The Shelby County Chamber and the University of Montevallo recently presented their 6th Annual Business Outlook Conference. This year’s event was virtual and done over a two-day period.
On the first day, Dr. Stephen Craft, Dean of the Stephens College of Business School at the University of Montevallo, shared the results of the Shelby County Business Outlook survey. He shared data that was collected via questionnaires, which received 264 responses from Shelby County Chamber and affiliate members, the best participant rate they have ever had.
Regarding the COVID pandemic and its impact on Shelby County businesses, 93% of respondents reported COVID has meaningfully impacted their organization and 62% said they received COVID related assistance from federal or state sources.
Specific impacts to businesses included being shut down, having an interruption of their supply chain, increased absence of employees due to child care/closed schools and COVID exposure/illness. The most common was the interruption in customer/client's ability to do business.
Regarding what this second year of the pandemic means for business, Craft said that Shelby County has always seen things as a glass half full.
69% of businesses expected revenue to increase, which is down from 87% last year, and 23% expect revenues to shrink, compared to 5.2% last year.
Only 51% of businesses expect their profits to increase in 2021, compared to 73% last year and 26% expect profits to decrease 26%, up from 6.5% last year.
“The expectations are below characteristics for Shelby County,” Craft said.
34% of businesses expect full-time employment to increase, compared to 52% last year and 12.5% expect full-time employment to decrease, compared to 2.8% last year.
Drivers of whether businesses will create new jobs include growth in sales, demand for their business or service and finding people with the skills and experience needed.
73% agreed that Shelby County’s economy is heading in the right direction from an economic standpoint, and only 2.73% disagreed.
Regarding how COVID will impact businesses in Shelby County in the post-pandemic period, 56.5% of respondents said they expect to have at least some employees continue to work remotely after COVID.
“If we solve the public health problem, we will probably solve the economic problem,” Craft said.
For the second half of the conference, four business leaders shared their experiences and what they think 2021 will look like.
Brian Massey, chief advocacy officer at Ascension/St. Vincent’s said he is optimistic for a light at the end of the tunnel.
He said that while Shelby County is 5th in all counties in terms of overall cases, it’s 14th in the number of deaths and that is a testament to the health of our people and our counties providers.
“COVID has taught us that we are resilient more so than we thought,” Massey said. “Some of the most unpleasant experiences turn out to be the best things. We are better providers now and we are looking forward to putting the pandemic behind us.”
Traci Fox, owner of T. Fox Salon, said she is hopeful and confident for 2021.
“2020 was a very challenging and heartbreaking year, but it was also our salon’s best year ever,” Fox said. “Our small business not only survived in an eight week shutdown, but thrived.”
Fox took out a PPP loan to make sure her stylists were paid. They connected daily and increased their social media presence and engaged with followers. They also did virtual education to improve our technical skills.
“All our stylists got certified in aesthetics and nails, so they can now do facials, manicures, pedicures and body waxing,” Fox said. “This is a convenience for our guests to feel safe only going to one location.”
Greg Sherrell, director of human resources for Hibbett Wholesale said the company’s online presence and e-commerce business grew tremendously last year.
“The sales impacted early in the pandemic were followed by a customer response that quickly turned around,” Sherrell said. “A combination of stimulus money and unemployment benefits drove traffic to our stores and websites and that was good for our business.”
He said Hibbett plans to open 10 new locations in 2021.
Benji Sawyer, CEO of Sawyer Solutions Technology said the first three quarters of 2020 were great for his business. He reached out early to his clients about the upcoming need for people to work remotely.
“We got really busy with people who hadn't planned to separate their workforce out,” Sawyer said. “It drove a lot of businesses to make purchases and engage us to help them make transitions.”
Sawyer said that 2020 forced a technology adoption and about 3 to 5 years worth of adoption was done in a 6 to 8 month timeframe.
Although there was a significant increase in cyber crime in 2020, he expects more regulation to come in terms of technology.
