The labor market is experiencing historic change – from a seismic workplace shift, high quit rates and resignations to lowest unemployment numbers in decades.
But it is this recent shift to remote work that has put contact businesses – those who require presence of customers or workforce to be in central location – at risk of business failure. Business failure risk is defined as the High/Medium/Low probability of “financial stress” (i.e. failure or closure with outstanding debt) in the coming twelve months.
A nationwide vue of Dun & Bradstreet® data indicates there are 223,000 businesses at risk spread across the United States, with the lowest risk in the Midwest.
Interestingly, a state vue of high risk of contact businesses shows a very different story. Of the 87,000 contact businesses nationwide at risk, the highest concentration is in the Midwest. The top 5 states at high risk are North Dakota, Iowa, Nebraska, Kansas and Minnesota. Key sectors impacted within these states largely span mining (especially in ND), manufacturing, and retail, depending upon the state.
Given this significant workplace shift and resulting risk, workforce development boards across the nation should consider contact businesses as top priority for targeted business outreach.