Chamber Collects Research and Data Resources for Businesses on COVID-19’s ImpactMay 5, 2020
Michigan Economic Data:
The hospitality industry has also been deeply and rapidly impacted by the measures put in place to reduce the spread of COVID-19. More than 16,500 Michigan restaurants and drinking locations are closed or limited to carry-out and delivery services as of April 28th, 2020. As of April 29, nearly eight out of every 10 hotel rooms were empty across the country per STR.
U.S. Economic Indicators
Airports have experienced the hardest change in travel traffic with a 96% decrease in U.S. airport travelers over the same week last year. Wayne County Airport Authority drives economic activity in the Detroit region, employing more than 86,000 individuals with an annual economic impact of 10.2 billion.
The coronavirus pandemic has also impacted all manufacturing sectors. The Manufacturing PMI® contracted to 49.1% down one percentage point from the February reading of 50.1% in March, according to the Institute for Supply Management® (ISM®). ISM states a reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
Polling: Michigan Business
The Chamber has kept in close contact with businesses in the Detroit region about how the virus has impacted their operations. A survey of COVID-19’s impact on businesses in March found:
- 83% of respondents state normal business operations have been negatively impacted, either significantly or minimally.
- Of those who indicate negative impacts, 48.2% note productivity and staffing challenges, and 46% report experiencing a drop in business demand.
- Looking ahead to the next three months, if the crisis continues, 48.6% of respondents expect to dismiss staff.
- Most respondents state their business has focused on communication to increase employee morale through this difficult time.
April results of an updated survey will be released this week.
Polling: Michigan Residents
Along with surveying businesses, the Chamber has also devoted resources to learning how the virus has affected Michigan residents across the state. A statewide poll commissioned by the Chamber and conducted by Glengariff Group Inc. of 600 Michiganders in April found:
- 9% of respondents believe they have contracted COVID-19.
- 29% of respondents are furloughed, laid off, or unable to work.
- 27.3% of respondents that were working prior to the outbreak have been forced to file for unemployment.
- 42.6% of respondents that were working prior to the outbreak, are now furloughed, laid off, or unable to work.
- 69% of furloughed or laid-off workers face catastrophic to major financial impact.
- 28% of respondents are worried about putting food on the table.
- The majority of respondents, 50%, believe Michigan is already in a recession.