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18
Apr

A PULSE OF THE WINDSOR ESSEX ECONOMY

PROFESSIONAL SERVICES AND RETAIL

Led by the Windsor-Essex Regional Chamber of Commerce, the Professional Services and Retail Committee of the Windsor Essex COVID-19 Economic Task Force is comprised of 13 individuals representing a wide cross-section of businesses and associations in the sector.

The retail and professional services sector have been significantly impacted by the Province of Ontario’s Essential Workplace list as many businesses were forced to temporarily close traditional forms of commerce. Rakesh Naidu, President and CEO of the Windsor-Essex Regional Chamber of Commerce, has stated: “Companies in Windsor-Essex have been severely impacted by COVID-19. A significant number of SMEs have shut down operations and several among them will not be able to re-start their business. Reduction in demand of goods and services, supply chain disruption, and cash flow challenges have added to the challenge.”

Data from the sector pulled from the Windsor Essex COVID-19 Business Impact Survey collected between March 22nd and April 8th match the comments by Naidu. Of the 393 responses from individuals who self-identify underneath the professional services or retail umbrella, the following data were compiled:

  • 90.8% of respondents have recognized a significant negative economic impact
  • 4.8% of respondents have recognized any positive impact
  • 53.4% of respondents have said they had temporary lay-offs
  • 22.1% of respondents expect some percentage of their workforce to become permanently laid-off
  • 80.1% of respondents had already recognized a significant or moderate drop in revenue
  • 84.2% of respondents expect a significant or moderate drop in revenue into the future

The Windsor-Essex Regional Chamber of Commerce with the Windsor Essex COVID-19 Economic Task Force have been working with both the Ontario Chamber of Commerce and the Canadian Chamber of Commerce to ensure all groups and businesses are able to access the Federal funding. Naidu adds, “The recent support from all 3 levels of government has been well received but more needs to be done. Businesses are averse to taking on more debt at this time since the future economic conditions are unknown. Businesses are seeking additional support in terms of enhanced stimulus packages that include rent support, grants, interest rate cuts, tax exemptions, etc.”

Some retailers, especially grocery stores and other food services, are experiencing strong sales and in some cases are hiring workers. Delivery services are thriving. Increasingly retailers are moving to delivery or curbside pick-up to maintain some forms of revenue.

Debra Purdy, owner of ShopEco, has used the challenges presented by the COVID-19 pandemic to accelerate future online plans to operate an e-commerce platform. “We are about to launch online, with free delivery throughout Essex County.” Said Purdy, “The new and regular customer support has been heartwarming and uplifting. I hope to emerge from this with a business that is better and stronger than before.”

WEtech Alliance shared an aggregated list of 200+ local businesses that remain open with any combination of regular or reduced hours, delivery, e-commerce or curbside pick-up with Postmedia’s new ‘Connect With Local Businesses’ platform.

Greg Drouillard, President of Target Building Materials, has witnessed immediate changes in demand as retail and construction customers have requested disinfecting and sanitizing products. However, Drouillard is also concerned with water levels in the surrounding lakes and rivers and is making strategic purchasing decisions based on potential and upcoming risk.

“As if the COVID-19 pandemic isn’t devastating enough, the potential for local flooding is adding to stress. With smaller contractors often unable to aid homeowners in risk areas, we at Target Building Materials have taken this problem extremely seriously and have prepared remedies and products that are available to shoreline residents who can self-protect against flooding. Moreover, these preventative measures may mitigate against a longer-term health risk due to the growth of mold and mildew – potentially adding to the overburdened healthcare system.” – Greg Drouillard, President of Target Building Materials

The bulk of professional services have been shifted to work-from-home scenarios. Companies that were innovate and progressive pre-COVID adapted easily while others quickly caught up. Some offices remain open, often with reduced hours and/or staff, and are practicing Physical Distancing. Wills can now be legally witnessed by Video Chat, saving the need for personal interaction.

Overall, there is excellent information sharing and support throughout the community from the WindsorEssex Small Business Centre, EPICentre’s Project Nimble, and informative and instructional webinars hosted by the Windsor-Essex Regional Chamber of Commerce and Leamington District Chamber of Commerce and other organizations.

The Windsor Essex COVID-19 Economic Task Force was established March 18, 2020 and is comprised of 40 members who represent a broad cross-section of industries in Windsor-Essex, Ontario Canada. The Task Force is sub-divided into six separate committees, each with upwards of 15 members.

The mission of the Windsor Essex COVID-19 Economic Task Force is to collect, coordinate and disseminate information on strategies, programs, and other remedies that are available to mitigate the impacts that the COVID-19 pandemic is having on the economic well-being of workers, entrepreneurs, businesses and the regional economy. The Task Force has, and will continue to, strategize and formalize re-ignition plans for their respective industries in the context of the overall Windsor-Essex, provincial and national economies. 

HOSPITALITY AND TOURISM

Though active, the Hospitality and Tourism sector has been all but decimated. Many of the restaurants, breweries and wineries have been able to pivot to accommodate immediate needs, while tour operators and attractions are closed. Hotels are running at reduced capacity with single digit occupancy or have closed based on the public needs. Some have pivoted to assist with front line staff and safe accommodations during physical distancing measures.

A survey was completed by the Tourism Industry Association of Ontario (TIAO) between April 1st through April 8th, and the following data was provided from 161 businesses or entities in Southern Ontario:

  • 66% have closed temporarily
  • 43% have laid off staff
  • 28% have reduced services

In terms of short- and longer-term outlook, the 161 respondents had the following responses:

  • 53% are looking at further staff layoffs
  • 56% are looking at continued business closure
  • 22% may close their businesses permanently
  • 35% may be unable to pay their staff
  • 54% will be looking for federal or provincial funding

The Hospitality and Tourism committee expects to see a very localized scope of sales throughout Q2. Local visitation is projected to be larger than normal – road trips and day trips from residents. To support this localized scope of sales, focusing on the unique stories and experiences available within the Windsor-Essex region will be paramount. Additionally, the committee and other partners plan on continuing with education to individuals and businesses on how to interact with the public moving forward – with suggestions of low cost and complimentary marketing initiatives that will be available to leverage limited dollars.

“As with most other facets in our society today, the tourism industry is also experiencing massive disruption. In accordance, we have pivoted to ensure our destination and thereby communities within Windsor Essex are not forgotten. Through the creation of our campaign #YQGStandsStrong, we have combined forces with other local organizations to let fellow residents know we are all in this together. With strategic messaging and timely initiatives, we are engaging with our partners and looking towards a time in the no-so-distant future where we can encourage visitation and associated experiences once again.” ~ Gordon Orr, CEO, Tourism Windsor Essex Pelee Island

The current lull in the hospitality and tourism sector is anticipated to continue through Q3, 2020 with a return to a stable base in 2021.

Initiatives developed by TWEPI and championed by many influential stakeholders in the region have helped with both sales and morale throughout the region.

Initiatives include: #YQGStandsStrong – a social media campaign designed to highlight positive stories in the region, as well as images of things people miss and/or can’t wait to explore once social distancing is removed.

Product services themed days created through engagement with local stakeholder collectives, including:

  • #TakeOutTuesday – to promote restaurants who are currently offering take-out and delivery meals.
  • #WineOrderWednesday – to promote local wineries during curbside takeout and delivery, in collaboration with the EPIC Winegrowers Association.
  • #FillUpFriday – to promote local breweries offering take-out and delivery, in collaboration with the Barrels Bottles & Brews beverage producers.

LOGISTICS, TRANSPORTATION AND CROSS-BORDER

Thank you to all the women and men in the logistics, transportation and cross-border sector who have stepped up to help us get through this crisis.

Windsor-Essex County, Ontario, Canada –Thursday, April 17, 2020 – Led by the Institute for Border Logistics and Security (IBLS), the Logistics, Transportation & Cross-Border Committee (LTCB) for the WindsorEssex COVID-19 Economic Task Force is comprised of representatives from the trucking industry, logistics and warehousing, border operators, airport operations and members of the Windsor Transportation Club. The Committee has met virtually several times since the outbreak to exchange data and personal accounts of the economic impact of COVID-19.

The LTCB sector has and will continue to be an essential service for myriad reasons. The women and men in the LTCB sector have stepped up to help get the entire population through the crisis by ensuring the delivery of healthcare services, medical equipment, food, and other essential items. They have done so in the following capacities:

  • Transporting goods throughout Windsor-Essex, Ontario, Canada, and the United States;
  • Keeping the border open and safe (like the Windsor-Detroit Tunnel) so that trade and essential cross-border commuters can cross;
  • Ensuring construction persists on the Gordie Howe International Bridge;
  • Providing important linkages to raw materials for construction through Port Windsor; and
  • Maintaining operations at the Windsor International Airport for general aviation and medical and emergency flights.
  • The region’s logistics, transportation and cross-border sector is on the frontline of maintaining the health, safety, security and economic well-being of the residents of the Windsor-Essex region.

Locally, the LTCB sector plays an important role. It is made up of 2,600 businesses employing over 10,000 workers in Windsor-Essex. While designated as being essential, the logistics, transportation and cross-border sector is not immune to the economic hardships being faced by the rest of the economy. Due to the shutting down of non-essential businesses across the country because of COVID-19 restrictions, many trucking companies are driving empty trailers or have idled their trucks thus generating little or no revenue. Given the strength of the automotive sector in the Windsor-Essex region, the announcement by the large automotive companies to close their plants to halt the spread of COVID-19, combined with travel bans, have had a dramatic impact to the local logistics, transportation and cross-border sector.

To help illustrate the significant drop in the transportation and logistics industry the following data has been compiled:

  • Daily traffic on Huron Church is down 52% and truck traffic is down 43%. Year-to-date traffic at the Windsor-Detroit Tunnel has declined by 88% compared to the same period last year; and from March 1st through to April 8th, overall traffic has declined by 55%;
  • The Detroit-Windsor Truck Ferry has ceased its operations for the first time in its 30 years of business due to the COVID-19 crisis; and
  • All commercial flights have ceased flying in and out of the Windsor International Airport until the end of April. This suspension of services has an additional impact on the region’s overall transportation sector.

The LTCB sector in the Windsor-Essex region is facing serious challenges. Yet, cautious optimism remains that the sector will rebound once the travel ban is lifted, people are patronizing hospitality and entertainment establishments and there is a demand once again for non-essential goods. The sector has also witnessed a wave of gratitude for continuing to work during these difficult times. Social media campaigns thanking truckers (#thankatrucker) have been well received by the general public. And, in return, the sector has given back. The Windsor Transportation Club has launched a “Feed the Frontline” initiative to provide meals to frontline healthcare workers with support from several local restaurants.

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Guest Writer