87% of distributors are now reporting a negative financial impact as a result of the COVID-19 crisis, according to the final part of a three-part research project by Industry Insights.
Industry Insights completed the latest survey on April 30. In its previous survey completed on April 9, 83% of distributors experienced a negative financial impact, and in its first survey on March 18, just 49% of distributors experience a negative financial impact. Meanwhile, 78% of manufacturers are reporting a negative financial impact in the latest research, up from 76% in early April and 44% on March 18.
The latest research shows 13% of respondents have at least one employee with a conformed case of Coronavirus, which is up from 8% on April 9 and 1% on March 18. Nearly all of the responding companies report taking a number of actions to keep employees safe, including employee distancing, increased hand sanitizer availability, cancelling all large group activities, eliminating visitors to the office, and cancelling all in-person meetings.
While a majority of companies responding say they expect “somewhat negative” or “very negative” impact on revenue for 2020, most so it will not have an impact on number of employees, technology spending, or advertising spending. 20% say they have “moderate” or “major” concerns about the extent of long-term viability as a result of the Coronavirus.
Most of the respondents took advantage of the Paycheck Protection Program. The Industry Insights survey shows 68% of the companies applied, and of those, 72% were approved for the program and fund were applied. After the funds were received, 61% say they will hire back employees that were previously laid off or furloughed.
When looking to the future, the Industry Insights survey shows a more negative outlook than three weeks ago. In the earlier survey, respondents expected to see a return to pre-COVID-19 operations by June 1. The new survey now says that won’t happen until September 30. But, once pre-COVID-19 operations begin, most expect to go back to participating in large group activities, traveler and returning staff back to the office within 1-3 months.
tED magazine provided coverage of the second survey done by Industry Insights.
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