Northrop Grumman’s ability to expedite funding to its supply base has proved critical, especially to small businesses....
Forrest Machining, Inc. Supports Their Suppliers With Help from Northrop Grumman
The COVID-19 pandemic has caused personnel shortages, product demand issues and cash flow challenges for companies around the world. Forrest Machining, Inc., an aerospace machining and assembly company in Valencia, California, has been able to work through all of these challenges with support from Northrop Grumman.
“The COVID crisis created a manpower shortage initially,” said Steve Wooten, vice president and general manager of Forrest Machining, Inc. “It was quite crippling, and it occurred up and down our supply chain.”
Northrop Grumman’s support through accelerated payments, personalized outreach and a steady flow of demand for products helped Forrest Machining manage through this crisis.
“The accelerated payments allowed us to trickle down the effect of having the escalated cash flow to suppliers,” said Ken McPherson, chief financial officer of Forrest Machining, Inc. “We immediately started writing checks to our suppliers to get them current which has improved our relationships with them. The funds also helped us cover the risk of paying furloughed employees while we worked on reimbursement from government programs.”
Forrest Machining employs over 230 people and also provided paid time off (PTO) for at-risk employees before government aid kicked in.
The aid from Northrop Grumman helped the company keep their suppliers in business. “Our key suppliers were in danger of not being able to open or pay their employees,” said Wooten. “They run on a short shoe string. We were able to help them keep an uninterrupted flow of products going.”
Forrest Machining, Inc. manufactures a series of structural airframe components for various large aircraft programs at Northrop Grumman.
Wooten has personally worked with Northrop Grumman in some capacity for more than forty years on various programs, and he considers them a true partner who cares about their suppliers.
“Northrop Grumman is my favorite company to do business with. When the crisis hit, they reached out to ask what they could do,” said Wooten. “That type of support from my customer means a lot. And when I relay that to my management team, they understand just the type of company we’re doing business with.”