DeepSummary
The episode discusses how a ransomware attack on a software company used by thousands of car and truck dealers in the U.S. and Canada has caused significant disruptions, forcing dealerships to revert to analog methods like pen and paper for registering sales. According to forecasts, this could lead to a drop of 2-7% in new vehicle sales this month, potentially equating to up to 1.4 million fewer cars sold.
Another segment features an interview with Evie Smith, a communications consultant, discussing the decrease in Pride marketing by brands this year. Smith suggests this sends a strong message that brands don't care about the LGBTQ community, despite the buying power of Gen Z, a significant portion of whom identify as LGBTQ.
The final part analyzes the economics of publicly funded sports stadiums. Economist Simon Rubinovich explains that while these projects are often touted as creating jobs and boosting local development, the economic benefits are typically overestimated. However, he acknowledges the civic pride and intangible benefits associated with sports teams.
Key Episodes Takeaways
- A ransomware attack on a software company used by car dealers could lead to a significant drop in new vehicle sales this month.
- Brands are scaling back on Pride marketing this year, potentially alienating the LGBTQ community, particularly Gen Z consumers.
- Public funding for new sports stadiums often fails to deliver on promised economic benefits like job creation and local development, though there are intangible civic pride factors.
- The disruption caused by the ransomware attack has forced car dealerships to revert to analog methods like pen and paper for registering sales.
- Gen Z has significant buying power, and a sizable portion identifies as LGBTQ, making them an important consumer demographic for brands.
- Sports stadiums are often underutilized, hosting events for only a small portion of the year, which undermines claims of their role as economic development anchors.
- While creating some temporary construction jobs, sports stadiums typically offer limited permanent employment opportunities.
- Despite questionable economic returns, public funding for sports stadiums continues due to civic pride and the perceived value of having a local team.
Top Episodes Quotes
- “I think the fact that brands are intentionally skirting around Pride this year sends a really strong message that we don't care about you.“ by Evie Smith
- “They almost all involve taxpayer dollars.“ by Simon Rubinovich
- “There are a lot of jobs during the construction phase, but on a permanent basis, a stadium is kind of equivalent to a mid sized department store, not something that you typically would want to give, you know, $500 million to.“ by Simon Rubinovich
- “New vehicle sales could drop between two and 7% this month compared to a year ago, according to a forecast by JD Power and Global data. That could mean up to 1.4 million fewer cars sold in June due to the cyberattack that's forced dealerships back to the analog age.“ by Henriette
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Episode Information
Marketplace Morning Report
Marketplace
6/27/24
As cities look to grow and innovate in the recovery from the pandemic, some are pushing for new sports stadiums. The idea is that fresh ballparks attract visitors and create jobs, but these projects are almost always funded by public dollars. We’ll do the numbers on the investment and payoff. Also on the show: A ransomware attack could put a sizable dent in auto sales this month, and marketing around Pride is down this year.