E. Linwood Thomas IV Director • Economic Impact • Local Unemployment • Hanover County Successes • Regional Collaborations • Local & Regional Small Business Initiatives 2
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. 3
Unemployment Rates 5.0% 0% 4.5% 5% 4.0% 0% 3.5% 5% 3.0% 0% 2.8% 8% 2.5% 5% 2.6% 6% 2.6% 6% 2.6% 6% 2.6% 6% 2.6% 6% 2.4% 4% 2.3% 3% 2.3% 3% 2.2% 2% 2.0% 0% 2.1% 1% 2.1% 1% 2.0% 0% 1.5% 5% Hanover Cheste terfield Henrico Richmond ( (Ci City) Richmond ( (Metro) Virginia United States Source: Virginia Employment Commission 4
(GRP: Greater Richmond Partnership) Source: Virginia Employment Commission 5
Source: Virginia Employment Commission 6
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%. 7
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: 8
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 outdoor dining. 9
Brandon S. Turner Deputy Director • Economic Forecasting • What We Are Seeing • Trends for Various Industry Sectors 10
Economic Forecasting Phase I reopening Virus and scheduled for May 15 th economic models change Phase II should by the day. come 2-4 weeks later. Biology, risk, Rules/protocols and fear will change frequently; play huge roles unclear and very in recovery. confusing. 11
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. 12
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. 13
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. 14
Advanced Manufacturing/Life Sciences • Global awakening that many pharmaceuticals/compounds manufactured by one 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. 15
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 of 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. 16
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. 17
Jessica R. Hartness Existing Business and Project Manager • Outreach Initiatives • Survey Responses • Government Loans and Grants • What We’re Hearing from Hanover Businesses • Business Appreciation Month 18
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) 19
HAVE YOU ALTERED STILL OPERATING? CLOSED, BUT INTEND TO REOPEN. OPERATIONS? Yes No Yes No Not Sure Yes No 8% 8% 19% 19% 29% 29% 9% 9% 71% 71% 81% 81% 83% 83% 20
Bus usin iness Size by Em Empl ployees 5% 7% 7% 5% Less than 10 9% 9% 11 to 20 21 to 30 53% 53% 31 to 50 26% 26% 50+ Per ercentage of of Revenue Los ost t Num umber of of Wee eeks Bus usiness Cou ould Sus ustain Yr Yr Over er Yr Yr NO ANSWER 5 28% 28% MORE THAN 50% 18 18 41-50% 6 N/A 43% 43% 31-40% 7 1-3 weeks 21-30% 3 11-20% 8 21% 21% 0-10% 13 13 5% 5% 3% 3% REVENUE LOST 0 5 10 15 20 21
HAVE YO YOU A APPLIED FOR OR D DO YO YOU P PLAN TO APPLY FOR AN SBA LO LOAN? Reasons for not applying: • Don’t want to take on additional debt No r res espo ponse se No No • Unsure about regulations related to Ye Yes loan forgiveness 0 5 10 15 20 25 HAVE YO YOU A APPLIED FOR ANY OT OTHER • Unsure about lending with government EMERGENCY LO LOANS OR G GRANTS IN strings attached RESPONSE TO COVID-19? 19? No No • Didn’t qualify at the time – sole proprietors, principals, contract Yes Ye workers, etc. 0 5 10 15 20 25 30 22
What we’re hearing from businesses… • Seeing opportunities • Local manufacturers for re-shoring and that are food & becoming more pharmaceutical economical with customer heavy, foreign competitors. faring relatively well. • Many are pivoting- • Many have applied for, changing production and received, PPP. or broadening customer base. 23
What we’re hearing from businesses… • Many also applied, and • Obviously very busy received, PPP, but are with essential items uncertain what it looks and food, beginning like past July 1. to pick back up with non-essential items. • Created Virginia Supply Chain Initiative- seen • Some selling PPE with major improvements as a priority given to result (14 hospitals Hanover County initially in critical need of businesses in need supplies, now down to 2) 24
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Angela C. Wright Marketing Manager • Hanover COVID-19 Resource Page • Hanover County Apps • Business online presence • Website • Google My Business • Social Media Accounts 26
COVID-19 Information and Resource Page www.hanoverv rvirginia.c .com 27
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Website Considerations • Add links to your social media accounts to the header and footer of 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. 30
Temporary Update Ser Service Up Update • 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 Goog Google Ad fullest capability. Goog Google Pos ost • Consider making relevant posts to your Google panel. • Consider starting a Google Ad campaign. 31
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