By JAN LARSON McLAUGHLIN
BG Independent News
The economic impact of COVID-19 can be seen in the high national unemployment rate, the towering federal deficit and the number of local businesses that sought help through the Payroll Protection Plan.
Wade Gottschalk, director of the Wood County Economic Development Commission, presented an update on the impact from the pandemic during a virtual meeting of the Bowling Green Kiwanis Club last week.
Though the big picture may look bleak, there are some glimpses of hope locally, Gottschalk said.
The continuing unemployment claims in Wood County number about 2,800. Though that is far worse than the 600 prior to COVID, it is far better than the peak unemployment claims of 4,800 in the county.
“That’s definitely good news for Wood County,” Gottschalk said.
Some of those gains can be credited to new businesses like Amazon, or existing businesses that have seen demands spike during COVID, like the Home Depot fulfillment center and FedEx.
Gottschalk also reported good news for 1,250 Wood County companies that were allocated funding under the Payroll Protection Plan. Those companies received a total of $130 million between them.
The federal funding in response to the COVID crisis has led to the national deficit peaking at $2.8 trillion in the first 10 months of the fiscal year, Gottschalk said.
The nation is seeing a rebound in retail sales – with the numbers reaching a record high, he said.
“We have seen a bounce off the bottom,” he said.
Of course, that trend may make a U-turn since the weekly $600 unemployment aid has ended. And reporting is showing that consumer confidence is falling, Gottschalk said.
The key to a continued upward trend rests in the nation’s response to the pandemic.
“Getting COVID more under control so people feel more comfortable returning to more normalcy,” would go a long way, he said. Both Gottschalk and his wife, Jennifer, suffered through COVID in the spring.
The long-term effects of COVID on the workplace and spending are yet to be seen, he said. The shift of more people working from home, driving less, eating out less and shopping less at brick and mortar stores could have a lasting impact.
“Usually those things do sort themselves out over time,” he said.
Nationally, the job losses during COVID hit 22 million. While some of those jobs have returned, the jobs are still down 12.8 million from pre-COVID.
The current unemployment rate of 10.2% would be 13% if the 5 million Americans who have left the labor force since March were added in, according to Gottschalk.
New unemployment claims last week totaling 1 million is not promising, added to the continuing claims of 14.5 million.
“That’s not good news,” he said.
Gottschalk said local businesses like the Home Depot distribution center and FedEx have seen a massive increase in online orders during the pandemic. That has helped absorb the loss of jobs in other businesses, he said.
Gottschalk also reported on some of the more recent large projects in Wood County:
- Northpoint is under construction next to the CSX hub in Henry Township in southern Wood County. The first building in the proposed industrial park will be 400,000 square feet, and is expected to employ a few hundred workers. Over time, five buildings may be constructed as part of the industrial park.
- Amazon in the Crossroads area of Rossford is nearing completion. The four-story building will have a total of 2.8 million square feet, with employment projected to be at least 1,000. The site is expected to start shipping by the end of the third quarter this year.
- NSG (Nippon Sheet Glass) is being built in Troy Township. The facility will employ about 150 people to produce glass for First Solar.
- Walgreen Distribution in Perrysburg Township has added 400,000 square feet.
- First Solar has begun producing solar panels at its new facility in Lake Township. The $400 million plant has hired about 500 employees.
- Home Depot distribution center in Troy Township, which started out with a goal of creating 155 jobs, now employs close to 1,400.
- FedEx has also experienced great growth, and has gone from the original 600 jobs to about 1,700.
