What else did we learn from the Intuit study by Dr. Susan Woodward? (This is the second of two blogs discussing her thorough study of small business results during the pandemic. Here’s the first.)
That businesses that provide essential goods and services were the most resilient- the ones who recovered or grew despite the pandemic.
Who were they? Agriculture, energy providers, sanitary services. Due to the low mortgage rates and housing booms (even hardware stores where the quarantined folks effected home improvement projects) , mortgage bankers and title abstract companies scooped up big bucks.
One of the industry segments that blew me away was the RV dealerships. These folks grew revenue to the tune of about 15%. Obviously, folks were looking for ways to escape the pandemic – and still stay somewhat isolated from others at the same time.
One year into the pandemic, some of the most resilient industries are those that provide essential goods or services. This includes agriculture and utilities such as energy providers and sanitary services. Meat and fish markets scored 23% increases. Housing booms in many parts of the country coupled with low mortgage rates contributed to significant growth for real estate businesses such as mortgage bankers and title abstract companies, which specialize in property records.
Most of these industries recovered by June 2020 (after just 3 months of quarantine)- and by September 2020, these industries were actually ahead of pre-pandemic levels.
By comparison, those businesses that relied on interaction with the public (public-facing enterprises) are going to need more help to recover, as the graph below depicts.
We should also note that not every state felt the same impact, since President Donald refused to impose national regulations. Each state developed its own standards- some more stringent than others. And, by December of 2020, the pandemic was once again accelerating (so some restrictions were reimposed) . Moreover, locals that relied more on entertainment, tourism, and hospitality were more disrupted that those that had fewer of such enterprises. Plus- rural areas were those more likely to rely on agriculture, agricultural services, building and trades (as opposed to urban areas with more business services and food/beverage enterprises), so they did better during the pandemic.
By the way- if you are a personal client of ours- and have not submitted your taxes, HURRY THE HECK UP. Because while you may think you have until Monday to get your taxes completed- there’s a Jewish holiday coming. So, we will be shutting down tomorrow (Friday) at 2 PM. Which means that’s the last time we will be able to submit your taxes before the deadline (extended this year until the 17th of May.)
It has certainly been a tough time these past 15 months now! I remember the mayor of NYC and others saying, “Stay inside for 3 weeks and let’s let this blow over.” Who knew?!?! (Oh yeah, scientists and doctors).
Of course, there are always outlines to any statistical study – those that (dare I use the phrase I despise?) “pivoted” during this time to reinvent their business. Rather than playing the victim and sulking about an environment they cannot control, some folks changed their business model and ended up thriving this past year.
(I mean no disrespect to those that truly were victims of the virus or those friends and family affected by it).
Paul Taubman recently posted..Boost Your Positive Thinking
Great addition to the conversation, Paul. Thanks for bringing in those folks who knew a pivot would save the day.
This is very interesting but it makes sense, Things that weren’t essential or that required face-to-face interaction were bound to do worse. I will be interested to see how things shake out once things start opening up completely. I think a lot of our new-found habits and trends will continue…
Dominique Walton Brooks recently posted..You’re a Checkup Away from Having More Energy
The trends are definitely worth watching, Dominique.
This is a great analysis. Yes, RV sales are unbelievably high. It appears that the cost of a variety of goods are heading higher as well. Good luck with tax deadlines. You’re almost there!
I fear folks will approach Monday- when we are closed and can do nothing for them.
I have a few friends who purchased RVs. It definitely appears to have skyrocketed. Who knew that what seemed like a retiree’s past time (to me anyway) could now be a family affair.
Don’t even get me started on #45… lol
Elisa recently posted..High on Reading
I’m with you on those RV sales, Elisa!
Great Analysis
Thanks so much!
I read quite a few articles too about RV sales going up and how many who had never even been keen on road trips before bought RVs this past year…
And agree with Paul on those who “pivoted” – hats off to all of them for doing so.. I know a few such people as well and awed by them.
Thanks for adding to the conversation, Vidya!
On March 19, I was sent home to work “for perhaps three weeks”. I was one of the fortunate ones; my son had a job that couldn’t be done at home and he’s been working at his job place all this time. I’m still at home. The company I work for was impacted and still is, but it’s been fortunate, too.
Alana recently posted..Planting Time at the Community Garden
There you go- and still employed!