Director Economic Impact Local Unemployment Hanover County - - PowerPoint PPT Presentation

• E. Linwood Thomas IV

Director

• Economic Impact
• Local Unemployment
• Hanover County Successes
• Regional Collaborations
• Local & Regional Small Business Initiatives

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Economic Impact to Date

• Virus and subsequent restrictions causing

historic impacts on global economy; no part of the globe immune to this impact.

• Virginia not to be impacted as severely as U.S.;

Richmond even less impacted; Hanover among least impacted communities.

• Lag time between real world events and data;

some information presented not current.

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2.6% 6% 2.1% 1% 2.4% 4% 2.6% 6% 2.6% 6% 2.6% 6% 2.3% 3% 2.2% 2% 2.1% 1% 2.0% 0% 2.6% 6% 2.3% 3% 2.8% 8% 1.5% 5% 2.0% 0% 2.5% 5% 3.0% 0% 3.5% 5% 4.0% 0% 4.5% 5% 5.0% 0%

Unemployment Rates

Hanover Cheste terfield Henrico Richmond ( (Ci City) Richmond ( (Metro) Virginia United States Source: Virginia Employment Commission

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Source: Virginia Employment Commission (GRP: Greater Richmond Partnership)

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Source: Virginia Employment Commission

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Now the Good News:

Since 2016:

• 22 major projects in Hanover County (12 new businesses; 10 existing business

expansions)

• $715+ million in capital investment
• 1,500+ direct jobs
• These projects are coming online now and in the near future
• 3,485+ net new jobs over the past three years/Garner Economics 5 Year Analysis
• FY2020 commercial building permits (as of March): $56.4 million
• FY2020 announcements/expansions (as of April): 78
• Average annual wages increased on average by 4% last three years, last year alone 8%.

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Regional Collaborations

• Meet three times per week with regional

Economic Development leaders:

• Discuss assistance programs and best practices
• Cover regional recovery strategies

Part rtic icip ipate in in other regio ional l meetin ings with ith partners su such as: s:

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Local & Regional Small Business Initiatives

• PPE Initiative: Provide one-time kit

containing PPE to businesses of up to 25

• employees. Minimum of 5,000 kits to be

created; more if funding can be identified.

• “New normal” in Planning and Permitting.
• Local Coronavirus Aid

id, , Relie lief, and Economic Securit ity (CARES) Act of 2020.

• Relaxed guidelines pertaining to restaurant
• utdoor dining.

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Brandon S. Turner Deputy Director

• Economic Forecasting
• What We Are Seeing
• Trends for Various Industry Sectors

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Economic Forecasting

Phase I reopening scheduled for May 15th Phase II should come 2-4 weeks later.

Virus and economic models change by the day. Biology, risk, and fear will play huge roles in recovery.

Rules/protocols change frequently; unclear and very confusing.

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What are We Seeing?

• Significant discussions being held between business and

government leaders on reshoring/onshoring.

• Virginia Economic Development Partnership and Greater Richmond

Partnership continuing outreach; projects still being worked.

• Developers, site selectors, and business prospects bullish on the

Richmond region including Hanover County.

• Site consultants anticipate prospect travel resuming in Q3/Q4 2020.

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Trends for Certain Sectors

Many variables in play, so it is difficult to know exactly what the future holds.

Information on following slides based on feedback from regional and state partners, site consultants, and prospects/business community.

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Office

• Office likely to take a short-term hit:
• Businesses reassessing office needs now.
• Uncertainty over demand for office space (teleworking).
• How will companies look at dense markets in the future

(NYC, San Francisco)?

• Site consultants very bullish on RVA market long-term:
• RVA region somewhat insulated.
• Anticipation of moderate/strong rebound in vacancy and

lease rates 2-3 years out.

• Hanover has not been competitive in office sector since

great recession.

• Changes in office demand and location may position

Hanover more favorably.

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Advanced Manufacturing/Life Sciences

• Global awakening that many

pharmaceuticals/compounds manufactured by

• ne or two nations.
• Anticipate significant onshoring/reshoring as

crisis abates.

• Indications North America will see a “boom” in

manufacturing; how big is the question.

• RVA/Hanover has a strong manufacturing

economy and is well positioned geographically.

• RVA region not seen as strong player in life

sciences; working to address this.

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Logistics/Distribution

• Global supply chain has been completely upended.
• Ports reporting collapse in volume:
• Virginia: down 9% last quarter, anticipate 20-25% in

Q4 of FY20.

• West Coast: down 25% last quarter, anticipate 30%+

in Q4 of FY20.

• Manufacturers see great interest in having larger storage
• f supplies; will translate into need for more warehouse

space.

• RVA/Hanover has a strong reputation as great location

for logistics and distribution.

• Long-term anticipating strong growth in this sector.

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Food/Beverage

• Mixed impact during recession:
• Grocery suppliers have seen strong growth.
• Virginia’s seafood industry hit very hard.
• Meat industry seeing strong demand; challenges with safety.
• Overall, sector will remain strong despite shifts in consumer

habits.

• RVA/Hanover has a strong reputation for agriculture, food, and

beverage.

• Anticipate continued strong growth in this sector; region well

positioned to service heavy population centers in north and south.

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Jessica R. Hartness Existing Business and Project Manager

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• Outreach Initiatives
• Survey Responses
• Government Loans and Grants
• What We’re Hearing from Hanover

Businesses

• Business Appreciation Month

Ov Over 5,3 5,300 00 bu busin inesses in Han Hanover Cou County, , ea each do dot t rep epresentin ing a bu busin iness en enti tity.

HanoverVirginia.com

(bottom right side of all pages)

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81% 81% 19% 19% STILL OPERATING?

Yes No

71% 71% 29% 29% HAVE YOU ALTERED OPERATIONS?

Yes No

83% 83% 9% 9% 8% 8% CLOSED, BUT INTEND TO REOPEN.

Yes No Not Sure

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53% 53% 26% 26% 9% 9% 5% 5% 7% 7%

Bus usin iness Size by Em Empl ployees

Less than 10 11 to 20 21 to 30 31 to 50 50+ 13 13 8 3 7 6 18 18 5 5 10 15 20 REVENUE LOST 0-10% 11-20% 21-30% 31-40% 41-50% MORE THAN 50% NO ANSWER

Per ercentage of

• f Revenue Los
• st

t Yr Yr Over er Yr Yr

43% 43%

3% 3% 5% 5%

21% 21% 28% 28%

Num umber of

• f Wee

eeks Bus usiness Cou

• uld Sus

ustain

N/A 1-3 weeks 21

5 10 15 20 25 Ye Yes No No No r res espo ponse se

HAVE YO YOU A APPLIED FOR OR D DO YO YOU P PLAN TO APPLY FOR AN SBA LO LOAN?

5 10 15 20 25 30 Ye Yes No No

HAVE YO YOU A APPLIED FOR ANY OT OTHER EMERGENCY LO LOANS OR G GRANTS IN RESPONSE TO COVID-19? 19?

Reasons for not applying:

• Don’t want to take on additional debt
• Unsure about regulations related to

loan forgiveness

• Unsure about lending with government

strings attached

• Didn’t qualify at the time – sole

proprietors, principals, contract workers, etc.

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What we’re hearing from businesses…

• Local manufacturers

that are food & pharmaceutical customer heavy, faring relatively well.

• Many are pivoting-

changing production

• r broadening

customer base.

• Seeing opportunities

for re-shoring and becoming more economical with foreign competitors.

• Many have applied for,

and received, PPP.

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What we’re hearing from businesses…

• Obviously very busy

with essential items and food, beginning to pick back up with non-essential items.

• Some selling PPE with

priority given to Hanover County businesses in need

• Many also applied, and

received, PPP, but are uncertain what it looks like past July 1.

• Created Virginia Supply

Chain Initiative- seen major improvements as a result (14 hospitals initially in critical need of supplies, now down to 2)

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Angela C. Wright Marketing Manager

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• Hanover COVID-19 Resource Page
• Hanover County Apps
• Business online presence
• Website
• Google My Business
• Social Media Accounts

COVID-19 Information and Resource Page

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www.hanoverv rvirginia.c .com

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Website Considerations

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• Add links to your social media

accounts to the header and footer

• f your website.
• Communicate your pickup and/or

delivery options.

• Address your business’ response to

the pandemic.

• Communicate your hours and

special conditions.

• Assure customers that safety

protocols are being met.

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• Claim you Google My Business Knowledge panel.
• Make sure your status, hours and contact info are

correct.

• Add pictures, videos and complete your profile to its

fullest capability.

• Consider making relevant posts to your Google panel.
• Consider starting a Google Ad campaign.

Ser Service Up Update Goog Google Ad Temporary Update Goog Google Pos

• st

Social Media Considerations

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Facebook Considerations:

• Claim your business’ Facebook page if one already exists.
• Make sure your business Facebook page is public. People should be able to

click on your Facebook link and see your page without actually opening the Facebook app or needing their own account.

• Make sure your hours and contact info are correct.
• Consider pinning an important post to the top of your feed.
• Make sure there is a link to your website on your Facebook page.
• Consider starting a Facebook Ad campaign and adding “Call to Action”

buttons to drive people to your website.

Other social media platform considerations:

• Make sure your hours and contact info are correct.
• Make sure there is a link to your website.

Call Call to to Acti tion Bu Button Pin Pinned Pos

• st