Border city businesses hit by 'perfect storm,' next few months 'critical': Chamber of Commerce head

When the pandemic hit and theCanada-United States border closed, local business owners instantly lost about a quarter of their revenue, according to the Windsor-Essex Regional Chamber of Commerce.

Nine months later, withfluctuating COVID-19 restrictions followed by a complete lockdown during what would typically be one of the busiest months, businesses are barely hanging on, said the president of the Windsor-Essex Regional Chamber of Commerce Rakesh Naidu.

CBCWindsor News at 6 host Chris Ensing spoke with Naidu about the impact this year has had on local businesses and what 2021 might look like.

As a border city, Naidu said that Windsor and the surrounding region was hit especially hard as it was cut off from the United States and may require more support from all three levels of governmentto stay afloat.

Start of 2020, Windsor-Essex economy 'having a good run'

Prior to the start of the pandemic, Naidu said the region was actually doing "pretty well."

"It was all about growth, it was all about taking our region forward and taking our businesses forward," Naidu said about the start of the year."Several sectors were on all cylinders, we were having a good run our unemployment rate was much lower. Inmany sectors we knew that we would experience further growth."

He said the agriculture, manufacturing, construction, education sectors were "doing really well"

"We were hoping that we would be able to ride a good wave and take our region forward," he said.

But by mid-March the region went from a run to a crawl as COVID-19 forced an immediate lockdown and businesses shut.

By May, Windsor took the top spot in Canada for the highest rate of unemployment at 16.7 per cent.

WATCH: Windsor-Essex Regional Chamber of Commerce president speaks with CBC News

Windsor-Essex Regional Chamber of Commerce talks about how businesses fared in 2020

4 years ago

Duration 4:55

President Rakesh Naidu says this year has been a tough go on local businesses

Border closure, pivoting

Naidu said that to his knowledge the last time the border closed was likely almost two decades ago, after 9/11.

And that was only for a few days.

Now, the region is going on nine months and counting, with Prime Minister Justin Trudeau stating that the border will be closed until the world gets a handle on COVID-19.

"The border is a lifeline for any border community, but especially for the Windsor-Essex region because we do so much trade," Naidu said. "For the border to be closed it was a huge blow and thankfully not a complete closure, we were able to open it up for goods that are essential, people that are essential."

Windsor-Essex, he said, relies on the border to trade goods, for the movement of people and to allow tourists in.

"Those businesses that rely on .... that foot traffic from U.S. consumers, that has been closed and that relates to a significant amount of business volume," he said, adding that roughly 25 per cent of local business revenue is dependent on that border being open.

"It's not a small business revenue to lose in anyyear forget about a pandemic. In any year if you take away the 25 per cent, it is a significant hit," he said.

On top of that revenue lost, Naidu said, the cost of doing business increased as masking, sanitizing and other COVID-19 measures had to be put in place.

From all of this, "it became apparent that business model needto change," he said, noting that some were able to pivot to offering their services online.

Yet, not all were capable of transitioning to online likely due to skill, time and financial constraints, he said. Not to mention, but for places offering a service, like gyms or salons, it was impossible to put their services online.

"These businesses, even if they are able to offer their goods and services online ... they're going to be competing with those that are extremely good at this, who have years and years of being good at this and have the sale like the Amazons of the world," he said.

"They can offer product at much cheaper prices than our local small businesses ...so even if the business does pivot and offer productsand services online it's abig challenge to compete with the big boys and take them on."

And while the government has offered a number of financial supports, Naidu said the government needs to realize that even if Windsor-Essex wasn't technically in lockdown since the start of the pandemic, the border closure itself constitutes a lockdown and so businesses here should be able to tap into additional rent relief.

Support local

December, Naidu said, is the "most important month of the year," for many businesses asit'sestimated that roughly 20 per cent of the revenue for many retailers comes from holiday shopping.

"If you take that opportunity away from them, many businesses will be hugely challenged and some may not be able to recoverand stay afloat. So it's very, very criticalthat there is some opportunity for these businesses to offer their products and services for bringing consumers in," he said."If not there shouldbe some modified way of keeping them open and offeringtheir product and services to consumers."

But a lockdown has left many to resort to delivery or curbside pickup -- with only essential stores able to continue operating.

This has left many businesses feeling frustrated, as CBC News has heard from locals and the Downtown Windsor Business Improvement Association, which started an online petition for a "level playing field" with big box stores, when a lockdown was called for the region.

"I think we are all paying a cost and it's not going to be easy. The next few months are going to be very critical," he said. "It is not going to be easy and a lotof help and support is needed, hence I implore, I really urge every community person here to think twice before they buy any product or any service if it is possible for u to buy this locally take this extra step put a little more money if you have to but go and support your local business."