Greater Grays Harbor, Inc. Conducts COVID-19 Business Impact Survey

Employees at Brass Hub Coffeebar in Cosmopolis wear masks in accordance with the state mask mandate.

In an effort to represent business interests with local government and to better illustrate the economic effects of the COVID-19 pandemic on Grays Harbor businesses, Greater Grays Harbor, Inc. recently conducted a Business Impact Survey. In total 81 businesses responded to the 13-question survey. Here are some key takeaways that were recently shared with local, state, and federal officials:

Takeaway #1: Most businesses are reporting decreased revenue due to COVID-19.

The economic fallout from COVID-19 has hit all industry sectors and size categories, with 4 out of every 5 Grays Harbor businesses reporting year-to-date revenue declines due to the pandemic. Of those reporting drops, most (85%) expect the revenue impact from COVID-19 to be long-term, and nearly half (47%) expect the pandemic will result in a long-term decrease in their staff size. 17% report they are at least “somewhat likely” to close their doors permanently.

Why this matters: Without additional economic relief, we should expect decreased employment levels and an increase in business closures over the next 1- 3 years.

Takeaway #2: Retail and Hospitality industries have been hit the hardest.

These industries reflect consistently negative impacts on year-to-date revenues (85% of Retail and 92% of Hospitality have seen revenue decreases) and the most significant projected long-term loss of employment from COVID-19 (29% of retail industry and 32% of Hospitality industry respondents predict a greater than 30% long-term employment drop.)

Why this matters: Hospitality and Retail are the 2nd and 3rd largest sectors, respectively, in Grays Harbor by employment level, each employing roughly 3,000 before the COVID-19 pandemic. This means the overall economic impact of COVID- 19 may be greater in Grays Harbor than in counties who are less reliant on these sectors for employment.

Takeaway #3: Relief funding is getting to businesses, but more is needed.

Nearly half (49%) of businesses reported they were approved for an SBA Paycheck Protection Program (PPP) loan, and about a third (31%) were approved for an SBA Economic Injury Disaster Loan. At the time of the survey, 29% of business report receiving at least some COVID-19 related grant funding, with 28% of business reporting a need for additional funding to prevent layoffs or business closure. (NOTE: The survey was conducted prior to the Grays Harbor County and City of Aberdeen small business grant programs.)

Why this matters: More than half (51%) of respondents in Grays Harbor missed out on either one or both of the primary economic relief tools available to support businesses during this unprecedented time. Nearly all of these businesses (88%) were aware of the programs but decided not to apply. This may suggest that the current programs are not meeting the needs of many businesses, or that the application processes were difficult to navigate or overly burdensome.

Takeaway #4: Coastal communities are reporting the largest need for additional grant funding.

Half of all businesses (50%) responding from the Westport and Ocean Shores communities report a need for additional grant funding to prevent additional layoffs or business closure. Approximately one quarter (27%) of businesses in all other parts of the county report a similar need.

Why this matters: Our coastal communities are significant economic drivers for the county. Businesses in these areas help to generate tourism dollars when they are fiscally healthy and able to serve visitors. More relief funding is needed in these communities to support businesses during the phased reopening.

 

It is our hope that the data collected from this Business Impact Survey will inform local, state, and federal policy and help to improve our collective response to the COVID-19 pandemic. Greater Grays Harbor, Inc. will be conducting a follow-up survey in September, and we encourage all local businesses to participate. Be sure to join our newsletter list to be notified when the next survey is open.

Questions / Comments? Please contact:
Grant Jones
gjones@graysharbor.org
Director of Business Development
Greater Grays Harbor, Inc.