CEO, Arne Sorenson, Ritz Carlton discussed on Marketplace

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A couple years ago October of two thousand seventeen if you're looking for a date we did an interview with the CEO of the biggest hotel chain in the world Arne Sorenson and I had a Cup of coffee in the dining room of the Ritz Carlton on Central Park south in New York City Ritz is one American brands that's the company that's runs and runs and we had a long talk about the travel and hospitality business and what he saw from where he sets suffice it to say that that business looks really different right now so we got our insurance on the phone to talk things over Mr Sorenson is good to have you back on the program thank you okay good to be with you again so I have to tell yeah obviously we've all been following the the course of the economics of this crisis I kind of realized it was gonna get real serious when I saw America mountain say we're probably gonna have to lay off tens of thousands of people when did you know it was gonna be serious well there was a sort of creeping sense for a few days that this was bad we had a weekend maybe three or four weeks ago when the news left China and showed up in Korea in Italy I think that was sort of filled with foreboding because it looked like it had left Asia and it was moving around the world and it looked it looked likely at that point time that was going to move in the United States in some manner but it was in the week or maybe two weeks after that that we started to see business simply disappear you said on CNBC the other day we want people to be strong enough when we re open which yes of course we do but what does it look like to you there it's gonna make merry at strong enough to reopen because there's months to go on this yet with nobody going to hotels well there's obviously a lot of uncertainty about when we start to tiptoe back out in the life I think even more importantly than that and something we've spelled off a lot of time with them talking with politicians both on the hill and in the administration the last few weeks is let's make sure that the tools to support our people are set up to be available immediately to them at levels that allow them to survive not have too much disruption in their lives and so that they too were ready to get back let me dip into the political here for just sections you alluded to it are you satisfied that this two trillion dollars from Congress is going to be enough for you can have are they gonna have to go back to the well as it were it is a eight hundred page bill that it won't surprise you to hear many of us have not read yet and we're really trying to digest what is in there I'm encouraged by what they've done with respect to the unemployment insurance scheme I'm encouraged by what they've done in terms of loans to small businesses and remember many of our hotels are owned by third parties virtually all of them often run by those third parties and they are small businesses and then of course you got some provisions on loans for others including bigger companies I'm not sure that will need any of those but I think the tools that are in there are powerful biggest biggest bailout of all time obviously two trillion dollars do they have to go back to the well again maybe but only if it lasts for probably more than a quarter so would be my guess less thing Mister Sorenson and then I'm gonna let you go and it's I'm gonna take a turn of the personal here and and and I'm just gonna see how it goes so you put out a video on Twitter a week ago today which somehow seems like a really long time ago to all married employees and we should say here you are being treated for pancreatic cancer you look like you are being treated for pancreatic cancer he said in the beginning this video the your advisors had suggested you not do video maybe because of that and you won on you deliver to really sober but fundamentally uplifting message but I wanna get to the end of it the thing around like five minutes and it was clear to me at the end that you've got emotional and I guess the question coming out of that is are you scared I am how to answer that question I I am five of the impact to the thousands of people that we've got across the world who depend on the work that they do for us for their livelihoods and for their families livelihoods and I'm terrified that they have the resources that they need in order to get through it it is still early in this process wild furloughs have happened across the world young people are getting used to that were in the first week or two in the United States where that's the case number a few months in advance of that across Asia Pacific but the impact people's lives will be profound and I we took three takes on that video and I'll confess that I didn't choke up in exactly the same sentence every time but I did choke up every one of the three times and I wasn't intended to me and I said to the crew afterwards figure out which can use from that but I choke up because I just think of the profound impact to the lives of folks who have zero responsibility for the crisis that we're in and who will pay a price which is much higher than they deserve to pay they don't deserve to pay any price I am so we've got to find a way of communicating with them being transparent with them to get through this together we will ultimately people will come back to life because were resilient people all across the globe including particularly in the United States but we gotta get there sooner rather than later in order to minimize the payment so many will be RT Sorenson is the CEO of merit the source and tax return preparation thank U. K. on Wall Street today marriage years and really do so well the traders look at that terrible number first time jobless claims that we got this morning and they decided to buy anyway we'll have the details when we do the numbers okay change gears here the mask in ventilator and personal protective equipment store you're up to speed on right late start in the Nile at the national policy level means there isn't enough of anything at the tactical seeing desperately sick patients everyday level as we've talked about on this program that is a manufacturing problem to be sure and as with most manufacturing problems therein lies a supply chain problem marketplace's Sabri vanished yours on now the shortages of important medical materials have inspired fear among many Americans Michael still now is CEO of the coalition for a prosperous America we can't produce enough ventilators we can't produce facemasks hospital grounds or in sufficient quantities gloves most latex glove gloves are made in Malaysia some countries like China haven't been able to produce what they normally export to us other places like the European Union have actively limited exports and intend to hoard supplies Emily Blanchard is professor of economics at Dartmouth's tuck school of business she says there is an upside to interdependence it also means potentially more resilience to shocks it at home and in the rest of the world having a diversified global supply chain can mean you have a lot of different backup sources as long as governments don't throw up barriers if governments will stop raising barriers during the difficult times then it's really not risky to depend on each other and in fact that's a great way for humanity to protect itself against something like a pandemic a bipartisan group of senators introduced legislation last week to start tackling the current supply problem you would have pharmaceutical companies report to the FDA just how much of their active pharmaceutical ingredients they get from suppliers in different countries one of naira is professor of operations and supply chain management at Michigan State University one needs to have a good understanding of what that capacity looks like if for instance certain factory closures might happen due to kind of situation that you're facing now final don't miss Blanchard says the US should have better stockpiles of locally produced goods to hedge against catastrophe in New York I'm so we've been short for market there is a huge part of this coronavirus story that is a data and yet a privacy.

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