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March 18, 2020

Promo Products Firms In Earthquake’s Path

Top 40 supplier SnugZ/USA was among those contending with fallout from the quake, but the company and others say they’re functioning fully again.

By  Christopher Ruvo

Everen Brown was emailing back and forth with Counselor about the morning’s earthquake when the aftershock struck. “Just got another major aftershock,” Brown told Counselor. “Time to leave the building and get home.”

The principal of promo distributorship Everen T. Brown Specialty Advertising was communicating from the showroom space he has in downtown Salt Lake City, UT. A 5.7-magnitude earthquake struck near Salt Lake Wednesday morning, sending shockwaves through the state capital. The quake knocked out power to tens of thousands of businesses, caused the region’s major airport to close, and complicated governmental efforts aimed at curbing the impact of the coronavirus pandemic. The dozens of aftershocks that followed included a frightening rumbler that reached a magnitude of 4.5.

Earthquake Photos

The quake knocked samples from shelves at Everen Brown’s showroom, but his building did not sustain damage.

Brown’s enterprise and other promo companies, including a couple Top 40 firms, were among the local businesses contending with fallout from the seismic instability.

“We had more than 300 employees who were extremely shaken by the earthquake, as we’re only about eight miles from the epicenter,” Brandon Mackay, CEO of West Jordan, UT-based Top 40 supplier SnugZ/USA (asi/88060), told Counselor on Wednesday afternoon. “We’re experiencing quite a few issues. Our employees are trying to make sure their homes are in good shape, for instance. The workday has been in disarray since about 7:30 this morning.”

Mackay noted that SnugZ’s facilities had sustained “zero massive damage, but lots of cosmetic damage.” SnugZ has been beset by an overwhelming flood of orders for hand sanitizer in recent weeks as end-users press distributors for the product amid the coronavirus outbreak. The earthquake has added more weight to SnugZ’s already stress-laden cart.

“The past four weeks have been overwhelming in volume,” Mackay told Counselor. “In addition to the issues related to the economy and trying to deal with the COVID-19 health threat, we’re now also trying to tackle this situation with the earthquake. It’s been super stressful. So, if we can have some additional patience, we would be very grateful.”

Despite the challenges, SnugZ is soldiering on. Late Wednesday the company released a statement that it’s open and manufacturing, decorating and fulfilling orders across all its product lines. “All our production and communication lines remain fully functional,” Mackay said in the statement. “We continue to work extended hours shipping orders as fast as possible. Product lines other than personal care remain at standard production times.”

Meanwhile, Salt Lake City-based HandStands (asi/59525), a subsidiary of Top 40 supplier HPG (asi/61966), was working around a power outage and dealing with some minor interior damage to its building. “There is no visible damage to the exterior of the building; it is a seismic-engineered concrete tilt-up, with a metal truss roof, so it would take a lot to compromise the shell,” Anderson said in a communication to HPG’s family of companies throughout North America. “Upon inspection of the interior, several ceiling tiles have fallen, and a few objects in the warehouse have tipped over, but there does not appear to be any significant damage.”

Most importantly, all HandStands’ employees are accounted for and safe, Anderson said. Those who had come to the office were instructed to return home. Many were already working from home because of social distancing health precautions being taken to help prevent the spread of COVID-19. “Office staff is utilizing previously-established virtual work tools to stay on top of front office work,” Anderson said in his Wednesday communication. “The HPG/HandStands team has, once again, really stepped up in the face of challenge. We anticipate resuming production within 24 hours.”

Brown was at home when the earthquake hit. He subsequently went to his office/showroom building downtown to check on things. “Some samples were thrown off shelves, but there was no major damage to our building and no employees were impacted,” Brown told Counselor. “We were fortunate. Buildings near us – mostly older and brick – suffered some exterior damage.”

Brown said the earthquake’s timing was especially unfortunate given the economic challenges suppliers and distributors are currently facing as a result of coronavirus.

“Business has come to a standstill the last week-and-a-half,” Brown told Counselor. “No phones ringing or email orders. With all of the restrictions put in place and notices to stay home, we have been doing just that. Most all clients are doing the same. The promo products business is built on meeting people and the shared experience of events, something that won’t happen for a while.”