Survey: Maine businesses expect significant economic losses because of pandemic
A survey conducted by the Augusta-based Maine Association of Chamber of Commerce Executives shows that businesses are feeling significant financial blows from pandemic and the economic shutdown occurring as a result.
More than 1,460 businesses from around the state responded to the survey. They were asked 20 questions about the impact of the pandemic and Gov. Janet Mills' four-stage plan to gradually reopen sectors of Maine's economy.
The “Re-Starting Maine’s Economy” survey was conducted from May 1-6, before Mills’ May 8 modification of the plan, which permitts retailers and restaurants in 12 counties to reopen under strict safety guidelines. The earlier reopening than initially expected in those areas has addressed some concerns identified in the survey.
Responses came from businesses in every county in Maine, with heaviest responses from Cumberland, Hancock, Oxford, Penobscot and York counties. Sectors include hospitality, retail, tourism, healthcare, real estate, marine, construction, finance, nonprofits and more.
Many respondents said they expect significant economic losses this year because of the pandemic and restrictions on business operations under the original reopening plan.
Among the key findings:
- 8 out of 10 lodging and campground respondents anticipate economic losses over 50% in 2020; 6 out of 10 lodging and campground respondents anticipate losses over 70%.
- 2 out of 3 respondents from restaurants, bars, cafes and coffee houses anticipate economic losses over 50% in 2020; over 85% of them anticipate losses of over 40% in 2020.
- Half of surveyed retailers anticipate economic losses of 50% or more in 2020; 3 out of 4 retailers expect losses of 30% or more.
- The average anticipated loss of all respondents in the survey was just over 50%.
- When asked about the likelihood of opening this summer, 16% responded “extremely unlikely.”
- Over 80% of businesses said they will likely open in May 2021.
- 53% have accessed Paycheck Protection Programs rescue loans, and 15% were approved for Economic Injury Disaster Loans through the U.S. Small Business Administration.
The survey represented businesses that, at full staffing, employ a total of more than 44,000 and had 37,179 employees before the pandemic. The surveyed businesses indicated that 48.2% were laid off or furloughed. Of the remaining employees, 26% are working reduced hours. Nearly 6,000 new seasonal and year-round hires were not made because of COVID-19.
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