A Behind the Scenes Tour of WTOP 103.5 FM - JUNE2020 VOLUME11,ISSUE6 - GAM|MAG
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JUNE 2020 VOLUME 11, ISSUE 6
A Behind the Scenes
Tour of WTOP 103.5 FM
Page 7
HELPING YOU TO RETURN
TO OFFICE
As businesses prepare to return to the workplace, many people have
questions on what to do to comply with CDC protocols. We want to
help you get your business moving. We are here to talk about your
specific requirements and offer some best practices to make this
happen. Such as:
• What does the new normal look like for your office?
• Return to Office: Plan development
• JK Moving’s Return to Office ACCLIMATE and ASSIST program
Please contact us to see how we can assist you with your Return To
Office needs. We have Ideas to Get Your Business Moving.
866.806.8731 |COMMERCIAL@JKMOVING.COM
RTO GAM Ad.indd 1 5/22/2020 12:42:04 PM
Page 2 • gam|mag • June 2020
2020
June
Cover photo courtesy of WTOP
inside gam|mag is published
monthly and mailed to
Washington, DC area
Let’s Keep it Simple! What is Marketing?.................................................................................... 4 businesses, nonprofits,
associations and
Celebrate National Flag Day................................................................................................................. 5 government contractors.
A Behind the Scenes Tour of WTOP 103.5 FM.......................................................................... 7 Publisher
Nathaniel Grant
nathaniel@graphicsandmarketing.com
Moving on Up with JK Moving............................................................................................................. 9
Associate Publisher
The Market Will Survive......................................................................................................................... 13 and Editor-in-Chief
R. Bruce Gemmill
bruce@graphicsandmarketing.com
NOVA Builders Flex Muscle................................................................................................................ 16
Creative Director
HCA Virginia’s Reston Hospital and StoneSprings Hospital...................................... 20 Ronnie Price
Say Whaaaaat??? A Guide to “Teen-Slang”........................................................................... 24 Copy Editor
Virginia Grant
These Three Stretches Will Help You Avoid Golf Injuries............................................... 27
Father's Day Tribute.................................................................................................................................. 27 Phone: 703.450.4121
www.gamweregood.com
gammag@gamweregood.com
Follow us @gamweregood
June 2020 • gam|mag • Page 3
Let’s Keep it Simple! What is Marketing?
R. Bruce Gemmill
Marketing data must include the target
population and other critical demographics,
so the creative and messaging used in
advertising is appealing to the selected
audiences. Pretty graphics and award-
winning creative is only as good as the
effectiveness of the advertisement in
luring new business and expanding
current relationships.
An advertising budget will determine the
frequency and length of the campaign. For
the best return on investment, campaigns
delivering messages frequently and
over a reasonable period will yield
desired results.
The budget will also determine
media buys. Traditional media
includes newspapers, magazines,
MARKETING television, radio, out-of-home advertising
Marketing is one of those ubiquitous (e.g., transit, billboards) or direct mail. New
words often used to describe every function media offers such possibilities as search
in a business having to do with promotion, results, blogs, social media platforms,
including advertising, public relations, websites, banner ads, or text messages.
networking, and even promotional items. The Since marketing research identifies
fact is, marketing in its truest sense is a data- audiences and advertising budgets guide
driven research and analytical science. frequency, marketing, and advertising must
At its core, marketing employs analytics join together to determine the best media
and data to identify ideal demographic channels to accommodate the budget and
segments to promote a product or service. reach the audience.
Results from this market analysis guide the It is a primary responsibility of advertising
advertising message targeted to specific to maintain the integrity of the brand and
audiences. image of the organization. Proper messaging
Marketing is a process. A good advertising earns trust, which generates increased
campaign benefits from the findings of interest in products or services, and gives a
market research, which includes market competitive advantage in the marketplace.
targeting and market segmentation, PUBLIC RELATIONS (PR)
determining distribution, pricing, and
Public relations is an art. Public relations
promotion strategies, developing a and its strategic communication build
communications strategy, budgeting, and relationships with key stakeholders, including
visioning long-term market development customers, prospects, investors, and the
goals. public at large.
ADVERTISING By deliberately managing the disbursement
Effective advertising creates messaging of information, a company can receive
from the data provided by marketing to exposure to target audiences using topics of
promote or sell a product, service, or idea. (Continued on page 6)
Page 4 • gam|mag • June 2020
Celebrate National Flag Day – June 14th
May 18, 2020
Contributing Writer, Jenn Womack
You’re a grand old flag, You’re a high-flying then known as the Continental Army, in 1775.
flag, And forever in peace may you wave… U.S. Army Operations. According to the Dryy Garment Care,
“You’re a Grand Old Flag”, a song written by DoD Personnel, Workforces Reports of March Virginia homegrown
George M. Cohen as a spirited march, is but 2020, the U.S. Army operates with close to half corporate based eco
one of many songs written as a tribute to the a million active-duty soldiers and over one cleaning facility with
U.S. flag that pulls at my heartstrings. hundred fifty-two thousand active reservists. multiple reimagined
Yes, truth be told, I’m a nostalgic, red- Flag Day falls within National Flag community based retail
blooded American who weeps every time Week. Flag week is indicative of a time when stores in DC and Maryland.
I watch our flag wave while listening to a Americans reflect on the foundations of our We are the DMV’s fresh
patriotic song. I’m also the proud wife of a nation’s freedom. The flag represents freedom take on community based
soldier who served honorably for twenty years and has been an enduring symbol of our dry cleaning services. We
in the U.S. Army. To say that I am proud of country’s ideals. During both events, Americans take great pride in seeing
our flag and that I stand in awe of the brave also remember their loyalty to the nation, any of our neighbors flying
servicemen and women who have given our reaffirm their belief in liberty and justice, and the American Flag. So
flag meaning by way of their sacrifices, would observe the nation’s unity. proud that we will clean and
be an understatement. The U.S. Army; the oldest of the military tailor your American Flag,
So, if you’re like me – and you bleed red, branches. Founded in 1775, the Army is free of charge, year round.
white, and blue – I’m sure you’ll be flying your approximately one year older than the United “We set out every day with
flag high on June 14th in celebration of National States. one thing in mind, to enrich
Flag Day and the U.S. Army’s 245th birthday. A flag of many names and designs. The communities that we serve.
To commemorate the history of the American flag is often referred to as “Old- It’s the least we could do in
American Flag and the U.S. Army, I’d like to Glory” or “The Stars and Stripes” and although honor for individuals and
share a few facts you may find interesting: the flag’s design was standardized in 1912, it has their families that sacrificed
June 14th isn’t a public holiday (except in been redesigned 27 times. their lives for our freedom”
Pennsylvania where the flag was born). It is How the U.S. Army celebrates its birthday. said Dryy Garment Care
a national holiday – one that commemorates The Army has a long-standing tradition of Managing Partner,
Congress’ adoption of both the flag of the United celebrating its birthday by hosting its annual Ken Sandy
States in 1777 and the birth of the U.S. Army, (Continued on page 6)
June 2020 • gam|mag • Page 5
What is Marketing? (Continued from page 4)
public interest and news items not requiring There are additional PR strategies for
payment. This art form of public persuasion grass-roots campaigns, and, as the COVID-19
is called "earned media," because one earns pandemic has shown us, a crisis management
press coverage with a compelling story and plan must be on every organization's to-do
doesn't buy it, as one does when advertising. list. Let's not forget, too, how a seasoned PR
Earned media is the most coveted form of pro can schedule appearances for executives
PR because it is a third-party verification of and thought leaders on print and broadcast
an organization's brand, message, product, networks locally, regionally, and nationally.
service, and expertise in a given field. PR is a critical function for any well-
PR plays a vital role in influencing public thought-out corporate plan. Once again,
opinion, as well as shaping and strengthening proper marketing analysis often helps to
customer relationships. Thoughtful public implement an effective public relations
relations strategies help an organization gain a strategy.
competitive advantage and earn brand trust. CALL GAM MARKETING
PR includes press releases, which should GAM has experienced in-house marketing,
consist of compelling news stories and not advertising, and public relations professionals
frivolous information. The former receives ready to serve as an extension of one's staff
attention from media outlets. The latter gets or as the agency of record. We are available
file 13. Other forms of PR include events such on a project-by-project basis, or we will sign
as seminars and panel discussions, cocktail an annual contract. GAM does not require
networking receptions, and sporting events retainer fees. We are flexible, reasonable,
(e.g., golf tournaments). knowledgeable, and capable of taking your
business to the next level.
Flag Day (Continued from page 5)
Army Birthday Ball in many locations. or groups are flown on the same staff as the
Coincidentally, 2020 marks the 60th American flag, Old Glory should always be at
anniversary of the first Army Birthday Ball, the highest point; When flags of two or more
which occurred in 1960 in Washington, DC. nations are displayed, they should be of equal
size and flown from separate staffs of the same
The colors of the American flag are
height; The Stars and Stripes should not appear
symbolic. The color red represents valor and
on apparel, bedding or decorative items.
resilience; the blue, justice, perseverance, and
vigilance; the white, innocence, and purity. The I love our flag. I love and respect our military
stripes, 13 total (7 red and 6 white alternating), service members. I love the patriotism our flag
are representative of the original 13 colonies, evokes. I leave you with the song lyrics Mr.
and the 50 white stars on a field of blue Cohen so reverently wrote:
represent the 50 states. …You’re the emblem of the land I love, The
Draping the American flag over a coffin. home of the free and the brave.
While thought by many to be an honor solely Ev’ry heart beats true ‘Neath the Red, White,
reserved for military veterans and government and Blue, Where there’s never a boast or brag.
officials, in actuality, any burial may incorporate But should auld acquaintance be forgot, Keep
this tradition. your eye on the grand old flag.
Flag etiquette. American flags are to be Sources:
illuminated by sunlight or another light source
timeanddate.com, militarybenefits.com,
while on display; When flags are lowered, care
Jennie Cohen, U.S. Department of Defense (DoD)
must be taken to keep them from touching the
ground; When the flags of cities, states, localities
Page 6 • gam|mag • June 2020
BUSINESS NEWS
A Behind the Scenes Tour of WTOP 103.5 FM
Photos courtesy of WTOP
If you are like most commuters in the Oxley: Our long-time leader in
Washington, D.C. region, you are likely to the newsroom, Jim Farley, coined the
tune into a radio station delivering the latest phrase over 20 years ago. He has since
local news, traffic and weather information. retired but we know he is glad we still
WTOP 103.5 FM is the top-rated news use it now and again.
broadcast and can be heard as well on GAM: WTOP office and studio
107.7 FM in Virginia and on 103.9 FM in space were recently remodeled. The
Frederick, Maryland. WTOP’s radio station "Nerve Center" is strikingly similar to Joel Oxley
can be heard west to Warrenton, Virginia, an airport flight control operation.
north to Baltimore, Maryland, east to the The technology is impressive. Would you
Chesapeake Bay and south to Fredericksburg, walk our readers through the new and improved
Virginia. In other words, it is Big-Time radio. WTOP station, beginning with Studio A, the
We are always alert to exceptional marketing Glass-Enclosed Nerve Center?
techniques, and when it comes to brand, WTOP Oxley: As you come into our newsroom from
is exceptional. Few have not heard of “The Glass- any angle you will see the design of the floors,
Enclosed Nerve Center.” GAM/MAG decided to the walls and the ceiling all leads you to the main
take a peek behind the scenes at WTOP’s inner studio of WTOP. We designed a ring to encircle
workings. The station’s general manager, Joel the news desk, facing into where the anchors
Oxley, was kind enough to take a break from his broadcast the news. Studio A is without a doubt
demanding job to answer our questions. our nerve center. Every desk is equipped with
GAM: The station first went on air in 1926, microphones and editing capabilities. Reporters
switching its call letters to WTOP in 1943. How can go live from their desks. Traffic, sports and
did the owners choose the call letters? business reporters all have dedicated areas.
Fortunately, our parent company, Hubbard
Oxley: WTOP was chosen because our former
Broadcasting, gave us the budget to truly have a
signal at 1500AM was at the top of the dial on
state-of-the-art facility.
radios back in 1943.
GAM: WTOP enjoys another clever brand
GAM: Who came up with the brand tag, the
Glass-Enclosed Nerve Center? (Continued on page 8)
June 2020 • gam|mag • Page 7
BUSINESS NEWS
WTOP (Continued from page 7)
tag, “every ten minutes, on the 8’s, and when it breaks.” Tell us a little
about the origins of this tag. How was it adopted? Who came up
with it? When was it first used?
Oxley: For many years we used “Traffic and weather together on
the 8’s”. CBS decided about eight years ago to trademark the tag, so we
switched to “on the 8’s and when it breaks.” Although some prefer to use
“brakes.” Either works for us!
GAM: The station delivers its message beyond the airwaves. What
digital platforms and other methods does WTOP use to inform the
public?
Oxley: It is more like what aren’t we using. We have an app; we’re on
Alexa; we stream; on Facebook, and Twitter. We also have an award-
winning website delivering on-demand news for almost 25 years.
GAM: WTOP has recently started using “News” more in its
messaging and marketing, why did you feel that was important?
Oxley: The information needs of the consumer continue to change.
No one does news 24/7/365 like we do. It's more important than ever
for our listeners and website visitors to know we are constantly updating
the news.
GAM: As one of the only 24/7/365 News radio stations in the area,
what do you feel your responsibility is to your listeners?
Oxley: It’s important to us that no matter what time of day - any day
- WTOP can be trusted as the go-to source for the latest news, traffic
and weather. We will update you on the news that matters in a factual,
succinct, and honest way.
GAM: As a leader in the Washington, DC community, WTOP is
known to give back by holding events and contests to support the needs
of others. What is your favorite story reflecting WTOP’s community
involvement?
Oxley: The most significant effort we ever made was to help the
Metropolitan Boys and Girls Clubs rebuild Clubhouse #2 in one of the
poorest parts of Washington, DC. The positive impact was enormous.
The kids had a safe place to go after school to play sports and hone their
computer skills. The Clubs were so grateful they named the clubhouse
the “WTOP Place for the Kids”.
For news and information you need to lead a more informed life, be
sure to tune into WTOP 103.5 FM.
Page 8 • gam|mag • June 2020
BUSINESS NEWS
Moving on Up with JK Moving:
Q&A with Chuck Kuhn, CEO, JK Moving Services
Chuck Kuhn
Photos courtesy of JK Moving
JK Moving is an institution in the How have you grown since starting in the
Washington, DC Metropolitan Region. basement?
Bruce Gemmill reached out to Chuck Kuhn, Kuhns: Almost 40 years later, our focus
CEO of JK Moving to learn a bit more about has taken us from a one truck company to
this tremendously successful moving and one that logs six million miles a year for our
relocation company. clients. Today we are the largest independent
Gemmill: Chuck, would you share with moving and storage company in North
us when you first felt the longing to be an America, employing more than 1,100 people,
entrepreneur? most of whom live in the DC metro region.
Kuhns: When I was growing up, I always We have moved U.S. presidents, complex
enjoyed working, and assumed that one day laboratories, priceless art, data centers, as well
I would own my own business. I found my as hundreds of thousands of families.
direction following two difficult moves with Over this time, what hasn’t changed are the
my family as a young teen. I knew I could do a company’s values of care and respect, which
better job and make a living at it. Shortly after shape all decisions and impacts how we invest
getting my driver’s license, I bought a moving in people, new technology and facilities as
truck and started the company in my parent’s well as how we treat customers, vendors and
basement. My goal: grow so that we could the community.
scale without sacrificing quality and be caring Gemmill: The COVID-19 pandemic
and courteous to everyone we interacted with. and economic shutdown has affected every
Gemmill: So you knew at an early age you business and individual. How has JK been
were an entrepreneur, and you went forward involved in pandemic-related efforts?
to build what now is quite a large business.
Would you tell us about JK Moving in 2020? (Continued on page 10)
June 2020 • gam|mag • Page 9
BUSINESS NEWS
JK (Continued from page 9) iPads to take students on virtual tours of their
rooms so they can together create inventories
Kuhns: During the pandemic, JK has of items they need packed, shipped or stored.
remained focused and true to its values of
Gemmill: When we were talking earlier,
care and respect by working to keep clients
you mentioned how JK Moving has been
moving, taking care of employees and
of help to the healthcare industry and food
partners, and providing needed support to
banks. Tell our readers about this.
the community. As an essential business, JK
Moving has continued to help people and Kuhns: We are working to ensure the
companies move and provide operational and healthcare community can focus on patients
logistical support. by storing and delivering medical supplies
and equipment to hospitals as they fight the
Gemmill: Has JK Moving leveraged
pandemic. In addition, we are delivering
technology to its advantage during these times
meals to local students who are at home and
of social distancing?
rely on schools to get the meals and nutrition
Kuhns: Our investments in digital tools
they need.
that make moving easier are especially useful
now and require less face-to-face interaction. As food banks are overwhelmed, JK is
Customers can survey their house by simply delivering pallets of non-perishable items to
pointing and clicking a smart phone using an food banks and grocery/retail stores to help
interface that helps to instantly develop an the food insecure. The JK Community Farm,
inventory and estimate. It recognizes rooms, a nonprofit farm started by JK Moving, is
furniture, and appliances as well as their cube continuing to grow organic, healthy food and
(how many trucks and people will be needed) donating thousands of pounds to food banks
and weights. The completed visual inventory to help address the growing need in the DC
provides move coordinators, dispatchers, and metro region. And JK Moving is helping make
move managers the ability to visualize and sure the Farm’s food gets delivered.
plan the move while maintaining a positive Gemmill: How has this pandemic changed
customer experience. the future of how JK Moving conducts its
Our tech tools are being adapted for other business?
uses. After universities closed abruptly due to Kuhns: It’s unclear how long COVID-19
the pandemic, students’ belongings were left will remain, yet what is clear is that the virus
stranded. JK is working with several different is reshaping how business is getting done.
colleges to help reunite students with their As an industry, the lessons we learn, the
possessions. JK teams are using phones and innovations we embrace, and the support
Page 10 • gam|mag • June 2020BUSINESS NEWS
we provide will be part of our future. That’s a charitable nonprofit, it is considered an
why JK is ensuring that we are prepared and essential business and is working to ramp up
partnering when and where it matters most. to serve even more people. Donations to the
Gemmill: You mentioned your company’s JK Community Farm during the COVID-19
work with food banks. How else is JK Moving pandemic will be matched by JK Moving and
involved in the District-Maryland-Virginia will allow the farm to increase its 2020 goal of
(DMV) community? 135,000 pounds of donated produce to local
Kuhns: We are committed to investing food pantries.
back into the community and do so in many Gemmill: It’s obvious you embrace
ways. Our signature effort though is the JK corporate responsibility. Beyond giving back
Community Farm I mentioned earlier. The to our community, would you like to share
JK Community Farm is a nonprofit started in anything additional?
2018 with the support of JK Moving Services. Kuhns: Protecting the environment for
The Farm grows and donates protein, and future generations is a personal passion and
healthy, chemical-free, produce to those shapes JK and my charitable investments.
struggling with food insecurity in the DMV. I’ve partnered with Loudoun Wildlife
With help from 3,000 volunteers last year, the Conservancy to save an 87-acre parcel of land
Loudoun-based Farm grew and donated more in Loudoun that has more native species of
than 114,000 pounds of food. Our nonprofit plants and wildlife indigenous to Loudoun
partners Loudoun Hunger Relief, Food for and Virginia than is typical. JK Moving
Others and Arlington Food Assistance Center purchased the property and put the land into
served as distribution centers. This was the conservation easement. I’ve also bought,
equivalent of more than 91,000 healthy, placed into conservation easement, and
organic meals. And this year, the Farm is revitalized the Middleburg Training Center.
committed to doing substantially more in Similarly, I’ve placed many other farms near
light of the pandemic. Loudoun’s historic villages into easement—
As food donations from grocery stores including the JK Community Farm.
to food pantries have diminished, the JK
Gemmill: What measures has JK Moving
Community Farm has become a lifeline for
taken to keep customers and employees
thousands of families in our community. As
informed during the pandemic?
Kuhns: Safety is always first and we
have adopted stringent safety protocols, as
recommended by the Centers for Disease
Control (CDC), to keep our employees and
clients safe. In fact, much of JK’s office staff is
operating remotely. For employees working
on-site, we check their temperatures, require
they wear gloves and masks. We follow all
current CDC guidelines.
Beyond safety, communicating with
employees remains a top priority for our
management team to keep them motivated,
engaged, and up to date. I have been hosting
virtual town halls to keep employees informed
and connected. I use these forums to
update employees about business initiatives,
successes, and to answer questions. I’ve also
(Continued on page 12)
June 2020 • gam|mag • Page 11BUSINESS NEWS
JK (Continued from page 11) quarter of 2021 and hiring will begin shortly
before that date. We are also planning a
continued to have my regular breakfasts with second 100,000 square foot building.
employees to help me stay connected. These
Our future success rests with having great
days, though, I meet with 2-3 employees
employees who share our commitment
digitally.
to care and respect. That’s why it is
Communicating with residential and important to attract and retain the very
commercial customers is also important. best team members, provide them with
In addition to phone and online meetings, ongoing career development, and to ensure
we employ technology to help limit contact they have a path for advancement. Our
while helping customers smoothly coordinate commitment to investing in our employees
moves. includes outstanding benefits such as a
Gemmill: What plans do you have for JK formal Wellness Program; competitive
Moving going into the future? compensation; a generous safe harbor 401(k)
Kuhns: Like all businesses, we are learning and company-paid profit-sharing program;
to pivot and adapt. We are continuing to tuition reimbursement; paid time off; an
prepare for future growth and to provide Employee Assistance Program; employee
a superior client experience. Prior to the volunteer opportunities—including at the JK
pandemic, we had purchased 135 acres in Community Farm; and more.
Manassas that adjoins property recently In addition to growing our business we will
bought for data center development. We are continue to be a leader in the community and
continuing to move forward with building make investments to end hunger and protect
a new warehouse to extend our operations, the environment. After all, we have to work
clientele, and employee base in Prince together to adjust, evolve, and eventually
William County. In addition, the acreage will embrace our new reality so that we can care
be used for commercial, industrial and data for each other and provide jobs and services
center development. that we all need. We are a strong community
We expect to add 300 new employees in the that will grow even stronger and smarter from
Manassas location, including administrative, this challenging experience.
sales, driver, and warehouse positions. For more information on how JK Moving can
Planned completion of this new 100,000 be of help, visit their website at JKMoving.com,
square foot building will be in the fourth or give them a call, 1-800-673-8487.
Page 12 • gam|mag • June 2020PERSONAL FINANCE
The Market Will Survive
Jeff Porter, CFA®, CFP® Let’s address these questions by looking
Principal, Chief Investment Officer at some of the worst humanitarian and
Sullivan, Bruyette, Speros & Blayney, LLC economic events of the 19th and 20th centuries,
Process Versus Prediction the process of getting “back to normal” in
their aftermath, and what it may mean for our
in a Bear Market economy and markets in the coming years.
Covid-19’s impact on our society, the
economy, and our emotions is quite The Spanish Flu
unprecedented. The size and scale of the Certainly, the coronavirus and the
impact is naturally causing many investors quarantine measures put in place feel like
to think about making significant moves in new experiences to most of us, but there are
their portfolios, like selling large allocations similarities to the Spanish Flu of 1918 that
of stocks until the future is more certain. infected 500 million people globally (one-third
While this “de-risking” can feel comforting of the population) and killed at least 50 million
at first, there are many issues with trying people (equivalent to more than 200 million
to time the market amid a downturn today), most in the prime of their lives.1 Back Jeff Porter
to either buy back in at lower prices or then, however, people did not know the cause
to reestablish positions when the “dust of the epidemic, had no treatments (like
settles.” I want to be clear that this does antibiotics for co-infections), and had little
not mean that strategic decisions shouldn’t clue about how to control the spread. Nobody
be made before a decline begins (by taking even knew what a virus was until 1933.
on the appropriate amount of risk), or
that moves such as harvesting tax losses
or repositioning within bonds and stocks
shouldn’t be done. What it does mean is
that investors should avoid sizable moves
from stocks to cash/bonds, as it most likely
will result in less wealth over time.
I would like to lay the groundwork for some
other options at your disposal, namely:
1. Holding onto your positions (buy and
hold)
2. Rebalancing to your long-term target
3. Buying stocks over a course of months
As for the stock market, it was much more
to reach a higher stock allocation target
concerned with World War I. U.S. stocks fell 46%
(Example: If you had a 50% target, now you
work towards a 60% target.) in real terms from the end of 1915 to the end
of 1917 (when the war ended), versus just a 5%
The main difficulty with either holding onto
decline from the end of 1917 to the end of 1919
your investments or buying into declines is that
during the Spanish Flu.2 Then the market was off
you need to have confidence that “normal” will
to the races as we entered the Roaring Twenties.
return and that this bear market isn’t completely
different from previous ones. One of the The U.S. Civil War
main questions we are receiving is something The Civil War was the deadliest conflict
like this: “Yes, I understand that markets in U.S. history, with six times the number of
have always ‘come back,’ but isn’t this crisis American deaths (as a percentage of the U.S.
different? How do we know it will come back?”
(Continued on page 14)
June 2020 • gam|mag • Page 13PERSONAL FINANCE
The Market (Continued from page 13) 1. Massive amounts of monetary and fiscal
relief/stimulus have been quickly deployed
population) than in World War II.3 Most of
(with more likely coming).
the fighting was done in the south, which
left infrastructure destroyed and thousands 2. The stock market was pricing in a very
without food and the basic necessities of bleak forecast at its March lows.
life. Furthermore, there was no Federal Some of the main reasons why the Great
government stimulus like there is today. Depression was so severe was that the
Despite all this, the following chart illustrates Federal Reserve did next to nothing to help,
how quickly farm income recovered after the government added fuel to the fire by
the war ended in April 1865. reducing government spending to balance the
budget, and there were no social safety nets
such as Social Security, Medicare, Medicaid,
unemployment insurance, etc. In today’s
crisis, the Fed and the government are doing
“whatever it takes” and acting much quicker
than ever before (in weeks, rather than months
like during the Global Financial Crisis of 2008).
The $2.2 trillion CARES Act dwarfs the
$800 billion (in today’s dollars) for FDR’s New
Deal, the $170 billion annually for the Reagan
World War II (Germany and Japan) tax cuts, and is more than double the size of
the Obama administration’s stimulus packages
By the end of World War II, Germany and
in 2009.5 Combined with $4 trillion from the
Japan were decimated. Germany lost 8% of
Federal Reserve to total $6.2 trillion, the total
its population, 20% of its housing, and 33%
spending is approximately 50% more than the
of its industrial production. Food production
total cost of World War II at $4.1 trillion (in
was just half of its 1938 levels, and an average
today’s dollars).6 You get the point.
German’s caloric intake was less than 35% of
an American’s. Japan lost 4% of its population, Despite this massive relief effort, what
40% of its plant, equipment, and other does the market think will happen to the
production assets, and 25% of its housing.4 “mother’s milk” of stock prices — earnings?
The next chart shows what the market was
Despite these jaw-dropping figures, this
expecting in terms of earnings growth on
chart shows how rapidly economic activity
January 20th (gold line). As of March 17th
recovered.
(blue line), the market was pricing in a 45%
decline in earnings by the end of 2022. More
importantly, it was forecasting that earnings
would not return to the previous peak
within 10 years.
Coronavirus (Covid-19)
While no one knows how the spread of the
coronavirus, and its impact on the economy,
will exactly play out, we do know two things:
Page 14 • gam|mag • June 2020PERSONAL FINANCE
As you can see in the following chart, management, tax, and fiduciary services to
however, despite all the various issues we’ve help our clients make smart financial decisions.
had to deal with as a country, GDP (and, with
it, earnings) has a knack for having a smooth Sullivan, Bruyette, Speros & Blayney, LLC is an SEC-
ride higher. registered investment advisor. (www.sbsbllc.com)
Please Note: SBSB does not make any representations
Source: Crestmont Research. Copyright 2003- or warranties as to the accuracy, timeliness, suitability,
2020. GDP-N is Nominal Gross Domestic Product. completeness, or relevance of any information prepared by
EPS is Earnings Per Share of S&P 500 stocks. any unaffiliated third party, whether linked to SBSB’s web site
or blog or incorporated herein, and takes no responsibility
for any such content. All such information is provided solely
for convenience purposes only and all users thereof should be
guided accordingly.
Please remember that past performance may not be
indicative of future results. Different types of investments
involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment,
investment strategy, or product (including the investments
and/or investment strategies recommended or undertaken
by Sullivan Bruyette Speros & Blayney (“SBSB”)), or any
non-investment related content, made reference to directly
or indirectly in this commentary will be profitable, equal any
corresponding indicated historical performance level(s), be
suitable for your portfolio or individual situation, or prove
Nobody knows what type of rollercoaster successful. Due to various factors, including changing market
ride earnings will take in the coming years, conditions and/or applicable laws, the content may no longer
but the world has a long history of solving be reflective of current opinions or positions. Moreover,
you should not assume that any discussion or information
problems, rebuilding, and fully recouping contained in this commentary serves as the receipt of, or as
losses faster than predicted, even in worst- a substitute for, personalized investment advice from SBSB.
case scenarios. A significant difference today Please remember to contact SBSB, in writing, if there are any
changes in your personal/financial situation or investment
is that the government and Federal Reserve objectives for the purpose of reviewing/evaluating/revising our
have taken quick action to reduce the long- previous recommendations and/or services, or if you would like
term damage to the economy, and their to impose, add, or to modify any reasonable restrictions to our
investment advisory services. SBSB is not a law firm and no
work is likely not done. Lastly, the market
portion of the commentary content should be construed as legal
was pricing in a lot (perhaps not all) of the advice. A copy of the SBSB’s current written disclosure Brochure
bad news ahead and has begun to turn its discussing our advisory services and fees continues to remain
attention to what the world looks like in 2021 available upon request.
and beyond. That transition generally comes
quicker than you would expect.
With this knowledge, investors can feel more 1
https://www.theatlantic.com/ideas/archive/2020/03/
comfortable about forecasting long-term stock were-not-facing-second-spanish-flu/607354/; https://www.
returns and feel confident that the market will nytimes.com/2020/03/09/health/coronavirus-is-very-
different-from-the-spanish-flu-of-1918-heres-how.html
reward investors handsomely for “riding out” 2
GMO Commentary: Asset Allocation: Covid-19 Update,
downturns; or, for risk takers, buying as prices March 11, 2020
3
JP Morgan Eye on the Market: John Stuart Mill and the
go lower should that opportunity present itself Road from Ruin to Recovery
in the months ahead. 4
JP Morgan Eye on the Market: John Stuart Mill and the
Road from Ruin to Recovery
Sullivan, Bruyette, Speros & Blayney, LLC 5
Rosenberg Research, Weekly Buffet with Dave,
is an SEC-registered investment advisor. SBSB 3/27/20. https://www.rosenbergresearch.com/clients/
article/190580940725374777; Capital Economics:Congress
is dedicated to providing customized wealth steps up to the plate. https://www.capitaleconomics.
advisory services to affluent individuals com/publications/us-economics/us-economics-update/
congress-steps-up-to-the-plate/
and families, non-profits, and corporations 6
https://moneywise.com/a/financial-facts-about-world-
throughout the United States. We provide war-ii
comprehensive financial planning, portfolio
June 2020 • gam|mag • Page 15BUSINESS NEWS
NOVA Builders Flex Muscle
R. Bruce Gemmill
Before the dramatic shutdown the Northern Virginia Building Industry
of our economy due to the federal Association (NVBIA).
and state government responses to Then, in the early 1990s, the Fauquier
the COVID-19 pandemic, Northern County Builders Association became a part
Virginia’s home building industry of NVBIA, completing NVBIA’s influence
was booming. GAM/MAG reached throughout the six major counties and all the
out to the Northern Virginia Builders cities and towns within Northern Virginia.
Industry Association (NVBIA) for
NVBIA includes large national and regional
insight into how things are going for
Gene Frogale builders, custom builders, remodelers, and
the industry.
industries supporting home builders, such as
Northern Virginia Builders Industry financial institutions, land use attorneys, and
Association Then and Now utilities. Through its frequent, effective public
Founded in 1936 by eight Arlington County relations strategies and government affairs
builders as the Arlington Builders Association, advocacy, NVBIA communicates the positive
the young organization experienced impacts of residential home building activities
substantial growth due to its member builders as well as the negative consequences of slow-
expanded business throughout the region and growth policies to voters and state lawmakers,
in 1938 renamed itself the Northern Virginia emphasizing housing affordability.
Builders Association (NVBA). In the spring Pillars of Industry
of 1946, NVBA expanded its membership NVBIA’s mission is to create a positive
by welcoming subcontractors, architects, economic and political climate for the
developers, loan correspondents, and material building industry, so it may effectively meet
suppliers.
the demand for affordable, attractive, safe,
By 1980, through the persistent work of its well-planned and environmentally sensitive
committees and public relations campaigns, residential and business communities. As
NVBA quickly established itself as a strong a membership organization to more than
political organization. 600 builders and trade partners, it fulfills its
NVBA and the Prince William County purpose through four effective and influential
Builders Association merged to form an pillars. The primary pillar is advocacy.
even stronger builder alliance in 1986, NVBIA exerts its influence with local
Page 16 • gam|mag • June 2020BUSINESS NEWS
governments on behalf of members’ interests,
leveraging the clout of its Northern Virginia
chapters in Loudoun, Prince William, Fairfax,
Arlington, and Alexandria (FAA) and
Fauquier.
NVBIA follows a federation model,
partnering with the Home Builders
Association of Virginia (HBAV) and the
National Association of Home Builders
(NAHB), ensuring members’ interests are
also represented before state and federal
government, respectively.
The second pillar is education, with
an emphasis on professional workforce
development. Through seminars, workshops,
and award programs, the NVBIA provides
a full range of educational programs Community Involvement
designed to help members achieve desired NVBIA builders and associate members
certifications and to learn the latest trends. are very engaged in the community. In 2001,
Workforce development improves industry NVBIA established HomeAid Northern
business practices intending to benefit those Virginia, as the foundation for its fourth
purchasing or renting in the residential pillar, philanthropy. HomeAid leverages the
real estate market. Because skilled labor is resources of the homebuilding community,
one of the industry’s biggest challenges, the and its trade partners, in building projects to
second pillar also enables NVBIA to partner benefit homeless shelters, transitional houses,
with schools, technical centers, community and other facilities. Members donate their
colleges, and universities to develop expertise, time, and resources to significantly
curriculums for the building trades.
reduce construction costs. To date, NVBIA
The third pillar, networking is achieved and its members have completed more than
through formal and informal sessions where 121 renovation and construction projects,
members can learn about new products and valued at more than $15.7 million in retail
services and develop business opportunities construction costs, and have helped an
with other members. estimated 112,000 local homeless, at-risk
(Continued on page 18)
June 2020 • gam|mag • Page 17BUSINESS NEWS
Photo courtesy of
Annandale Millwork/Allied Systems
Winchester, Virginia facility
NOVA Builders (Continued from page 17) table, or you’re on the menu. I am proud
of how effectively our advocacy team has
individuals. ensured its members a seat at the table during
“Our members care about the communities these challenging times.”
they develop and are extremely generous The pandemic created a national shortage
giving back to those in need,” said Ingrao. “In of available homes, which impacted the nearly
addition to HomeAid, Women in the Building 7 million people employed in construction
Industry, a committee designed specifically nationwide. While Northern Virginia sales
for women leaders in construction, holds of homes have been slow, the local advocacy
fundraising campaigns to benefit many efforts by NVBIA, state advocacy by the
local nonprofits. And our Future Leaders, Home Builders Association of Virginia
for young, up-and-coming professionals in (HBAV), and federal efforts by the National
construction, develops programs and events Association of Home Builders (NAHB)
to assist non-profits,” added Ingrao. helped to keep home sales and construction
Home Builders add Muscle to employment steady. The combined efforts put
forth by this three-in-one federation yielded
Influence
the continuation of government processes
During this COVID -19 outbreak, the necessary for construction, such as the ability
federal and Virginia state government declared to submit new site plans, inspections, and
the residential home building industry permitting for processing and approval. Being
essential businesses. As a result, NVBIA designated at the federal level as an essential
members have been able to continue to build industry provided a clear path to ongoing
the projects that were in their pipelines before development and easier access to capital for
the economy came to an abrupt halt. funding.
“Our advocacy team is phenomenal,” Gene Frogale has witnessed a 20% increase
said Gene Frogale, president of Annandale in business during the first quarter of 2020.
Millwork/Allied Systems and current NVBIA His company, Annandale Millwork/Allied
president. “We have a saying in our business,” Systems, is a second-generation family-owned
added Frogale. “You either have a seat at the business which he runs with his brother Rob.
Page 18 • gam|mag • June 2020BUSINESS NEWS
Gene Frogale Mark Ingrao
It was their father who started Annandale To this point, NVBIA’s CEO Mark Ingrao,
Millwork and began the company’s tradition stressed, “Our member pipelines are at
of innovation and true partnerships healthy levels, our robust advocacy initiatives
with builders. Together, they have built a are yielding results, and we are confident the
company based on the principles of family residential home building industry will be
and community led by a team of seasoned one of the leading sectors helping the U.S.
professionals. “Our pipeline already had large economy rebound. I’d say our members are
contracts when the sudden shutdown of our confident in the future.”
economy occurred,” said Gene Frogale. “These History is on our side. Northern Virginia
jobs don’t just suddenly stop. They need to has generally been insulated from the most
continue going forward.” dramatic impacts of economic downturns.
If the residential building industry is The sudden shutdown of our economy
anything like Annandale Millwork, Northern and the shuttering of small business has
Virginia will not experience the housing certainly been traumatic to individuals and
shortages their peers in other parts of businesses, but we can rest assured members
the country are facing. The backorder for of the Northern Virginia Builders Industry
Annandale Millwork alone is 18 months out Association will do their part helping to get
for multi-family homes. Virginia rolling again.
“I know of a multi-unit apartment building For more information about the Northern
developer who had managed to obtain Virginia Builders Association, visit NVBIA.com.
all permitting for his 72-unit building in
Dumfries. He had a green light to proceed Photos courtesy of NVBIA
with construction, and as of mid-May, that
apartment building is under construction,”
added Frogale.
Like most business segments, builder
confidence dropped at the beginning of the
pandemic but rose considerably in May.
June 2020 • gam|mag • Page 19H E A LT H N E W S
HCA Virginia’s Reston Hospital Center and
StoneSprings Hospital Center on the Rise
among Northern Virginia Healthcare Options
By Jeff Caldwell, HCA Capital Division Associate
Vice President of Communications
Photos courtesy of HCA Virginia
The capital region is home to some of Reinvigorating Reston Hospital
the finest healthcare facilities in the nation Center
with award-winning hospitals, world-class
These past few years have been a time of
medical professionals, and technological
significant growth for Reston Hospital Center
advancements that are improving the quality
(RHC) as it evolves to meet the needs of the
of life for patients and saving countless
community. The 231-bed, advanced care
lives each year. You don’t have to go inside
hospital serves more than 100,000 patients
the Beltway to take advantage of these
healthcare options. HCA Virginia’s Reston annually for inpatient, outpatient, surgical,
Hospital Center and Stone Springs Hospital and emergency care.
Center have been dramatically expanding In 2019, RHC opened a new 18-bed, private
their healthcare offerings, technology room, inpatient rehabilitation center; a state-
enhancements, and garnering top flight of-the-art, 24-bed intensive care unit (ICU);
accolades as they serve Northern Virginia a four-bed antepartum unit for high-risk OB
communities. In the era of COVID-19, these patients; a second cardiac catheterization lab;
hospitals have also significantly enhanced and a 400-space parking garage for patients
their safety procedures to ensure those and visitors. Patients will experience clean,
without the virus can be safely cared for in the comfortable, state-of-the-art care facilities
facility separated from those being treated for across the entire Reston Hospital Center
virus symptoms. campus.
Page 20 • gam|mag • June 2020H E A LT H N E W S
But, the enhancements are not just new · Joint Commission Certification for
buildings and renovated facilities. RHC has Spine Surgery, Hip and Knee Replacement
also welcomed Children’s National Hospital Programs
neonatologists (ranked number one in · Comprehensive Bariatric Program
the nation by U.S. News & World Report) accredited by the Metabolic and Bariatric
to provide 24/7 neonatal intensive care Surgery and Accreditation Quality
unit (NICU) services. This outstanding Improvement Program (MBSAQIP)
collaboration provides access to world-
· Center of Excellence in Minimally Invasive
class care augmenting RHC’s maternity
Gynecologic Surgery by the American College
team that delivers more than 3,000 babies
of Surgeons
annually.
· Verified Level II Trauma Center by the
Additionally, the hospital continues to lead
American College of Surgeons
the region in the advancement of minimally
invasive surgical capabilities. RHC has While battling the global COVID-19
invested nearly $9 million in robotic surgical pandemic during the first quarter of 2020,
technology and has performed more than Reston Hospital Center has also focused on
6,000 robotic surgical procedures. These the renovation of the main entrance and
include procedures to address complex spine lobby including the finalization of a new
injuries, joint replacement, weight loss, visitor-centric corridor that will help to
gynecologic, urologic, thoracic, colorectal and provide easier navigation between the main
general surgery. entrance, west wing entrance, pavilion I and
II entrances, and the emergency department.
Independent industry experts have
RHC has recently enhanced cancer treatment
recognized these enhancements in patient
services with new equipment including
care and hospital operations. RHC has
new linear accelerators and CT simulation
obtained significant accolades from national
technology. Further, this year the hospital
organizations including:
plans to open a new neuro interventional
· Top General Hospital Award from The suite, a specialized operating room, featuring
Leapfrog Group – One of only three Top a biplane imaging system. This advanced
General Hospital Award winners in the angiography X-ray system will be used to
Commonwealth of Virginia see extremely detailed, real-time images of a
· “A” grade patient safety award from the patient’s head, neck and spine during stroke
The LeapFrog Group and other neuro endovascular procedures that
· Patient Safety Excellence Award for the require exact precision.
fourth consecutive year from Healthgrades (Continued on page 22)
June 2020 • gam|mag • Page 21H E A LT H N E W S
HCA (Continued from page 21)
StoneSprings Hospital Center
StoneSprings Hospital Center (SSHC)
is celebrating its five-year anniversary and
remains the newest hospital to be built in
Loudoun County. The hospital includes a
124-bed acute care medical and surgical
facility, 24-hour emergency care, women’s
and children’s services, diagnostic radiology
services, on-site full-service laboratory, ICU, compassionate skilled nurses, therapists and
and pulmonary care. other healthcare professionals offer high-
quality, patient-centered care.
For expectant mothers, StoneSprings
Hospital Center offers a customized birthing StoneSprings Hospital Center continues to
experience with private, spacious Labor, add new services and programs to meet the
Delivery, Recovery, and Postpartum (LDRP) growing needs of the community.
home-like suites with relaxing labor soaking The hospital has earned its own collection
tubs. The dedicated team of expert nurses, of top industry awards including:
physicians, and midwives are committed to · For the second consecutive year,
providing exceptional maternity and labor StoneSprings Hospital Center’s Emergency
and delivery care. Department earned the 2019 HCA Healthcare
SSHC offers a comprehensive da Vinci Unit of Distinction (UOD) Award – an
robotic surgery program with experienced annual program that recognizes and
practitioners across multiple specialties. They rewards exemplary nursing units at HCA
are home to one of only 40 robotic training Healthcare sites. The “Unit of Distinction”
EpiCenters for general surgery in the world designation is achieved through measurable,
and are the only one of its kind in Northern exemplary performance in advocacy and
Virginia. All members of the surgical team are leadership, consistency in nursing practice
trained to use the robot to provide the best and operations, and leveraging scale to drive
care, improved recovery times, and minimally performance.
invasive procedures to their patients. · StoneSprings Hospital Center earned The
StoneSprings Hospital is focused on Joint Commission’s Gold Seal of Approval®
playing an active role in the overall wellness for disease-specific care for chest pain by
of the Loudoun County community. The demonstrating continuous compliance with
facility is known for its unique and engaging its performance standards. The Gold Seal is
community outreach events such as a a symbol of quality that reflects a healthcare
health and wellness fair, robotics event with organization’s commitment to providing
area STEM students, and Birth Chatter an safe and quality patient care. StoneSprings
educational roundtable event for expectant Hospital was initially awarded certification
couples to hear from expert OB providers. in 2017 for two years and has now been
Additionally, the hospital’s expanding recertified.
orthopedic and spine programs offer its · StoneSprings Hospital earned the Joint
community the latest in total joint and spine Commission’s Gold Seal of Approval and the
care. StoneSprings Hospital offers the most American Heart Association/American Stroke
advanced imaging and treatment options in Association’s Heart-Check mark for Advanced
its modern facility. Our orthopedic and spine Re-Certification for Primary Stroke Centers.
doctors are fellowship-trained, board-certified The Gold Seal of Approval and the Heart-
specialists. Our multidisciplinary team of Check mark represent symbols of quality
Page 22 • gam|mag • June 2020H E A LT H N E W S
from their respective organizations.
· Making Medicine Mercury Free Award.
Selected as an Environmental Excellence
Award winner recognizing StoneSprings
Hospital’s ongoing commitment to improving
its environmental performance and efforts
in achieving a top standard of excellence in
sustainability
Caring for Patients and Employees
During the COVID-19 Pandemic
Reston and StoneSprings Hospital Centers
have joined hospitals across Virginia in the
unprecedented effort to treat hundreds of
COVID-19 patients in the region. Using
leading infection-prevention techniques
including universal masking, enhanced
screening and testing of staff and patients,
special areas reserved for the treatment of
potential and confirmed COVID-19 patients,
enhanced cleaning and sanitizing procedures,
and visitor access restrictions, these facilities
strived to ensure safe and effective treatment
of patients throughout the pandemic period.
To ensure the Reston and Loudoun County
employees of these facilities and their families
are protected during the pandemic, HCA
has instituted programs to reallocate staff in
areas where procedures or patient levels have
been reduced to ensure work in areas more
directly related to COVID care. While other
area healthcare institutions are laying off
hundreds of employees, HCA has guaranteed
pandemic pay to those medical professionals
and staff who could not be shifted onto other
duties, guaranteeing these employees and members of our healthcare team and pledge
their families 70 percent of their pay. This to treat one another with loyalty, respect,
ensures the communities economic stability is and dignity. This includes good times and
protected and provides a safety net for these challenging ones like we have faced this year.”
workers during the most significant impacts HCA Healthcare’s Northern Virginia
of the pandemic on the healthcare industry. hospitals are part of the commonwealth’s
“At HCA Virginia, we have a mission that most comprehensive provider network. HCA
‘Above all else, we are committed to the care Virginia Health System operates 14 hospitals,
and improvement of human life,’” said Reston 29 outpatient centers, five freestanding
Hospital Center President and CEO John emergency rooms, and two urgent care centers
Deardorff, FACHE. “In pursuit of our mission, and is affiliated with 3,000 physicians. It is one
we work to ensure the best possible experience of Virginia’s largest employers, provides $251.6
for the patients we serve in our community, million in uncompensated care and pays $82.3
but we also trust our colleagues as valuable million in state and local taxes each year.
June 2020 • gam|mag • Page 23You can also read
