Wisconsin businesses continue to demonstrate resilience during the pandemic as 41 percent of respondents to a University of WisconsinOshkosh statewide economic survey indicate they have introduced or expanded online services during the last three months.
“The survey results illustrate a business community that is reopening,” said Jeffrey Sachse, director of UWO’s Center for Customized Research and Services (CCRS). “Responding businesses have proven extremely resilient but challenges remain in tourism-driven and customer-facing industries."
Results from the third in a series of monthly impact surveys also revealed that businesses continue to seek financial assistance amid the COVID-19 crisis, with 60 percent of respondents requesting assistance and 52.4 percent receiving aid.
Estimates of business survivability increased, with only 10 percent of respondents estimating survivability of less than three months,” Sachse said.
UWO is partnering on the survey project with the Wisconsin Economic Development Corporation as well as New North and eight other Regional Leadership Council organizations to assess COVID-19 recovery ability and state and federal aid efforts.
The June survey yielded 744 responses — a significant decrease from the 1,126 responses received in May and 2,424 received in April.
Sachse attributes the decline in participation to two related issues.
“We noted a strong correlation among businesses that reported low survivability and nonresponse in the May survey results. This trend continued this month," he said. "Similarly, the survey period of June 1-13 correlates with the beginning of the summer tourism season and comes three weeks after the reopening of the state. A decrease in response was anticipated as business owners continue the process of resuming operations.”
Responding businesses reported May 2020 losses of:
•$22.2 million in income.
•$6.4 million in inventory.
•$13.7 million in wages and productivity.
•$37.8 million in other economic factors.
Each of the reported losses marks a significant decrease from previous months. “The inventory loss estimate is especially notable as it represents a 67 percent decrease when reported on a per firm basis,” Sachse said.
Income losses are 58 percent lower than May estimates on a per firm basis, but only 15 percent below April estimates.
Most responding firms reported being open for business, with 14 percent needing additional resources to do so or deciding not to open. Five percent of responding firms also reported hiring staff in the past month. Many firms expect the losses attributed to the pandemic to continue through the remainder of 2020, with several firms reporting that losses are just beginning to appear.
The research will continue as the fourth survey will be sent to responding businesses and partner organizations early this month.