An Uneven Economic Recovery

Issue 6.20

May 15, 2020

COVID-19 Impact on Key Delaware Industries with Patrick Harker

RESOURCES:

Listen to the recording
Read Harker's prepared remarks
Download our COVID-19 Prevention Best Practices Guide
Download our blueprint for economic recovery in the First State

Patrick Harker, president & chief executive officer of the Federal Reserve Bank of Philadelphia joined us on May 12 to provide a regional economic outlook with a deep dive on key Delaware industries, including commercial real estate, manufacturing, agriculture, tourism, hospitality, banking and finance, and the legal sector.

KEY TAKEAWAYS:

An uneven economic recovery is predicted for the state
Some industries like hospitality and tourism will face a more difficult recovery compared to others like manufacturing and finance
Trends, like consumer behavior and automation, that were showing before the pandemic have been sped up due to the crisis – businesses need to think creatively to survive
Workforce development will be key for economic recovery
There must be an intelligent reopening - it is incredibly important to give businesses the right tools and information to help them prepare a smart and safe plan for their employees and customers

REPORTS MENTIONED ON THE CALL:

Which Neighborhoods and Households Will Be Most Impacted by COVID-19?

This brief studies the economic impact of the pandemic through a different lens: that of place. It looks in detail at the neighborhoods where residents are most at risk of job loss; at the initial economic, housing, and demographic characteristics of these residents; and at the impact of potential job loss on their economic and housing situation. Read more

The Small Businesses Most Impacted by COVID-19 Shutdowns

This brief focuses on two major channels through which COVID-19 has impacted small businesses in the short term. First, social distancing measures have hit small businesses in certain industries harder than others by radically reducing demand for their services. Second, almost all state governments have explicitly required nonessential businesses to close their physical locations to suppress the spread of COVID-19. Read more

Which Workers Will Be Most Impacted?

This brief identifies the occupations that are most likely to be negatively affected by social distancing practices and then describe the characteristics of the workers holding those jobs. Read more

Opportunity Occupations Revisited

Opportunity occupations are jobs that do not require a four-year college degree and that pay at least the national annual median wage of $37,690, adjusted for differences in the local cost of living. In the Philadelphia-Camden-Wilmington metro area, the largest opportunity occupations include registered nurses; heavy and tractor-trailer truck drivers; maintenance and repair workers; and bookkeeping, accounting, and auditing clerks. Read more

Join us on May 19 for our Next Webinar

COVID-19 AND DELAWARE'S

FOOD SUPPLY CHAIN

TUESDAY, MAY 19 | 11:00 AM - 12:00 PM

In the last few weeks, Sussex County has seen an increase in the number of COVID-19 positive cases. Many of the people affected are employed in the agriculture sector. Their absence from the workplace is creating challenges for the supply of food at grocery stores, and will soon impact restaurants and workplace cafeterias too.

Holly Porter of the Delmarva Poultry Industry and Richard Wilkins of the Delaware Farm Bureau will discuss current challenges the agriculture industry is facing, the effects of supply chain disruption and how they may affect you and your business, and the future of the industry in response to the COVID-19 pandemic.

Sponsor: FMC Corporation

States have shifted the focus of their COVID-19 response from managing the public health crisis to the economic recovery phase. States have started allowing certain businesses to open, and most have announced plans for a phased reopening of the economy. Since each state’s degree of “openness” is determined by many factors, and because each state handled pandemic response differently, MultiState developed the COVID-19 State Reopening Guide to condense these factors into one easy-to-understand “openness score” that allows you to compare states to one another. Delaware ranks 39th.

Updated Guidance PPP Loans

The Small Business Administration, in consultation with the Department of the Treasury, released new guidance on May 13 to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP).

Question #40 addresses efforts at employee retention and whether PPP loan forgiveness will be reduced “if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer?”

The answer is “No,” and to qualify for the exception “the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.”

Read FAQs

Message from the President

Many of you probably had your calendar marked for our Superstars in Education awards reception that was scheduled for this past Monday. It has, of course, been postponed. But I still want to take a moment to recognize the outstanding education programs that comprise our 2020 Class of Superstars in Education winners.

One of the many important things we advocate for at the State Chamber is workforce development. These three Superstar programs do just that. I encourage you to take a few minutes and read about these innovative programs that are preparing tomorrow's workforce. Read more

The Other Reason Why

Corporations Choose Delaware

Delawareans know that the First State is famous for a lot of things: Ratifying the Constitution, beautiful beaches, prodigious poultry production, just to name a few. If you’re in business, you probably also know that Delaware is famous as a place to incorporate. But there’s another factor that you might not be familiar with – a fourth leg of the stool supporting Delaware’s reputation as “America’s Corporate Capital.” Read more

In a Time of Adaptation, Building Relationships Remains First

As of the 1st of January, The Byrd Group became ByrdGomes. This new name reflects the most recent incarnation of what is one of Delaware’s oldest and most dynamic lobbying firms. And while technology and the expectations of both clients and government officials has changed, one thing has not: Relationships. Read more