New survey by VEDC reveals one in ten local businesses to reduce workforce in six months

11% of local businesses are now hiring more staff

VICTORIA, Texas- The Victoria Economic Development Corporation released the results of their fourth round of business surveys Tuesday.

These surveys were conducted to measure the impact of COVID-19 on the business landscape locally and regionally. It was open for two weeks beginning on August 24th. The VEDC received a total of 591 completed surveys from businesses in Victoria, the Corpus Christi metro area, and the Coastal Bend region, Sugarland, northeastern Houston, and the Dallas metro area.

Dr. Jim Lee, Regent Professor of Economics at Texas A&M University-Corpus Christi compiled the data received from several regions of Texas and has provided the results.

The survey says that overall Victoria, “seems to be resilient to the pandemic’s economic impact in comparison with other regions covered by this survey.”

Operations

The survey reports that most businesses in Victoria have reopened since Governor Abbott reopened the state in May, with 5% operating at reduced hours. On average local businesses are running at 87% of their normal capacity, with 36% of employees working remotely.  Slightly less than half of the businesses are facing supply chain disruptions, the survey finds. Also, about three-quarters of businesses are enforcing different COVID-19 related protocols.

Workforce

Seventy percent of local businesses have returned to pre-pandemic staffing levels. The survey reveals that while 11% of businesses are now hiring more, another 11% of them have laid off their staff. About one in 10 businesses project workforce reductions in the next three to six months.

Finance

A typical local business is experiencing a 15% revenue loss from the pandemic. Nearly 60% of them have received a Paycheck Protection Program loan, which has helped retain 38% of businesses’ staff, the survey states. Yet there is a concern about the effectiveness of the federal stimulus programs and policy consistency among government agencies.

Outlook

In light of mounting uncertainties where our political and public health future is concerned most respondents expect to reduce staff travel or host in-person events. Nearly one in three businesses plan to expand their remote workforce in the future. More than one-third of respondents also indicated minimal effects from the pandemic and the vast majority of them expect to return to normal within six months, the survey explains.

Click here to read the full survey results.

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