THE SHOP

July '20

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4 THE SHOP JULY 2020 \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ © 2020 National Business Media, Inc. All rights reserved. THE SHOP (ISSN 2380-7415) is published monthly by National Business Media, Inc., 2800 W. Midway Blvd, Broomfield, CO 80020; (303) 469-0424; FAX (303) 469-5730. Subscription rates in the U.S.: One year, $45; Two years $80; Three years $108. Canada: One year, $76; Two years, $142; Three years, $201 (U.S. Funds). Mexico/International: One year, $98; Two years, $186; Three years, $267 (U.S. Funds). Periodicals Postage Paid at Broomfield, CO 80020-9998 and additional mailing offices. USPS/National Business Media Automatable Poly. POSTMASTER: Please send address changes to THE SHOP, PO Box 460651, Escondido, CA 92046-0651. All items submit- ted to THE SHOP become the sole property of THE SHOP and National Business Media, Inc. and may not be reproduced without the written con- sent of the publisher. Advertisers and/or their agencies, jointly and sever- ally, assume all liability for printed advertisements in THE SHOP. Opinions expressed in THE SHOP may not necessarily reflect the opinion of the magazine's editor, its management or its advertisers. Letters, photographs and manuscripts welcome. OVID-19 will impact the business landscape for months, possibly years, to come. But what happens once the virus is under control? How can the auto- motive aftermarket industry move from economic hardship to renewal and growth? Shannon Walcott, a senior sales executive at business solutions firm BASYS Processing and a financial columnist who's appeared in THE SHOP, asked those questions and then went about answering them for small businesses rocked by the pandemic but looking to get back on their feet. GETTING BACK TO WORK If China and other countries ahead of us on the coronavirus curve are an example, the first hurdle will be in understanding and prospering while economies reopen in phases. It won't be back to 100% immediately, so the challenge will be to stay safe- yet-profitable as business ramps back up. Shops may also have to deal with re-hiring employees after layoffs. Some of those workers will have found other jobs, and the additional $600 the federal government is paying on top of state unemployment benefits has caused another unexpected issue—that money stretches a lot further in certain parts of the country than others, meaning many workers are making more than they could by going back to work. Currently, this additional funding lasts through July, so some employers could struggle to lure employees back before then. A SHIFT TO DOMESTIC SUPPLY CHAINS Walcott notes how COVID-19 has revealed the fragility of some international supply chains, and predicts that, moving forward, many businesses will shift to sourcing supplies domestically. After the pandemic, the trend could even lead to a return of manufacturing back to the United States, creating more domestic jobs, she adds. REASSESSING EXPENSES Walcott is convinced: the economy will recover. But a recession, even if it's a short one, is inevitable. In the most optimistic scenario, which is still very possible, the economy will begin to see growth this summer, and in the most pessimistic, growth won't occur until 2021. Either way, shops will need to carefully monitor and control expenses, she notes. Walcott recommends using credit wisely and looking at all discretionary expenses that can be cut. This is also the time to review and attempt to reduce fixed expenses such as rent, as your individual situation dictates. But remember, downturns are also an excellent time for healthy companies to grow, so the challenge and opportunity is to spend wisely now while positioning your busi- ness to capture leads and increase sales when the turnaround comes. Finally, Walcott predicts one thing will solve the pandemic and the problem of getting back to work in a safe way: innovation. A positive attitude is perhaps the most important thing to have moving forward, she believes, and if you can persist through these difficult times, your business will likely return to a profitable median. Moving Business Forward C \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ DRIVER'S SEAT PUBLISHER STACY MARSHALL smarshall@nbm.com EXECUTIVE EDITOR JEF WHITE jwhite@nbm.com DIGITAL CONTENT EDITOR A.J. HECHT ahecht@nbm.com ART DIRECTOR IVETH GOMEZ igomez@nbm.com PRINT ADVERTISING DESIGNER KIM WRIGHT kim@nbm.com EASTERN TERRITORY SALES MANAGER WENDY MILES wmiles@nbm.com WESTERN TERRITORY SALES MANAGER RYAN WOLFE rwolfe@nbm.com SALES SUPPORT ERIN GADDIE egaddie@nbm.com TECHNICAL CONTRIBUTOR MIKE MAVRIGIAN birchwdag@frontier.com CONTRIBUTING WRITERS JOHN CAROLLO, JOHN GUNNELL, PATRICIA KAOWTHUMRONG, COURTNEY PAHLKE, JUSTIN PATE, PHILLIP M. PERRY, QUINT STUDER, SHANNON WALCOTT, SHELLEY WIDHALM NATIONAL BUSINESS MEDIA PRESIDENT DAVE POMEROY VICE PRESIDENT / AUDIENCE & EVENTS LORI FARSTAD VICE PRESIDENT / FINANCE KORI GONZALES, CPA DIRECTOR OF TECHNICAL SERVICE WOLF BUTLER MULTIMEDIA PRODUCER ALISON MCDONALD CEO & OWNER ROBERT H. WIEBER, JR. Jef White Executive Editor

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