Will Connecticut Businesses Recover From Our Debacle? Soon?

April 13, 2020

The Media – Distributors of Panic, Fear and nothing but “Non Stop” Armageddon with closed shops, factories , schools and everyone is in Pandemic of Death – Go to your bubble, do not pass go and grab a mask while you’re at it. That can’t last.

The Reality – Does anyone know lots of people with the virus? I know one person who lives in Long Island in the insurance business and his job required he presses a lot of flesh. He had a tough flu like symptoms that came and went for a 5 days – he was tested in CT. In my town there are 47 cases and 5 deaths acknowledged. As you might expect attribution of death from CV19 and reality are often far apart. Things will get better.

The Business Condition – CT is and has been 100 percent in the “Keep Your Distance” paradigm and everyone is home, furloughed and weathering. We have all lost jobs and all but critical staff at work Steep drops in payroll and virtual closings are the norm. In our universe everyone is looking at the Federal PPP and has made an application. There will be a recovery quickly.

And the Business Recovery – Reality

(All data was compiled by WalletHub from economic factors weighing on the economies of all 50 states and the District of Columbia, using data from the U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Department of Labor, U.S. Small Business Administration, Government Technology, BroadbandNow, Pew Research Center, National Association of State Budget Officers and Mercatus Center at George Mason University. It also considered the share of employment from small businesses; the share of workers with access to paid sick leave; and the increase in unemployment insurance claims. It also ranked them based on GDP generated by high-risk industries as a share of total state GDP)

The Riskiest Industries and most hard hit industries as a share of GDP from CV 19 are those in the following sectors:

Accommodation and Food Services
Arts
Entertainment and Recreation
Retail Trade
Mining, Quarrying, and Oil and Gas Extraction
Educational Services
Real Estate, Rental and Leasing and
Other Services not Categorized

So if your in these business sectors above, it will probably take longer to get up and running

However, if you take these high risk businesses and rank them in terms of the rest of the country and the economic importance they have upon the state economy vs other states – Kinda of a Recoverability Potential… You will see Mass ranked 9^th, NY at 24^th and CT 39th. So the data shows the impact will be worse for Mass and better for CT. That hasn’t happened very much.

Its not all good news. Our educational services are a bigger potential risk factor to our economy and they have a big economic impact. But they have to get up and running again as do all those teachers and school busses. Notice I said “Have to.” Not hopefully. Schools will rebound.

Educational Services, Real Estate, Rental and Leasing are sectors that will take longer for CT to recover statistically. But, 38 states are being hit economically worse than we are here in CT, That’s 39 out of 50 that are doing worse. That’s not bad for us. We should be able to rebound as well as anyone. Soon!

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