Local businesses prepare for Y2K, most expect to be ready

By Doug Stohlberg &

Jon Echternacht

Y2K is just around the corner and several randomly selected Hudson businesses expect to be ready. Local businesses have worked hard to prepare for Y2K, often devoting a year or two to making sure the bug is dead!

County Market

"We won't miss a beat," said Jim Kudrle, director of operations for County Market Stores in Hudson, Wausau and Weston.

Kudrle is more worried about perception than reality.

"If people think there is a problem and begin hoarding food, the Y2K 'problem' will become a self-fulfilled prophecy," Kudrle said.

Kudrle echoed the advise of many experts, "stock up like you would for a long weekend."

He said the store has been getting calls that are related to the Y2K situation.

"We've been getting a lot of calls about how long canned goods will last," Kudrle said. "Some people are also interested in buy large cans of goods.

"Of course, canned goods will last indefinitely until opened, but you probably don't want a huge can of beans unless you have a way of storing them."

Kudrle said the store is looking for strong sales in December, an increase of maybe 5 to 10 percent. But, on the other hand, he expects a soft January.

"If people buy a little extra food in December, they'll eat it in January before they come back to shop again. Personally, I'm not concerned."

He's not concerned, because he said County Market is new enough that most computer-related items were made after the Y2K problem was discovered.

"We started working on our situation over a year ago and upgraded any problem systems," Kudrle said. "Our wholesalers and suppliers are also on top of things. Nobody is expecting any problems in getting food. Our major suppliers have all provided documentation that they will be able to perform after Jan. 1.

"Since we started early, I'm comfortable. If a business is just taking its first look at the problem today, they may be too late."

Kudrle said the country may have a bit of test run next week. Some computer experts have said that Sept. 9, 1999 may present problems for some computer systems. The so-called 9-9-99 problem involves a number, 9999, that was once used to end computer programs.

"That should tell us a lot about our readiness," Kudrle said.

County Market is currently preparing a Y2K booklet to distribute to customers in the weeks and months ahead.

Nor Lake Inc.

Aside from local banks, Nor Lake Inc. in Hudson has probably worked as hard as anyone on the Y2K situation.

Scott Mealey, director of computer applications for the company, said Nor Lake is 100 percent compliant.

"We started working in earnest in 1997," Mealey said.

Mealey and other officials read about Y2K and put together a report to find real issues within the company and initiate efforts to evaluate and fix the issues.

The company is heavily dependent on computers. They are used for virtually everything at Nor Lake, including basic office functions and manufacturing functions. The equipment ranges from personal computers to an HP 3000 computer system that handles the core functions of Nor Lake.

After an eight-month study of all computer operations, Mealey said officials discovered that there was a need to upgrade some computer functions.

One of the main programs used at Nor Lake is the Manman software.

"Our financials needed upgrading," Mealey said. "We got on the manufacturer's upgrade list and were number 30 out of 80 companies. By July of 1998 our name came up and the software was repaired."

He said it was about a six-month project to work with vendors and fix the financial problems in software.

The company also tackled all the personal computers, many of which are McIntosh and not subject to Y2K problems.

"But we did have some custom programming and related issues that needed fixing," Mealey said. "Eighty percent was fine, but 20 percent had legitimate Y2K date problems.

The big test came in March 1999 when Nor Lake officials rolled the clocks forward and did month-end, quarter-end and year-end reports.

"It was a realistic test and all systems passed," Mealey said.

Of course, there were other issues facing the company, including communications with vendors and requests from Nor-Lake customers for Y2K updates on systems and projects.

Mealey said it was those types of requests that prompted the federal government in 1998 to pass the so-called "Year 2000 Readiness Disclosure."

Mealey said company were afraid to disclose that they were compliant because they feared a law suit if any little thing went wrong.

"This offers some protection from frivolous lawsuits," Mealey said. "No one can guarantee there will be no disruptions during Y2K, or any time for that matter."

The federal law basically says that what a company says, cannot be used against the company if there are some problems.

He said everyone was looking for guarantees and warranties against Y2K problems. No companies were willing to disclose that they had apparently solved their Y2K problems.

Now, however, firms are getting the information they need.

"We have asked about 400 vendors if they are prepared for Y2K," Mealey said. "The general response is compliance. Our key suppliers are all Y2K compliant."

Although Mealey would not disclose the cost of addressing the Y2K problem, he said most of the expense came from time spent on the problem.

"Our department has put a lot of time into it since 1997," Mealey said. "Nationwide it is estimated that it will cost $600 billion to become compliant. If you don't do it, you will have no financial return. The return for fixing Y2K is that you survive."

NAPA Auto Parts

Rick Jensen, manager of the NAPA Auto Parts store in Hudson, said he has been receiving memos from corporate headquarters for more than two years in regard to procedures to make the company's computers Y2K compliant.

"For the most part, the company writes it on software and I just get a memo that it has been installed. We are spoon fed in that department. The corporate headquarters are in Atlanta and the computer center for the Midwest is in Dallas," Jensen said. "Our systems are ready for 2000."

Jensen acknowledged that his biggest worry might be if the utility companies are up to speed because Jan. 1 could be a cold day, especially if the gas and electric companies can't deliver the energy to heat homes and businesses.

Insurance

Meme Fehr, owner of the Sandeen Insurance Agency in Hudson, said there is such a thing as Y2K Insurance available but it is extremely expensive. "I think there are probably only three policies that have been sold in the country," she said, "because the premium is about 75 to 80 percent of the coverage. If you want $100,000 worth of coverage, you will pay $75,000-$80,000."

She added that there are certain things that won't be covered in regular insurance policies because the change over to the year 2000 is a foreseen event. "Insurance is designed to cover unforeseen events and accidents," she said. "If your furnace goes out and your pipes freeze, that will be covered."

She added, however, that there are some areas that won't be covered because there are remedies to the foreseen problems that exist now and can be implemented.

"I'm sure some claims are going to end up in court," she said, "but we all hope it is a non-event."

Fehr said as far as her own business is concerned, "We hired a consultant and all the hardware and software in our computers are compliant (with Y2K) and all our carriers have told us their systems are compliant."

Generators

Generators have been hard to keep in stock for at least one Hudson business due to the Y2K scare. With this in mind, some people have reportedly stocked up food and are looking for alternative sources of power should the feared computer crunch shut down vital services.

"We sell them (generators) as fast as we get them in," said Bruce Mueller, owner of True Value Hardware and Rental of Hudson. "We had one come in one morning and it was out the door before noon. We have been trying to order more since May," he said.

Menards in Hudson had a reasonably ample stock of generators on hand, which ranged in price from $429 to $989 for the super model.

Jeff Nester of the management staff at Menards in Hudson said, "We have had generally good generator sales. I believe sales might be a bit more brisk when it starts to get cold and closer to the first of the year, but they always pick up at that time."

Mueller interjected the thought that the whole Y2K thing is a spoof. "I think it's all a government plot to generate revenue and jobs," he said.