PPB July 2020

packages to home-bound employees. Another bright spot, he says, is that it’s easier now to get customers on the phone. “They are willing to listen; it used to be that they were too busy,” he says. Still, he’s concerned about his events business. “We need the events to come back. Events are pretty important for our industry,” he says, adding that parades, such as Chicago’s Gay Pride parade and 4th of July parades mean big business for Lion Circle. “Those are what we need to get going.” Like most suppliers, he’s eager to get business back to the constant hum he enjoyed only a fewmonths ago. “It’s going to take some time,” he says, mentioning trade shows as an example. “The way it’s going to work is you just do it. There will be lots of people, both suppliers and distributors, who don’t come to shows but if you stay back for a year, then you see people who are out living their lives and you realize you’ve missed out. It’s just a matter of when you adapt to it.” Ten years ago, during the Great Recession, he remembers companies were peeling back their marketing budgets. “If everyone is going forward, you can’t keep walking backward or you’ll be wiped out,” he says. “We are going to figure out a way to get everything working again.” He says it’s anybody’s guess when sales will be return to pre-lockdown levels, but he’s hoping it will be Q1 of next year. On the industry’s supply chain, Carollo considers his USA-made products a particular market advantage now. “I think there will be some hiccups in China and that will cause a positive for us. We are a decent alternative to Chinese products at a low price point in a quick turn time. I’m optimistic about that and we are getting plenty of work because of it but I think it will be another generation before anything really happens [withmoving supply chains out of China],” he says, adding that where products aremanufactured is not usually the first question end users ask their distributors. Carollo is confident in the industry’s ability to bounce back and he’s eager for relationships to continue. “I hope the way the industry works, with the supplier/ distributor relationship, stays the way it was, and I think it will,” he says. He thinks the industry will continue to consolidate, especially on the distributor side. “In the past four or five years, we’ve seen investment groups buying into our industry and finally seeing how important we are. I think a lot of those ‘numbers guys’ will get really scared by what they are seeing now in our industry, but the seasoned people know where we’re at and will figure it out. I’m hoping our industry gets back to that more personal level. With a lot of people looking around and trying to find answers, there will be a lot more collaboration.” During the first couple of weeks of the pandemic, his business went from slow to dead, he says, so he had to furlough quite a few employees but hopes to rehire themby late summer. “This is a gut-check moment when you find out who on your team is really good and willing to work hard,” he says. “I’ve seen some surprising stars—people shining, willing to do whatever it takes to get it done. That helps me sleep at night, for sure.” The pandemic also was a catalyst to look at his product line to see what products could be mailed and what products could make people safer. He saw a boom in his single-serving food packaging, drop- shipping requests and kitting orders, and also added face masks to the line. “I’m also always looking for new lines and new products to add, but I’m going to loosen that up a bit more if I can find some new opportunities, some synergy with a company—I wouldn’t mind adding on to this portfolio,” Carollo adds. When Carleen Gray, CEO of GroupeStahl in Sterling Heights, Michigan, looks at the impact of the pandemic on her business, she looks at the immediate, mid-term and long-term effects. “Immediate was almost an entire rolling shutdown by the state as orders were issued,” she says. Then the company filed for essential status, reopened and experienced eight weeks of sustained “re-birth” of the business units as sales volume came back. “We used this stage to strategize and plan for the rightsizing of the company for a full recovery. Long termwe will be a much different organization, both internally and externally. Internally, we think differently— smaller and leaner is better. Externally, the industry will see streamlined, focused business units.” As the company, a leading provider of pre-cut and customathletic numbers, letters and logos, equipment and related services, has resumed business, Gray is happy to report that some of Stahls' sales are already very close to pre-lockdown levels. “We have Carleen Gray CEO, GroupeStahl This is a gut-check moment when you find out who on your team is really good and willing to work hard. I’ve seen some surprising stars—people shining, willing to do what it takes to get done. Rich Carollo, president of Lion Circle Corporation FEATURE | Supplier Insights 46 | JULY 2020 |