SLO County businesses surveyed on COVID impacts. Here’s what they’re worried about
An August economic survey of businesses across San Luis Obispo County shows that about three-quarters have experienced declining revenues — and cash flow and child care needs are among the key challenges they’re facing.
The poll conducted by the Central Coast Coalition of Chambers revealed that 63% feel the economy will be impacted for six to 12 months or longer, and will stagnate or show slow growth thereafter, as the county copes with the ongoing COVID-19 pandemic.
About 38% reported cash flow is their greatest need for assistance.
Of respondents with children 0 through 12, 40% are still figuring out their child care plans this fall, with 54% of those responding saying they’ll need to pull back on commitments without in-person school this fall.
The survey ran from Aug. 3-12, polling businesses from San Miguel to Solvang.
About two-thirds of the 226 businesses that responded were based in SLO, representing industries including retail, professional services, education, food and beverage, manufacturing, and health and beauty.
Topics included overall sentiment, financial impacts, challenges and reopening statuses.
“Right now, it’s about creating a runway so that businesses can adjust, so it’s not just deep valleys and cliffs,” said Jim Dantona, SLO’s Chamber of Commerce CEO, in a Zoom interview with The Tribune. “If that doesn’t happen, cities will suffer, quality of life will suffer, and businesses and economy will suffer.”
Adjusting to a new reality
Government agencies will be critical to help SLO County companies get through tough times, while ensuring people stay safe from COVID-19, Dantona said.
He cited outdoor dining and retail policies, modified or full business openings, business grants and child care programming, among the ways government agencies can offer guidance and assistance.
But Dantona said he remains optimistic that businesses with solid pre-pandemic models can survive, by embracing new ways of doing business — such as focusing on growing digital sales — while maintaining loyal customer bases.
“The most important thing is making sure that your customers feel safe when they come to your store, so they don’t feel like ‘I have to get out of here,’” Dantona said. “They need to be able to see you’re taking care of this thing.”
In a Facebook Live video conference with the SLO Chamber earlier Friday, Chuck Davison, Visit SLO CAL’s president and chief executive officer, said that the Central Coast’s hotels reported July occupancy rates of about 60.4%, with a significant number of tourists visiting local beach communities.
Reaching 60% occupancy wasn’t expected until March 2021 amid the pandemic, according a 24-month forecast completed by a consultant.
Davison said the tourism and lodging industry has worked hard to establish safe conditions for employees and visitors.
“To date, there’s not one outbreak reported from any lodging establishment in our county, and that says a lot about this destination and the people that live here,” Davison said. “... We won’t stay open if we don’t do the right thing.”
Child care
Without in-person school this fall, about 40% of those with young children (who make up about 22 percent of those polled overall) will use informal help from family, friends or neighbors.
About 52% will work remotely while trying to care for kids, and 16.3% will hire a nanny or tutor, with 36.3% facing reduced hours.
Dantona said that child care is the issue that “is the most concerning to me because it’s the workforce who has to figure out how to make it work.”
Dantona said child care programs and services already were strained before the pandemic; the current situation has created even more challenges because of occupancy limits due to COVID-19.
Dantona said many families are forming “pods” and sharing child care duties, but that can mean reduced working hours.
“This is one that government is going to have to get involved in,” Dantona said. “If you can remote work, OK, but it’s still tough because you have to take care of your kid, and if you have a 6-year-old on a laptop saying ‘Mommy, I need help,’ you have to go.”
Impact on SLO County revenues
The largest concern of those polled is not knowing how long the current economic situation will last.
About three-quarters of those who weighed in have seen revenue declines since March, with around 14.3% losing more than 75% of their business and 16.9% dropping between 50% and 75% after coronavirus arrived.
“While the current economic conditions are undoubtedly harsh, businesses reporting a more than 50% loss in revenue have dropped by nearly 20 points since (a previous survey in) May,” the Chamber noted in a news release. “Subsequently, businesses reporting an increase in revenue jumped up nearly 7 points in August with about 10% of businesses consistently reporting ‘No noticeable change.’”
The poll showed 79% of businesses were open or partially open in August, versus 88% in June and July, and 68% in May.
Signs of optimism included an increase in poll respondents who felt overall conditions were good or excellent (33% in August versus 19% in May) and those who said conditions were poor or catastrophic (27% in August versus 46% in May).
“While we know cash flow is still the number one issue for businesses, those reporting a loss is down 10 points from May,” said Erica Crawford, president/CEO of the Morro Bay Chamber of Commerce. “Our businesses are resilient, and while it’s clear the path ahead of us is going to be bumpy at times, our businesses and our community will come out the other side.”
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