2020-06: The Economic impact of Covid-19

Introduction: The View from the Bridge 

by John McDaniel, President of CorelDRAWHelp News

The View from the Bridge is an opinion piece that explores how societal changes can/will impact the future, especially as these changes apply to the Personalized-Products industry and small businesses in general.

Think of the View from the Bridge as analysis for the captain of a battleship during conflict. YOU are the captain of your ship (life). We offer our analysis for your consideration.

As time progresses, there is a constant flow of new information coming in for evaluation. Our analysis is presented to help guide the captain’s (your) actions. Knowledge is power.

We will attempt to be brief and to the point. That said, we don’t know, what we don’t know. So, don’t take our conclusions as the only possible future. As the great sage Yoda once said – “Difficult to see. Always in motion is the future…”

The Economic Impact of COVID-19

The economic impact of the current pandemic varies greatly by industry.

That said, because we send out email notifications when a new issue is available, we receive automated responses from some of our readers regarding the current state of their business.

For most email notices we send, we do not get a response, so we don’t know the state of their businesses.

From the responses we have received, some businesses have closed their showrooms and only accept online orders. Some businesses have suspended operations for the duration of the pandemic, and some have closed for good.

Ideas for Business Growth During Pandemic

There is one graphic-products business we know of that is thriving and growing.

Pre-pandemic the business was growing. It had one part-time employee and was working out of leased space in a strip mall. Fortunately, little of their business was, or is now, walk-in.

In-house processes include laser engraving, sandblasting, vinyl cutting, wide-format print and cut, and wide-format lamination, in a cleanroom.

In addition to laser engraving and cutting, they also have a programmable-table-top CNC machine. (A machine that is similar to a flatbed rotary engraver.)

Currently this business is classified essential, since it creates graphic products for a company that is in an essential industry.

When the pandemic began rising and there was a shortage of masks, the owner purchased sewing equipment, hired another person, and began making masks for the community. Now the community also considers the business essential.

Finally, the business added an online retail presence through which customers can order banners. With people around the world self-quarantined, banners on balconies and for protest marches have been in demand. Sales are growing, and we are entering an election season. (More banners, please.)

Without question the economy is in transition. Some in our industry will survive; others will not. We might not see award banquets any time soon. But the need for graphic products will continue. Flexibility and creativity will get us through. How can I use my skills and equipment to help? Remember, this too will pass.

Tesla Model 3

Transportation

Here are some transportation vehicle characteristics that might be desirable during this pandemic:

  1. Transport 1 person to 1 family – limit exposure – not mass transport
  2. Transport in a sealed air-purified/conditioned environment – useful when traveling through cities or other populated areas.
  3. Transport safely in a safe environment and avoid accidents
  4. Limit refueling to safe locations

At first glance, the family car seems to fit these criteria. However, we would argue that an electric-powered vehicle has a significant advantage in refueling at safe locations versus a vehicle powered by an internal-combustion engine.

If you are a homeowner, the safest place to refuel might be your garage or driveway. If you are not a homeowner, public charging is generally at locations that are not virus-super-spreader locations like gas stations.

After having the experience of driving electric vehicles for the last couple of years, we would add a couple more criteria for having an electric car:

  • Eliminate the fossil-fuel-travel tax – we had a van that got 20 miles per gallon, downhill, on a good day. At $4.00 per gallon, we were paying a travel tax of $0.20 per mile to companies that are destroying our environment and killing us in the process. If you get 30 mpg and pay $3.00 a gallon, you are paying a $0.10 per mile travel tax.
  • Reduce maintenance cost – electric vehicles require significantly less maintenance. Not only did our van cost $0.20 a mile in fuel ($200 per 1,000 miles), it also averaged $2,000 per year in maintenance. $500 oil changes, $5,000 transmission rebuild, etc., etc.

We have two electric cars. One is a Nissan Leaf. This vehicle is ideal for city travel. On a full charge, it has an 80 to 100-mile range. The charging infrastructure is growing; however, in our opinion, not well enough developed to make this vehicle suitable for long-distance travel.

We also have a Tesla Model 3. This vehicle has a 320-mile range on a full charge. In addition, Tesla has a growing charging network that will allow us to travel anywhere in the US as well as parts of Mexico and Canada.

Safety? In our opinion, any electric vehicle is safer in an accident than any ICE (Internal Combustion Engine) vehicle. An ICE vehicle has a very-hot ignition source, usually in the front, connected to an explosive fuel reservoir that is usually in the back. At today’s highway speeds, we would prefer not to ride in a rolling Molotov Cocktail!

Safety considerations (other than riding in a Molotov cocktail that is spewing lethal fumes}:

  1. Collision – according to the National Highway Transportation Safety Administration, the Tesla Model 3 achieves the lowest probability of injury of any vehicle ever tested by NHTSA. Model 3 achieved a Vehicle Safety Score of 0.38, which is lower than any other vehicle rated in NHTSA’s history.
  2. Collision Avoidance – SELF-DRIVING! Oh, self-driving is also ticket avoidance. Our Model 3 is equipped with the full-self-driving package. What that currently means is our car has autopilot. You must experience it. Suffice it to say, Tesla’s Autopilot protects me from other drivers AND protects OTHERS from ME!

If you need a new ride, consider electric. We have seen used-non-Tesla electric vehicles available for under $10,000.

Because of range, charging infrastructure, self-driving, and other features, used Teslas generally cost more. That said, be aware that some older Teslas do not have the hardware necessary for full self-driving. Those should sell for less.

If you choose a new Tesla, and use our referral link, we will both receive 1000 miles of free supercharging.

Click Here to use our link.

Full disclosure – Tesla is not a sponsor, and we do not own any Tesla stock.

OPINION – in our opinion within the next few years ICE vehicles will fade into history.

What do you think?

Do I, ______(insert name here)____, as an entrepreneur believe I have the creative skills to be of help and survive the transforming economy? YES – Am I excited by the challenge? — YES. (Is there any other choice?)

In Short

Thank you for your attention. Keep in mind that we don’t know what we don’t know. So, don’t take our word for it. Meditate and find what is right for you.

As we’ve said before, working from home may become the norm. Commuting to an office, not so much or so often. (great for reducing air pollution, not so great for oil producers and gas stations.)   

The economic transformations COVID-19 has initiated will last long after the dis-ease is brought into balance (i.e., suppressed). We consider ourselves blessed to be here to witness and help in this transformation.

These changes will favor small businesses that work from home.

Our Recommendations

  1. Be at Peace
    1. NO amount of worry ever changed anything in my life.
    1. I can only control my actions!
  2. Calmly follow healthcare advice whenever possible.
    1. Don’t worry if it’s not possible. (refer to rule 1a)
    1. Don’t take unnecessary risks. (Please, no more partying at the beach.)
    1. Don’t panic – according to some healthcare professionals 80 to 90% of all USA residents will contract the disease.
  3. We are all in this together.
    1. Support workers in any way you can.
    1. Let elected officials know we want a NONE OF THE ABOVE option on the ballot for all public offices. I believe NONE OF THE ABOVE would have won the 2016 election.
    1. I have also chosen to tell my representatives, people first or find another job.

Next time – What is Money?

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