Sign In
Upcoming Event
Free Newsletter
A Q&A with five members of the Virginia Society of CPAs
A Q&A with five members of the Virginia Society of CPAs
Virginia Business// October 27, 2020//
We asked five certified public accountants for their take on the state of their regions. This is what they had to say. Answers have been edited for length and clarity.
What are your favorite parts about living and working in the region?
I have been living in Hampton Roads for over 20 years. I chose to live in the region because of its diverse population and the presence of a strong Filipino community. As a first-generation Filipino American in a military family, I have always wanted my children to know their roots and in so doing develop a greater appreciation of their cultural heritage.
How is the economy faring in your part of the state?
Prior to the pandemic, the economy in Hampton Roads was steady and on an upturn. Unemployment was low and while the job market was highly competitive, demands for skilled talent was constant. The impact of COVID-19 on the economy of Hampton Roads has been substantial, and claims for unemployment continue to rise. However, being a military hub with defense and federal funding served to buffer the region, preventing further economic decline.
What impact has the coronavirus had on businesses in your area?
COVID-19 has had a devastating impact on many small businesses. Most business owners are challenged and pushed to make rapid shifts and radical changes in doing business. IT systems are being tested as never before. Business owners have to juggle a range of new systems, priorities and challenges. A majority of business owners are required to act quickly to address immediate systems resiliency issues, lay pathways for better customer service and to stay solvent while continuing to maintain day-to-day business operations.
What is the biggest challenge to doing business in your area?
Being a military hub, most families in the Hampton Road are transient; streams of clients come and go and are therefore impermanent. The onset of the pandemic and its devastating economic impact further served to derail business operations.
How is the economy faring in your part of the state?
I feel like the D.C. area is generally doing well during the pandemic but obviously the small businesses, restaurants and entertainment venues have been drastically impacted by the need for social distancing. Most companies were able to quickly adapt to the remote environment,
and the economy has not been permanently damaged.
What’s the biggest challenge to doing business in your area?
Honestly, I think the biggest challenge may be balancing working from home by parents of young school-age children. We’re lucky that our children are in seventh and ninth grades and able to be self-sufficient during the school day. Parents of young children are facing a harder challenge balancing home-schooling and work responsibilities.
What impact has the coronavirus had on businesses in your area?
One thing is certain in my mind: Remote working has been a success and will forever change the way we work and commute in the Northern Virginia region. While our firm has embraced remote flexibility for several years now, our clients have now seen how effectively we can serve their needs and maintain strong relationships without the need to be in their offices (as much) with them. The time saved by not having to commute as much will really be a benefit to our employees and the environment, while helping to alleviate some of the traffic/congestion problems the D.C. area has long endured.
What are the top factors that have had the biggest impact on attracting business to your region?
The decision by Amazon to build HQ2 in Northern Virginia has had a definite impact on real estate and other related industries. Additionally, the ever-changing political environment and policies will continue to impact the business of Washington.
How is the economy faring in your part of the state?
I used to say Southwest Virginia was somewhat protected from many of the economic issues that face the country, or at least, we experience a delayed effect, giving us time to prepare. But COVID-19 hit so fast that this quickly affected most small businesses in the area. Sadly, some of our favorite restaurants have recently announced they are permanently closing, and I feel it won’t be much longer before others may follow suit.
What local industry/sector do you think has potential for growth?
Any industry that is technology-driven should have an opportunity for growth if positioned correctly, including related support businesses. We’ve been fortunate since the decline in coal and tobacco that the local industrial development authorities have sought out technology-based businesses to locate in our area. Tourism has also been a huge focus, but COVID-19 has stalled that sector.
What’s the biggest challenge to doing business in your area?
Population continues to decline, with workforce declining even more. Unemployment before COVID-19 was just over 3% but is now 8% in the region. The poverty rate is over 17% in the region. All are contributing to a vanishing client base. Our firm, even though small, has leveraged technology in various ways, enabling us to have clients all over the state of Virginia, as well as in other states.
What are the top factors that have had the biggest impact on attracting business to your region?
Perception of an unqualified workforce and that our area is too rural for new growing businesses have probably been the two biggest hurdles to attracting new businesses to our area. But both are perceptions and not fact. We have dedicated, educated, community-minded people with a great work ethic. Southwest Virginia is centrally located between Washington, D.C., and Atlanta, with railways, airports and great highways for moving product. And our broadband and 4G wireless access has been a model for rural America.
How is the economy faring in your part of the state?
It’s a mixed bag, but resilient overall. Malls, restaurants, hotels and a number of specialty businesses continue to face difficult circumstances. Meanwhile, construction, automotive and residential real estate remain strong. Health care practices are catching up and professional services seem to be holding steady. Overall, the local economy is coping effectively with the challenges.
What local industry/sector do you think has potential for growth?
Technology-driven businesses, from logistics to cybersecurity to biotech, all have some level of connection and presence in the Valley. Also, major manufacturers in the area have expansion plans and construction.
What impact will something short of full reopening have on the local economy?
The hospitality industry will continue to struggle if restaurants and hotels are not able to attain sufficient capacity to cover costs. Commercial real estate may also suffer, as the groundswell of telecommuters could put pressure on occupancy levels. If higher ed is not able to offer the on-campus experience, the sector could see a significant decline in revenue streams from housing, dining and ancillary services. Of course, all these businesses support the employment and tax base in the area; and that’s ultimately where a severe impact could be felt.
What impact has this year’s economic crisis had on businesses in your area?
Hospitality businesses endured some of the most difficult circumstances, and the supply chain disruption is very noticeable. Yet, the stability and adaptability of strong employers in the area have helped to buffer some of the unemployment numbers. Construction and real estate are doing surprisingly well in a seller’s market, and housing inventory is very low.
What factors have the biggest impact on attracting business to your region?
Quality of life and accessibility to higher education and technical training.
How is the economy faring in your part of the state?
I live in Hanover County and my office is in in downtown Richmond. Recently I work more from home. While certain sectors of our economy have been impacted by the COVID-19 pandemic, especially food services, hospitality and many retail operations, professional services employers seem to have experienced minimal impact and the shift to working from home has been a nonissue.
What local industry/sector do you think has potential for growth?
Health care, financial services and manufacturing appear to be holding up well and I believe can continue to grow.
What’s the biggest challenge to doing business in your area?
Attracting the best people is always a challenge when the economy is robust. Employers must offer a strong culture and enrichment and growth opportunities, along with an inclusive and supportive work environment.
What impact has this year’s economic crisis had on businesses in your area?
Professional services companies have experienced very little impact, and in fact have grown certain service sectors.
What impact has the coronavirus had on businesses in your area?
The coronavirus has impacted smaller businesses and retail significantly. Travel and hospitality may likely be slower to recover.
What are the top factors that have the biggest impact on attracting business to your region?
The Richmond area has a competitive wage base and reasonable cost of living. Young professionals can enjoy a unique lifestyle. The number of housing units in proximity to downtown is expanding to meet a variety of interests and outside-of-work activities for those wanting to be near their place of employment.
Related Articles
Virginia Society of CPAs’ 2021 Virginia Economic Expectations Survey: A Taxing Time
The Results Of Virginia Society of CPAs’ 2021 Virginia Economic Expectations Survey
