2020, Chapter 4:
The Corona Effect
Okay.
Time to get serious.
Hopefully without being a bit too alarmist. Because Mike, like Rina’s tortoise Volga, will probably re-emerge and proclaim me as being too paranoid.
Aside: serious about the tortoise. It disappeared about 5 months ago. We thought it got out of the side yard (and we seriously looked for it, in an area of less than 400 square feet of yard). It was gone. I mean, GONE. It was so gone, I bought Rina a “three pack” of Russian tortoises for Christmas to replace it. So fast forward a couple of months, the three-pack is doing fine, and Rina sends me a photo one day saying, “Look who showed up.” Yep. Volga. Sitting on the side porch big as a house (compared to the three pack), looking vaguely annoyed at the new company she just ended up with. Why did she show up? No clue. She wasn’t hibernating (never did it in a decade). Maybe because we put some of her favorite food out for the three-pack? I don’t know. No big deal. They’re tortoises. Kinda like walking pocket calculators. It’s cool.
Anyway, back to what’s going on. I’m sure you’re all aware of COVID-19, and its march across the international landscape. And now Los Angeles County is now in a state of emergency over the coronavirus. So I thought it would be smart to catch you up on what’s going on with us.
So, TL; DR, don’t have time for all my blather:
- We’re taking precautions to make sure you, Schiit employees, and their families are safe.
- Because of this, you will see less of us in the coming months. Trade shows are cancelled, Schiitrmeets are toast, and the 10th Anniversary SchiitShow will be pushed out to later in the year, assuming we are not all zombies/Immortan Joe slaves by then.
- Coronavirus has not affected our supply chain. This shouldn’t be surprising, since we make stuff in the USA and most of our parts are made by US-based companies manufacturing in the USA. The few parts we get from China (wall-warts, some switches, remote controls, prototype PCBs) appear to be from companies that are back up and running.
Okay. No need to read further, unless you want the gory details.
Also, let me reiterate: this whole situation may be overblown, but we figured it would be better to be paranoid and safe, rather than complacent and sick. Feel free to tell me I’m crazy (in either direction) in the comments after this chapter.
Let’s Talk Precautions
First of all, let me say this: I don’t want to blow this out of proportion. But I do think it’s worth going over what we’re doing to keep you, Schiit employees, and their families safe, as the COVID-19 situation percolates through the world.
- We’ve always been about keeping you safe. This includes stuff we’ve always done, such as manufacturing in the USA with a small, close-knit, well-paid employee team, using local subcontractors (our PCBs, transformers, and chassis are all made in California or Nevada), and instrumented testing, burn-in, and wipedown with ethanol-based antiseptic cleaner before packing and shipping (yes, we have always done this).
- But we’re doing even more more now:
- Alex has added additional sanitation (wipedown of desks and production equipment every day)
- Similarly, Alex and Tyler have actively encouraged employees to self-monitor and stay home if feeling ill, or to simply take time off if they are high-risk.
- I have decided to place a hold on non-essential business travel and meetings, following the example of Amazon, Twitter, and others. This includes vendor meetings at Schiit.
- After conferring with Eddie and Tyler, I have decided that the Schiitr will remain open with additional sanitation, but if necessary, we will close that as well.
Sounds a little paranoid? Maybe. But why take the chance?
Let’s Talk Ramifications
The biggest thing is that you won’t be seeing us at shows. AXPONA, nope, LA, not likely (unless this has blown over by then), Schiitrmeets on hold, 10th Anniversary stuff will happen later in the year assuming everything is sorted.
Yes, this is a huge disappointment. I wanted to go to AXPONA. I was looking forward to next week’s Schiitrmeet. But it’s simply not responsible to attend AXPONA, nor make an appearance at the Schiitrmeets at this time. I believe that the well-being of you, my employees, and my business partner takes precedence. We have high-risk individuals at Schiit, and I don’t want to see anyone ill.
Aside: this includes me. Although I am super-healthy, I exercise, have great A1C and inflammation, I did undergo cardiac ablation to eliminate AFIB. I don’t want to test that 10.5% mortality rate in patients with history of cardiovascular disease and see if it applies to me.
I hope everything is sorted (or sorted well enough) by LA, but we’ll see. Hopefully we can re-start the Schiitrmeets soon. Hopefully we can have a 10th anniversary SchiitShow to end all SchiitShows. Hopefully y’all will be laughing at me in a couple of months, when it’s all revealed this ain’t no big deal at all.
Some things where there are pretty much no ramifications (at least yet): production and product development.
Let’s Talk Products, Current and Upcoming
First of all, let’s get this out of the way: we haven’t suffered from any setbacks in current production, and we had only a blip in product development.
As I’ve mentioned, and as it states on our site, the vast majority of content in our products is from US companies manufacturing in the USA. Specifically, chassis, PC boards, transformers (except wall-warts), and packaging is all USA. The only reason we can’t claim “Made in USA” rather than “Assembled in USA” is because literally every resistor on the board would have to be made in USA for us to do so.
So, because we have a predominantly US-based supply chain, (and since we tend to hold high inventory), we haven’t been affected as much. That isn’t to say we’re 100% safe, but it does provide a bit of a buffer if things go sideways.
Now, when this started going down, I got a bit worried. Our prototype PCBs are done in China (mainly because they’re inexpensive and fast). They went offline, effectively, for about a month. That slowed a couple of things down. It also caused more than a bit of concern, because, if, say, our wall-warts (also made in China for economic reasons), that would suck pretty bad. It wouldn’t kill us, but it would definitely have an impact.
But, in the last two weeks, we have been contacted by our Chinese suppliers, and they have said, “We’re back up and running, we’re fast, and we’re excited for your orders.”
And that’s a good thing, because I wouldn’t want our wall-warts disappearing overnight.
Aside: and yet, at the same time, it’s time for us to look at other options. Just in case. Yes, I’m a bit paranoid. See above.
Wrapping Up
So where are we? Let’s try to ramp down the fear a bit.
Here’s the thing: I really hope this is a giant nothingburger. I’m happy to see that China is back up and running. I’m hoping the impact in other countries is manageable (or, even better, no worse than the seasonal flu). I’d be thrilled to see an overall, long-term positive impact on health, as people realize they have to take care of themselves so they aren’t as vulnerable to diseases like this.
But in the meantime, we’re playing it safe.
Wishing you continued health,
Jason
and the entire Schiit Crew