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Miami Herald
13 hours ago
- Business
- Miami Herald
Cyberattack on grocery supplier reveals fragility of US food supply
Hackers infiltrated one grocery distributor, and within days, there were bare shelves at stores around the country and even some pharmacies unable to fill prescriptions. That's not the beginning of some thriller novel. It's the real events that played out earlier this month as major wholesale distributor UNFI, dealt with a cyberattack. But the moral of the story is already clear: The nation's highly consolidated food supply is in need of stout digital defenses to protect it. 'It pretty much exposes the fragility of our whole grocery system,' said Gregory Esslinger, a distribution expert, brand adviser and former UNFI manager. 'It's a national security issue, honestly.' Based in Providence, Rhode Island, UNFI has about $31 billion in revenue and supplies 30,000 stores nationwide. 'It's been years, but they're still gradually integrating the SuperValu systems,' Esslinger said of UNFI. 'When you integrate systems, you potentially open doors to issues like this.' While operations at the country's largest publicly traded grocery wholesaler have edged back to normal after UNFI detected the attack June 5 and shut down its ordering systems, preventing and better responding to the next hack will be the greater test. 'If it happens again, that would be the end of them,' Esslinger said. 'The confidence would be shattered.' Having a handful of big suppliers like UNFI distribute the majority of the nation's groceries can help keep the price of food down, but it carries enormous risk when something goes wrong. Every part of the supply chain should take note of what happened and revisit their security plans, experts said. 'If you're in the industry, this is a great opportunity to take this to the board, ask for the budget, ask for what you need to mitigate the risks,' said Cliff Steinhauer, director of information security and engagement at the National Cybersecurity Alliance. 'You know the phrase, 'Don't let a good crisis go to waste.' I hate to say that, but you can take incidents like this and quantify it.' Steinhauer and others believe the attack on UNFI was likely ransomware. Typically, that means a hacker has been able to access and lock up key systems, promising to free them only after the target pays a ransom. 'It does have all the telltale signs of a ransomware attack because the apparent effects are so widespread,' said Adam Marrè, the chief information security officer at the Minnesota-based cybersecurity firm Arctic Wolf. But the company has released few details. UNFI on Wednesday declined to answer questions about the nature of the attack 'as the investigation is ongoing.' 'We've made significant progress toward safely restoring our electronic ordering systems,' the company said in a statement. UNFI distribution centers are again taking orders and making deliveries as of Sunday. Beyond the threat of Americans being unable to access food, attacks like these are also devastating to the company. Every moment of downtime in the logistics business is financially costly. Guggenheim analysts took down their quarterly sales estimate for UNFI by $250 million, a projected 3% hit to the wholesaler's top line. UBS analyst Mark Carden wrote the impact could last much longer. 'We do see some risk to customer retention,' Carden wrote. 'We expect disruption to UNFI's (revenue) to persist over the next few quarters.' It's that kind of damage that makes grocery distributors and other key links in the supply chain such attractive victims for hackers. 'Ransomware actors target industries more likely to pay than not pay,' Marrè said. 'It appears they chose not to pay the ransom, which we recommend and so does law enforcement, but we also understand the business and life-saving realities surrounding that decision.' The UNFI attack follows other critical infrastructure hacks like the Colonial Pipeline in 2021. Any other companies those spooked should take precautions and practice response plans, Marrè said. 'Prevention is great,' he said. 'But at the end of the day, the ability to detect and respond to an incident is a must. There needs to be backup plans and alternates in your supply chain.' Esslinger said a number of factors might have contributed to the UNFI cyberattack and resulting shutdown, which stalled deliveries and, in some warehouses, saw employees taking orders on pen and paper. 'It's some lack of foresight or planning,' he said. 'The other train of thought is they recently laid off a number of people and outsourced some roles. Did that open the door?' 'UNFI regularly evaluates and adopts new tools and technologies as appropriate to strengthen our information security program to address evolving threats,' the company said in a statement, 'and we are continually taking steps to further enhance the security of our systems.' Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
27-05-2025
- Business
- Yahoo
Pressure building for homeowners as renovation industry gets hammered by supply chain chaos thanks to tariffs
Tariffs are hammering the home renovation industry, pushing designers, contractors and homeowners into a financial crunch as rising costs create chaos in the supply chain. Chad Esslinger, an interior designer based outside Chicago, says the pressure has been building ever since President Donald Trump introduced sweeping global tariffs in early April. Costs have been creeping up for Esslinger, telling CNN that one key supplier, providing lighting, rugs and furniture, slapped a 14% 'temporary tariff surcharge' on Chinese imports and 2% on goods from any other countries starting May 12. Another vendor dealing in fabric and wallpaper also warned of imminent price hikes. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'I've seen it where sometimes they don't even warn you,' he said. 'I've gone to a website to look at a product I might have sourced a month ago, and now suddenly it's a certain percentage more.' To survive, Esslinger says the price hikes can't be absorbed; they have to be passed on. 'Just like everything,' he said, 'you have to pass that cost along if you want to stay profitable.' The home renovation market has thrived in recent years, bolstered by an aging housing stock and fewer new builds. But that growth is being threatened by U.S. trade policy. In 2024, China exported more than $438 billion worth of goods to the U.S., with nearly 19% of that total in machinery and appliances, including refrigerators, dishwashers, laundry machines, and another 4% in furniture and lighting, according to the U.S. International Trade Commission. A recent agreement between the U.S. and China has temporarily lowered that rate to 30% for 90 days, but the broader market remains unsettled. Blanket 10% tariffs remain in effect for many other trading partners, and those rates could climb again after July 9. 'It's top of mind at this point. On the contractor side, they're waiting to see how it unfolds,' Julie Kheyfets, CEO of Block Renovation, a platform that connects homeowners with contractors, told CNN. 'The thing about renovations is, every renovation is different. You can't stock a bunch of extra materials ahead of time, because every homeowner wants something different.' That uncertainty has made it harder for businesses to plan and for customers to commit. The U.S. home remodeling market is still expected to grow in the coming years, according to fresh projections from the National Association of Home Builders (NAHB). The NAHB forecasts a 5% increase in residential remodeling activity for 2025, showing resilience in the face of economic and trade policy volatility. The growth, they say, is being driven by factors like aging housing, high home equity levels and an aging demographic. But despite the projections, professionals like Esslinger say the lack of clarity is causing delays. 'The word that just keeps coming up is uncertainty,' he said. 'I've had some clients say they're going to hold off for a little bit and see how things go, while some have scaled back a little bit.' Not everyone is seeing the same level of impact. Nina Sepiashvily, who runs I&N Builders in New York City, says that while she's noticed a slight uptick in costs, it's nothing compared to the price surges triggered by post-pandemic inflation. Her focus is more on structural materials like lumber, rather than imported furnishings. Tariffs on Canadian lumber, a key import for the U.S., sit at 14.5%, but the U.S. Department of Commerce has proposed more than doubling that rate to 34.5%. 'We haven't really seen [tariffs] affect our costs yet,' Sepiashvily said, 'Homeowners are uncertain about tariffs, they're uncertain about their investments and they're afraid to pull the trigger.' But in New Mexico, interior decorator Sandy Schargel experienced the ripple effects firsthand when a lighting company canceled a large order due to tariff-related product discontinuations. Replacement options came with a 10% markup. Schargel says the loss of access to more affordable imported items means she now often looks to American-made alternatives in a shift that may drive up costs for budget-conscious clients. 'When you come to the lower price points, American-made does limit things, somewhat,' she said. 'Imported merchandise often has lower price options.' She's now telling her clients to buy early. 'I've told people to order what they need as soon as possible to avoid prices going up further down the line,' she said. As for Esslinger, he hasn't seen any price relief. 'No home goods importers I work with have said they plan to lower prices,' he said. Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs If you're planning a home renovation in 2025, you're likely feeling the squeeze of rising material costs and ongoing tariff volatility. But, with the right strategy, you can still make your dream remodel a reality without blowing your budget. Here are four ways to protect your wallet and stay on track: Renovation costs can escalate quickly in today's market. Experts recommend adding a 15% to 30% contingency to your budget to account for unexpected costs, like price hikes in materials. Use budgeting tools, whether spreadsheets or apps, to monitor every dollar spent and keep your project from spiralling out of control. Global supply chains remain unpredictable, and tariffs are making some imports pricier than ever. You can choose U.S. lumber or steel, which tend to be less tariff-sensitive. You can also work with local suppliers to cut down on shipping costs. Renovations are a big-ticket item, but there are smart ways to finance them, like home equity lines of credit (HELOCs), home equity loans, which offer fixed-rate options or personal loans, if you have strong credit and want to avoid tapping into home equity. Don't settle for the first contractor you meet. Make sure to get multiple bids and ask for itemized estimates to see exactly how much is being allocated to materials, labor and overhead. This can help you spot markups, negotiate better rates and make informed comparisons. While the pause in the highest tariffs offers some relief, many in the home renovation business are preparing for continued volatility. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
