Final Thoughts
Final thoughts
Written by Ethan Bernard
June 20, 2024
The summer doldrums are here. That means lazy days at the office, or behind the computer. Perhaps heading over to the water cooler to chat, maybe stare at a fly buzzing on a windowsill. There is work to be done, product to be made or shipped, but there’s no hurry. And around lunchtime, you hang that classic sign on the front door: Gone fishin’.
Yeah, right!
This year’s “summer doldrums” include a wild steel cycle, an ever-contentious presidential election, trade battles, unresolved M&As. And we haven’t even hit the July 4th holiday weekend yet. So while demand might not be so hot at the moment, there’s definitely enough heat elsewhere to keep things interesting. And as for that classic sign, in 2024 it’s much more likely to read “Gone Phishing.”
CDK Cyber Attack
Yes, these days I imagine the average company is going to be facing more problems from “phishing” for data than from employees playing hooky by taking off rod in hand on their way to the local fishing hole.
Now phishing is when a bad actor poses as a legitimate site, and then prompts you to click on something, enticing you to reveal more sensitive information.
In the case of the cyber attack on on software provider CDK Global, these bad actors went straight for the sensitive information. What kind of attack exactly is unknown, but like the previously mentioned actors, it’s bad.
What’s CDK Global? Well, around 15,000 auto dealerships rely on them for making sales, according to an article in CBS News: General Motors dealerships rely on CDK’s systems.
The attack started on Tuesday, the article said. And though some of the systems were up running later that day, CBS said that the systems were offline again on Thursday.
A USA Today story noted that a separate attack occurred on Findlay Automotive Group last week. The story noted that auto dealerships contain all the potential car buyer’s personal information. Now for your average cyber criminal, this is the kind of treasure trove you dream about. Just how much havoc can one wreak with a driver’s license AND social security number? Probably a lot.
Downstream troubles
Now, this isn’t the kind of thing that hits auto demand in one day. But… taking ~15,000 auto dealerships out of commission for any amount of time is not the kind of thing the steel industry needs. That is, especially doesn’t need in the face of falling prices and stagnant demand in some sectors. Hopefully, it will all be wrapped up soon, patched, and good as new.
Well, you, dear readers, are a smart bunch. And I’m sure our subscribers have their cyber security ducks in a row. Still, there are certain things you cant’ control for. Things you can’t hedge against because you don’t yet know they exist. That’s been the world we’ve been living in since 2020.
As for me, I’m going to remain more philosophical about it. Technology is good. Except sometimes when it’s bad. And then they’ll invent something to make sure it’s good again. At least that’s the story that helps me sleep better. On second thought, maybe I’ll head out to Wal-Mart after work, and get me a rod. Break those stereotypes of the journalist behind the keyboard. Perhaps it’s time I learn to fish, no sign needed. Let’s bring back the classics.
Ethan Bernard
Read more from Ethan BernardLatest in Final Thoughts
Final Thoughts
One of the perhaps unintentional perks of being a trade journalist is the opportunity to travel and cover an array of industry conferences and events. Some I've attended have been at fun locations, like Palm Springs and Tampa, Fla. Others have been in more practical locations, like SMU’s Steel Summit in Atlanta and American Iron and Steel Institute (AISI) and Steel Manufacturers Association (SMA) meetings in Washington, D.C.
Final Thoughts
t this point in the game I think what we can say about Nippon Steel’s proposed buy of Pittsburgh-based U.S. Steel is that it will go through, it won’t go through, or the outcome will be something new and completely unexpected. Then again, I’m probably still missing a few options.
Final Thoughts
President-elect Donald Trump continues to send shockwaves through the political establishment (again). And steel markets and ferrous scrap markets continue to be, well, anything but shocking. As the French writer Jean-Baptiste Alphonse Karr wrote in 1849, "The more things change, the more they stay the same." (I thought the quote might have been Yankees catcher Yogi Berra in 1949. Google taught me something new today.)
Final Thoughts
President-elect Donald Trump will officially retake the White House on Jan. 20. I’ve been getting questions about how his administration’s policies might reshape the steel industry and domestic manufacturing. I covered the tumult and norm busting of Trump's first term: Section 232, Section 301, USMCA - and that's just on the trade policy side of things. It's safe to say that we'll have no shortage of news in 2025 when it comes to trade and tariffs.
Final Thoughts
Another presidential election cycle has come to an end. If you’re anything like me, part of you is just happy you no longer need to unsubscribe or “text STOP to opt-out” from the onslaught of political text messages this cycle produced.