Hartford Business Journal

10 Hartford Business Journal • June 15, 2020 • www.HartfordBusiness.com Entrepreneur Kania helps stabilize one business, while launching another By Greg Bordonaro gbordonaro@hartfordbusiness.com D arius Kania was bullish coming into 2020. His company Lynn Weld- ing Co. in Newington — which he owns with his father, Jan Kania who is president, and specializes in high- precision welding for the defense and aerospace industries — was coming off a strong 2019 in which it recorded $9 million in revenue. It was also ramping up produc- tion to prepare for major growth in the commercial aviation industry, in which hundreds of aircrafts were expected to be delivered monthly for the next quarter-century. Kania was also readying the launch of a new business venture called Intelligent Cutting Solutions LLC that would specialize in water- jet cutting, which uses a high-pres- sured stream of water to cut metals. Then the coronavirus hit in mid- March, sending Lynn Welding's sales into a tailspin. The company was facing revenue declines as high as 40%, Kania said. Lynn's commercial aviation business, which made up 50% of revenues coming into the year, had dried up quickly as airlines across the country grounded flights amid the rapid spread of COVID-19. "When business dropped, it dropped fast within a week or two," Kania said. "We had plans if a reces- sion hit, but we didn't have a plan for a crisis like a pandemic." But rather than panic, a plan was quickly adapted to stabilize Lynn Weld- ing, which appears to be working so far. That's allowed Kania to push for- ward with his new business venture, despite the tough conditions. Lynn Welding secured a Paycheck Protection Program loan so it didn't have to lay off any of its 70 employees, and it used money in its cash reserves to implement a major sales and mar- keting campaign to maintain existing customers and recruit new ones. It immediately offered current customers a 5% to 10% discount to maintain as many orders as pos- sible. It also went after less profit- able commercial work to keep its employees busy and on payroll. All that helped stabilize Lynn Welding's sales — revenues this year are likely to be down still, but only around 15% or so, not nearly as bad as it could have been, Kania said. Orders are also now starting to pick back up. "If we sat back and didn't do or change anything we would have lost 40% of our business," Kania said. Just as important, the coronavirus FOCUS: SMALL BUSINESS CT small businesses* by industry (2017) Professional, scientific and technical services 54,590 Other services 40,145 Real estate and rental and leasing 39,513 Construction 38,714 Health care and social assistance 31,538 Retail trade 27,587 Administrative, support and waste management 24,306 Arts, entertainment and recreation 18,888 Transportation and warehousing 16,963 Finance and insurance 13,986 Source: 2017 Statistics of U.S.Businesses (SUSB) and 2017 Nonemployer Statistics (NES). >> Survival Tactics continued Small businesses in CT Connecticut small businesses employed 745,085 people, or 48.5% of the private workforce in 2017. There are about 350,379 small employers in the state, which represents 99.4% of all businesses. Firms with 20 to 99 employees have the largest share of small business employment. Private-sector employment decreased 17.6% during the 12-month period ending in April 2020. This was below the in- crease of 0.2% during the prior 12-month period. The number of proprietors in- creased in 2018 by 3% relative to the previous year. Small businesses created 972 net jobs in 2019. Firms employing 20 to 99 employees experienced the largest gains, adding 1,588 net jobs. The largest losses were in firms employing 100 to 499 em- ployees, which lost 1,331 net jobs. Source: U.S. Small Business Administration's Of- fice of Advocacy 2020 Small Business Profile. Darius Kania, vice president of Lynn Welding Co. in Newington, is launching a startup waterjet cutting business despite the sagging economy. playing field for the new company in Connecticut's crowded brewery industry, Patrei said. In particular, Phantom was able to gradually ramp up beer production and packaging while the industry, worth an estimated $3.1 billion an- nually to the state's economy, was also limited to curbside-only sales. Phantom's new taproom remains closed for now, due to restrictions placed on bars and indoor dining. "It kind of simplified things for us because we didn't have to worry about the taproom operations, the bar," Pa- trei said. "We are just getting the beer packaged and out to customers like all the other breweries are doing." Phantom's marketing strategy so far relies entirely on social media as it looks to grow a grassroots fanbase among the more than 100 breweries in Connecticut. It's also offering cer- tain discounts for healthcare work- ers, veterans and other first respond- ers during the pandemic, and is leveraging long-established business partnerships in the restaurant indus- try to spur sales of its eight original beers and hard ciders made by the New England Cider Co., he said. There was also a void left in the local market as Phantom's grand opening followed the recent closure of Hanging Hills Brewery on Led- yard Street in Hartford because of COVID-19-related disruptions. "It's great to be on a short list of breweries in Hartford," Patrei said of the city's industry that also includes Hog River, Hooker and City Steam breweries. Patrei, a physical education teacher who started homebrewing in 2011, says Phantom is taking a roughly 25% sales Phantom Brewing quickly pivoted to curbside-only sales during the COVID-19 pandemic. PHOTO | CONTRIBUTED PHOTO | CONTRIBUTED

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