COVID-19 Economic Impact Survey cover image. (IMAGE: Courtesy of UW-Oshkosh)
OSHKOSH, WI (WTAQ) – A July survey sent out by UW-Oshkosh again gauged the impact of the COVID-19 pandemic on businesses across the state.
“What we’re seeing here is that it’s a tale of two business communities,” says interim director of UWO’s Center for Customized Research and Services Jeff Sachse, ” Half of the businesses responding still are reporting losses while the other half are now starting to see gains…We still feel that this represents a really interesting longitudinal view of the dynamics of the pandemic and how it has impacted the business community. ”
Responding businesses reported inventory gains of $3.38 million, income gains of $11.29 million, wage and productivity gains of $4.18 million, and other financial impacts of $7.2 million.
“[There is] some sense of the beginnings of recovery. But that recovery is, by it’s very definition, fragile and very heavily dependent on the state of the state’s public health,” Sachse says.
The July survey included new questions for business respondents.
One new question asked for changes in income and other economic and financial factors rather than simply reporting losses.
“We are seeing some signs of optimism. We’re seeing businesses are reporting business gains and we are seeing some minimal hiring activity happening,” Sachse says, “Those businesses hired around 250 individuals over the course of the last month which, again, is consistent with what we anticipated. Especially for those businesses that were more seasonal in nature…We’re not really seeing a lot of specific hiring or new hiring beyond what they might consider as recall activities for individuals that may have been furloughed or laid off.”
249 people were hired across the responding businesses.
Respondents were also asked to share their perspectives on business and personal travel during the pandemic for the first time.
“Most businesses are ceasing any travel until such point as either a reliable treatment or reliable vaccine for coronavirus or COVID-19 is found,” Sachse says.
65% of respondents eliminating all non-essential travel for the remainder of this year, and more than one-third already deciding to do the same in 2021. Personal travel also has decreased for 70% of respondents, confirming the losses observed across the state’s tourism industry.
Meanwhile, businesses are at their most optimistic regarding their long-term viability from at any point in the survey period, with more than half reporting survivability of seven months or more. But there are ongoing areas of concern. 55% of respondents continued to apply for financial assistance last month, with 63% having applied at some point during the pandemic. 17% continued to expand their online profile. Sachse reports an 85% success rate of businesses who have already sought either state or federal assistance.
All of those numbers, Sachse says, are generally consistent with what they’re hearing with the current availability of PPP and other loan programs, especially the expanded WEDC resources like the ‘We’re All In’ program that was introduced last month.
“As we start to see the expiration of some of those loan periods, we would expect that the firms that are seeking assistance help found assistance – but further, that those firms that will be seeking additional assistance may have difficulty finding it,” Sachse explains, “[Some businesses] weren’t applying for any types of federal or state assistance. They did not believe that they were actually eligible for that assistance, or were told specific assistance for their sector may be forthcoming.”
Respondents also were asked to reassess their comfort with working from home. 43% of respondents reported some level of comfort with their business’s ability to return to work from home, if needed, with a quarter of businesses reported being extremely uncomfortable with such a return. This is a significant change from the first survey, in which most businesses reported less than 50% productivity in their remote workforce.
The August COVID-19 economic impact survey will be sent to responding businesses and partner organizations from August 5th-19th. That survey, Sachse tells reporters, will include more new questions – including businesses reactions to their specific school districts reopening plans and what types of benefits or accommodations businesses anticipate with parents seeking flexibility with childcare arrangements.
The survey is a partnership of UW-Oshkosh, the state’s nine Regional Development Organizations and the Wisconsin Economic Development Corporation. The July survey received a total of 615 responses and is reported with a margin of error of +/- 3%. To see the full results, click here.
Comments