The federal government shutdown may be affecting even more than you think.
The launch of new tech, spirits, and other products are now being delayed thanks to the halt in the U.S. administration that started on October 1. The 28-day freeze is the second-longest in American history, falling behind a 35-day federal shutter in 2018-2019.
One such company feeling the ramifications is Leica. Earlier in October, the brand postponed the launch of its new M EV1 camera as it waited for the proper approvals from the Federal Communications Commission (FCC), The Verge reported. But this approval process is not considered an essential function of the agency; as a result, permission to sell items that fall under the FCC’s purview has dragged. The debut of the new Sound speaker from WiiM, a smart-audio device brand, also lagged in the wake of the federal shutdown and FCC approvals; the new product did roll out in international markets as planned.
The spirits market is facings similar struggles. The Alcohol and Tobacco Tax and Trade Bureau (TTB), the sector of the U.S. Treasury that issues permits, regulates, and collects taxes on spirits stateside, has “suspended all non-expected operations” due to a lack of government funding, according to its website. (The agency has furloughed over 86 percent of its staff.) That means companies planning on filing permits for new products, which must be approved by the TTB before the bottling process begins and the spirit pops onto the market, may run into a few headaches, The Spirits Business reported.
“The fall season is a critical time for spirits product launches and holiday planning,” the Distilled Spirits Council of the U.S. said in a statement. “The shutdown will result in delayed product launches, missed market opportunities, lost sales and tax revenue, and lasting harm to the wider hospitality industry, which contributes significantly to the U.S. economy.”
Distillers like Cleveland Whiskey in Ohio have already seen the ramifications. The small company delayed the debut of its creamy Magic Rabbit whiskey, as well as other new offerings. That pause could cost the brand hundreds of thousands of dollars in lost sales, Cleveland Whiskey CEO Tom Lix told Bloomberg. Other holiday-themed drinks may also encounter trouble with permits, according to the publication. And the halt could lead to more issues still: When the government shut its doors back in 2019, the approvals process saw delays of up to five months, Bloomberg reported, citing information from the Wine Institute.
The delays could even extend to the auto industry, if the shutdown persists. Reduced staffing on the Environmental Protection Agency (EPA) threatened to affect the launch of new models in the U.S. during that federal shutdown in 2018-2019, Reuters reported at the time. As of now, 90 percent of the EPA’s staff have been furloughed, meaning that the certifications required by law for new autos to have before they hit the market may lag.
Authors
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Nicole Hoey
Digital Editor
Nicole Hoey is Robb Report’s digital editor. While studying at Boston University, she read, wrote and read some more as an English and journalism major. A class taught by a Boston Globe copy editor…


