In an effort to represent business interests with local government and to better illustrate the economic effects of the COVID-19 pandemic on the Grays Harbor business community, Greater Grays Harbor, Inc. recently conducted a Business Impact Survey. In total 70 businesses responded to the 15-question survey, which was a follow-up to an initial survey conducted in June, 2020. Here are some key takeaways that have been shared with local, state, and federal officials:

Takeaway #1: Relief funding is getting to businesses, but more is needed throughout the county.

39% of businesses report having received at least some COVID-19 related grant funding since the beginning of the pandemic. This number is up from 29% in June 2020, suggesting that small business grant programs are helping to alleviate at least some of the negative impacts stemming from the pandemic.

22% of businesses report a need for additional grant funding to prevent layoffs and business closure. This number is down from 29% in June 2020.

43% of businesses reported they were approved for an SBA Paycheck Protection Program Loan, while 26% were approved for an SBA Economic Injury Disaster Loan. These numbers are mostly consistent with the results from June 2020.

Geographically speaking, businesses are reporting a need for additional grant funding to prevent layoff and business closures in every part of the county:

  • 40% of businesses responding from Westport and Ocean Shores report a need for additional grant funding (down from 50% in June 2020.)
  • 40% of businesses responding from the Port Cities (Aberdeen, Hoquiam, and Cosmopolis) report a need for additional grant funding (up from 25% in June 2020.)
  • 29% of businesses responding from East County (Elma, Montesano, McCleary, and Oakville) report a need for additional grant funding (up from 21% in June 2020.)

Why this matters: Without additional economic relief, 22% of businesses surveyed will experience further layoffs and possible business closure.

Takeaway #2: Most businesses are still reporting decreased business performance due to the pandemic.

The economic fallout from COVID-19 has hit all industry sectors and size categories, with 3 out of every 5 Grays Harbor businesses reporting year-to-date revenue declines due to the pandemic. Of those reporting drops, most (75%) expect the revenue impact from COVID-19 to be long-term, and roughly a quarter (23%) expect the pandemic will result in a long-term decrease in their staff size. 20% of businesses 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 #3: The Hospitality and Retail sectors have been hit the hardest.

All businesses responding from the hospitality sector (including accommodation and food service establishments) are reporting decreases in revenue due to the pandemic, and 40% expect a long-term employment decrease in their business to result.

Likewise, half (50%) of respondents from the retail sector report decreases in revenue, and 17% of these now expect long-term decreases in employment levels.

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 #4: Many businesses report increased expenses related to the pandemic.

69% of businesses report incurring increased expenses to uphold Washington’s safe reopening standards. Respondents cited a need to purchase masks, sanitizer, gloves, software, computer accessories, office equipment, as well as increased expenses associated with staff training and labor costs.

Why this matters: Many businesses, particularly in Hospitality and Retail sectors, are battling not only decreased revenue but also increased operating expenses. Additional grant funding would help alleviate some of the impact of the regulations imposed on Grays Harbor businesses.

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.

 

Questions/Comments? Please contact:

Grant Jones

gjones@graysharbor.org

Economic Development Contractor

Greater Grays Harbor, Inc.