Chattanooga Chamber Surveys Local Businesses On Their Concerns
The impact of the COVID-19 disease on business operations and revenue in the Chattanooga region is widespread. Responding to a pair of recent surveys of business owners and managers, 74% of respondents reported decreased revenue/sales and close to 30% have closed their business. The most frequently cited top impact continues to be a decrease in revenue followed closely by the impact on business by the economic downturn and the well-being of their employees.
Although anxiety about the future is high, the numbers are headed in the right direction. When asked to anticipate the severity of overall impact from COVID-19 on a 10-point scale where 1 is minimal impact and 10 is possible business closure, 15% of respondents reported a level of 10 as compared to 22% in the first survey; 12% as compared to 15% reported a level of 9; and 12% as compared to 15% reported a level of 8. While the nature and severity of impact vary by sector and specific business, COVID-19 continues to cause widespread business disruption.
It is evident that there will be significant changes to the workplace environment as businesses start reopening. Currently 61% of employees are teleworking more than pre-pandemic and 60% plan to maintain some teleworking for employees. Some 12% plan to reduce office square footage. With schools, daycare and summer camps closed, the 'now normal' will have a huge impact on how businesses operate. Many large employers are phasing in slowly with some not planning to reopen until after Labor Day.
Unemployment hit record highs last month in the Chattanooga region. Updated regional numbers:
- Chattanooga MSA: 13.3%
- Cleveland MSA: 13.5%
- Dalton MSA: 20.5%
- Dayton/Rhea County: 24.5%
- Athens/McMinn County: 17.3%
Tennessee's highest unemployment occurred in Sevier County at 29.5%. These are incomprehensible numbers with one bright spot: Hamilton County and MSA daily job postings have started a slight upward turn over the last couple of weeks. This is a good sign as businesses start to reopen.
There are a wide range of emotions related to reopening - many are still very conservative, especially those with pre-existing conditions or with family members who are in compromised conditions, but many are ready to welcome guests and return to a physical work environment. Employers will want to explore flexible options to support employees where they are.
Although COVID-19 has negatively affected our community, many businesses are resilient and have been using innovative means to stay in business. Our community has a strong history of working together so there is confidence we will make it through this crisis and learn many valuable lessons along the way.