SCL Now Offering Liquid Hand Sanitizer in Limited Quantities

Petra Launches New Product in Individual and Bulk Sizes Until Supplies Last

As states begin reopening efforts following a weeks-long shutdown prompted by the coronavirus pandemic, safety of customers and employees remains a top concern across industry sectors.

In California, Gov. Gavin Newsom announced a phased reopening this week, with stage two including some retail, manufacturing, offices where telework is not possible, and some additional public spaces starting in the following weeks.

“We all know this is not going to be business as usual, and we want to make sure we’re doing what we can to help our customers adapt,” said SCL General Manager Travis Becktel.

In the wake of brands including Purell becoming exceedingly hard to come by, SCL will be offering liquid hand sanitizer recently launched by Petra beginning May 11 in 55-gallon drums, 5-gallon cubes, gallon jugs, and 12-ounce refill bottles.

Prices by quantity are as follows while supplies last:

• 12 x 12-ounce refill bottles – $11.40 per case

• 4 x 1-gallon jugs (with hand pump) – $239.80 per case

• 5-gallon cubes – $239.75 each

• 55-gallon drums – $2,362.25 each

With 80% alcohol, the product manufactured by Petra exceeds recommendations by the Centers for Disease Control and Prevention that hand sanitizer should be at least 60% alcohol for the greatest microbial efficacy.

According to the CDC, proper hand washing for at least 20 seconds is preferred over hand sanitizer. When used in place of handwashing, hand sanitizer should be applied liberally. “Don’t be conservative with your sanitizer,” states The New York Times. “… For it to work, you need to cover every surface of both hands entirely with the sanitizer and rub until dry.”

For information on placing an order, contact your SCL sales representative.

Contact an SCL Consultant today 

In a wide range of automotive, industrial and commercial sectors, SCL remains steadfast on its commitment to product and industry knowledge, performance satisfaction and superior logistics. We protect and optimize the machines that keep our country moving. For more information on how we help can help with services including bulk purchasing or managing inventory, contact an SCL expert today.

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SCL Partners Report Little Disruption to Projects Currently Under Way

In the days following a state mandate by California Gov. Gavin Newsom that non-essential businesses close in an effort to minimize impact of the coronavirus (COVID-19), SCL customers reported little disruption to construction projects.

The Association of General Contractors of America (ACG) has stated it is closely monitoring the epidemic, as well as government measures aimed at lessening the virus’ impact, but it has yet to provide any recommendations on stopping projects.

On the contrary, the organization has petitioned the federal government to recognize construction as an essential business, especially after a list of “critical infrastructure” industries released by the Department of Homeland Security failed to include it.

While states have been encouraged to use the DHS list as a guideline when considering state and local COVID-19 responses, it is not tied to any federal mandate. As such, construction projects have continued to move – even those directly tied to the federal government.

WHAT’S GOOD IN CONSTRUCTION

According to SCL Fuels Specialist Keith Kerslake, dirt moving right now is on projects bid anywhere from 6-9 months ago.

“These projects have already been planned, there are already commitments that have been made and deadlines that have been set. I’ve seen no one winding down,” Kerslake said. “One of our larger partners is still working on a project that will go for three years, and they’ve given no indication they weren’t moving forward with that. Everything on the table is still happening.”

According to ACG, only a “nominal number” of projects nationwide have experienced any delays at all, and those were largely related to the delivery of manufactured and raw materials. The organization has also reported the virus has yet to impact the work force or development of projects.

WHAT’S CONCERNING IN CONSTRUCTION

There is always concern related to businesses delaying or getting out of contracts that have already been instituted due to the delays in material delivery or shortages of labor, but that has yet to materialize.

The concern right now for SCL construction partners has to do with projects yet to be bid, that is builds and tear downs scheduled to start 6-9 months from now.

“If we head into a recession obviously it will affect monies to be able to go into investments, new construction, that sort of thing,” Kerslake said. “In 6-9 months, if we have fewer construction projects or deconstruction projects, we could see a drop in construction fueling and, obviously, fueling across the board.”

OPPORTUNITIES IN CONSTRUCTION

Right now, SCL partners are focused on business as usual, but that doesn’t mean customers are necessarily searching for acquisition or other investment opportunities.

According to Kerslake, although it’d be a great time for any business to consider expanding, like other industries, construction partners are more or less in a wait-and-see mode.

“Anything new, new customers, new commitments, existing opportunities, people are probably not going to make a move right now until we get a better feeling of what’s going to happen,” he said. “They may have plans, but it doesn’t feel like anyone is going to commit right now.”

How that will affect projects moving into the fall, when contracts currently being executed come to an end, remains to be seen.

 

Contact an SCL Consultant today 

In a wide range of automotive, industrial and commercial sectors, SCL remains steadfast on its commitment to product and industry knowledge, performance satisfaction and superior logistics. We protect and optimize the machines that keep our country moving. For more information on how we help can help with services including bulk purchasing or managing inventory, contact an SCL expert today.

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With Sales Down, Dealerships and Shops Reduce Staff, Expenses to Remain Open

Although some SCL partners reported a spike in new car sales immediately following a move by the Federal Reserve slashing interest rates to nearly 0%, most in the industry are relying heavily on their service departments to carry them through the coronavirus (COVID-19) epidemic.

On top of economic uncertainty, efforts to social distance – and stay home altogether – have  all but forced many dealerships to lay off sales staff and cut positions in other departments beginning in mid-March.

WHAT’S GOOD IN AUTOMOTIVE

Although the news is mostly disparaging – from disruptions in supply chains to a dramatic fall in sales – service facilities are still operating. For now, according to SCL Customer Solutions Specialist Don Parker, that’s a win.

To keep from closing their doors altogether, dealerships and independent shops have laid off staff, reduced hours, and in some cases decreased the number of technicians in their service departments. Those measures, although unfavorable, have allowed doors to remain open and work to continue.

“People are still bringing their cars in for service, whether that be for repairs or maintenance,” Parker said. “And these guys will continue working as long as they can and as hard as they can. That’s the way of the automotive industry – you’ve got family run shops that have been in business for 30-40 years, and they’re going to continue to do whatever they can to keep business as normal as possible.”

WHAT’S CONCERNING IN AUTOMOTIVE

When customers are not coming on the lot, sales are not taking place. And when cars are not being used, service lanes aren’t as full.

Those two issues alone present the greatest challenges to the automotive industry, which relies heavily on service and parts departments for income. Even if near 0% interest rates were to bring customers in, dealerships don’t have as much opportunity to earn from financing and other hard adds like they normally would.

“Right now, you have layoffs happening, especially in sales departments. You have lower profits and you have the same expenses — including rent, which is pretty high at a lot of these dealerships because they typically have large pieces of property,” Parker said. “If this goes on too long, everyone is going to have a hard time surviving. If this were to go on for 90 days there are a lot of dealers that it would really bury without some support.”

OPPORTUNITIES IN AUTOMOTIVE

Right now, opportunities in automotive are limited, but if you have cash, there is always potential.

“Unfortunately, by the time this is all over with, people are going to be selling businesses for pennies on the dollar,” Parker said. “There’s opportunity for acquisition, but honestly I think most people are just looking for ways to minimize the impact. This will be a burden on everyone in automotive in some way, but there are opportunities to help minimize the effect of this over time.”

For many, that means reducing staff and hours, taking precautions for staff members who continue to work, possibly taking advantage of small business loans, reducing expenses and biding time.

 

Contact an SCL Consultant today 

In a wide range of automotive, industrial and commercial sectors, SCL remains steadfast on its commitment to product and industry knowledge, performance satisfaction and superior logistics. We protect and optimize the machines that keep our country moving. For more information on how we help can help with services including bulk purchasing or managing inventory, contact an SCL expert today.

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Productive Responses You Can Take in a Volatile Economy

SCL Offers Perspective as Coronavirus Continues to Disrupt Business Operations

The federal government has lowered interest rates, national sport leagues have suspended games, travel from Europe to the United States has halted, and businesses nationwide are trying to calm customers as fears surrounding the global spread of coronavirus (covid-19) build.

In the past several weeks, since the virus that originated in Wuhan, China has spread globally and infected thousands, the stock market has gyrated. In perhaps the most significant move by the federal government to encourage investors, the Federal Open Market Committee recently slashed rates to the lowest they have been since 2008. With the deceleration of a National Emergency, funds become available to state and local governments.

In addition to cushioning the blow for businesses, many of whom are dealing with decreased customer turnout, lower interest rates could pose some opportunity in our industry.

“This may be an uncertain time, but it’s also the best time to assess and take some measures that could positively impact your long-term growth,” said SCL General Manager Travis Becktel. “Taking advantage of lower rates now can create success later on. We want all of our customers to recognize this as an opportunity to grow while still acknowledging that it is a significant obstacle.”

As ITR Economics puts it, “it is more important than ever to base decisions on empirical data rather than emotional response.”

 

Refinance Your Loans and Seek Lines of Credit

With rates the lowest they’ve been in over a decade (1% to 1.25%), it may be an opportune time to refinance business loans. This could mean lower monthly payments in the short term, which can free up additional working capital in your budget.

According to U.S. News & World Report, refinancing business loans can be a bit more restrictive than refinancing mortgage loans but is typically available for:

• Term loans

• Working capital loans

• Equipment loans

• Commercial real estate loans

• Microloans

• Business lines of credit

 

Increase Your Marketing Efforts

For many of our partners, lower interest rates are also a benefit that should be communicated to customers. This means boosting marketing efforts directly through channels like email and direct mail or indirectly through social media public relations efforts.

For our automotive partners, this is especially imperative considering the negative impact coronavirus has already had on parts inventory and buyers on the lot. Stacey Miller, senior director of communications for the Auto Care Association, a trade group representing 150,000 auto aftermarket and service businesses, told NBC News “by mid-March, the shortage of supplies will be felt and members are projecting they’ll experience disruption through May or June” even if operations in China soon get back to normal.

While decreases in revenue from parts departments and body shops should be expected, one strategy could be to focus efforts on front-of-lot sales through increased marketing.

 

Consider Capital Improvements

Although there is some uncertainty with regard to first quarter (and possibly second quarter) profits, if you have had capital improvements on the docket, this may be an ideal time to start implementing those plans.

Lower interest rates on loans and lines of credit could mean getting new equipment or expanding your business for a lower overall cost than you initially projected.

“While things seem uncertain right now, historically, markets tend to recover in the long term,” Becktel said. “If you take advantage of lower rates now, your business could be in a better position when that recovery occurs.”

If there is a recession or damage to the overall economy, some companies may need to sell assets to stay afloat and others may be forced to close their doors. Keeping cash on hand or having the ability to access capital through business loans will help you react to opportunities to obtain machinery at discounted rates. If your competitors need to size down their fleet, acquisitions could become part of your strategy.

 

Assess Your Inventory

When it comes to inventory, it’s probably wise to assume the products you’ve had access to on a regular basis may not be available in the coming months for a variety of supply chain related reasons. Do not assume anything. Instead, SCL recommends keeping your fuel tanks full and to begin taking inventory of what products you have on hand that could be affected.

This could mean replacing products currently on your shelves with others that don’t come from China, or investing in products with multiple applications, reducing the need for so many product types.

The goal, as always, is to have what you (and your customers) need in stock, which may merit introducing new products.

 

Monitor Government Action

It’s always a good idea to keep tabs on any reactions from the federal government, especially in a volatile economic environment. Most recently, President Trump announced on Friday, March 13 he has instructed the Small Business Association to provide low-interest loans to small business affected by the coronavirus outbreak.

The loans, which are only available for small businesses that can’t secure loans elsewhere, are designed to help “meet payroll; stay liquid during drops in customer demand or delayed payments; and look for alternatives or manage supply chain issues,” according to Workest.

The SBA’s established Economic Injury Disaster Loan (EIDL) program will provide working capital loans up to $2 million for economic support and help overcome temporary revenue loss during the outbreak.

For more about qualifications and if you apply, contact the SBA.

“The bottom line is that although we encourage our partners to take the necessary precautions to face this crisis, it’s still possible to keep their businesses moving forward,” Becktel said. “Our experts can help partners in any industry sector make decisions and employ strategies that keep growth on the front burner.”

 

Contact an SCL Consultant today 

In a wide range of automotive, industrial and commercial sectors, SCL remains steadfast on its commitment to product and industry knowledge, performance satisfaction and superior logistics. We protect and optimize the machines that keep our country moving. For more information on how we help can help with services including bulk purchasing or managing inventory, contact an SCL expert today.

 

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