Survey: 55 percent of CNY firms reduce workforce in COVID-19 crisis

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SYRACUSE — More than half (55 percent) of responding Central New York businesses reported a decrease in product demand during the coronavirus shutdown that led them to implement layoffs, reduced operating hours, shifts, or workdays. That’s according to a new survey from CenterState CEO, which also found 10 percent of firms are looking to hire […]

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That’s according to a new survey from CenterState CEO, which also found 10 percent of firms are looking to hire employees to meet new demand during the crisis. One out of five manufacturers reported an increase in demand requiring hiring.

Those findings are part of CenterState CEO’s Phase 1 COVID-19 Business Impact Survey of area businesses. The economic-development organization’s officials released details during a virtual media roundtable held April 16.

The survey found 34 percent of businesses saying that supply chain impacts are “high or of the highest impact.” That number is up from 15 percent on March 23, CenterState CEO said.

The survey’s first phase was available between March 19 and April 8, generating 263 responses in that time.

Robert Simpson, president and CEO of CenterState CEO, said his organization called more than 1,500 members in the upstate business community, “trying to understand … how they’re being influenced and impacted by the economic reality that we find ourselves in.”

In those conversations, Simpson said the organization heard “a lot of anxiety, a lot of concern, a lot of uncertainty, but also I think a very significant amount of care and concern for those business owners’ employees.”

CenterState CEO on April 9 launched the second phase of its COVID-19 Business Impact Survey. As of April 15, the survey’s second phase has generated more than 50 responses.

Survey’s second phase

Initial findings from the Phase 2 COVID-19 Business Impact Survey indicate that revenue and customers are “ongoing challenges,” and many companies have had to reduce payroll, but some firms are seeking to add employees.

The survey also found that 75 percent of respondents applied for the Paycheck Protection Program, which offers potentially forgivable, low-interest loans to help small businesses keep their employees.

CenterState CEO will continue to track responses to the Phase 2 COVID-19 Business Impact Survey and offer updates on its COVID-19 Business Resources page, the organization said.

CNY, state unemployment rates rose in March as pandemic began to hit hard

Employee Benefits & Human Resources, Subscriber Only

Unemployment rates in the Syracuse, Utica– Rome, Watertown–Fort Drum, Binghamton, Ithaca, and Elmira regions rose in March compared to a year ago as the economic effects of the COVID-19 pandemic began to materialize. The figures are part of the latest New York State Department of Labor data released April 21. The department indicated that the

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The figures are part of the latest New York State Department of Labor data released April 21. The department indicated that the worst is yet to come.

“While these data broadly reflect the impact of the coronavirus pandemic and related public-health efforts on the state’s labor market, it is important to note the March reference period for this survey occurred before many coronavirus-related business and school closures were implemented. In addition, data-collection rates were lower than normal due to coronavirus-related challenges. As a result, the scope of coronavirus-related unemployment from March is not fully reflected in these figures,” the state Labor Department said in its report.

New York state’s seasonally adjusted unemployment rate rose from 3.7 percent in February to 4.5 percent in March. The 0.8 percentage point change was the state’s largest recorded monthly increase, “since at least 1976.” In addition, the number of unemployed New York State residents rose by 73,900, while labor-force levels dropped by 132,300 — “both monthly records,” per the state Labor Department. That’s according to the latest monthly employment report that the department issued April 16.

The April 16 data also indicates that the Syracuse area was the only CNY region that had more jobs (only 100 more) in March 2019 relative to a year ago. The Utica–Rome, Binghamton, Watertown–Fort Drum, Ithaca, and Elmira area all lost jobs in March compared to a year prior.

Regional unemployment rates

The jobless rate in the Syracuse area was 4.9 percent in March, up from 4.6 percent a year earlier.

The Utica–Rome region’s rate rose to 5.1 percent from 4.8 percent; the Watertown–Fort Drum area posted 7.5 percent unemployment, up from 6.4 percent; the Binghamton region’s rate hit 5.6 percent compared to 5 percent a year prior; the Ithaca area’s jobless rate edged up to 3.7 percent from 3.5 percent; and the unemployment rate in the Elmira region was 4.9 percent in March, up from 4.4 percent 12 months ago.

The local-unemployment data isn’t seasonally adjusted, meaning the figures don’t reflect seasonal influences such as holiday hires.

Utica College freezes tuition for 2020-21 academic year

Employee Benefits & Human Resources, Health Care, Nonprofits, Regional News

UTICA, N.Y. — Utica College will freeze its tuition for the 2020-2021 academic year, Laura Casamento, school president, announced Friday. This applies to on-campus undergraduate

New York egg production rises nearly 1 percent

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New York farms produced 145.5 million eggs in March, up almost 1 percent from 144.3 million eggs in the year-ago period, the USDA’s National Agricultural Statistics Service (NASS) reported. The number of layers in the Empire State averaged nearly 5.62 million in March, up 2 percent from almost 5.51 million layers a year prior. March

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How To Make Smart Marketing Decisions Through a Pandemic

Business Mentors, Subscriber Only

Exploring the Five Rs In the midst of the unexpected COVID-19 pandemic, many companies may be facing uncertainty around their advertising and public-relations strategies. With changing budgets, staffing, and environments, it is essential to foster appropriate communication between your business and your customers. Below are the five steps to making smart marketing decisions during and

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Exploring the Five Rs

In the midst of the unexpected COVID-19 pandemic, many companies may be facing uncertainty around their advertising and public-relations strategies. With changing budgets, staffing, and environments, it is essential to foster appropriate communication between your business and your customers. Below are the five steps to making smart marketing decisions during and after the pandemic:

1. Reflect: Before creating or adjusting your marketing strategy, you first need to look at your company as a whole. Reach out (and keep reaching out) to your major stakeholders — your top customer segments, employees, and board members, etc. Do more listening than talking. Ask about what they are seeing, feeling, and what they want/need from your business during this time and after the shutdown lifts.

2. Reassure: More than anything, consumers want to know that your company is there for them. That reassuring started with what you were doing to protect them and stop COVID-19’s spread — sanitation efforts, reduced hours, digital offerings, etc. Now, it’s about what discounts and/or informative advice you can give your customers, along with what philanthropic support you can give your community.

3. Reinvent: While this might not be the best time to run your previously scheduled ads, it may be the perfect time to consider a fresh perspective or a possible shift in brand positioning. Give a new look to that old marketing plan. Anything you’re seeing differently in light of COVID-19? Keep in mind, in previous recessions, some of the best ideas for new products and even entire companies came out of this process.

4. Relay: Once you have reflected, reassured, and at least considered reinventing, now it’s time to relay your new set of messages. Resist the urge to pull back advertising spend completely, which could diminish your brand’s resilience and interrupt its momentum. Position yourself as a calm, resilient, and collaborative partner who anticipates the brighter future ahead for all of us.

5. Recover: Anticipate the post-pandemic release, particularly the pent-up consumption of goods and services that help consumers destress, maintain security, and feel “back to normal.” Embrace the new behaviors learned during shutdown, including all those technology barriers overcome.

Jamie Jacobs is partner at Riger Marketing Communications. Contact her at jjacobs@riger.com. (Note: Binghamton University intern Kaitlyn Liu assisted with this article.)

The List feature is on hold at this time

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The Central New York Business Journal has temporarily put our weekly The List feature on hold for the duration of the statewide coronavirus shutdown. Pausing a popular and longstanding part of our publication was not an easy decision, but is necessary to uphold the quality, completeness, and integrity of information we provide our readers. The

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The Only Message Customers Want from You Right Now

Business Mentors, Subscriber Only

It only took the pandemic a couple of weeks to turn it all upside down — including marketing and sales. And along with it has come an endless tsunami of email messages flooding consumer email mailboxes. It was war with 50 percent to 80 percent off sales, “Lowest prices ever,” “Free shipping & Free returns,” “Final

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We’ve seen emails to customers from well-meaning businesses streaming to smartphones and computer desktops. It seems like a domino effect. One company starts it, and everyone else follows — with its version of the same message. Most open with a comment on the COVID-19 scourge and then quickly offer assurances that “We are here for you.” Words that companies would like to think customers want to hear.

Then, in a nanosecond, attitudes changed. Customers rejected the century-long proposition that the near-sacred role of marketing and sales was getting customers to buy more stuff and doing anything and everything to get the job done. And driving it all was the arrogant (and mistaken) belief that, no matter how you dress it up, customers exist for only one reason: what they can do for us. And it worked — then it didn’t.

How has the marketing and sales world changed? Some companies are listening. They get it: It’s no longer about what customers can do for us by buying our stuff. Now, it’s all about what we can do for them.

Arrogance is out; candor is in. Opinion is out; facts matter. Lying is out; empathy is in. Telling customers what they want to hear so they will take the bait is out; understanding and transparency are in. Being conned and ignored are out; truth matters and play-it-straight are in.

Sending customers BS-filled messages isn’t just unacceptable and stupid, it’s far more than that — it’s a missed opportunity. As demanding as it is to craft meaningful messages in troubling times, customers respond to those that make a difference in their lives.

What customers want to hear

What customers are looking for is understanding and help. Not the run around, not endless delays, not a pat on the head, calling another number, not incomplete information, not being dropped like a hot potato the moment the order is placed.

Isolated, alone, stressed, and frightened by an unseen enemy, they look for those who are prepared to come to their aid, who are on their side. It’s also a message that better be clear, compelling, and positive, if we want their attention and their business.

The good news is that the growing cadre of companies that get it is growing. But it may take sales reports dripping with gloom to spur the creative juices flowing in many more businesses.

Nevertheless, it’s happening and that’s good news. Here is a sampling of companies that are looking inward to find ways to help customers cope with a relentless enemy that would harm their health and safety.

Anton’s Cleaners, New England’s largest dry-cleaning company, took the what-can-we-do-to-help question seriously and came up with an on-target message for the COVID-19 crisis:

• We care about your health.

• Sterilization is a standard part of our cleaning process

No coupons, no discounts, no “Offer expires in 2 days.” Just a simple, direct, and factual message that answers the question why someone should take their clothes to Anton’s: the company sterilizes your clothes. The message neither knocks competitors, nor is it price-driven. It highlights an existing benefit. It’s a guess that few of Anton’s customers knew their clothes were being sterilized and all of a sudden, it’s a huge deal.

Even so, there’s another side to the story. Supermarkets everywhere jumped in with early morning hours for the most vulnerable coronavirus age group, those age 60 and older. Some didn’t stop there. They limited the number of customers in a store at the same time, provided wipes, and installed see-through barriers at check-out.

Come to think of it, “Early Senior Hours” may deserve becoming permanent at least a day or two a week. Seniors tend to rise early and seem to like a slower pace when shopping, which may also please those who are in more of a hurry later in the day.

What’s it take to get your message right?

Now, here’s the point. Why does it take something like a whack on the head with a two-by-four to come up with a worthwhile idea like early morning hours for seniors? We talk “customer commitment” to death, without having a clue as to what that means. Happily, a growing number of businesses are now getting it and are coming up with helping, innovative ideas that benefit customers. Here is a snapshot of a few that are doing it right:

• Cox Communications has increased internet download speeds from 30 MPS to 50 MPS to help improve productivity for at-home workers.

• Allstate’s “Shelter-in-place payback” is returning $600 million of auto-insurance premiums to customers because fewer motorists are driving due to COVID-19, according to the Chicago Tribune.

• Best Buy offers contactless curbside service for purchases and returns.

• Constant Contact has a free Website Builder Business Plus plan to help small businesses get an e-commerce site up and running.

• The Institute of WorkComp Professionals is offering its members a free five-part webinar series on prospecting and LinkedIn positioning.

• Meero offers free large-file transfers to help remote workers, according to Forbes.

• Planet Fitness offers free online home workouts.

Sure, the cynics may scoff. Sure, these companies want more business. But, so what? Yet, these firms, along with others, are digging deep to find new and innovative ways to be of help to their customers at a painfully difficult time. All we need now is more like them and we’ll come through this energized and on our feet.

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com or johnrgraham.com

Walsh outlines recommendations for business restart

Employee Benefits & Human Resources, Health Care, Law, Accounting & Taxes, Nonprofits, Small Business

SYRACUSE, N.Y. — The Syracuse and Onondaga County economic resiliency task force has developed a series of recommendations for the business community for when local

State Comptroller launches COVID-19 Financial Survival Toolkit

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New York State Comptroller Thomas P. DiNapoli announced April 17 that his office has developed the “COVID-19 Financial Survival Toolkit” for New Yorkers with links and resources for residents, government entities, nonprofits, and businesses. “We are living in unprecedented times. The COVID-19 pandemic has upended our lives, as well as the state economy, and it will

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M&T Bank made nearly 1,700 PPP loans in CNY in one week

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SYRACUSE — M&T Bank Corp. (NYSE: MTB), the largest bank in the 16-county Central New York region by deposits, says it made more government-guaranteed loans to small businesses in the Syracuse/Utica region in one week than it did nationally in all of 2019. Buffalo–based M&T Bank approved 1,660 loans, totaling $371 million, in the Syracuse/Utica

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Buffalo–based M&T Bank approved 1,660 loans, totaling $371 million, in the Syracuse/Utica area under the Paycheck Protection Program (PPP), the emergency forgivable loan program designed to help small companies keep their employees during the coronavirus shutdown. That’s more than the 1,449 total Small Business Administration (SBA)-backed loans M&T processed under all SBA loan programs across the bank last year, according to Julia Berchou, a VP with M&T in Buffalo.

The average loan size of M&T’s PPP loans in our area was nearly $223,500.

M&T Bank approved $6.4 billion in PPP loans for 27,711 companies, employing more than 600,000 people, across its eight-state footprint plus the District of Columbia. The average loan amount was about $233,000. All the loans were to existing M&T customers.

Berchou says M&T deployed a legion of 2,000 employees (most working from home) from across the regional bank to help process the PPP loans over the April 6-13 period. Its usual SBA loan team has 25 employees.

The $349 billion Paycheck Protection Program ran out of money on April 16 after almost 1.7 million loans were made nationally in a mad dash to provide small businesses with emergency relief amid the COVID-19 pandemic that has shut down much of business and daily life in America and New York. The 1 percent loans do not have to be paid back if companies use 75 percent of the money to cover payroll costs and meet other conditions.

The SBA announced it would stop processing PPP loan applications until Congress provided more funding. The Senate on April 21 approved an additional $310 billion for a second round of PPP loans, and the House was expected to approve it on April 23.

This will likely set off a scramble to get a loan by small businesses that were left out of round one and are struggling to stay afloat during the pandemic shutdown.

“… There are still many businesses who were not able to participate. They still need funding to pay their employees and sustain their operations,” Allen Naples, M&T Bank’s Central New York regional president, told CNYBJ in a statement before the 2nd round of funding was approved. “[We are] in constant contact with the Treasury Department, SBA, members of Congress and other government officials to advocate for additional funding and ensure that our customers are not left out of the process because of funding capacity issues at the SBA.”

M&T Bank employs nearly 500 people in its Central New York region, which includes Onondaga, Cayuga, Oswego, Madison, Herkimer, Jefferson, Lewis, Oneida, and Seneca Counties. It holds the No. 1 share of deposits in the Syracuse metro area and the broader 16-county Central New York region that CNYBJ covers.

M&T Bank reported $269 million in net income in this year’s first quarter, down from $493 million in the prior quarter and $483 million in the year-ago earnings period.

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