Carrier Corporation, Rexnord, Ford, now Boeing. That’s in the first 45 days.
What’re the odds that the largest sector in healthcare, the one that impacts one of every four people in the United States, will become a tweet target for President Donald Trump?
We have another 1, 460 days to find out.
Late in the campaign for President, the New York Times published a list of everyone Trump had insulted since announcing his campaign for President. The list of 289 people, places and things ran two full pages.
If Trump’s pattern continues (and of course, it will) the list by the end of his first term should run close to 852 new people, places and things. Except this time, they will be Presidents, Prime Ministers, Premiers, CEOs, companies and products.
The odds are good that orthopedic companies, hospitals, surgeons or executives will have the pleasure of a Trump tweet.
Carrier, Rexnord, Ford, and Boeing
So let’s look at the lessons from Carrier, Rexnord, Ford, and Boeing.
Trump said this about Carrier: “If I were in office right now, Carrier would not be leaving Indiana, that I can tell you, ” “You’re gonna pay a damn tax when you leave this country and you think you’re going to sell product because we’re all so stupid.”
Carrier responded by talking privately to Trump’s representatives and issued this statement:
“Carrier has had very productive conversations in recent days with President-elect Trump and Vice President-elect Pence. We have negotiated an agreement with the incoming administration that we believe benefits our workers, the state of Indiana and our company. We are announcing today that Carrier will continue to manufacture gas furnaces in Indianapolis, in addition to retaining engineering and headquarters staff, preserving more than 1, 000 jobs. Carrier will also designate its Indianapolis manufacturing facility as a Center of Excellence for gas furnace production, with a commitment to making significant investments to continue to maintain a world-class furnace factory. Today’s announcement is possible because the incoming Trump-Pence administration has emphasized to us its commitment to support the business community and create an improved, more competitive U.S. business climate. The incentives offered by the state were an important consideration.”
Bottom Line: Carrier’s executives didn’t challenge Trump. They converted the fledgling conflict into an economically beneficial transaction and a public relations positive. In terms of jobs, Carrier is still cutting jobs in Indiana but not as many as before and they’ll receive compensation for the change in plans.
Trump said this about Rexnord: “Rexnord of Indiana is moving to Mexico and rather viciously firing all of its 300 workers. This is happening all over our country. No more!” “But any business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. …… without retribution or consequence, is WRONG!”
Rexnord has not responded yet.
Bottom Line: Rexnord is either a deer in the headlights, hunkering down hoping Trump moves on and forgets or waiting for a deal that compensates them for staying in Indiana.
Trump said this about Ford: “Just got a call from my friend Bill Ford, Chairman of Ford, who advised me that he will be keeping the Lincoln plant in Kentucky—no Mexico” “I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I owed it to the great State of Kentucky for their confidence in me!”
Ford responded by saying “Trump’s plans to cut taxes and spend more on infrastructure, saying they could “build a stronger, more vibrant, growing economy and provide an environment where it makes economic sense to build back up manufacturing jobs here.”
Bottom Line: Don’t let facts get in the way of a good story or tweet. Ford’s contract with the United Auto Workers prevents it from shutting down the factory in question, the Louisville Assembly Plant. But, privately, Ford’s execs told reporters that they do expect Trump to enact business friendly tax reform. So this was, in effect, an investment in Trump.
Trump said this about Boeing: “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!”
Boeing responded by tweeting: “BREAKING: @Boeing says it only has a $170M deal with @usairforce to help with requirements for new Air Force One” Earlier Boeing’s CEO had said in a speech to manufacturing executives: “Anyone who paid attention to the recent campaigns and the election results realizes that one of the overarching themes was apprehension about free and fair trade.” Now Boeing is offering to review the design and capabilities of the new Air Force One in order to lower its cost.
Bottom Line: Boeing rapidly pivoted from challenging Trump’s tweet to negotiating a deal. Unlike Ford or Carrier, Boeing has not yet complimented or offered support for Trump’s economic program. As Boeing’s CEO said in his speech: “”Last year, we delivered 495 737s from our factory in Renton, Wash., to customers around the world. This phenomenon would have been unimaginable when I started at the company in 1985.” One third of those planes, by the way, went to China.
The China Tweet
China, with 1.4 billion people, 26, 479 hospitals (the U.S. has 5, 627) and a burgeoning middle class, is a vitally important market for orthopedic companies—the vast majority of whom are American.
Trump’s Twitter poking at the Chinese government sent shivers through every major orthopedic company. The 5-Year Plan driven government in Beijing is woven in the fabric of the Chinese healthcare system. Top Chinese medical company executives sit on government committees—in order to implement Beijing’s directives.
Orthopedics is a uniquely American industry. It symbolizes American science, innovation and excellence.
A Twitter war between Washington and Beijing puts American orthopedic companies in China in a decidedly awkward position.
3 Rules to Surviving Trump’s Twitter Trolling
- Re-direct the power of Trump’s Twitter to a positive PR moment—be an Aikido PR master. Aikido is a martial art techniques system which teaches certain entering and turning movements which have the effect of redirecting the momentum of an opponent’s attack. Same here.
- Convert the existential issue into an economic transaction.
- Stay calm and move deliberately.
So, hopefully, orthopedics and its many institutions and leaders escape the next four years unscathed by Trump’s flame throwing. But if it does happen, we’ll know what to do.
