Searching for an upside when the world is upside-down

The novel coronavirus reared its ugly head around the beginning of the year, and by now (press time, which is early August) I thought I would be onto new topics, focusing on fall conventions and expositions, year-end planning, and Manufacturing Month. When schools shut down last spring, who really thought we’d still be using virtual learning in September? When employers sent their workforces home in March, who really thought that mandate would stick through the end of 2020, and maybe indefinitely? When state governments dictated the closures of nonessential businesses this spring, who among us thought that these restrictions wouldn’t last past Easter? (My hand is raised.)

And here we are, still ordering takeout food, preparing to homeschool our children, trying to stay in business, and facing the reality that the return to normal life, or a new version of it, is probably 18 to 24 months away.

So, what now? Do we throw in the towel? No way. We are facing great adversity, but many before us have managed to get through much more difficult times. As Winston Churchill stated, “If you’re going through hell, keep on going.” He also said, “Never give in, never give in, never, never, never, never,” a favorite of Ed Youdell, president/CEO of the Fabricators & Manufacturers Association Intl. In that spirit, I’d like to explore in this column, and a couple of future columns, the metal fabricating opportunities that have cropped up during the pandemic.

Telecommunications

With the launch of fifth generation (5G) technology, the telecommunications industry was on the rise before COVID-19 set in. It got a boost from remote learning and working. Cell towers and communication platforms are in full production, driving need for sheet metal fabrication and lightweight tubing structures, including aluminum and stainless steel fabrication. Global expansion of 5G technology is projected by many to continue for another five years, so the time to target this industry is now.

Food Production

There is no question that grocery stores large and small are booming right now. Many restaurants had to shut their doors temporarily, and for some it became permanent, so we are dining at home more than we have in decades.

Food production companies such as Hormel and General Mills are faring well on the stock market, so manufacturers should consider targeting companies that build equipment used for producing and packaging food. A simple internet search of “commercial food processing equipment” is all it takes to generate a list of companies showcasing large machines for the industry. No doubt some of these are vertically integrated, but with increased demand, they might need to outsource some production to keep up.

Home Fitness Equipment

Gyms closed, the coronavirus relief bill put some additional money into quite a few pockets, and many consumers used that money to purchase fitness equipment to work out at home. Even in cases in which gyms open, many consumers likely will stay away for a long time to come.

Peloton is exploding right now, with a year-to-date gain of more than 60%. Many fitness equipment companies source from Asia, but virus concerns created instability in those supply chains and stimulated a reshoring trend.

Lawn and Garden

With so many people off work, temporarily and permanently, home improvement projects are in full swing—and the industry is booming! Everyone along the food chain in the lawn and garden industry is benefiting—raw material suppliers, trucking firms, and retailers.

Companies that sell lawn and garden equipment are excellent targets for manufacturers right now. Shortages abound! I tried to buy my husband an edger for Father’s Day (his idea, not mine), and it arrived in August. Three national chains were out of stock, and one store had been out of lawn mowers since March.

Rail

A client of mine in the steel castings industry is seeing a lot of activity in the rail industry driven by the Buy America Act (formally known as the Surface Transportation Assistance Act) of 1982. It requires iron and steel of completely U.S. origin for federally funded transportation, highway, and infrastructure projects relating to transit. This isn’t related directly to COVID-19, but no matter. While companies are researching new industries to pursue, they should investigate the impact of all market influencers.

Beyond 2020

This list certainly isn’t comprehensive, but it’s a start. It might be difficult to enter a new market yet in 2020, but you have plenty of time to lay the groundwork for a new venture in 2021.

Happy hunting, and stay tuned for more news about fabricating opportunities brought about by these difficult times.