Local businesses must adapt or risk failure as COVID-19 takes its toll on companies
Though COVID-19 has affected all aspects of university life, it’s easy to forget the impact the infection is having off-campus.
“COVID has clearly affected every organization. I’ve seen a consolidation in space, new technology integrations and a new way to conduct business virtually,” said Matthew Hanson, director of the Center for Business and Economic Development, a PNW College of Business consulting program that works with companies across Northwest Indiana.
COVID-19 has threatened many local companies. The problem is particularly acute for those reluctant to leverage technology.
“Companies that fail to accept technology into their business plans are seeing the effects,” Hanson said. “Whether that is online ordering and curbside pickup or a Zoom meeting, companies that are uneasy with tech are sure to struggle.”
COVID-19 has also affected local restaurants and bars in ways most owners never expected.
“We are well known for our lunch buffet and due to COVID-19 we no longer have it,” said restaurant owner Danny Zunica of Danny Z’s in Munster. “Everyone has been affected by COVID-19. [It] affects our business in a financial way, cutting staff hours and future business connections that we could have had.
“We get calls all the time about when we can bring our buffet back, but as of right now the safety of our guests is our priority,” he said.
Hanson said that, while the pandemic has harmed many businesses, it has boosted others.
“Limited travel is going to decrease an overall need for rental cars, hotels, theme parks, etc., but an increase in need for routine items like food, shelter, and safety items skyrocket during these times,” he said.
He also said the pandemic has created opportunities for many white collar workers.
“For years, businesses have struggled with workers working from home, but recent events have proven that – given the right tools — this can be done,” Hanson said. “Many companies I have talked with over the last five months are consolidating their commercial space and letting their workers have a more family friendly work environment by letting them work from home more often.”
As things change more for workers, small businesses are wondering about the long-term future.
“COVID-19 has affected the Portage Chamber of Commerce,” said Nancy Simpson, executive director of the Greater Portage Chamber of Commerce. “Many of our events have been cancelled and many members did not renew their membership dues.
“Many local businesses are struggling, especially the restaurants,” she said. “With the rise in cases, many companies are short staffed. I would anticipate around 20% of businesses will close their doors if this pandemic lasts three more months.”
She said some companies have tried to adapt to the pandemic.
“Many businesses have shifted their focus from their original business to products that will help with the effects of COVID, such as masks and sanitizer,” she said. “There are many new delivery options available. I feel that COVID has had a huge effect on the local economy.”
PNW has been offering help to local businesses.
“They are doing great things for the community, such as [offering] financial assistance for nursing students and connecting students to hospitals in need,” said Simpson. “They are offering several opportunities for student internships for the struggling business communities. I also know they are doing projects for businesses such as marketing plans for little to no fees.”