TYLER, Texas — While many people stay home for safety reasons, self-isolation and social distancing are putting local businesses in danger.
“The majority of the mood right now is this is going to get worse before it gets better,” Tom Mullins said.
Mullins is the president and CEO of the Tyler Economic Development Council and CEO of the Tyler Chamber of Commerce. He plays a big role in bringing businesses to Smith County and supporting them once they open.
He says that the growth Tyler has experienced recently has come to a halt.
“We’ve had a dozen-plus ribbon-cuttings that have been canceled,” Mullins explained, “because people are impacted by this virus and by the reduction in activity.”
Mullins believes the main issue business owners are facing is uncertainty about how long precautions due to coronavirus will be in place. He said some experts believe it will peak in a month to three months, while others believe the impact will be felt much longer.
Without knowing how long their revenues will be affected, companies cannot accurately plan for the short term or long term.
However, Mullins says Wastequip is going to continue building its new, $6 million factory near the east loop, creating 133 skilled jobs. That is a symbol of the manufacturing sector’s growth in Smith County, one of several sectors that have flourished in recent years and a reason why it may survive the downtown better than other regions.
“Tyler and Smith County now has a more diverse economy than it’s ever had in its history,” Mullins said.
At the same time, he cannot shake his concern for workers, especially those in the food service industry. Many of them are part-time, Mullins explained, or barely making enough to get by. If people do not go out, their paychecks might not come in, especially for workers who depend on tips.
“So, if they lose that revenue stream,” Mullins said, “they can’t make the rent payment, they can’t pay for daycare, they can’t pay for their car, so that’s a crisis situation.”
Mullins says he spoke with one successful restaurant owner Wednesday morning who has made significant cut backs at a couple locations and believes those restaurants cannot break even in the current climate.
Mullins says he recommends small business owners consider getting the special, low-interest loans offered by the Small Business Administration. He believes they could help keep employees on the payroll until sales can pick up again.