COVID-19 HAMILTON BUSINESS IMPACT SURVEY REPORT (April 15 – April 24, 2020) PRESENTED BY: NORM SCHLEEHAHN - DIRECTOR, ECONOMIC DEVELOPMENT, CITY OF HAMILTON SURVEY SUMMARY The City of Hamilton’s Business Impact Survey #1 launched on April 15th and closed on April 24th In collaboration with the City of Hamilton’s Economic Development Division, three Chambers of Commerce (Hamilton, Stoney Creek and Flamborough), Workforce Planning Hamilton and 13 Hamilton Business Improvement Areas SURVEY SUMMARY Over nine days 1,040 respondents contributed qualified responses. Qualified responses met the following conditions:  The respondent accepted the terms and conditions of the survey;  The respondent completed the questions requesting that they identify their Industry and the revenue impact on their business;  Only one response would be permitted for each individual local business. SURVEY SUMMARY • A concerted effort was undertaken by the Business Impact Survey partners and other individuals through various social media channels encourage and enable any Hamilton based business owner to participate in the Business Impact Survey, and while the outcome of those efforts appear to have produced a fairly representative group of respondents, the Business Impact Survey did not pursue academic standards and methodologies to enable the results to be considered scientifically representative (such as random sampling, etc.). KEY FINDINGS • Businesses across all industry sectors, and across every business size category, have been significantly impacted by the COVID-19 pandemic and the resulting actions taken by governments around the world to mitigate the associated health impacts. • The aggregated employment impact from all respondents who participated in the survey (who collectively represent approximately 35,000 employees) communicates an employment decrease of almost 13,000 jobs, which represents a city-wide decrease of 35.8%. • Over 90% of respondents reported a decrease in revenue because of COVID-19, with over 50% of respondents indicating that the decrease in revenue was greater than 50% when compared to the month prior. • Approximately 65% of respondents indicated that they have reduced their employment levels, with over 20% businesses reporting they have zero employees at the time they responded. 600 60.00% 500 50.00% 400 40.00% 300 30.00% 200 20.00% 100 10.00% 0 0.00% 1-4 Employees 5-9 Employees 10-19 Employees 20-49 Employees Business Impact Survey Respondents 50-99 Employees 100-199 Employees 200-499 Employees 500+ Employees 2018 Business Count - City of Hamilton Perentage of Hamilton Businesses in that Size Category - 2018 (Line) RESPONDENT DEMOGRAPHI CS Number of Business Impact Survey Responents (Bar) DISTRIBUTION OF BUSINESS RESPONDENTS BY BUSINESS SIZE DISTRIBUTION OF BUSINESS RESPONDENTS BY SECTOR Advanced Manufacturing 119 Agriculture / Food and Beverage Processing 39 Construction / Contracting 85 Creative / Cultural Industries RESPONDENT DEMOGRAPHI CS 78 Finance / Insurance / Real Estate 64 ICT / Digital Media 48 Life Sciences 22 Not For Profit 58 Other 17 Personal Services 80 Professional Services 182 Restaurants / Food Services 75 Retail 112 Tourism 28 Transportation / Logistics 61 0 50 100 Number of Respondents 150 200 REPORTED NUMBER OF ESSENTIAL SERVICE BUSINESS (as of April 10, 2020) 64 RESPONDENT DEMOGRAPHI CS Essential Service Business Not an Essential Service Business 519 459 Respondent Unsure as of Time of Response REPORTED IMPACT ON REVENUE (compared to previous month) It has increased 23 No change IMPACT ON REVENUE 66 It has decreased less than 15% 79 It has decreased between 15% - 29% 104 It has decreased between 30% - 50% 171 It has decreased more than 50% 546 0 100 200 300 Number of Respondents 400 500 600 REPORTED IMPACT ON REVENUE COMPARED TO MARCH 1, 2020 BY INDUSTRY CATEGORY has Total decreased decreased decreased Industry Catgory more man bel bel less tit: 15% No change i med 51;; 50% 30% 50% 15% - 29% Personal Services 85.7% 2.0% 3.5% 1.3% 1.3% 0.0% 2? Tourism 84% 12% 0.0% 0.0% 4.0% 0.0% 25 Rataurants 1' Food Services 81.3% 12.1% 3.0% 1.5% 0.0% 1.5% 55 I I Retail 17.3% 9.3% 5.5% 1.9% 1.9% 2.3% 103 Creative 1 Cultural lndustn'E 21.6% 15.2% 4.1% 54% 14% 1.4% 74 Other ELM-E 0.0% 0.0% 10.0% 20.0% 0.0% 10 Life Sciences ECLW-E 10.0% 10.0% 5.0% 15.0% 0.0% 20 Professional Services 58.0% 15.4% 13.6% 2.1% 5.9% 0.0% 159 ICT Digital Media 45.2% 31.1% 5.2% 2.2% 8.9% 44% 45 Construction Contracting 40.2% 28.W-E 9.0% 12.2% 6.1% 3.2% 82 Transportation Logistics 34.5% 25.5% 15.5% 8.5% 12.1% 321% 58 Advanced Manufacturing 33% 22.5% 12.4% 14.7% 10.1% 1.3% 109 Agriculture 1' Food and Beverage Processing 29.4% 25.5% 8.3% 5.3% 53% 23.5% 34 Not ?g Pro?t 29.1% 15.4% 16.4% 15.4% 21.3% 0.0% 55 Finance I Insurance Real State 25.3% 15.8% 22.8% 24.6% 8.8% 1.3% 5? dittiriutu?n NUEST HAMILTON REPORTED IMPACT ON EMPLOYMENT (compared to previous month) Increased 20 No Change IMPACT ON EMPLOYMEN T 354 Decreased up to 25% 115 Decreased 26% - 50% 109 Decreased 51% - 75% 94 Decreased 76% - 99% 84 Decreased 100% 234 0 100 200 Number of Respondents 300 400 REPORTED IMPACT ON EMPLOYMENT COMPARED TO MARCH 1, 2020 BY INDUSTRY CATEGORY IMPACT ON EMPLOYMEN T IMPACT ON TOTAL EMPLOYMENT LEVELS OF RESPONDENTS BUSINESS SIZE COMPARISON 40,000 35,000 Total Number of Employees IMPACT ON EMPLOYMEN T 30,000 25,000 24,966 20,000 15,000 16,112 10,000 8,854 5,000 11,055 7,004 4,051 0 Total Employment as of March 1, 2020 Total Employment at Time of Response Businesses With Under 100 Employees Total Employment Reduction since March 1, 2020 Businesses With 100 or More Employees IMPACT ON TOTAL EMPLOYMENT LEVELS OF “ESSENTIAL SERVICE” SIZE COMPARISON 40,000 IMPACT ON EMPLOYMEN T Total Number of Employees 35,000 30,000 8,701 25,000 4,133 20,000 15,000 26,481 10,000 18,673 5,000 4,568 7,808 0 Total Employment as of March 1, 2020 Total Employment at Time of Response "Essential" Businesses "Non Essential" Businesses Total Employment Reduction since March 1, 2020 REPORTED DECREASE IN EMPLOYMENT LEVELS BY BUSINESS SIZE CATEGORY 49.3% 44.6% 43.0% IMPACT ON EMPLOYMEN T % Decrease in Employment 39.9% 35.2% 35.8% 35.8% 34.9% 29.8% 29.6% 0.0% 1 to 4 5 to 9 10 to 19 20 to 49 50 to 99 100 to 199 Business Size Category (Number of Employees) 200 to 499 500 or more Overall REPORTED DECREASES IN EMPLOYMENT LEVELS (by business size category and “essential service” classification) 100.0% 78.9% IMPACT ON EMPLOYMEN T % Decrease in Employment 80.0% 64.7% 63.8% 63.3% 59.0% 60.0% 52.5% 49.3% 48.0% 40.1% 40.0% 35.2% 31.8% 35.3% 32.5% 30.8% 25.9% 29.5% 25.1% 24.3% 20.0% 0.0% 1 to 4 5 to 9 10 to 19 20 to 49 50 to 99 100 to 199 200 to 499 Business Size Category (Number of Employees) "Essential" Businesses "Non Essential" Businesses 500 or more Overall REPORTED MEASURES RESPONDENTS ARE TAKING TO MITIGATE IMPACTS OF THE COVID-19 Working remotely 63.3% Decreasing staff hours 56.2% Laying off staff IMPACT ON BUSINESS BEHAVIOR 4.4% 12.2% 50.1% Moving to a no contact pickup or delivery service model Refinancing the business 11.3% 47.0% 14.7% 30.1% 14.7% 52.1% 18.9% 32.1% Declaring 'force majeure' to exit or delay payments 51.8% 9.4% 34.1% Seeking additional loan / line of credit 53.2% 30.8% 39.1% 20.9% 64.4% 25.8% 62.9% Hiring additional staff 3.5% 7.7% 88.8% Permanently closing business 2.8% 10.7% 0.0% Have already taken 10.0% 38.7% 7.5% 38.5% Changing products/services to meet new business demands Increasing e-commerce activities or investment 31.6% 11.3% 40.8% Temporarily closing business 32.3% 86.5% 20.0% 30.0% 40.0% Considering in the next 30 days 50.0% 60.0% 70.0% 80.0% Not considering in the next 30 days 90.0% 100.0% REPORTED CHANNELS RESPONDENTS ARE USING TO GATHER COVID-19 RELATED INFORMATION Canadian TV News Channels 68.3% Internet Sites 64.1% Local Newspapers LEADING INFORMATIO N CHANNELS 40.8% National Newspapers 38.0% Radio 29.9% International TV News Channels 29.3% Facebook 28.1% Company/Association E-Newsletters 27.3% Twitter 21.6% Community TV Channel… 13.2% Instagram 13.0% LinkedIn 12.8% 0.0% 20.0% 40.0% 60.0% 80.0% REPORTED AWARENESS OF THE PROPERTY TAX ASSISTANCE PROGRAM (at the time of completion) AWARENESS OF TAX ASSISTANCE Yes 325 494 No REPORTED WILLINGNESS TO PARTICIPATE IN FUTURE SURVEYS FUTURE SURVEY PARTICIPATIO N 105 Yes No 681 .-. l-u} iiOll II . r-L-n i- 9 0 4 i- ll. 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