Tippets by Taps - Issue #134
Tippets by Taps - Issue #134
New week, new issue! This week I explore the future of construction, employees thinking relocation in the face of prolonged WFH, ghost kitchens and the acceleration of digital transformation, J.C. Penney’s bankruptcy, and more. Enjoy!
Lego: The future of construction
I wrote a post this week as I was thinking about COVID-19 and its impact on on the future of construction. Working in construction means working in close proximity to others. There’s simply no getting around it. Any opportunity to shift toward a model that provides more flexibility, control and safety for those on the front line is well worth considering. Further, the current state of construction as a whole is not sustainable, with major construction shortages, a lack of skilled labor, and burdensome regulation resulting in the need for alternative approaches to building that are safer and healthier. Modular construction (think Lego at massive scale) is a potential option, but is not without its drawbacks. I hope you enjoy it and, as always, please provide feedback!
Tech Workers Consider Escaping Silicon Valley’s Sky-High Rents
The first shoe dropped from a large company the aftermath of the COVID-19 pandemic as Twitter announced that they would allow employees to work from home permanently even after the coronavirus aftermath passes. Google and Facebook also announced this week that they will be extended work from home for their employees until 2021 but have not gone as far as Twitter saying that work from home can be a permanent option.
As we extend further into shelter in place and everyone begins to adjust to a life working from home, more tech companies will inevitably adjust their approach to the reopening and a decentralized workforce which in turn, will force its employees to reevaluate living near the office, and for good reason.
With some of the highest rents in the world, the Bay Area has been dealing with an affordability crisis for years. The region saw 5.4 new jobs for every unit of housing built from 2011 to 2017, according to Bloomberg calculations of U.S. census data. The entire state is expensive, with the median price for a house exceeding $600,000, more than double the national level. In Silicon Valley that means most workers have been renting—and are therefore able to pick up and move… Urban parents of young children suddenly find themselves coveting backyards and playrooms in larger homes that would be affordable on a tech salary pretty much anywhere except the Bay Area.
One big question: compensation. Will employers pay employees the same salary as they would if they stayed local? Precedent suggests not - salaries have historically been adjusted when employees transferred office from say, San Francisco to London. However, post pandemic how much will precedent matter? Another big question: when will schools open? If schools stay closed, maybe comp matters less than getting out of the 2br/2ba in downtown Mountain View?
On a similar but slightly tangential topic, I thought the below tweet was an interesting frame on how to get the benefits of WFH and being in an office. Expect to see more on this topic later!
The lasting impact of COVID may not be fully-remote teams, but 𝙍𝙚𝙢𝙤𝙩𝙚 𝙊𝙧𝙗𝙞𝙩 teams.
𝙍𝙚𝙢𝙤𝙩𝙚 𝙊𝙧𝙗𝙞𝙩 teams spend one day in the office and 4 days out.
They get that a day physically together sparks serendipity, but workers are more productive at home.
9:57 AM - 12 May 2020
J.C. Penney files for bankruptcy, plans to close some stores
A 118-year run has ended for J.C. Penney who this week filed for bankruptcy. With $4 billion in debt on the balance sheet and having failed to turn a profit in a decade, this was a long time coming but still underscores the challenges that the pandemic has presented retail.
The filing came the same day Commerce Department data showed the industry’s devastating decline. Retail sales fell 16.4 percent in April, by far the steepest drop on record, with sales at clothing stores — down 89 percent from a year ago — taking the biggest hit. J.C. Penney is the fourth major retailer — and the largest — to file for Chapter 11 protection this month, after J. Crew, Neiman Marcus and Stage Stores. All four have a heavy presence in shopping malls.
Globally retailers need to reimagine their processes end to end, beginning with supply chain and logistics, employee scheduling and task management, and ending with the consumer experience. Building consumer confidence back is going to be a central part of the re-opening, otherwise we’re in for a longer road to recovery than anyone expects.
Ghost kitchens, fast growing and controversial, offer a lifeline for some restaurants during COVID-19
COVID-19 is accelerating digital transformation across the economy, highlighting weaknesses in existing systems and propelling us toward a new technology future. The existing restaurant infrastructure is a great example, COVID-19 forcing restaurants to adapt or go out of business, as demonstrated by Specialty’s Bakery who this week sadly announced they are ceasing operations. One restaurant that has innovated well is Dosa, a Bay-Area based Indian eatery who, “long before the coronavirus hit the Bay Area, the owners of San Francisco Indian restaurant Dosa partnered with Virtual Kitchen Co. with plans to open 20 delivery-only locations throughout the Bay Area, including on the Peninsula.”
For [Emily Mitra, Dosa co-owner], the pandemic has underscored the importance of restaurants, which already face razor-thin profit margins under normal conditions, finding alternative ways to make revenue to survive. She and her husband opened their commissary kitchen in 2015 — a costly investment — with that goal in mind. The kitchen allowed Dosa to start selling pre-packaged foods and sauces at Whole Foods.
“As we look at the future we’re saying, maybe this will work if we just focus more on our consumer packaged goods than the retail group because I think the writing is on the wall,” she said. “We plan to keep our restaurants for sure but we really have to be focused on the things that keep the Dosa brand alive.”
Basketball hoop that doesn't let you miss
For a quick break from the crazy, check out this awesome use of computer vision technology. Full video below, but the gif tells the story. I know a lot of weekend ballers who could use this for sure…
He shoots, he scores!
30 Animals That Look Like They're About To Drop The Hottest Albums Of The Year
Left for your scrolling entertainment.
You down with OPP(igeon)? Yeah you know me!
Quote I’m thinking about: “When you become insecure in the light of someone else’s glory, you need to take a breathe and recalibrate.” - Gary Vaynerchuk