Special Report | Markets in Turmoil
Every day at Invesco we bring together ideas with technology data with inspiration and investors with solutions. Let's invest in greater possibilities together. Find out more at INVESCO DOT COM slash together invesco Distributors Inc. I I'm CNBC producer. Katie Kramer one of the voices behind the CNBC podcast squawk pot. In these times of uncertainty. We WanNa make sure we're bringing you our listeners. As much information as possible as quickly as we can. That's why we're sharing with you now a CNBC special report markets in turmoil. Listen I'm Sarah Ivan on Day? One hundred thirty. Eight of the corona virus crisis Washington gets set to vote on more stimulus for American businesses as more states including New York. Prepare for partial reopening. I have very recently seen early. Data from clinical trial with coronavirus vaccine new optimism from the White House. We're closing in on a vaccine. This is an industry that is built on the idea. You put as many people on the plane as possible. What could social distancing on an airplane look like tonight? What's possible and what isn't and this is the only source of income that I have this Special Forum for American business owners on their challenges and path forward including one owner. Who just met with the president this. Cnbc special report begins right now. Here's Sara Aisin good evening everyone and welcome stocks closing out today with small gains but ending the week with big losses the Dow S and p five hundred and Nasdaq. Oh with some fractional gains. Today the Dow rose sixty points but had been down at one point more than two hundred and seventy points but for the week the Dow. Snp both lost more than two percent for the S. and P. Five hundred it was the biggest weekly percentage loss in two months now to the big battle breaking out over what passengers want and what airlines are willing to give when it comes to safer seating. Philibeaux live tonight in Chicago fell sir. Let me take you back to what it was like pre cove nineteen when you looked at a seating chart for a typical 737. What you found was that about eighty five percent of the seats were full. In fact. Last year the industry had eighty four point four percent of the seats full and most of their flights if not all their flights. So when you look at those record load factors you thought okay. What does the industry going to do? Once cove in one thousand nine hits and we saw the images were of empty. Airplanes virtually empty airplanes. It was not uncommon to hear people say look I was on a flight yesterday and there were two other people on my flight and that gave the impression that when people would start flying again they would see empty airplanes or that the airlines would socially distance. The passengers take a look at what we're seeing within the last week. And this is what's causing quite a stir you're seeing load factors that have improved dramatically. And that's because the airlines have parked so many of their airplanes about sixty percent of the world's Commercial. Airplanes are now parked so as a result we have representative Peter Defazio. Who RUNS THE HOUSE TRANSPORTATION? Committee saying this is what should be done with airlines. They should guarantee that the middle seat will never be filled and that the planes are capped at a capacity with sixty seven percent of the seats filled. No more and this is what a typical seven thirty seven with. Look like by the way that does not equal true. Social distancing. Eighteen inches between two seats is far from six feet. If there was true social distancing at most you would get maybe twenty passengers in economy class and four passengers in business class on a typical seven. Thirty seven bottom line. Is this era. While people want social distancing especially in the airplane the reality is it just won't work for the airlines. They would have to charge ridiculous ticket prices in order for that to happen and even keeping the middle seat empty. They're going to have to raise their ticket prices substantially. They'll stay with us. Let's bring in Douglas Kid. The Executive Director of the National Association of Airline Passengers. His Organization follow the petition yesterday to pressure airlines to take more action to insure passenger safety. So what exactly is your organization calling for these airlines to do we're going for the airlines to do is to limit the load factor on all flights to no more than fifty percent We'RE NOT GONNA ask for the extreme measures. We think that fifty percent should be able to give the airlines adequate spacing between passengers. So that everybody can fly comfortably and in reasonable safety fell. What would that look like? Is that even economically possible for these airlines? It's not economically feasible for them at the current airfare rate. Which you know if you were to say okay. We're going to raise fares by forty fifty sixty percent. Then maybe we would have fifty percent capacity on our planes. But you're going down a slippery slope there because the airlines realize they start raising those fares. They are not gonNa have as many people flying and at fifty percent capacity. You're going to have people who are going to be way too close to each other at least for their own comfort level so the question is are you just going to accept it. Are you going to say I'm GonNa get on board? I'm not crazy about it but I'll take the precautions that I can take whether it's wearing a mask wearing goggles. Doing whatever I can to try to protect myself as much as possible and then you would get potentially lower fares and the airlines potentially would be able to bounce back a little bit quicker than they're expected to well dog Dogwood. Would your members be willing? Do you think the broader public would be willing to pay higher airline fares for for that kind of spacing out safety protocols that you're calling for fifty percent capacity first of all? I want to say this that flying is always involved. A degree of risk So when people know that when they get on board the airplane. There's always a risk that something could happen. Now if you say okay are people willing to pay additional money to save their life will. Of course they're willing to pay this money and they're willing to pay or fair in. That means that their safety is is substantially increased but people are not interested in is paying a higher to be on a packed plane where their health is put at risk. So if you have to say okay. Do you want to pay more? And have a little bit of social distancing. Most people I think would would go for that if you WANNA if you say. Hey we're going to put as many people on the plane. We're going to pretend that this. Ronin virus doesn't exist we're GONNA put you at risk and we're GONNA charge expert in the bargain. Passengers are not gonna go for that We expect to give value for value and when we travel expect to travel safely we expect the airlines to take reasonable precautions if that means flying at fifty percent or less For the duration of this emergency then fine and as far as the cost short. We'll pay more But then again. The cost of lying has always been variable. If you go on any of the ticket websites you can see. The price for a ticket can vary as much as one hundred percent. So okay we have to pay more to be safe will pay more to be safe. But we don't want to pay more the unsafe and have the airline CEO. We're doing everything we can about. Covert nineteen when in fact there are just operating the same way they did before. Phil are the airlines talking about fare increases to to make these sorts of proposals happen especially if they're going to get pushed by lawmakers to eliminate that middle seat know what the airlines are focused on right now is coming up with the fair that gets as many people to get back on board as possible and because they have part so many aircraft because they've got to bring down their cash burn they're burning millions tens of millions of dollars every month every day and so when they are looking at their bottom line they are saying we have got mike the flights that are in the air as profitable as possible. And how do you do that? You put as many people in as many seats as possible. Now you are trying to stress safety by saying. Wear a mask if you feel more comfortable wearing goggles where. I goggles wipe down your seat. There disinfecting aircraft after every flight at some point the airlines are saying we have got to do what we can in order to stay a lot. We cannot continue to burn tens of millions of dollars every day. It's a continue to debate that we will have here. Thank you dog our thanks to you as well for Wang. Let's move onto retail. Jc Penney just filing for bankruptcy the retailer joining others like J. crew and Neiman Marcus. Who have had to restructure from the impact of the pandemic with grim prospects for so many of these businesses. Look the normal look like for retail Scott Crow as the chief investment officer of Center Square. It's a retail investment firm. Scott thanks for joining US tonight. Just how heard how hard it would be economically for for the airlines to figure out social distancing and safety precautions. How are the retailers? GonNa do that. Well it's going to be tough for retailers. Well and you know basically what we're looking at is Right now a at about a twenty percents rent collection so the average retail Mo- landlord and about fifty percent for a shopping center rate and about eighty percents of service retail. My point that out because that's a pretty good indicator of how those Tennessee Business So as it relates to sitting in an enclosed environment. It's going to be very challenging. It's going to be much more challenging for movie theaters. Restaurants Gyms And other forms of retail. We'll bounce back that along with hospitality and leisure retail. Makes UP ABOUT TWENTY. Five percent of the underlying workforce in the US and there are a lot of those people who are out of the job right now and a lot of those jobs won't be coming back when you think about the jobs not coming back and the customer is not coming back. How do you distinguish between the winners and losers retailer? I just named some of the companies that have announced bankruptcy. Who comes out of this okay? And who doesn't well. I think your three toe comes out. Okay so I think about where you get your hair. Cut Your nails done. I think if the coffee right those things come back. You can drive to them. You can pop in and out very very quick very convenient. You know what doesn't come back. He's a movie theater Instead Netflix just takes that off. You know what what doesn't come back is spending a couple of hundred bucks a seat in a in a restaurant for to hop with You know bunch of strangers. So I think those they'll be shifts in people's behavior and we can see this already so take Texas for instance. That states opened up their restaurants but bookings down eighty percent year on year. In addition. I think that this virus could be the you know the tipping points to the mall. Industry the underlying tenants like JC. Penney the department stores they came into this crisis with somewhat relevant business models and a lot of problems a lot of leverage and this virus is really being the tipping point for that to begin to unravel and that's important because in a mall they have tenancy agreements and that means is certain anchor. Goes dock where you get a certain level of vacancy in the center. All the people get out of their leases so I think this could be the tipping point where we could see up to eighty ninety percents of the malls in this country. Shudder not open or open struggle and close again Scott pro. Thank you for joining US tonight. Thank you even with dire forecasts speaking of retail kroger announcing today it will give hourly frontline workers a one time thank you pay amounting to a few hundred dollars for their service per person. This as the grocer prepares to end. It's two dollars an hour hero. Pay BONUS FOR EMPLOYEES. Mark is the head of the United Food and Commercial Workers International Union. He joins US now mark. Nice to see you again so we did get this news today. That the kroger workers are going to get a bonus pay in general. How are your union members that work for kroger feeling about their pay right now? Very disappointed quite honestly about the he wrote pay being taken away. Turn INTO HONEST PRIMARILY. Because it's going to affect your weekly pay in there with Martin near in their pockets Look the pandemic still exists. We're still wearing my in the stores. We're still social distancing. And even though there may be some indications of the vaccine is on the way we haven't seen it as a yeah and this this virus is in fact in less vaccine comes four is going to be around this fall in in our members and quite frankly we're having to go out there every single day and put themselves at risk now every investor that I know of knows that the more risks they take the higher hike the more risks. They take they should get more pay. And these workers are taking more risks in. They should be paid more not to single out. Kroger specifically mark. What about other grocery stores and other major retailers that are employing essential workers? What have they been doing on the pay front? We've had several are major employers are other employers have come forth and maintain dollars an hour increase and they've indicated they're going to reevaluate every couple of weeks to make a determination how it looks now. There are other companies quite honestly walmart trader Joe's whole foods. They've indicated they're gonNA pull back in they're GONNA go to go to Bodices as well. Let's let's face it going to bond. It's just allows Dan shut. This off is some point in time. They decide that they want to. Here's what we do know though. We know that sales are up. Your last guest said that people were not going to be going back to restaurants and I think that's a fairly accurate via what's going to happen in retail going forward. We've seen sales go up. We've seen productivity go on sale for Matt our. I am starting to see a little bit of food in as we mo four which is good for the industry. I think it has changed. The outcome with this industry is GONNA look like on Wall Street going forward in the future and I think these workers deserve their share. Obviously it would be nice for the workers to have more pay. What about the safety factor? Mark do they feel like their employers are taking care of them providing the necessary mask than equipment so that they can feel safe going to work every day sir. I think that a lot of our floors had in fact done the right thing. I still think there's challenges out there. I've certainly seen them in the stores that I visited. I've gone into Union nonunion stores alive. I quite frankly. I've been somewhat concerned at the number of people that were not wearing masks or being provided masks in this bar. It's not if the virus is starting to die down right now. I don't think that this is the concern that I have at least initially. My concern is the virus starts despite backup in the fall in the winner. What are we gonNa do if we have this false sense of security that we don't really need this protective equipment? That's wild concern mark. Thank you for joining US tonight. We appreciate your time. Here's what's coming up on this special report. Cyber attackers hit a high profile target with what may be a high profile secret. The hackers are holding. That secret for ransom. That's next plus American small business owners including one who met with the president today. Explain how they're managing their paths forward before the break but this country looks like on Day. One hundred thirty eight of the corona virus crisis For businesses around the world today isn't a restart it's a rethink. That's why they're partnering with. Ibm retailers keeping their systems up as millions of orders move online call centers are using IBM Watson to manage an influx of customer questions with AI and solutions built on the IBM cloud are helping doctors care for patients remotely. Today we're rethinking. How business moves forward. Let's put smart to work visit. Ibm DOT com slash thing to learn more on Day? One hundred thirty eight of the crisis here are some more headlines on the virus retail sales in April falling sixteen point four percent biggest on record as the country locked down amid the corona virus outbreak. The new head of the government's effort to find a vaccine says he's confident of being able to deliver several hundred million doses of vaccine by the end of the year and the Federal Reserve is warning stock. Prices and other asset values could take a significant hit if the pandemic worsens and the NFL is telling teams they can start reopening facilities Tuesday for staff only know coaches or players if state and local governments allow an entertainment law firm run by Allen Grubman confirming its computer systems. Were hacked the hackers say they have sensitive information about several big star clients. And those hackers want forty two million dollars in ransom with us now as Sammy contribute our sue Gordon former deputy director for national intelligence. Good evening how does something like this happen? Well so what's interesting is the last three weeks we've seen the TRIFECTA of cyber attacks right cyber cyber-attacks to do influence cyber to go after an economic target in the pharmaceutical industry and now criminal activity going after Money because data are the coin of the realm so the way it happens is there is sophisticated capabilities that our ever evolving to beat defenses especially when the entities that have the data or a little lax in their protection. And so it's just a constant game of cat-and-mouse where offense off as the advantage if the defense isn't being protective with so many people working from home right now and so. Many comper companies operating remotely. How can we and companies protect ourselves against these hackers? So I thing you have to realize is the you've just increased the threat surface right. You have a lot more in points people at distance working. You have a lot more access points. A lot of people using email her than getting back into the custody system and you have companies making a lot of choices to enable new kinds of work where they may not be protecting And being as good at the cyber fences they have before so what you can do is cyber hygiene cyber hygiene cyber hygiene for the individuals and for the companies. You really have to understand what's important. What data put you at risk? Backup your systems. Save some of that data off premises and just be ready every day and not be lax with security just because you're trying to get performance. What about zoom calls facetime calls video calls? How SAFER THOSE? That's a different kind of risk where you have the opportunity that people can come in through that land on individual networks. Lock them down. Disrupt the ability for people to Working engage in. Now what is the way we do business? It's a different surface that ransomware in some ways but is the same sort of thing you have so many more places where people go. So why would tell you? If you're zooming never use a public meeting. Always have a private one have a pass code. Pay attention to. Who's on the call because there are things you can do? You know what's interesting about? Criminals is there are some nation states that are engaging in criminal activity for monetary gain but for criminals. It is more opportunistic. Sue Gordon thank you so much for your insight tonight. Good to see you. As wanders and healthcare workers risked their lives. Some companies are saying. Thank you as they know best tonight. Little CAESARS is stepping up. We're donating one million pizzas to our first responders and healthcare workers. And we have a staff of one hundred seventy people that are contacting hospitals across the country. We kicked off this program in our hometown of Detroit. That's where headquarters and we delivered six hundred pizzas in one day. In addition to our million We created a program called Pyatt Ford where customers can actually order pizzas that will then deliver to healthcare workers. It's basically a five dollar pizza. And we'll add that onto our delivery or will deliver it separately if we get enough groups together for a particular hospital or police station. It's difficult for all businesses right now but the easiest decision that we had to make was. How can we give back? And we talked with our franchisees a locally owned business they said. What can we do to give back? So that's a little surprising to see how many people have stepped up and said I want to join in this effort and I want to give back to was little caesars stepping up. Here's what else is coming up on the sandy special report business owners struggling in the midst of the crisis are then getting the resources they need to survive. What are their plan says? Life begins to reopen plus. What one owner told the president today next American businesses eager to get back in action? Some of already open doors even if they're still dealing with limitations tonight several business owners tell us their struggles and their plan for a path forward once again. Here's Sara is good evening once again. We are dedicating this next half hour to American business. Owner's fighting their way through the crisis. We'll start with one who wasn't invited to the White House today to meet with President Trump and raw owns brackish bowtie based in South Carolina has company donated thousands of masks to the healthcare community. Ben Welcome tonight. Tell us about your visit to the White House and with the president. Wow what a surreal day was Truly a great memory but The big news of the day it was bittersweet was because my co founder and partner Jeff Lautner welcomed his third child I tell you into the world so he was not able to be there with me but he was there every being spirit so it was a special day all around for Brackish family. Well congratulations to him and to the family. But but tell us what what you spoke about with the president and while you were there. Sure sure it was. It was about the brackish team The Brackish Team. We have an exceptional group of artists. They came up with an idea that We can help the medical community. We could do our part and contribute to help those on the frontlines fighting. This battle is about healthcare mask of to those doctors. Nurses and emergency workers all across the nation and They came up with the program masked by the makers and when Jeff heard it and he and I talked about it. We just decided to put the pedal to the metal and see how far we could take this thing to help out the nation. Do you think that this administration president trump has been supportive and sympathetic to the small business community? Throughout this crisis I think the entire leadership in Washington's been supportive. I think we're all going through this together and only together will we get through this I don't think it's a one man one party. I think it's everybody coming together. Collectively President Trump's done some great things but so has everybody so i. I applaud all the efforts that have been done with the Hairs Act The program And everything that's been done thus far it's been a wonderful thing we've been able to all of our employees throughout this crisis thus far so you did apply for and receive those PPO loans. How did you find that process? We sure did we heard and it was potentially coming down the pipe restoring amassing numbers early own before the The criteria was even given out. We have an incredible accounting team and We started pulling together all kinds of numbers that we felt navy pertinent a situation and When they release what was weird we had the number ago and we send it to a local banks south but style state bank there in South Carolina and They fast right. You're right. I think they said we were number. Forty Fifty S in line submissions. Because we had everything ready to go right when they said Senator so I think that was crucial to getting our funds so quickly Ben. Ross thanks for joining us on a on a big day for you. Dave Dotson is a professor of management at Stanford Business School investor in several businesses with us. Live again tonight to help. Listen to give some advice to some of our small businesses tonight. It's good to have you onboard. Nice to see you again. Good to be here first owner. Go Daddy Dave Lauren. Greenspon we want to welcome the owner of a normally very busy Tuffy tire and auto service center in downtown Chicago car. Sales are down people who own cars on the road. Meaning fewer repairs. So have you been handling your business very carefully very carefully? We've just been doing what we can servicing. The vehicles that we get and just trying to keep my guys in the shop and getting paid so I was thinking you know fixing cars as a team sport. Generally more than one person is at the car. And you're in such close quarters there. How are you managing your essential business? How are you managing this? In a world of social distancing. Yeah very early on. We had shot meeting and we all came to the understanding and agreement that we're we're a family just the same and we all came to the agreement that we would come to work and we would go home and you know if we had to go shopping or anything we would tell each other. Hey had to go into the store this weekend And you know if anybody was showing any symptoms or feeling sick they would stay home and go see the doctor And so far. We've been very lucky now. That must be tough though because to some extent. You're sort of betting your business on the fact that this family near your employees are all going to follow the social distancing rules that you've asked them to do that's quite a bit you're making yet yes. It is and from a customer facing perspective. It's much easier You know to follow those social distance guidelines in the back shop like you said auto repair you know sometimes is a collaborative effort and so my guys can't maintain that six foot distance that you know that has been recommended. That's why you know we did take it very seriously that we are going to treat this as as a close. Knit Family Lauren. What we're just looking at a graphic that shows since opening on May first new cases in Illinois up sixty six percent now. The good news is testing has been up ninety percent. But what do you find from your consumer as we are seeing the case number continues to grow their You know it's interesting. We were just talking about this in the shop today this week there. It seems like there's been a change in attitude You know for the past two months. The streets have been dead. The sidewalks have been dead. Nobody wanted to go out. And then this week. All of a sudden It's like someone flipped a switch and the roads were busy You know the sidewalks were full of people running walking It's you know everybody's you know maintaining their distance but they're they they want to get outside. You Know Lauren. I know that you don't it? Looks like maybe businesses coming back but you your company was saved because of government programs the disaster relief program in the P P P and. I'm wondering you are out there in middle America talking to your customers talking to your employees. What is going on in Washington? Dc that the policies being set by politicians in large company owners. Instead of people. Like you. I mean why. Aren't we asking people like you what you need? That's that has a very good question. I think a lot of the policies are being set with good intentions But the execution is lacking Because there is no input from the small business owner You know I don't have a big lobby group. I have the ability to call and get my congressman on the phone. And get you know you know my pet projects funded I'm basically at the mercy of what the Federal Government was able to do Is Very lucky that my funding came through early on. I was able to keep my doors open and keep my team employed But you know if the federal government really wanted to take care of you know small business they would talk to small business. Owners Dave Dawson. It sounds like you're you're still pretty critical of the government response on small business even though they were able to add more funding to reach more small businesses. Well what I think is that you know you look at Lauren's business at Lawrence business with saved from government program that had elements of good design. The problem was is. There's we forever every lauren that God alone. What about all the ones that didn't get alone and that's the one that's the part that I'm concerned about? And the way the PB Pilon was structured so that the money has to be used in a certain way or you. Don't have forgiveness will. That's okay for big companies who have huge payrolls. But there's a lot of companies out there that don't have huge payrolls. They need that money for something other than people in the and. That's where I just wish governor would reach out and talk to people like Lauren asks them. They're ask them what they need or watch US tonight. Lauren thank you for your time. Share it up a mother and son mother and Sante Street team finding their way back before the break images we have from around the world on the one hundred thirty eight. Th Day of this global price look welcome back to our special report. Let's welcome tonight. Doris and Marco Toya Endorses Peruvian history. They sell their baked goods mostly to farmers markets and third party retailers. They've seen a drastic drop in sales. Good to see you both for thank you both for joining us. So Doris tell us what business has been like since the shutdown occurred. Are there any? Farmer's market's still open while the farmers market they close that there was just one permanent market. That was helping entrepreneurs small businesses with pre orders and. I know that there is another one that we are working with now at that also has a pilot program and he's doing the same thing reorders prepay order. So that's what they are working right now. Just two doors Geno. You're the American dream. You found an idea that product that people wanted and you give them something that they want an each year. You sell more of it. I mean that's really. The American dream and independent businesses like yours represent almost half the employment in the country. So congratulations to you but then all of a sudden this happens and it's has nothing to do with the way you ran your business must be such a shop for you but then I understand that you still haven't been able to get a P P P loan what's what's that journey been like. Yeah it was hard. It was really hard to get. The education was hard to do. I apply I send the application through an email in Dan. Day told me what you can get announcer Dan. I apply again through the their website. It was hard because every time that I wanted to look for some information that they were asking to the program was gone. I had to start again and again so he took me like a week to that. Finally I got a received number of the application and today while I was coming here to to see Marco I receive an email that it was approved. Well that's terrific news and I'd like to think it was because they knew you were going to be on CNBC tonight. And we're we're going to talk about that. So congratulations for that time isn't it? Is this kind of exactly. Is this kind of loan. The the thing that keeps you alive until you can get to the other side because absent this loan with all the farmers markets closed. What were you GONNA do? Yeah so we actually. To be honest we holding on to a lot of hope when it came to these loans. The didn't really necessarily have a plan. Otherwise obviously this came very unexpected. One saying these are unprecedented times. And you can't really prepare for something like this as a small business So we really were very hopeful on these loans and and these are great news that we were today but it was definitely a long long process. And just you know believing that it was gonNA happen and finally it did glad you made it what. I'm just curious market what you're GONNA do the loans with the money. Yes Lisa we have different plans Especially now that we have that those funds available First and foremost we definitely want to strengthen diplomacy we already have so our most popular Pastry is the Hort And we have a couple of different flavors for that. It's been we've seen great success with it. We definitely want enhanced promotion of it Whether through social media to other different channels as well to engage with our customers especially in the Danish reliving today it's very hard to promote them face to face. We're GONNA have to really utilize digital marketing for that And then on top of that. We also being a focused more on updating packaging to make sure it's attractive product For customers as well as any lab work needs to be done will also go into that Dorsey mark. Congratulations on the things that you're doing in the innovations that you've been doing to to get through this period and also what it's GonNa be like afterwards but I've got a question. This is still going to be a tough period for you. What is this doing to your retirement? Your plans for the future my plan for the future it's Like I know that I already have my kids. I raised my kids and they are doing their own life but I think that I have more years to go so I. I know that I that we have with so I know that we are GonNa do great. I have failed on that and I am planning to the future to that. I want to do these for my grandkids. Also so I want them to happy's already as a successful business so I keep working. I don't know at Brawley. I have to say run into God is GonNa call me I to keep working. Well we hope so that we've been looking at pictures of your pastries and they look absolutely delicious. Good luck to both of you. And thank you for joining US tonight. Doors AND MARCO MONTOYA NEXT UP. A veteran run business meeting in the faith of prices. We'll be right back. Welcome back now to flags of valor founded by two veterans special OPS pilots who hire other combat veterans to design manufacture rustic wood and metal flack co founder and owner. Brian Stores joins us now from Ashburn. Virginia Brian Welcome. So how do you and other veterans stand together in the face of crisis? What is your experience been like? Well I mean Sarah. Thanks for having US. It's been it's been crazy. Let's be honest. The small business and the uncertainty of everything and no matter how you plan and forecasts you know six months a year. Three years out Things Change. I think that you know our you know. Dynamic nature of being veterans in in deploying a lot You know it's it's it's all related and we have to adapt in pivot Dave. Yeah well Brian you know I was thinking about your journey. You know nine deployments overseas for combat missions and then you come back to the United States in a lot of ways. You're continuing the fight for the country by bringing manufacturing to the United States homegrown products raw-materials from the United States and then boom all of a sudden. This happens but then I was thinking. Maybe this is an opportunity for you because I see so often. In small businesses were a lot of energy generates very little profits. Maybe it's time to move away from the retail side of it which is probably a fair amount of work and just step on the gas on the parts of Your Business and now we're really working. Dave absolutely we you know. Ten percent of our revenue is from retail. And as it gets shut down you have to think outside the box. I mean we can't make keep you eat. We can't re reengineer machines and retool our machines to make face mask and sanitizer so we had a think outside the box. And what could we do? Will kids are stuck at home and we pivoted to. How do we make an educational product? That kids can do keep being creative and build something with their family and and learn something from an educational experience and talk about what the greatest country in the world means to them and we did that with with something as simple as as an eighteen dollars and fifty cents item and it saved us before the PCP. And we're very grateful for that. We're very grateful to reinvent ourselves. Yeah well you have. You know you're listening now in your customers telling you this is something we want and this could be an amazing opportunity to build your brand. Because I think about you know you're not just selling flags I mean you're really creating a brand. That could be something pretty substantial overtime. Don't you think absolutely I mean? We started making flags in my garage. We've exceeded that. We've we've come full scale. I mean we can make fifteen to thirty five thousand units a year so we've exceeded the garage based business that we started and now we are veteran American manufacturers so if it's medal of it would if it's a company wants to bring back their supply Jane back to America. That's what we'd be convincing people within shouting it from the rooftops for five years like made in America matters. And how do we continue to do that? Because it doesn't just impact us it. Impacts the timber companies impacts the small business that supplies the paper products that go into our advertising to the box companies to the shipping suppliers in effects. All of us. Well in many ways. You're fighting the war for the middle class right because you're building products that are good. Middle class manufacturing jobs which the middle class has been gutted over the last. You know almost a generation which makes me think about when you applied for your loan which was essential for your success. And it's worked out really well for you. 'cause you brought your voice back but I thought it was interesting that the first time you applied for your loan were turned down. We were as as much as we tried. And as much as you know my business partner handled that and he spent hundreds of hours in that and unfortunately it just. It didn't happen for us as we keep saying this but as hard as it was for us to not get approved the first time we still got approved. And we're not gonNA complain that we got money and we have to pay taxes on it. I mean it's helping us. We could either rollover or leaned forward and we chose to do the ladder and that was before the PC so thanks to our great network thanks to the Business Council within the US Chamber of Commerce and some of our great corporate partners like under armor got freedom like they've been there with us and they helped the help support us as a small business and we're grateful for that best of luck to you. Brian the flags look awesome. Thank you for joining us. And thanks to Dave Dodson as well good to have you on board on day. One hundred thirty eight of the corona virus crisis here are the latest headlines. The Wall Street Journal saying the. Tsa is getting ready to start. Temperature checks on passengers at about a dozen airports as early as next week retail sales falling sixteen and a half percent nearly in April. The worst monthly drop on record. Jc Penney filing for bankruptcy protection and stocks rising slightly today but ending the week lower for all of us here at C. N. B. C. I'm Sarah Isan. Undercover boss is coming up next and will lead you with the images from hard-working veterans at the flag of Valor. If you want to learn more about one of the fastest growing trends in investing we've got the podcast for you it's ETF EJ. I'm Bob is on going as I'm joined by top market participants help you build your best portfolio at the end of each episode stick around for our markets one. 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