Fixing the ImpossiBle
24/7 (202) 973-1300   

Crisis on the Homefront

The list of companies that have been publicly chastised by President-elect Trump (likely President Trump, by the time you read this) grows by the week. Making good on his “America First” platform, the president-elect has chiefly targeted companies that haveor plan to outsource jobs and production to foreign companies.

His Twitter tirades have destroyed millions of dollars in market cap for some of the nation’s most respected brands. The threat is so significant that attendees of the annual World Economic Forum in Davos, Switzerlandcleverly described by Reuters as “the high priests of globalization”have begun laying plans to localize supply chains.

U.S.-based multinational corporations have a new calculus to consider: will increased cost of domestic production outweigh potential sales or market cap losses related to condemnation by the president? If not, relocating supply chains or at least delaying outsourcingmay be the best option, especially if a Republican Congress helps Trump sweeten the deal with tax incentives.

At the very least, companies must consider implementing a certain amount of economic nationalism into their communications. Informing consumers and politicians about the U.S. impact of business is more important than ever.

When the president can effectively demolish a billion dollars of market cap in a single tweet, effectively communicating a nationalist economic message is an essential crisis-mitigation strategy. However, there may be a more positive benefit as well; as economic populism gains in popularity, local impact will become a competitive point of differentiation.

Donald Trump will be inaugurated as the 45th president tomorrow. It’s time to adjust to the new reality.

More Posts

There But For the Grace of God Go I

Second in a Series on Risk Management and Communications By Richard Levick “If you don’t stick to your values when they’re being tested, they’re not

Your Very Bad Day

By Joe Stimac This week’s guest columnist is Joe Stimac, CEO of AccuHire and creator of InterviewReady.com. Joe is a research scientist and a sought-after