TRIDEC: Fast rebound from a tough year
In 2020, the COVID-19 pandemic caused an immediate economic impact that we could not see coming. The governor’s original orders to stay home, stay safe, brought a total shutdown of all public spaces and businesses. These orders were quickly amended to allow for critical industries to remain open based on the nature of their products or services.
The result of this modification meant that most of the economic impact from the closures was felt in the retail, service and entertainment industries. This public health crisis and determination of critical and non-critical jobs and businesses was an unfortunate highlight of the differences in our local primary and secondary industries.
Primary industries bring outside dollars into our local economy either through exporting products and services or, in the case of the Tri-Cities, through federal investments at the Hanford Site and Pacific Northwest National Laboratory (PNNL). Secondary industries are usually local and provide products and services that are generally purchased and consumed locally.
Businesses in the manufacturing, agriculture and food processing sectors were able to continue work as primary industries and were critical to our area’s economy during the shutdown. The Department of Energy-funded work in cleaning up the Hanford Site and the research and development at PNNL are also examples of primary industries that were able to continue to support our local economy. These industries were declared essential, or in the case of much of the workforce from Hanford and PNNL, were quickly shifted to working remotely or were able to be paid through federal relief programs such as the original CARES Act. These actions ensured that the primary businesses in our local economy were not as deeply impacted as the secondary businesses.
Unfortunately, the impacts to the secondary businesses will be felt well into 2021. So many businesses were forced to lay off staff, and in extreme cases, close their doors permanently. Some of these businesses were able to apply and qualify for direct grants and loans from federal, state and local governments. Many of these programs are still providing a lifeline to our local businesses so they can stay solvent until all aspects of our economy are able to safely open.
Ironically, because the primary industries have not been deeply impacted by the COVID-19 pandemic and their employees have been working remotely or continued to work safely, the demand for products and services from the impacted secondary businesses never ceased. It even has the potential to grow as the restaurants, theaters and shops are able to re-open fully and cater to people eager to spend their stimulus funds.
The outlook for the local demand for new restaurants, stores, wineries and other popular attractions will also continue to grow as the federal government releases the planned infrastructure stimulus package that is now being discussed in Congress. As with the previous America Recovery and Reinvestment Act (ARRA) in 2009, the Tri-Cities will be included in funding to help bring our local infrastructure up to date, accelerate clean-up projects at Hanford, and research to PNNL, creating even more local jobs in our primary economic sectors.
TRIDEC will continue to market our community to new primary businesses in the agriculture/food-processing, advanced manufacturing and energy sectors as well as working to support our existing and secondary businesses as they strive to survive and expand into the future. Now in our 58th year of diversifying our local economy, TRIDEC is looking forward to a year of recovery and growth in 2021.
This story was originally published April 30, 2021 at 12:03 AM with the headline "TRIDEC: Fast rebound from a tough year."