Checo Business Reopening Survey Says 9 In 10 Businesses Have Job Openings

EXTON, PA — A survey of Chester County business and labor conditions aimed to track the impact of the coronavirus pandemic, perhaps the most glaring lingering effect being the 9 in 10 businesses that now have openings to fill.

Despite significant concerns about revenue and labor shortages, 75 percent of surveyed Chester County businesses say they'll return to pre-COVID operations, and 77 percent report no change in the size of their physical workspace and facilities.

That's according to a survey conducted by the Chester County Economic Development Council (CCEDC) in partnership with Restore Chester County. Twenty-four survey questions centered around "return to work" practices including telework, vaccination policies, travel policies, facility usage, and space planning.

CEDC Chief Operating Officer Michael Grigalonis said, "We have been collecting data on business needs and challenges since the beginning of the pandemic. This latest survey — with an eye toward fully reopening the economy — is especially important. It is critical that we understand the business practices, policies and behaviors that are going on right now, so we can support the ripple effects to our economy."

CCEDC administered the survey in partnership with Restore Chester County, a group of business, economic, education, and government leaders from across Chester County brought together by the Chester County Commissioners to focus on the reopening and restoration of Chester County's quality of place brought on by the pandemic.

Chester County Commissioners Marian Moskowitz, Josh Maxwell, and Michelle Kichline noted, "From the very beginning of the pandemic, Chester County’s business and economic focus was to 'steady the course' to survive the darkest days of COVID, then move forward and grow. This included the provision of PPE, allocating tens of millions of dollars in grants, guidance on how to apply for those grants, and support for re-opening and beyond."

The Commissioners added, "Our strength in planning and our business partnerships are great advantages in moving forward economically, and feedback from businesses through a survey such as this, helps us as we work to reshape our robust economy."

The confidential survey was distributed primarily via the networks of CCEDC, Chester County Government, and the Restore Chester County Task Force. The 436 responses were received between July 28 and Aug. 31 at the survey's closing.

Key Findings Of The Survey

In revenue and sales trends, 32 percent of businesses reported that their revenue is either at or above pre-COVID levels.

Recovery reports varied by industry. The majority of respondents from Banking/Finance — 70 percent — as well as Construction, and Manufacturing reported revenue levels were back to pre-COVID levels or higher. These industries were the most optimistic, looking forward, in the survey results.

But 68 percent of business reported revenues have not recovered to pre-COVID levels.

Forward-looking, 40 percent of respondents don't believe they’ll recover to pre-COVID levels. The survey found 60 percent believe they will. Personal Services, Hospitality, and Education were the least optimistic. The majority in those areas believe their revenues won’t return to pre-COVID levels.

Operational And Safety Responses

The survey showed 40 percent of respondents will require face masks for employees and/or customers.

In the survey, 34 percent said they will offer telework, either full-time or through a hybrid model.

A full 75 percent of respondents will return to their pre-COVID operations structure.

Banking/Finance reports the largest changes in operational models, shifting to hybrid or full telework, in the survey results.

Vaccine-Related Behaviors And Practices

The survey found that 66 percent of employers are tracking the vaccine status of their employees.

The survey showed 22 percent of employers are incentivizing employees to be vaccinated. Businesses in Health Care and IT reported the highest percentage of vaccine tracking.

Reopening Challenges

Labor shortages and supply chain disruption were the biggest challenges facing employers as they reopen, the survey found. Lack of capacity or inability to meet demand and safety fears of customers were also major challenges.

Arts/Entertainment and Hospitality industries are most concerned about demand returning for their product or service. The primary reason is they believe customers have safety concerns.

Construction and Distribution/Warehouse related businesses reported high concerns about their ability to meet demand. This is primarily due to challenges with the supply chain, the survey found.

Workforce And Labor

Businesses in Banking/Finance, Education and IT felt strongest that increased compensation is a positive retention tool.

The survey said 91 percent of businesses reported they are looking to fill "up to 10" openings. Eight businesses reported having to fill 50 or more openings.

Employers reported several issues inhibiting their ability to source talent: Extended and rich unemployment benefits were cited as the biggest factor. Smaller labor pools, especially in Construction and IT businesses, and lack of job skills were other significant factors.

Only 10 percent reported dependent care as an issue in the survey.

Employers identified networking, social media, and "word of mouth" as the most effective recruitment tools. Job fairs and recruiters were listed as the least effective.

The survey also found that traditional white-collar employers see the most benefit from flexible work schedules.

Travel And Meeting Policies

The survey found 85 percent of businesses have already returned to face-to-face meetings, and 93 percent will return by Jan. 1, 2022.

The survey said 64 percent of businesses have returned to their pre-COVID travel policies. Fewer than 10 percent report eliminating or dramatically reducing their travel.

Physical Workspace Or Facility

The survey found 77 percent of businesses report no change in the size of their physical operation. It found 13 percent plan an increase and 9 percent project reducing their space.

The survey also showed 37 percent of Health Care respondents said they plan to increase the size of their space.

About 20 percent of businesses in Banking/Finance, IT, and Arts/Entertainment said they plan to decrease the size of their workspace.

Demographics Of Survey Respondents

• 19 percent Hospitality, 14 percent Professional Services, and 11 percent Personal Services. Less than 10 percent for all other industries.
• 35 percent of respondents were woman-owned businesses; 9 percent of respondents were minority-owned businesses.
• 83 percent of respondents were white. Chester County's population is 85 percent white.
• 71 percent of respondents reported gross annual revenue of less than $2 million; 12 percent of respondents reported revenues of greater than $10 million.
• 76 percent of respondents reported 20 full-time employees or fewer.
• Responses were submitted from 71 of Chester County's 73 municipalities. The largest number of respondents came from West Chester, Uwchlan, Phoenixville, and West Whiteland.

The Chester County Economic Development Council is a private, non-profit economic development organization promoting smart growth in Chester County and the surrounding region for more than 60 years.

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