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The Roll-Up

November 2023

Daylight Saving Time

First Up: The Power Brokers of Daylight Saving Time (yes, its singular) - Golf, Candy, Farmers. This month we're rolling-up some of the lesser-known reasons why you Fall back, Spring forward, and unfortunately will be driving home in the dark 'til March next year.


She’s Even Kinda Crazy ‘bout My Farmers Tan: Daylight Saving Time was first put into practice in the U.S. during WWI and later during WWII as a means of preserving energy – add an extra hour of natural light during waking hours to cut down on energy used to heat, cool, and light their homes. After each World War ended, the U.S. government repealed the practice “to quell the revolt from the farm lobby” because the early-rising farmers wanted that extra hour in the morning - don’t bite the hand that feeds you.


50 States or 1 Nation: After WWII, some states continued observing DST while some went back to Standard Time. States observing DST chose their own start and end, leading to significant variation and confusion throughout the country. So, Congress passed the Uniform Time Bill in 1966 which synchronized the start and end date of DST - beginning the last Sunday in April and ending the last Sunday in October. It also gave states the option to stay in Standard Time year-round - Arizona and Hawaii were the only ones to chose this route, for now…


Big Golf Ball: In 1986 the Reagan administration extended DST on the front end one month in part due to lobbying efforts by the... golf ball industry (among others). The golf ball industry calculated that moving up the start of DST would be worth $200 million in additional sales of golf clubs and greens fees, and thus poured money into Congressional lobbying efforts. Reagan, a big golfer & Pro-Business guy, probably didn’t need much convincing to extend DST another month if it meant a few extra rounds of golf for himself and a few extra bucks for the economy.


Big Candy: Another group part of the 1986 lobbying campaign was Big Candy. By extending DST through October, which would cover Halloween, the extra hour of daylight might lead to a big bump in candy sales (more daylight = more trick-or-treating = more candy). Candy lobbyists were so eager to get Congress to make the move that they put candy pumpkin treats on the seats of every Senator during the hearings, hoping the sugar high would do the trick. The sugar lobbyists didn’t join their golf buddies in the winner’s circle till 2005 when George Dubya Bush extended DST to start in early March and end in early November. That’s a powerful sweet tooth. 

Winners & Losers

Our new deal data over the last year shows an interesting shift in opportunities coming to market across the country. The chart below shows the combined LTM deal flow of the top four states with the largest decrease or increase in deal flow between the LTM periods ending November 30, 2022 to October 31, 2023.


Top 4 Decliners: Ohio, Illinois, New York, and California

Top 4 Gainers: Oregon, Colorado, Georgia, and Washington


Population shifts might be a contributing factor, among many possible explanations. Drop us a line if you have thoughts on this shift!

PortCo Spotlight - Overland Vehicle Systems

Last week, our portfolio company, Overland Vehicle Systems, attended the annual SEMA Show out in Las Vegas, NV. Click the link below to check out a video from their booth this year!


Overland Vehicle Systems is a leading branded supplier of outdoor and automotive aftermarket parts and accessories for Overlanding and off-roading enthusiasts.

OVS at SEMA 2023

Chart of the Month - Recency Bias

You missed the boat on price increases last year. Margins hurt, competition remains stiff, and suppliers are showing signs of more price increases coming your way. What do you do? Sure as hell won’t make the same mistake twice. Not in your lifetime.

 

As fresh generations experience age old challenges, is history bound to repeat itself?

Will inflation spike again in 2025 - 2026?
Yes
No

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