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Houston Business Barometer Week 3: 80% Say Operations Moderately or Severely Impacted by Coronavirus Fallout

Published Apr 21, 2020 by A.J. Mistretta

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More than 80% of small business executives say their operations have been moderately or severely impacted by the coronavirus pandemic and corresponding shutdown, according to the latest member survey conducted by the Greater Houston Partnership. 

A total of 140 companies responded to the third Houston Business Barometer survey conducted by the Partnership between April 20-21. The number of respondents who have instituted work-from-home practices in their company was essentially unchanged from last week at 92.5%, while 24.6% have shut down whole or partial operations, also unchanged from a week ago. 

About 45% of responding companies said they had enacted a hiring freeze and 54.1% indicated their revenues have declined since their last billing cycle (up slightly from 53.6% last week). 

When asked about their firm’s short-term outlook during the week that ended April 18 compared with the previous week, 35.6% indicated it had gotten worse ( up from 30.7% who reported a worse outlook in the week earlier-period) and another 47.1% said there was no change ( up from 42.1%). 

Asked how the fallout from the pandemic has impacted their operations, 38% said their operations have been severely impacted while 43.8% said the impact has been moderate. 

Respondent firms’ top three concerns continue to be revenue/sales (84.7%), employee well-being (65.5%) and profits (64.8%). 

The following breaks down how long firms now believe they could remain afloat based on projected cash flow and without federal assistance:

Time Period                       Respondents
1-2 weeks                          1.5%
3-4 weeks                          6.6%
5-6 weeks                          4.4%
7-8 weeks                          5.1%
3-6 months                        24.8%
Longer than 6 months      50.4%
Don’t know                        7.3%

See results from Week 2

Learn about the resources available via the Greater Houston Business Recovery Center. Visit the Partnership's COVID-19 Resource page for updates, guidance for employers and more information. And sign up for daily email alerts from the Partnership as the situation develops. 

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Every Texas legislative session brings something new: bold policies, fresh faces on the chamber floor, or, in this case, a new focus on making the Texas economy bigger and better. This year, the Texas House and Senate have restructured their standing committees, creating stand-alone panels to emphasize economic development and other key drivers of the state’s economy. In the Texas Senate, returning Senator Phil King will chair the newly formed Committee on Economic Development. Previously, the committee was a policy-combination focusing on Natural Resources and Economic Development. King, who previously served as Vice-Chair for the Senate Committee on Business & Commerce, said he is excited to take on the leadership position in the upper chamber. “I am honored that Lt. Gov. Patrick has entrusted me to lead the Economic Development Committee in Texas, which has the eighth largest economy in the world,” Senator King said in a statement to the Partnership. “We will use this session to discuss policy solutions that can continue to drive our state's economic growth and prosperity over the next two years and beyond. I look forward to hearing from business leaders and local officials from across the state on how we can build upon the Texas Miracle in their communities.” The Texas House created the Committee on Trade, Workforce, and Economic Development. Under first-term Speaker Dustin Burrows, the House will have a committee focused on the workforce and expanding the talent pipeline for the first time. Committee assignments for the Texas House have yet to be released.  Burrows told the Partnership he is committed to seeing Texas build a bigger and better economic engine for future generations.  "The Texas House remains focused on delivering legislative solutions that will strengthen our state's mighty economy and provide more economic opportunities for hardworking Texans," said Speaker Dustin Burrows. "This session, the House's new Committee on Trade, Workforce, and Economic Development will take a comprehensive approach to ensuring businesses have the freedom and tools to thrive in our state, with a newly created subcommittee concentrating on policies to bolster the Texas workforce. The House will also prioritize support for small businesses through legislation that aims to unleash the power of Texas entrepreneurship in communities across the state by cutting taxes and reforming the regulatory process." It’s too soon to say which bills will go to these committees. For now, a review of the interim reports from the previous committees points to support of key policy priorities for the Partnership: Early Childhood Education: the House and Senate both recognized a statewide need for expanding programs that support families and young children in education/developmental programs The successful implementation of the Lone Star Workforce of the Future Fund [HB 1755 - 89(R)] is compelling lawmakers to invest further in innovation and growth for apprenticeship and training programs. Expanding the available workforce talent pool will remain a priority for the 89th Texas Legislature. Click below to read the full interim reports from the following committees: Senate Committee on Natural Resources and Economic Development House Committee on International Relations and Economic Development To learn more about the Partnership's Legislative Priorities, click here. For more updates and alerts on the Texas Legislature, click here to sign up for our weekly newsletter.
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