Keyword: Continuity

KEYWORD :

CONTINUITY

Chamber, business leaders, lawmakers offer resources and advice for sustaining through the coronavirus pandemic

BY KARI PUGH

Unlike past downturns, the Washington region isn’t immune to the pandemic recession grinding the nation’s economy to a halt, but there is plenty of help available to weather the storm -- and even position the region’s business community for future growth.

First, though, the reality. At the end of March, initial claims for unemployment benefits had jumped to nearly 113,000 statewide, compared with about 2,000 in the same week of 2019, according to the Virginia Employment Commission. Over 40,000 Northern Virginia residents applied for unemployment during the last two weeks of March.

Typically, “the federal government is a stabilizer for the region by being a consistent, or growing, source of income for a significant share of local business and households,” Dr. Stephen Fuller of the Stephen S. Fuller Institute at George Mason University wrote on his website.

But in the coronavirus pandemic, spending slowed to a crawl even in households where income remained steady because all but essential businesses closed and people remained home to help stop the spread of the disease.

Area tourism, too, took a major hit, with no annual influx of visitors to the region for the Tidal Basin’s famed cherry blossoms. Hotels, restaurants and retail will probably suffer losses greater than they did immediately after the 9/11 terrorist attacks, when hotel revenues in the Washington area decreased by 13.6 percent, according to the institute. Hotel losses for the 12-month period following the pandemic are projected to be about $600 million.

“The decreased spending from travelers, plus the indirect and induced effects of the lost earnings, would result in an additional $600 million of lost economic activity, for a total decrease of $1.2 billion,” Fuller wrote.

What Northern Virginia does have going for it right now is a high percentage of tech-savvy employees who are able to work at home, meaning productivity losses here won’t be as great as those in the rest of the nation.

But Fuller predicts the economy won't rebound until the first quarter of 2021 when “households and businesses resume normal spending patterns and partially compensate for the lost expenditures in the past year.”

RISING TO MEET A NEW FUTURE

The Northern Virginia Chamber of Commerce has compiled a wealth of online and remote resources focusing on business continuity during the pandemic. The chamber is hosting several webinars each week on topics ranging from federal and state aid to managing

“PART OF THE GREATEST PAIN THAT WE ALL FEEL RIGHT NOW IS UNCERTAINTY. BUT IT’S

NOT OVER. YOU CAN RISE TO

MEET A NEW FUTURE.”

J I M C O L T H A R P , F O U N D E R , KEEPRESSINGON PROJECT

remote workforces. U.S. Senators Mark Warner and Tim Kaine have talked to chamber members about available federal aid and what may be coming in the near future. Gov. Ralph Northam and Attorney General Mark Herring have both talked about state efforts to help keep the economy moving.

Other topics have included supply chain interruption, workers compensation considerations, employee health considerations and contingency plans.

One webinar with former Comcast executive Jim Coltharp challenged business leaders to build a platform of trust and teamwork now to face the road ahead.

“Many of the habits we’re developing will be part of our new world,” said Coltharp, founder of the KeePressingOn Project, a business consulting and executive coaching firm. “Part of the greatest pain that we all feel right now is uncertainty. But it’s not over. You can rise to meet a new future.”

He advised executives to start, or continue, building trust and emotional energy within their teams. That trust will help ease the uncertainty of today’s realities and position companies for a stronger future, he said.

“The last thing [your employees] need is another list of things to do,” he said. “What they need is genuine compassion and care. This period is going to be defined by measuring your risk. Companies are either going to get better or they’re going to fall back.”

Another key to survival for businesses will be the ability to be agile and adapt quickly, Coltharp said, relating an anecdote about the time he suffered a severe foot fracture during a 13-inch snowstorm.

Rather than call an ambulance, he called a nearby Walgreen’s and asked if they had any crutches in stock. Finding out they did, indeed, he drove over and pulled up to the pharmacy’s drive-through window, where he asked for the crutches.

“We only do prescriptions at the window,” he was told.

“Well, today you do crutches,” he said and handed over his credit card.

RAPIDLY CHANGING ENVIRONMENT

One industry perhaps hardest hit by the pandemic has been restaurants, which were forced to close in-house dining under orders from Gov. Ralph Northam. But many owners found a way to keep revenue coming in by offering contactless pickup and free deliveries.

“While this is a crisis, I’ve got to hand it to our small businesses, especially our restaurants and their ability to pivot in this situation,” Fairfax County Board of Supervisors Chairman Jeff McKay said during another chamber webinar. “As hard as it is to protect ourselves when we go out, I’m heartened to see so many residents trying to support our local businesses.”

Fairfax County leaders are working on ways to ease tax burdens on local business owners. The county is also working hard to keep essential county offices open.

“This changes it seems like every minute of every day,” McKay said. “We know that there’s a lot of pain out there, in our business community in particular, especially in the hospitality and service industries. But in Fairfax County, we have the assets and opportunities to weather this storm hopefully better than other places.”

FEDERAL HELP AND SOME ADVICE

Much of the chamber's focus in early April turned to helping business leaders navigate aid available through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The measure established a $349 billion paycheck protection program aimed at helping small businesses keep their workers employed.

The CARES Act also provides tax credits for businesses of all sizes to help keep or bring back furloughed employees.

In discussing federal efforts to keep businesses afloat, U.S. Sen. Tim Kaine said lawmakers are focusing on putting dollars where they are most needed. But he also had some advice on how business leaders can help themselves.

“An economic challenge relies on some basic fundamentals, but it’s a psychological thing that can feed on itself, a psyche that's hard to get out of,” Kaine said.

Employees working from home can feel isolated and disconnected. Their bosses, he said, should try to foster a positive attitude and talk one-on-one with team members when they can.

“For leaders in the business community it’s never wrong to over-communicate, but it’s an especially good thing to do now.”

The Washingtonian Group is proud to support

The Northern Virginia Chamber of Commerce

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