owner, you live and die by your reputation. It takes hard work and long hours to build one, but it takes just one oily rag, one cut corner, or one distracted moment to ruin it. Each decision you make is an opportunity to build your brand and to create a more risk resilient organization. Don’t let supply chain issues, the Great Reshuffling, or the other work that comes from being busy distract you from your main goal of sending your employees home safe at night and having a business for them to come back to in the morning.

We’re Here to Help

Despite the many challenges that your clients face as business owners, particularly in times of high growth and a challenging industry landscape, there is good news. They are not alone in their pursuit to meet the evolving needs of their employees, their customers, and their communities that they serve.

PLM offers Anytime Risk Management (ARM) to help businesses assess their risks and improve their resiliency. ARM is an online loss control survey that provides insureds with the opportunity to take control of the risk management process on their time – perfect for when they are busy.

They can walk through their own facility using PLM’s tool, documenting key areas of their operation through pictures and answering some simple questions about their business. After they submit their survey, our loss control representatives will set up a call or virtual meeting to provide them with insights into how they can improve their risk management efforts. Without the hassle of scheduling an appointment or scheduling time out of their busy day for an on site consultation, ARM lets your clients see their operations and their risks through our eyes.

For more information about PLM’s ARM services, contact custserv@plmins.com/

As always, PLM offers many other tools, videos, guides, and signs to help keep lumber businesses running smoothly and safely. Find risk management materials anytime at www.plmins.com/loss-control/.

For any direct questions about working with PLM, I welcome your calls and emails at ldigangi@plmins.com or 267-825-9034.