BUSINESS
Confidence falls again
Business confidence in Massachusetts fell for the fourth straight month as employers fretted about a surge in COVID-19 cases, supply chain woes, and signs of sharp inflation. Associated Industries of Massachusetts reported on Wednesday that its Business Confidence Index fell to 57.9 in November, down a half of a point from October. Logistics concerns were cited by several businesses as top of mind, with one of the 155 respondents to the latest poll saying they are turning away customers because they can’t ensure delivery times and another complaining that they expect supply-chain disruptions to continue until late 2022. While all readings above 50 indicate a mood that is generally more positive than negative, the index is now at its lowest point since March. Large companies tended to be more bullish about the future than small companies, and businesses north of Boston remained significantly more positive than those in other locations. Before trending downward, the index had reached its highest point for the year in July at 65.6 following a widespread lifting of COVID-19 business restrictions and the widespread availability of vaccinations in late spring. — JON CHESTO
CONSULTING
Woburn company sold to BDO USA
Accounting and consulting giant BDO USA is expanding in Massachusetts with the acquisition of Culbert Healthcare Solutions in Woburn, from founder Rob Culbert. Culbert, which was launched in 2006, specializes in management and health IT consulting for clients across the country. BDO will bring on board about 90 people as a result of the acquisition. The deal is expected to close on Dec. 16. Financial terms were not disclosed. — JON CHESTO
FAST FOOD
McDonald’s pledges to recruit and train more diverse franchisees
McDonald’s is promising to recruit and train a more diverse set of franchisees across the world, adding more Black and female owners in the United States, according to an internal message viewed by Bloomberg News. McDonald’s will be more inclusive in finding and training possible franchisees both in its home market and in international markets such as Germany, the UK, and France, chief executive Chris Kempczinski said in the message Wednesday. The company will provide $250 million to help finance loans for underrepresented groups including Black, Hispanic, and female potential restaurant owners over five years in the United States, he said, noting that costs to buy a restaurant are often an especially difficult barrier for candidates with diverse backgrounds. In recent years, the company has faced a number of lawsuits from Black McDonald’s store owners, including one where franchisees of Tennessee restaurants accused the company of discrimination and setting them up to fail in crime-heavy locations. The company is defending itself against the allegations. — BLOOMBERG NEWS
TOYS
Booming Lego to spend $1 billion on new factory
Lego will invest $1 billion in a new factory in Vietnam to meet growing demand in Asia and help the world’s largest toymaker meet its goal of achieving carbon-neutral operations by next year. The investment, which includes solar energy generation, will create 4,000 jobs over the next 15 years at the site located close to Ho Chi Minh City, the Danish company said in a statement on Wednesday. It will be Lego’s sixth production site, adding to facilities in Denmark, the Czech Republic, Hungary, Mexico, and China. The maker of the iconic building blocks reported in September that first half-profit more than doubled as consumers turned to its products to entertain stuck-at-home children. — BLOOMBERG NEWS
BEVERAGES
Your favorite drink may be harder to come by this holiday season
The holidays tend to make Americans very, very thirsty. And that’s a problem this year, with supply chain snarls hitting the beverage industry — from soda to energy drinks, booze to beer — especially hard. Things could get even tougher in the next couple months. While typical grocery categories are experiencing 5 percent to 10 percent of products out of stock right now, beverage shortages are higher, with around 13 percent missing from shelves. Shortages have been showing up in waters, iced teas, and soft drinks, as well as beer, hard seltzer, and canned cocktails. A shortage of bottles and cans is responsible for much of it, but trucking and shipping snarls, missing ingredients, labor woes, and even freak weather are all contributing to shortages, leaving grocers scrambling to fill in the gaps. — WASHINGTON POST
SHIPPING
Head of LA Port expects disruptions to last until the end of 2022
The head of the biggest port in the United States said supply-chain disruptions are likely to take until at least the end of next year to subside. “It’s going to take us some time via the volume of cargo coming in — it’s still very strong,” Port of Los Angeles director Gene Seroka said in an interview on Bloomberg Radio Tuesday. He expects a peak ahead of the Chinese Lunar New Year holiday in February, with American importers typically booking January orders well in advance to restock inventories before Chinese factories and ports reduce activity for the festival. Also, retailers and home-improvement companies plan to replenish stocks to boost inventory-to-sales ratios that are at the lowest since 2011, he said. “I see this going to the end of at least 2022, but we’re making small, incremental gains.” Despite efforts to ease congestion, long delays continue at the ports of Los Angeles and Long Beach, which combine to handle 40 percent of the United States’ inbound containers. — BLOOMBERG NEWS
METAVERSE
Ralph Lauren launches first digital fashion line
Ralph Lauren is debuting its first digital fashion line in Roblox Corp.’s virtual world, becoming the latest apparel maker to try building brand awareness in the metaverse. The company, known best for its polo shirts, is offering a “Winter Escape” experience in the Roblox online universe. Players can enjoy activities such as ice skating while shopping for retro sportswear from the designer’s 1990s collection. The items are expected to cost 125 to 300 Robux, or about $1.25 to $3. — BLOOMBERG NEWS
AIRLINES
Southwest rebounds on busy Thanksgiving travel
Southwest Airlines said it expects to be profitable this quarter and for all of next year, on its way toward generating as much as $1.5 billion in earnings and paying dividends in 2023. The discount carrier revised its fourth-quarter outlook after a booming Thanksgiving holiday, saying revenue would fall as much as 15 percent from pre-pandemic levels. Southwest previously said sales could tumble as much as 25 percent and that it didn’t expect to post a profit this quarter. That surge in demand and higher fares overcame effects of the coronavirus Delta variant that had swept through the United States, quashing ticket sales and leading to cancellations earlier in the fourth quarter. — BLOOMBERG NEWS
STREAMING
Roku and Google reach deal to keep YouTube on platform
Roku and Google agreed to a multiyear contract extension that keeps YouTube and YouTube TV available on the Roku platform. Roku has become increasingly valuable real estate for online services, with more than 56 million active customer accounts last quarter. Its users streamed 18 billion hours of content in the period. — BLOOMBERG NEWS