I have finally seen an ad for “not Mike Bloomberg” here in Wisconsin – it was sort of like a bigfoot sighting I was so slack-jawed. And it was from an unlikely source: Liz Warren. The ad wasn’t about how great she was or about any sort of policy, rather it was a Bloomberg bash. I couldn’t find the ad on youtube, but essentially it just said something like “hey, aren’t you tired of all of those Bloomberg ads, billionaires bad, I’m Elizabeth Warren and I approve this message”. I thought for sure I would have started to see some Biden stuff by now, but not a peep, as of yet.
Dan from Madison
Co-Vid 19 and Supply Chain
As I mentioned on these pages a few days ago, there will be supply chain issues with the Co-Vid 19 event, whether you think it is the next Black Plague, or just another version of the flu (from reading the comments on Trent’s post on the subject, we appear to have both reading here). As a reminder, I deal in HVAC distribution, which is a subset of industrial distribution. Most equipment for my market is made close to the USA or in the USA itself, but the component parts are many times made in China.
Today I got the first letter from a vendor talking about the possible issues. They are saying that they are preparing to see product shortages due to component supply problems and are actively trying to source from other places, but the information is very general in nature. It seemed more CYA than anything and almost could be a force majeure setup, recommended by their attorneys to get ahead of contracted jobs. I have no proof of that but have seen enough legal documents in my day to know that a lawyer or ten helped write their CoVid-19 letter rather than a bunch of HVAC dorks like me.
But let’s be real for a minute. The supply chain (in my industry) is long so we aren’t likely to see any problems for the Summer, as most of those orders for inventory are already in the tank and on their way to our warehouses. Fall/Winter is my estimate for issues in industrial distribution if the problem continues. And that could be a BIG problem for you if you have a house where a furnace breaks down and it is -20 outside. Critical infrastructure will get priority I am assuming (blood banks, etc) but you don’t know when that stuff will break, do you?
As I receive more communications from my vendors I will put up an occasional post here. I have a meeting next week in DC and will personally speak with many of my vendor contacts and may get more/better information at the cocktail parties when my contacts get loosened up from the booze. It’s going to be an interesting year in industrial distribution and I imagine that the Chinese are going to lose some business over this when it is all said and done, never to come back (the main reason I don’t think this whole episode is fiction/blown out of proportion – incentives).
COVID-19 From a Business Perspective
I live in the world of HVAC distribution, which is basically a subset of industrial distribution. The information flow concerning COVID-19 is interesting. There are some of my vendors who are in full freak out mode, as they are already getting short on items imported from China. Some of these items are part of a larger item being put together either in Mexico or here in the States. Other items are things that my vendors simply repackage and resell. I have also heard a rumor that certain chemicals and finished copper products are going to have issues in the near future. There are some vendors that are just “shoulder shrugging” the whole thing off at this point. The reactions are all over the board from my vendors.
I imagine that we will know a lot more when the Spring AC calls start coming as most vendors typically have a 30-60 day safety supply stateside.
This could end up quite profitable for other regions of the world vs. China, and it may be business that China will never get back. Time will tell.
New Bloomberg Ad Buy in Wisconsin
As reported here a month or so ago, we are getting absolutely deluged with Bloomberg ads (and not a one from any other candidate) here in Wisconsin. There has been a slight tack in course however, as Bloomberg is now bringing Obama into the picture. Here is the ad they are currently running here behind the cheddar curtain:
Presidential Ad Placement in Wisconsin
I sort of wish Wisconsin wasn’t in play in the presidential election, but here we are. I work very hard and do enjoy my evenings at peace with Wheel of Fortune, and perhaps a sporting event on TV. Sadly, my peace at home has been trifled with for the past several months, and I fear it will be a nonstop blitz until November.
As of now, we are getting crushed with a massive ad buy from Bloomberg. And that’s it. Bloomberg is everywhere. And no other candidates (including Trump) on the media I consume, at least. Upon questioning the spousal unit, who watches things on TV that are apparently called “shows”, of which I have never heard of, she reports that it is all Bloomberg all the time too. She also inquired as to who this guy is and I simply told her “nobody you need to be concerned with”.
As of several months ago we had ads from some different candidates. I remember ads from Robert Francis O Rourke and a few others but none of the buys have been as massive as this salvo from Bloomberg.
That’s all I got for now. More to come as the campaign develops.