“Yes, all that is true, yet I remain optimistic” (July Newsletter)
/![oracles_optimism[1].jpg](https://images.squarespace-cdn.com/content/v1/564655a7e4b0bc08c0869886/1596145222371-F7OQX0TQA2Y93DH2ARVD/oracles_optimism%5B1%5D.jpg)
SDSI Chairman, Bill Walton, hit the nail on the head… it is indeed a time of converging crisises… covid, social justice, climate change and economic and political turmoil. It's a troubling time with no short-term solution in sight.
It's an equally challenging time for business people. Running parallel to our concerns about the challenges of covid life are equal concerns about the viability of our businesses, our concern to get employees back to work in a safe manner and helping restart the economy.
It's here that we are seeing some reason to be optimistic: many of the SDSI companies have experienced an unexpected spike in sales over the last few months. Companies in “social spacing” activities are leading the way. Inventories are at historic lows in home exercise gear, bikes and ebikes, golf, stand up paddling, active wear, pickleball gear, skate and surf, camping and outdoor gear, RV sales and rentals. While gyms and our amazing YMCA are waiting for the ok to re-open, people have taken to the outdoors in startling numbers. A quick beach check, golf course tee time availability, sidewalk or street congestion all confirm, people, our consumers, are active.
There are macro factors in play as well as personal health rises to the top of the priority list, followed by home officing and the liberation from the traditional 8 hour day. And there are some technical issues as well: most of us planned for a down quarter or year and stopped all work in progress at the factories. The spike in demand burned through the inventory on hand. The long lead time for the off shore manufacturers has left demand in excess of supply… and likely to stay that way for some time. Throw in robust ecomm platforms and you have the very reasons that those of us in the Sport and Active Lifestyle industry have a solid reason to believe that our sector will lead the recovery.
As a side point, “optimism” is an excellent antidote to pessimism!
-bob
