WEBVTT - Bloomberg Businessweek Weekend - July 11th, 2025 0:00:00.320 --> 0:00:07.280 Bloomberg Audio Studios, Podcasts, radio News. 0:00:08.720 --> 0:00:13.040 This is Bloomberg Business Week Daily reporting from the magazine 0:00:13.039 --> 0:00:17.640 that helps global leaders stay ahead with insight on the people, companies, 0:00:17.680 --> 0:00:22.599 and trends shaping today's complex economy. Plus global business, finance 0:00:22.600 --> 0:00:25.919 and tech news as it happens. The Bloomberg Business Week 0:00:26.040 --> 0:00:31.520 Daily Podcast with Carol Masser and Tim Steneveek on Bloomberg Radio. 0:00:31.840 --> 0:00:34.720 Hi, everyone, Welcome to the Bloomberg Business Wee Weekend podcast. 0:00:35.200 --> 0:00:37.440 This past week, and Video became the first company to 0:00:37.479 --> 0:00:40.920 hit four trillion dollars in market cap, cementing AI's rally 0:00:40.960 --> 0:00:44.040 and its status as a kingpin in the global financial market. 0:00:44.159 --> 0:00:47.080 Okay, so that's sort of a micro economic look totally, 0:00:47.240 --> 0:00:48.960 even though in Video is such a big company, we 0:00:49.000 --> 0:00:50.880 could call it sort of like a macro event. 0:00:51.200 --> 0:00:51.640 True. 0:00:51.640 --> 0:00:54.240 On the macro side, though, there was a lot because 0:00:54.240 --> 0:00:57.240 President Donald Trump fired off letters to over a dozen 0:00:57.360 --> 0:01:00.720 trading partners threatening new and higher tear rates they will 0:01:00.760 --> 0:01:02.720 face if they don't make a trade deal by the 0:01:02.760 --> 0:01:04.440 new deadline of August first. 0:01:04.560 --> 0:01:08.080 To be fair, there was stuff happening with trade and 0:01:08.160 --> 0:01:12.600 tariffs as we were recording our broadcast and podcasts, so 0:01:12.959 --> 0:01:15.679 highly recommend you head to the Bloomberg or Bloomberg dot 0:01:15.680 --> 0:01:17.880 com for the latest and greatest when it comes to 0:01:18.000 --> 0:01:21.680 trade and tariffs. All right, on trade and tariffs, though, 0:01:21.920 --> 0:01:24.720 we talked to the CEO of Treks, it's public company 0:01:24.720 --> 0:01:28.640 that's the largest manufacturer of wood alternative decking products, and 0:01:28.840 --> 0:01:31.240 the company's CEO joined us to talk about the impact 0:01:31.280 --> 0:01:33.760 of President Trump's extended trade deadline. 0:01:33.959 --> 0:01:37.760 Meantime, the world's richest man tells one bullish Tesla analyst 0:01:38.360 --> 0:01:41.560 to shut up. That analyst opens up to us in 0:01:41.680 --> 0:01:42.200 just a moment. 0:01:42.240 --> 0:01:42.520 All right. 0:01:42.520 --> 0:01:46.240 We also get into some other stuff that's going on. 0:01:46.520 --> 0:01:50.680 Amazon's robotic milestone that could one day replace humans and warehouses, 0:01:50.800 --> 0:01:53.720 or maybe it's a case they're working side by side. 0:01:53.800 --> 0:01:55.480 We get into that, and then I got to say, 0:01:55.480 --> 0:01:58.720 in our second hour, we get to America's hot garbage problem, 0:01:58.840 --> 0:02:00.000 a bit of a disturbing store. 0:02:00.480 --> 0:02:03.640 Also the CEO of Brooklyn Sports and Entertainment, which owns 0:02:03.680 --> 0:02:06.800 the Brooklyn Nets and New York Liberty. All that to come. 0:02:06.880 --> 0:02:08.800 We begin with the analyst. You this week got a 0:02:08.880 --> 0:02:13.960 short but clear message from Elon Musk. The analyst, Dan Ives, 0:02:14.080 --> 0:02:17.359 Global head of Technology research at Webbush securities. 0:02:18.360 --> 0:02:20.800 Look, I mean, I knew Elon was not gonna be happy, 0:02:21.320 --> 0:02:27.240 but the reality is, you know, the board they basically 0:02:27.280 --> 0:02:29.760 need to now step it up. And I think it's 0:02:29.800 --> 0:02:32.040 something where you know, I hear from sheeralders around the 0:02:32.040 --> 0:02:34.920 world right on Tesla and as one of the biggest 0:02:34.919 --> 0:02:38.720 supporters of Elon and Tesla, it was time to rip 0:02:38.800 --> 0:02:41.120 the band aid off. You got to now put a 0:02:41.160 --> 0:02:44.200 new structure. And actually one of them you know that 0:02:44.280 --> 0:02:46.600 we talked about in terms of the three things that 0:02:46.639 --> 0:02:49.560 we suggested, is that justly something Musk wants terms of 0:02:49.639 --> 0:02:52.639 twenty five percent voting rights and what I view is 0:02:52.760 --> 0:02:57.560 will ultimately be an XAI merger potentially, but second third, 0:02:57.720 --> 0:03:03.359 the political gambles and this side show it can't continue. 0:03:04.120 --> 0:03:07.560 You know, analysts were totally seemed totally fine with Elon 0:03:07.680 --> 0:03:09.280 Musk and correct me if I'm wrong. They seemed totally 0:03:09.320 --> 0:03:11.400 fine with him when he was getting along well with 0:03:11.520 --> 0:03:14.360 President Trump and it seemed like the president's policies would 0:03:14.360 --> 0:03:16.880 favor his companies. Is that fair to. 0:03:16.840 --> 0:03:20.600 Say it's that's one hundred percent. I mean, I view 0:03:20.639 --> 0:03:22.880 it is like and we talked about it. The best 0:03:23.000 --> 0:03:26.760 ever happened to Musk at that time was Trump getting 0:03:26.800 --> 0:03:28.840 into the White House. And obviously, you know you could 0:03:28.919 --> 0:03:30.760 argue Trump doesn't get into the White House if it's 0:03:30.800 --> 0:03:31.360 not from Musk. 0:03:32.280 --> 0:03:35.040 But like a lot of things, it took on a 0:03:35.040 --> 0:03:35.720 life of its own. 0:03:36.080 --> 0:03:40.840 Doge BFFs spending now time with Tesla, mar Lag or 0:03:40.960 --> 0:03:45.920 DC Doge the brand issues That ultimately is why then 0:03:46.080 --> 0:03:48.360 Musk had to take a step back and basically leave 0:03:48.400 --> 0:03:54.960 the Trump administration. But in your wildest nightmare, no one expected, hey, 0:03:55.480 --> 0:04:00.960 let's triple down start a third political party where now 0:04:01.160 --> 0:04:05.440 Trump actually becomes a foe, Republican part becomes fue and 0:04:05.480 --> 0:04:09.000 that just becomes more of an overhang for Tesla. 0:04:09.920 --> 0:04:14.800 So the board as it exists now, is this the 0:04:14.840 --> 0:04:18.320 board that you think can bring about the necessary changes 0:04:18.400 --> 0:04:21.240 and set the ground rules as you are calling for Tesla? 0:04:21.279 --> 0:04:26.080 And Jack Hartung who has been CFO of Starbucks, not 0:04:26.200 --> 0:04:31.520 Starbucks of Chipotle, excuse me, Kimball, Reeve Musk is on it, 0:04:31.720 --> 0:04:38.600 Jim Murdoch of course, Elon Robin Denholm, an Australian business 0:04:38.600 --> 0:04:43.240 executive from her accountant, chair of the Tesla board. So 0:04:43.320 --> 0:04:45.400 I'm just trying to think, is this the board that 0:04:45.440 --> 0:04:49.240 you think can execute the changes that need to be done. 0:04:49.480 --> 0:04:50.919 Well, they don't have a choice. 0:04:51.200 --> 0:04:55.040 No, this is I mean they don't have a choice because. 0:04:54.720 --> 0:04:58.800 They don't have a choice where the sometimes boards look, 0:04:58.880 --> 0:05:02.279 if you go back to history of Tesla, what Elon does? 0:05:02.320 --> 0:05:02.840 What he do? 0:05:04.880 --> 0:05:07.560 You know, you can never argue a bet against them, 0:05:08.000 --> 0:05:11.560 And that's been that's been the m right, that's been 0:05:11.560 --> 0:05:17.000 the DNA. The problem is is that essential the clock 0:05:17.040 --> 0:05:22.240 strikes midnight when now it comes to these political ventures 0:05:22.279 --> 0:05:26.479 and endeavors as well as the time spent at Tesla 0:05:27.320 --> 0:05:31.080 the board, you're not going to have a major change 0:05:31.320 --> 0:05:35.200 or makeup in a board that would take many years. 0:05:35.720 --> 0:05:40.440 The board now, as a public company, needs to a 0:05:40.480 --> 0:05:43.600 new pay package. We talked about twenty five percent voting shares, 0:05:43.920 --> 0:05:48.880 but then established the guardrails because it's a public company 0:05:49.080 --> 0:05:54.599 and shareholders are demanding and the stock reflects changes that 0:05:54.720 --> 0:05:55.440 need to be made. 0:05:56.240 --> 0:05:59.560 You know, the board certainly is part of it. But 0:05:59.600 --> 0:06:02.440 I think bigger picture question that I have is an 0:06:02.440 --> 0:06:05.560 existential one about Tesla Dan and that's with regard to 0:06:05.760 --> 0:06:08.400 Chinese competition, and we've seen sales get hammered over the 0:06:08.480 --> 0:06:11.880 last year, and that really the narrative has been around 0:06:12.120 --> 0:06:15.600 Musks and his association with politics, whether we're talking about 0:06:15.600 --> 0:06:18.320 that in the US or about that in Europe. But 0:06:18.400 --> 0:06:20.919 what about the China factor? Does Tesla have what it 0:06:21.000 --> 0:06:26.680 takes to compete around the world with Chinese EV's, they have. 0:06:26.720 --> 0:06:29.520 What it takes with Musk in other words, like Musk 0:06:29.640 --> 0:06:32.080 is the biggest asset for Tesla, but they don't. 0:06:31.839 --> 0:06:34.120 Have the products. But they don't have products that compete 0:06:34.120 --> 0:06:36.120 at those price points and with that test. 0:06:36.160 --> 0:06:40.360 Yeah, So on that point, Look, it's so much spends 0:06:40.400 --> 0:06:44.680 time in China, like competition, Bid neo xpaying everything. We've 0:06:44.720 --> 0:06:48.920 seen clearly it's become much more of a competitive market. 0:06:49.279 --> 0:06:51.719 I just I continue to view is that Tesla is 0:06:51.760 --> 0:06:55.320 still a gold standard globally when it comes to EV's. 0:06:55.920 --> 0:06:58.599 I think when it comes to China, Look the big 0:06:58.640 --> 0:07:01.480 game right now that they're a win. It's not this 0:07:01.600 --> 0:07:05.800 sid about deliveries, it's about can they win the autonomous 0:07:05.960 --> 0:07:10.960 and robotics future. That book that is the way you 0:07:11.000 --> 0:07:13.400 get to two trillion, The way you get to trillion 0:07:13.440 --> 0:07:17.520 dollar incremental evaluation because of autonomous is that way. 0:07:17.680 --> 0:07:20.800 You know, it's interesting that you say that because one 0:07:20.800 --> 0:07:27.120 of our producers Sebastian Escobar said, Hey, Weimos are coming 0:07:27.760 --> 0:07:31.920 to my town where I live in, which is just 0:07:31.960 --> 0:07:35.360 across from Loower Manhattan, And I'm like, wait what? And 0:07:35.400 --> 0:07:39.720 Weimo seem to be expanding pretty aggressively, and so it 0:07:39.760 --> 0:07:44.280 does seem like folks are going after what could be 0:07:44.520 --> 0:07:49.000 ultimately the future right of Tesla. I really autonomous works. 0:07:49.120 --> 0:07:51.280 I mean that's where the growth comes right going forward 0:07:51.480 --> 0:07:52.360 for Tesla in your. 0:07:52.320 --> 0:07:55.920 View, sure, but to that point, I look, weymos are 0:07:55.960 --> 0:07:59.920 two undred thousand dollars cars, like you're essentially in five 0:08:00.200 --> 0:08:02.800 six cities. Yeah, when you do about the scale and 0:08:02.920 --> 0:08:07.120 Scoop Tessa were talking about twenty twenty five cities over 0:08:07.120 --> 0:08:08.960 the next year. When it comes to robo attack, I mean, 0:08:08.960 --> 0:08:12.280 that's the whole opportunity, Like when you think about twenty 0:08:12.320 --> 0:08:14.840 percent of what I view is like ride sharing over 0:08:14.880 --> 0:08:17.360 the next four or five years is going to be autonomous, 0:08:17.400 --> 0:08:23.240 no driver. So that's the opportunity that Tessa is going after. 0:08:23.320 --> 0:08:29.040 But then it goes back to politically, you can't have Trump, Duffy, 0:08:29.200 --> 0:08:32.439 whoever else you want to talk about for administration now 0:08:32.480 --> 0:08:35.200 as a friend, but as a foe when you go 0:08:35.280 --> 0:08:39.760 into the most important chapter of growth and success. What 0:08:40.000 --> 0:08:44.160 I view on the horizon for Tesla has has. 0:08:44.080 --> 0:08:46.320 Elon reached out to have you reached out to him? 0:08:46.800 --> 0:08:48.760 I mean, I won't comment there. 0:08:48.880 --> 0:08:52.120 I would just say that, like, the message has definitely 0:08:52.120 --> 0:08:56.640 been received by Elon, It's been received by the board, 0:08:57.240 --> 0:09:00.160 and that was my goal, right, Like my goal is 0:09:00.160 --> 0:09:03.199 is that sometimes it's like tough love, right, Like the 0:09:03.280 --> 0:09:07.400 point is like it comes down to like if you 0:09:07.440 --> 0:09:10.800 don't reprimand or whatever, if you like, you know, it's 0:09:10.840 --> 0:09:14.480 like there's good times in bad times, but this is 0:09:14.520 --> 0:09:19.040 a time and the stock reflects it that the board, 0:09:19.480 --> 0:09:21.480 the adults. 0:09:20.960 --> 0:09:23.320 In the room, what everyone want to talk about. They 0:09:23.400 --> 0:09:25.520 need to weigh the guard rails. 0:09:25.160 --> 0:09:29.160 Out from Musk, especially around the political ambition. 0:09:29.440 --> 0:09:30.800 That that is the key. 0:09:31.800 --> 0:09:35.959 Dan, How does it feel to have Elon Musk tell 0:09:35.960 --> 0:09:38.040 you to in all seriousness? What did it feel like 0:09:38.040 --> 0:09:40.600 to have him tell you to shut up? On his platform? 0:09:40.640 --> 0:09:43.120 He's got I don't even know how many followers he has. 0:09:43.120 --> 0:09:44.920 It has to be over one hundred million, hundreds of 0:09:44.920 --> 0:09:49.840 Millik's like two hundred and twenty million followers. How did 0:09:49.840 --> 0:09:52.480 that feel? I mean, I imagine too as his sort 0:09:52.520 --> 0:09:53.880 of army came after you as well. 0:09:54.679 --> 0:09:57.679 Yeah, I don't you know you we knew each other. Well, 0:09:57.720 --> 0:10:00.320 It's like I don't worry about that. I mean, to me, 0:10:01.040 --> 0:10:04.360 I just actually view it more as like he has 0:10:04.440 --> 0:10:08.440 his right to an opinion. I disagree. I'm a huge 0:10:08.440 --> 0:10:12.440 supporter him and Tessa, but I'm more focused on, like 0:10:12.840 --> 0:10:16.480 it creating dialogue, Like he'll say shut up Dan, and 0:10:16.520 --> 0:10:18.720 I have one hundred memes sent to me about different 0:10:18.720 --> 0:10:21.600 shut up Dan stuff and actually got in the street 0:10:21.720 --> 0:10:24.199 yesterday yelled from New York City across the streets like 0:10:24.240 --> 0:10:28.320 shut up Dance. So that's that's that's that's cool. But 0:10:28.679 --> 0:10:33.840 to me, it's about creating the dialogue because now it's like, Okay, 0:10:33.960 --> 0:10:35.559 what what is the community? 0:10:35.559 --> 0:10:36.120 What is ship? 0:10:36.200 --> 0:10:40.560 I'm here from sheeralders all day. Right, that's the important thing. 0:10:41.160 --> 0:10:43.720 What it means for the Tesla story. That's the whole goal. 0:10:44.720 --> 0:10:48.840 I wonder has the board reached out to you and said, hey, 0:10:49.040 --> 0:10:50.640 thanks Stan for that? 0:10:52.200 --> 0:10:52.400 Yeah? 0:10:52.960 --> 0:10:54.760 No, I mean, I just the good thing is like 0:10:54.920 --> 0:10:57.719 I feel like I definitely feel like this message has 0:10:57.760 --> 0:11:01.319 been received by the you know, I think everyone's seeing it. 0:11:01.960 --> 0:11:06.600 And at least now now it comes down to like, Okay, 0:11:07.440 --> 0:11:10.600 are there actions like does what does the board do 0:11:10.679 --> 0:11:13.120 with the next pay package? Remember is the other fifty 0:11:13.160 --> 0:11:16.160 six billion dollar pay package is still in the legal 0:11:16.480 --> 0:11:21.120 sort of wimbow because of Delaware Foxy still hasn't been 0:11:21.520 --> 0:11:24.760 you know, ultimately sent. That's been the way. So this 0:11:24.840 --> 0:11:27.520 is a key period of time for the board. 0:11:27.760 --> 0:11:28.360 From Musk. 0:11:29.280 --> 0:11:33.080 Another message that was received for the world of Elon 0:11:33.240 --> 0:11:37.880 Musk was from the CEO of X, Linda Yakarino, stepping 0:11:37.920 --> 0:11:43.400 down a CEO after two years post on X decided 0:11:43.440 --> 0:11:46.320 to step down as CEO. I'll be cheering you all 0:11:46.360 --> 0:11:48.760 as you continue to change the world. What's your view 0:11:48.800 --> 0:11:50.400 on that? What's how do we read it? 0:11:50.480 --> 0:11:54.079 I think I have a very positive view of her, right, 0:11:55.000 --> 0:11:56.600 besides the fact that she's a Penn Stater. 0:11:56.800 --> 0:11:57.240 We are, but. 0:11:58.880 --> 0:12:04.400 All right, let you know, but my view is she 0:12:04.640 --> 0:12:10.600 turned around acts. She navigated massive political storm, right. I 0:12:10.640 --> 0:12:14.480 think very few people could have done the advertising. 0:12:14.679 --> 0:12:16.920 I think a lot of it has rebound. There's still 0:12:16.960 --> 0:12:19.920 obviously queer headwinds, but I think. 0:12:19.720 --> 0:12:23.560 Like this is like, look, it's it's huge shoes to fill, 0:12:24.200 --> 0:12:29.040 Like it is a big hole. Herd weaving because she 0:12:29.160 --> 0:12:32.679 is a unique background because of advertising because of her personality. 0:12:32.720 --> 0:12:35.160 I think she got along very well with Musk. So 0:12:35.280 --> 0:12:38.959 it is it is a huge you know what I view, 0:12:39.160 --> 0:12:41.840 it's a negative. But now it comes down like who 0:12:41.920 --> 0:12:42.840 fills that role? 0:12:43.880 --> 0:12:44.400 Yeah? 0:12:45.040 --> 0:12:48.280 Interesting stuff. Listen, We're so glad we could catch up 0:12:48.320 --> 0:12:52.280 with you here. Yeah, we really, we really appreciate it. 0:12:52.320 --> 0:12:54.200 I'm so glad to be here and talking. This is 0:12:54.240 --> 0:12:57.920 a you know, get the popcorn out. A lot of 0:12:57.960 --> 0:12:59.600 soap operas ahead pack. 0:13:00.640 --> 0:13:02.160 If you want to not be yelled on the street, Dan, 0:13:02.240 --> 0:13:03.960 you're gonna have to tone down the wardrobe a little 0:13:04.000 --> 0:13:07.760 bit and go incognito and not wear the signature. Dan 0:13:07.800 --> 0:13:10.960 ives closed. I don't know if you need to go incognito, 0:13:11.040 --> 0:13:13.400 but you know I love it. We love it. Dan 0:13:13.440 --> 0:13:16.199 Id's global head of Technology research at web Bush Securities. 0:13:16.600 --> 0:13:17.760 Joining us from New York. 0:13:23.720 --> 0:13:27.720 You're listening to the Bloomberg Business Weekdaily Podcast. Catch us 0:13:27.800 --> 0:13:31.240 live weekday afternoons from two to five pm Eastern Listen 0:13:31.280 --> 0:13:34.840 on Apple CarPlay and Android Auto with the Bloomberg Business app, 0:13:35.000 --> 0:13:37.360 or watch us live on YouTube. 0:13:37.600 --> 0:13:39.680 Well, if you've built a deck in the last few years, 0:13:40.080 --> 0:13:42.800 you probably know about Treks. The company makes composite decking 0:13:42.880 --> 0:13:47.679 for mostly recycled materials, including reclaimed wood and polyethylene film. 0:13:47.920 --> 0:13:49.920 Trex is publicly traded. It's got a market cap of 0:13:49.920 --> 0:13:52.959 about six point one billion dollars. The stock's down around 0:13:53.000 --> 0:13:55.839 seventeen percent so far this year. Like many companies in 0:13:55.880 --> 0:13:58.319 housing and home improvement, it has been a challenging first 0:13:58.320 --> 0:14:00.880 half of the year. Brian Thanks is with us. He's 0:14:00.960 --> 0:14:03.160 president and CEO of Tracks. He joins US in the 0:14:03.160 --> 0:14:06.480 Bloomberg Interactive Brokers studio. Brian, welcome, How are you? 0:14:06.640 --> 0:14:07.640 Thanks? Great to be here? 0:14:07.760 --> 0:14:08.320 Well, welcome. 0:14:08.360 --> 0:14:11.679 Welcome. Trek sales in more than forty countries, so that's 0:14:11.720 --> 0:14:13.840 kind of where I want to start. How is the 0:14:13.960 --> 0:14:17.880 environment in the US for your customers, for your potential 0:14:17.920 --> 0:14:20.520 customers versus other parts of the world that you sell 0:14:20.560 --> 0:14:21.640 in the US? 0:14:21.760 --> 0:14:25.880 Environment is still relatively strong. Most of our consumers are 0:14:25.920 --> 0:14:28.440 going to be family income of one hundred twenty thousand 0:14:28.480 --> 0:14:31.040 dollars plus, and we've all talked for a long time 0:14:31.120 --> 0:14:34.840 about the bifurcation of the premium customer versus the entry 0:14:34.920 --> 0:14:38.440 level customer. Because most of our customers are that one 0:14:38.520 --> 0:14:42.200 hundred plus. We've continued to do well in the marketplace 0:14:42.440 --> 0:14:45.240 this year. We gie to five to seven percent growth. 0:14:45.520 --> 0:14:48.200 We reiterated that guy just a couple of weeks ago. 0:14:48.680 --> 0:14:52.320 Our contractors generally have six to eight week type backlogs 0:14:52.360 --> 0:14:54.960 at this point, and overall we're pleased with what we're 0:14:54.960 --> 0:14:55.760 seeing in the market. 0:14:56.240 --> 0:14:58.200 Where are most of the sales coming from. Is it 0:14:58.840 --> 0:15:01.680 people homeowners who who are putting in a deck for 0:15:01.720 --> 0:15:04.480 the first time, or are they remodeling or are they 0:15:04.520 --> 0:15:08.920 just completely kind of I guess yeah, remodeling their backyard. 0:15:08.520 --> 0:15:11.120 All the above, But more often than not, it's going 0:15:11.160 --> 0:15:13.920 to be a consumer that's already experienced a wood deck. 0:15:14.320 --> 0:15:17.760 It's failed between twelve to fifteen years, maybe eighteen years. 0:15:17.800 --> 0:15:20.120 On the long end of it. The quality of pressure 0:15:20.160 --> 0:15:22.840 treated lumber is not what it used to be, so 0:15:22.920 --> 0:15:26.080 that decision and the payback period of putting in a 0:15:26.160 --> 0:15:29.120 treks deck versus a wood deck is very different today. 0:15:29.280 --> 0:15:31.360 But we also put on a lot of new decks 0:15:31.360 --> 0:15:33.880 on new homes as well as homes that are just 0:15:33.960 --> 0:15:37.240 looking for existing square footage. More difficult to move up 0:15:37.280 --> 0:15:39.600 to that larger home. Now, how do I add more 0:15:39.680 --> 0:15:43.240 space to entertain with your friend's family, and it put 0:15:43.280 --> 0:15:44.400 a deck on the back of the house. 0:15:44.600 --> 0:15:49.000 But isn't a deck built with treks framed by pressure 0:15:49.000 --> 0:15:50.640 treated wood under it anyway? 0:15:51.080 --> 0:15:51.560 That's correct? 0:15:51.600 --> 0:15:53.600 So is that is that an issue? Ever, where the 0:15:54.280 --> 0:15:59.400 wood that provides the framing the structure that doesn't last 0:15:59.400 --> 0:16:00.240 as long as the. 0:16:00.800 --> 0:16:03.240 That structure is going to be protected by the trek, 0:16:03.360 --> 0:16:05.680 so it doesn't get nearly the same beating from a 0:16:05.720 --> 0:16:09.200 weather perspective or for chemicals, UV rays, things like that, 0:16:09.440 --> 0:16:12.160 so that structure tends to last quite a bit longer, 0:16:12.360 --> 0:16:16.200 whereas the decking itself is what's subject to the majority 0:16:16.200 --> 0:16:17.560 of the environmental conditions. 0:16:17.640 --> 0:16:19.560 So what exactly is it made of? On the website 0:16:19.760 --> 0:16:23.160 it says that it is made of mostly recycled materials, 0:16:23.160 --> 0:16:25.240 reclaimed wood, polyethylene film. 0:16:25.400 --> 0:16:28.960 What's the secret sauce at ninety five percent recycled and 0:16:29.000 --> 0:16:32.000 reclaimed material. So the recycled piece of it is going 0:16:32.040 --> 0:16:35.200 to be the polyethylene films that we buy from all 0:16:35.240 --> 0:16:37.800 over the country and up into Canada. It's about one 0:16:37.840 --> 0:16:40.440 thousand pounds bail of film. We'll bring that in, we'll 0:16:40.480 --> 0:16:44.600 reprocess it, and then we also purchase wood furniture flooring 0:16:44.680 --> 0:16:48.440 manufacturers from some other sources as well to mix that 0:16:48.560 --> 0:16:51.160 together with the plastic, we extrude it into a deck board. 0:16:51.480 --> 0:16:54.720 We apply our proprietary shell on the board to give 0:16:54.760 --> 0:17:00.520 it its fade, stain and scratch characteristics. That's pretty much 0:17:00.520 --> 0:17:03.760 the way it's done. Buying recycled materials does give us 0:17:03.800 --> 0:17:06.760 a healthy cost advantage. We can be buying plastic anywhere 0:17:06.760 --> 0:17:09.480 between five cents and up thirty cents for cleaner plastic. 0:17:09.800 --> 0:17:12.040 We still have to process it, so there's some additional 0:17:12.080 --> 0:17:15.280 cost added, whereas virgin materials are going to be sixty 0:17:15.280 --> 0:17:16.520 to seventy cents per pound. 0:17:16.680 --> 0:17:19.000 You mentioned buying some product at least from Canada, the 0:17:19.040 --> 0:17:22.680 polyethylene film. The tariff situation, we've spent the whole day 0:17:22.680 --> 0:17:25.960 talking about clarity or lack thereof that we are getting 0:17:26.080 --> 0:17:30.000 that CEOs and business owners are getting right now from Washington. 0:17:30.320 --> 0:17:31.560 How have tariffs affected you. 0:17:31.960 --> 0:17:35.040 Well, there's a lack of clarity, that's for sure. For CEOs, 0:17:35.880 --> 0:17:40.080 we are primarily a US manufacturing company. We've got three 0:17:40.119 --> 0:17:43.119 manufacturing sites, one in Virginia, one in Nevada, and then 0:17:43.160 --> 0:17:45.680 we're building a green field site in Little Rock, Arkansas 0:17:45.720 --> 0:17:48.639 that we're excited about. Today. We are recycling plastic in 0:17:48.680 --> 0:17:50.640 Little Rock, and then we're moving that to our other 0:17:50.680 --> 0:17:53.520 two plants to use there As we continue to build 0:17:53.560 --> 0:17:56.400 out that facility, less than five percent of our cost 0:17:56.440 --> 0:17:59.120 of goods sold is going to be impacted by tariffs, 0:17:59.280 --> 0:18:01.320 And in looking at the those tariffs, we look at 0:18:01.359 --> 0:18:05.120 how can we potentially source out of other countries, negotiating 0:18:05.280 --> 0:18:08.760 with those vendors, and then eventually taking pricing. We've taken 0:18:08.760 --> 0:18:11.600 a very conservative view of pricing of let's try to 0:18:11.680 --> 0:18:15.080 let tariffs settle out of where their endpoint is going 0:18:15.160 --> 0:18:18.560 to be, rather than immediately reacting the day the announcements 0:18:18.560 --> 0:18:19.200 were made. 0:18:19.440 --> 0:18:21.600 So we're tim asked about the tariffs, I'm going to 0:18:21.600 --> 0:18:23.359 ask about the big beautiful bill. We're going to hit 0:18:23.400 --> 0:18:27.000 you with the two main current events of the news 0:18:27.000 --> 0:18:31.080 cycle right now. Have you heard anything from the consumer 0:18:31.119 --> 0:18:34.640 about how this bill is going to impact their spending behavior? 0:18:35.000 --> 0:18:37.800 It is too early. I think everybody is just beginning 0:18:37.800 --> 0:18:41.879 to digest everything that's actually in that bill, and so 0:18:42.080 --> 0:18:44.480 I've not really had any feedback from it as of yet. 0:18:44.520 --> 0:18:47.480 We haven't had a chance to pull our contractors or 0:18:47.520 --> 0:18:50.879 work further with our consumers as well as all of 0:18:50.920 --> 0:18:53.879 those dealers as well as retail channel locations. 0:18:54.480 --> 0:18:57.320 I know you're ninety five percent repair remodel based. So 0:18:57.520 --> 0:19:00.520 the housing market weakness that we've seen when it comes 0:19:00.520 --> 0:19:05.080 to new housing isn't necessarily Can we can we do 0:19:05.200 --> 0:19:08.160 a do a through line from housing data to you 0:19:08.280 --> 0:19:11.200 or is this all about, Hey, somebody's been in a house, 0:19:11.560 --> 0:19:13.800 they want to put in a new deck, they're going 0:19:13.840 --> 0:19:16.440 to they're going to use tracks. Is there any is 0:19:16.480 --> 0:19:19.000 there any anything that comes you know, when you're talking 0:19:19.000 --> 0:19:21.639 about new housing demand and like people buying new homes 0:19:21.640 --> 0:19:23.920 that that accompanies demand and tracks. 0:19:23.960 --> 0:19:26.720 The only impact with the new home buying side of 0:19:26.760 --> 0:19:30.040 things is it does generate existing home sales. We've all 0:19:30.080 --> 0:19:32.680 seen existing home sales have been lower the past couple 0:19:32.760 --> 0:19:36.800 of years. That has driven repair and remodel spending negative numbers. 0:19:36.840 --> 0:19:39.040 The past couple of years, we've been able to well 0:19:39.080 --> 0:19:43.200 out growth that mid single digit growth for US small 0:19:43.640 --> 0:19:47.560 single digit negative growth in repair and remodels. So we've 0:19:47.600 --> 0:19:50.360 been able to well out perform at but it would 0:19:50.400 --> 0:19:52.560 be great to see the existing home sale side of 0:19:52.560 --> 0:19:55.520 things really pick up and drive that remodeling engine. 0:19:55.640 --> 0:19:59.080 Do you work at all with the large developers of 0:19:59.200 --> 0:20:02.080 property or the large homebuilders like the Lenar's or the 0:20:02.160 --> 0:20:05.600 KB Homes, for example, to use your materials. 0:20:05.720 --> 0:20:08.159 We do. We've had agreement with the majority of the 0:20:08.240 --> 0:20:10.800 large home builders that are in the marketplace, so it 0:20:10.880 --> 0:20:13.560 is an important part of our business. But generally we're 0:20:13.600 --> 0:20:17.480 about ninety five ninety to ninety five percent repair, remodel 0:20:17.760 --> 0:20:18.880 the remainder. 0:20:18.440 --> 0:20:20.679 Of that on new home You guys have a pretty 0:20:20.880 --> 0:20:24.199 large part of the market share, but that's not for 0:20:24.320 --> 0:20:27.399 lack of competition. James Hardy just closed on its acquisition 0:20:27.760 --> 0:20:30.919 of Aazec, which is your largest competitor. How are you 0:20:30.960 --> 0:20:34.000 thinking about keeping that market share now that there's been 0:20:34.040 --> 0:20:35.320 a pretty big deal in the space. 0:20:35.560 --> 0:20:38.040 It's a highly concentrated market. As you mentioned, we're about 0:20:38.080 --> 0:20:42.520 fifty percent. Azak TimberTech roughly thirty percent of the marketplace, 0:20:42.880 --> 0:20:45.600 and they've always been a good competitor, and I think 0:20:45.600 --> 0:20:47.960 it makes both of us better having good competitors that 0:20:48.000 --> 0:20:50.879 are out there. We're not going to be seating market share. 0:20:51.720 --> 0:20:56.240 Back to tariffs in terms of how the product is 0:20:56.320 --> 0:21:01.440 purchased outside of the US retaliatory tarraf from other countries. 0:21:02.200 --> 0:21:03.720 Has that been an issue yet for you? 0:21:04.359 --> 0:21:06.200 It has not been an issue, and that goes back 0:21:06.240 --> 0:21:09.840 to the fact that we're ninety five percent US source 0:21:10.000 --> 0:21:10.639 US manium. 0:21:10.640 --> 0:21:12.920 But if you're US source and US manufactured, let's say 0:21:12.960 --> 0:21:16.040 you want to export the US product. 0:21:15.960 --> 0:21:17.840 Right, I see on the flip side, Yeah, the flip. 0:21:17.600 --> 0:21:19.760 Side of that would be another country saying, wait a second, 0:21:19.800 --> 0:21:22.159 we don't want you to buy this product from the 0:21:22.280 --> 0:21:26.639 US because we're entering this period of global trade that 0:21:26.760 --> 0:21:30.679 is more insular, where we're seeing sort of like the 0:21:30.720 --> 0:21:33.359 world is not flat anymore. You know, it's been a 0:21:33.800 --> 0:21:37.399