Sacramento businesses prepare as coronavirus spread hits home. Here’s the impact

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Hand sanitizers are sprouting in supermarkets and casinos. International business travel is giving way to video conferencing and the telephone. The flow of shirts, pants and other merchandise to retail shelves is being disrupted, while a semiconductor manufacturer is finding backup sources of raw materials.

And workers who feel the least bit sick are being urged to stay home.

The spread of coronavirus and the COVID-19 disease was being felt throughout greater Sacramento’s business community, even before a patient at UC Davis Medical Center was revealed Wednesday as the first confirmed case in the United States of unknown origin.

From the mega-employers to the smallest clothing outlets, business executives said Thursday they’ve been able to cope with the problem and haven’t experienced major disruptions. But they’re keeping a close eye on the situation as the outbreak worsens.

“I think there’s a little bit of wait-and-see going on,” said Mike Testa, president of Visit Sacramento. So far the region hasn’t had any conference or convention cancellations, he said.

TSI Semiconductors, a computer chip maker based in Roseville, has had to tweak its supply chain. Its main supplier of quartz, a key component in semiconductors, is from China, so TSI is working more closely with a backup supplier to make sure the assembly lines keep humming.

“We have a considerable inventory ... and don’t forecast or foresee that there will be a shortage,” he said.

Manufacturing employees at TSI already wear masks and other protective garb anyway; a few management employees have taken to wearing masks as well. Customers who have passed through the Wuhon area of China, where the virus originated, aren’t allowed to visit the Roseville offices, and video conferencing has replaced travel to that region.

At Getta Clue, a clothing store in downtown Sacramento, co-owner Jason Balbao said he’s been dealing with delayed shipments for some time. “The main issue has been missing deadlines,” he said. He believes the problem will worsen in the next three to six months.

Other retailers are likely to feel a similar pinch.

“We’re seeing fewer ships turning up carrying fewer goods,” said Jock O’Connell, an international trade consultant based in Sacramento. “It’s likely to place a strain both on the retail and industrial sides of the economy. We’ll see that for the next few weeks at the very least.”

Tech economy takes a hit from coronavirus fears

California’s tech economy is suffering already. PayPal said Thursday that revenue is dropping because “cross-border e-commerce activity has been negatively impacted.” Previously, companies such as Tesla and Apple, which rely heavily on manufacturing in China, have reported supply-chain problems.

VSP Global, the Rancho Cordova vision insurer and eyeglass manufacturer, is “paused international business travel for the time being,” said chief human resources officer Kristi Cappelletti-Matthews.

In addition, “we continue to communicate to our workforce that if they aren’t feeling well, they should stay home and not come into the office,” she said.

VSP’s eyeglass factory in Folsom, which has manufacturing partners in Asia, could also be affected. VSP is “still assessing the impact to our supply chain,” said spokesman Jace Duval.

The virus’ spread is particularly worrisome in the food industry. Raley’s spokeswoman Chelsea Minor said the West Sacramento supermarket chain has put out more hand sanitizers and wet wipes, and is reviewing its procedures to “make sure that our team members are trained and following safety protocols.

“Everyone is so sensitive to any form of an illness,” she added. “When you work in a food environment, you have to be that much more careful .... When you see that person building your sandwich, you (have) heightened awareness of any symptoms.”

At the region’s largest casino, Thunder Valley in Lincoln, “they have added sanitizing stations. Their maintenance staff is continuing to wipe down machines and chairs,” said spokesman Doug Elmets. “They are disinfecting frequently-touched objects and surfaces.” Signs from the Centers for Disease Control and Prevention have been posted urging employees and customers alike to wash their hands and take other precautions.

Has the outbreak cut into traffic at Thunder Valley? “Not at all,” he said. “Business is good.”

This story was originally published February 27, 2020 at 11:47 AM.