Oklahoma rewards manufacturers with funds for assisting with COVID-19 PPE

Regardless of the industry, COVID-19 has made no exceptions when it comes to hurting businesses, and because not all businesses will qualify to receive financial support under federal aid packages, Oklahoma is working to support its companies and recruit them to fight the coronavirus at the same time.

Oklahoma Secretary of Commerce and Workforce Development Sean Kouplen said in an effort to sustain manufacturing companies, the state created the Oklahoma Manufacturing Reboot Program, which is awarding companies between $25,000 to $150,000, depending on their market potential and the long-term impact of the new production capabilities on Oklahoma’s economy. The $5 million used to fund this program, repurposed from the Governor’s Quick Action Closing Fund, is intended to help manufacturers to develop new products and expand current capabilities, to meet current and pressing needs within the country.

“The goal of the program is to help Oklahoma manufacturers retool for the new world that we are living in,” Kouplen said. “This is money that we would normally use to recruit businesses into Oklahoma and in visiting with the governor, both of us agreed that we needed to help our own, so we began looking for ways that we could repurpose those dollars and give them a greater impact for the future of the state and these companies.”

Kouplen said this program has become extremely timely not just because of the effects of COVID-19 shutdowns, but also because of nosediving oil prices. April 20 oil prices dropped to their lowest level in history, falling from $5 a barrel to $0.01 to negative $40 to negative $37.63 as world storage capacities filled up.

“Oil prices are taking an unbelievable tumble because there’s no more storage,” Kouplen said. “Oil and gas means so much to our state so we’re going to have tons of manufacturers in Oklahoma that are going to need to reinvent themselves and this program will give them some capital to go out and do that.”

Although all net benefit business are valuable to Oklahoma, priority within the OMRP was given to companies that had the ability to assist with essentials needed to fight the coronavirus in the Sooner state. Kouplen said Oklahoma’s primary equipment needs include: masks, gowns, hand sanitizer, face shields, personal protective equipment, testing swabs and ventilators.

“Every state in the country is seeking those same items and we are all scrambling to source them,” Kouplen said. “Additionally, our testing in Oklahoma has really ramped up, so these items are being used more and more. The bottom line is any one of these items that an ag business can retool to help us produce would be greatly appreciated.”

Oklahomans coming together to fight the virus

Kouplen said 349 companies applied for the program and of those, 37 companies were selected to receive funds. Out of those 37 three were agribusiness companies, including: Ahrberg Milling, a livestock feed specialist company in Cushing, Oklahoma; Log10, a food safety testing laboratory in Ponca City, Oklahoma; and No Man’s Land Foods LLC, a beef jerky company in Enid, Oklahoma.

Prior to the OMRP, Kouplen said Rapid Application Group, an Oklahoma-based additive manufacturing company, which normally develops and supplies parts for the aerospace, energy and healthcare industry shifted gears and started manufacturing two different types of adaptable, reusable masks for healthcare professionals, first responders, and veterans.

“They pivoted and literally in a span of two weeks, created reusable N95 masks and have started producing those of their own volition,” Kouplen said.

Additionally, Kouplen said Terry Hill, CEO of RAG, actually came up with the idea to issue grants to help manufacturers reimagine their businesses. This idea was the basis for the OMRP.

Kouplen said another example of an Oklahoma business producing equipment for the coronavirus is Covercraft Industries in Pauls Valley, Oklahoma, a car seats manufacturer, that has started making hospital gowns. Additionally, Century Martial Arts, a martial arts gear manufacturer, began making face shields in the wake of the pandemic. Kouplen also said many Oklahoma distilleries that have traditionally used their facilities to make whiskey or vodka, are now making hand sanitizer.

“It is really remarkable to be honest,” Kouplen said. “These people are putting their livelihood on the line to help other people during a time when the economy is very fragile. Your heart just really goes out to them.”

Although the businesses that will receive funds have already been chosen, Kouplen is confident this will not be the last program the state will offer its businesses.

“This is a template for what we believe we can do in the future to use state funds to help our business relaunch after the COVID-19 crisis.”

Lacey Newlin can be reached at 580-748-1892 or [email protected].