Non-Primary Industry Update Q1 2022

Non-Primary Industry Update Q1 2022

Hospitality

Drivers

  • In March, more than 52,000 people traveled through QCIA, a 46% increase from the previous year. The airport has recovered 80% of its passenger numbers from pre-pandemic levels.
  • Some business travel is returning; airlines are taking more equal shares of the market as business travelers use American, Delta or United for nonstop routes to major cities and global connections, while Allegiant primarily serves leisure travelers.
  • A major runway reconfiguration project that includes shortening the general aviation runway and building a parallel taxiway to the main commercial runway, is underway. The project will increase safety and operations efficiency. 
  • QCIA has applied for competitive small airport grants now available through the Bipartisan Infrastructure and Investment Act. Federal funding and grants will determine the scope of its major renovation plans.
  • Interior terminal amenities and improvements are complete.
  • The Quad Cities International Airport (QCIA) attended Routes America, a nationwide air conference for airports, airlines and city leaders. The meeting allows QCIA to highlight the region’s progress to airlines to influence decisions to offer and/or add flights.
  • Support of the QCIA is crucial to the growth of our region. Airlines consider regional trends in providing and expanding flights, particularly QC business expansion and travel.
  • TSA predicts a busy summer travel season, perhaps eclipsing 2019. Whether lifting the federal mask mandate is tied to an increase in air travel will be difficult to determine. QCIA did not report any issues with compliance during the mandate.

Drawbacks

  • The rebound of business travel remains uncertain due to the ease, cost-effectiveness and reliance on virtual meetings.
  • The pilot shortage continues to strain the airline industry. Early-buyout options for those nearing retirement accelerated a shortage that was already looming. The federal government is considering a grant program for training and airlines are considering expediting career paths for pilots.
  • Large airlines are poaching from regional air carriers to fill vacancies. The pilot shortage and other staffing challenges are a major roadblock to full travel recovery.

Food and Beverage

Drivers

  • Restaurants continue to serve more patrons. With state mask mandates lifted, business luncheons and meetings are on the rise.

Drawbacks

  • Restaurants continue to struggle with staffing, causing long waits for tables and food. The cost of menu items is increasing due to supply chain disruptions.
  • Some larger QC employers still do not allow employees to meet in person or participate in large gatherings.

Retail

Drivers

  • The automotive industry continues to experience supply chain disruptions. The used vehicle market remains very strong. The cost of used vehicles is close to, or even higher than, new. Dealerships are selling used inventory above Kelly Blue Book value and purchasing used cars without a trade to increase inventory.
  • Foot traffic remains on the rise as consumers return to stores to shop. To remain competitive with non-local online retailers, QC merchants continue to offer online orders and Insta-cart, curbside and in-store pick-up.

Drawbacks

  • The electronic chip shortage remains an issue for automobile manufacturers. Many new cars sit on dealer lots or at the factory waiting for chips to be installed.
  • Online retailers continue to see strong sales in paper products and personal items while local retailers have limited supply. Strong demand is causing price increases.
  • Retailers and grocers continue to add self-checkouts, an option that is not embraced by all consumers. Some shoppers will only shop where a “live” checkout option is available.

Service

Drivers

  • Business is increasing at auto service shops due to the shortage of new and inflated prices of used vehicles. More consumers are choosing to keep and maintain what they have.
  • The increase in demand has caused the need to hire more skilled technicians and customer service employees.

Drawbacks

  • Skilled and trained technicians are not easy to find.
  • Vehicle parts and tires are hard to get; some are not available.
  • The cost of vehicle maintenance, tires and parts continues to increase.
  • Employees need reliable transportation to get to work.

Construction

Drivers

  • Construction is strong in the region. New housing developments and senior living communities are being built throughout the QC.
  • Home contractors remain busy with kitchen, bathroom and family room renovations. Many homeowners are hiring contractors to build decks.
  • Some handyman businesses are expanding their services by acquiring other companies such as flooring and hiring electricians in order to provide comprehensive in-house services to customers.  
  • Steel is now easier to find.

Drawbacks

  • Sub-contractors can be difficult to find in some areas, including skilled cement workers and finishers, interior painters, flooring installers and electricians.
  • The cost of materials continues to fluctuate. Bids are locked in for a short period of time due to rapid changes in materials costs.
  • Orders can be delayed for months due to the scarcity of materials needed to complete a job.  
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