Economic Impact of Covid-19 on Oregeon Businesses
Maintaining a successful business during a time of economic crisis can be a difficult balancing act. In truth, many business owners face challenges even during times of economic stability as they juggle the many variables impacting their companies on the road to success. We want to share with you what we are hearing from businesses like yours and what we are seeing in the Oregon and national landscape. Running a profitable business was challenging before terminology such as Covid-19 and pandemic invaded the business landscape. As we all prepare to move forward during this season of uncertainty, being equipped with the knowledge to help navigate these unchartered waters is the key to thriving in a radically changing economic landscape.
At All Star Labor and Staffing (ASLS), we have been working closely with our clients to ensure we are providing them with staffing solutions to help them find success during these challenging times. Many businesses have experienced the difficulty of layoffs while some have even had to close their doors temporarily or permanently. However, while many companies with which we have communicated have struggled during the pandemic, some are thriving and have maintained or increased their customer base.
We recently reached out to our clients to ask them to share their experiences of how the pandemic has affected their companies, and how we can best serve them. Their answers vary by industry and provide needed insight that may help companies like yours find success.
Industry Feedback:
Tax and Bookkeeping Service
“We provide an essential service, so we are able to remain open. I had to lay off an employee who worked the front desk, and not having a front desk person took away the one-on-one personal contact I’ve always enjoyed with my clients. However, we’ll hire her back once the [restrictions are lifted] so it all worked out for the best.”
Food Development and Manufacturing
“We have seen an influx of orders. COVID-19 has not impacted our company negatively because we are in the food development and manufacturing industry—an essential service. We still run three shifts 24 hours a day, five days a week.
Pallet Manufacturing Company
“It has impacted us in a way that we are not as busy, but we are still steadily working. Some of our pallet accounts have basically stopped as well as some restaurants and servicing accounts. We’ve slowed down quite a bit. On the employee side it hasn’t impacted us at all to the point where we’ve had to lay anybody off or give days off work.”
Medical Dispensary
“We are an essential business for caregivers and to a lot of people so we are allowed to remain open.”
Restaurant and Catering
“As a salaried manager, I transferred over to our restaurant and I am employed as a restaurant manager right now. The restaurant is opening soon for dine-in at 50% capacity, and we’re still doing take out. We’re doing about 50% of our average volume out the front door with boxes now. “
Is Your Business Considered Essential?
One major factor in the disruption impacted businesses is whether your industry has been determined essential by the state of Oregon. Although some essential service providers have seen a decrease in business, some industries appear to be pandemic proof, such as the grocery stores and cleaning services. These are in high demand because they provide needed products and services. The positive side of the pandemic has been the creativity sparked in companies like local distilleries who offer hand sanitizers and clothing manufacturing companies that are now producing face masks (oregonlive.com, April 18, 2020).
On a national scale, many of the largest companies have been negatively impacted by this virus. With the closures, talks of bankruptcy, and massive layoffs from some of the largest companies in the United States, the economic trickle-down effect of the Coronavirus is felt by us all.
According to a recent New York Times article, the Labor Department’s May 20, 2020 report of jobless claims has reached a total of 38.6 million since nationwide layoffs began in Mid-March. Just as layoffs nationally have reached unprecedented levels, Oregon communities have witnessed an alarming decline in employment due to massive layoffs statewide. As outlined in the chart above, the Oregon unemployment rate has increased to 300,000 in just the past few months according to the U.S. Bureau of Labor Statistics. This has affected many aspects of all industries throughout Oregon as many companies have had to shift regular business operations to accommodate social distancing mandates.
Whether your industry has been included in the essential category or you are preparing your business for when your county reopens, ASLS can assist with your staffing and employment needs. Our goal is to help your business thrive under any situation. The recent conversations with our clients have provided key insights into their staffing needs and how we can effectively help them be successful during the pandemic and beyond. As we continue to learn more about how this pandemic is affecting our communities, we will diligently work to find the best solutions to help your company thrive.