In the second of a series of surveys to gauge recovery and response to the COVID-19 crisis, Industry Insights believes businesses will be ready to return to normal operations, but that return may not be a little later than first expected.
Industry Insights conducted the second survey between Monday, April 6 and Thursday, April 9. More than 1,500 businesses responded, including manufacturers, distributors, retailers, and professional service operations. The first survey was completed on March 18.
In the newly released survey, 8% of the responding companies said they have an employee who tested positive for COVID-19, up from 1% on March 18.
Also, a big change from the first survey is the expected revenue impact. While responses from the first survey showed expectations for a “Somewhat Negative” impact on revenue, the new survey upgraded that to “Moderate to Major” revenue hit. As a result, nearly one-third of the responding companies say they have already furloughed or terminated employees and plan to reduce some advertising spending. IT spending is expected to remain consistent.
Also, more than two-thirds of the responding companies say they plan to apply for a loan through the Paycheck Protection Program, which as of April 16 has run out of funding and is waiting for Congress to approve a second loan program. 64% say they will hire back furloughed or laid off employees once they receive the loan.
In the first survey, respondents were making plans for a general return to normalcy by June 1. The new research is now setting a late July target.
The encouraging news from the Industry Insights survey comes when COVID-19 orders are removed. Almost 75% say they will return to “normal” operations almost immediately, including participation in large group activities, travel, and a return to in-office working. 22% said they will return to normal operations immediately. 39% said within 1 to 3 months, and 39% said after 4 months.
You can see the entire Industry Insights Executive Summary HERE.
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