Member Insights: Weekly Pulse Survey Results on Impact of COVID on Business

BY Sarah Jilbert and Brandin Bursa
4/14/2020 - COVID-19

We sent our first weekly “pulse” email to distributors and manufacturers on Friday April 10th, to see a snapshot of the industry and how it’s changing week by week, in response to COVID-19.

Note that these results are not statistically significant but provide a general “pulse” of where the industry sits. 

The weekly pulse is a compliment to our scientifically significant Monthly Sales TRENDS Reports and survey responses are due April 23.  Please contact Sarah to start receiving this monthly report.

Distributor Snapshot (over 90 distributor respondents)

 Weekly Sales:

  • The graph below shows that 54% of respondents indicated their weekly sales were down more than 5% compared to the previous week, 22% indicated their weekly sales were steady and 12% indicated their weekly sales were down less than 5% compared to the previous week
  • Splitting this out by region, the majority of respondents indicated that their weekly sales were down more than 5%, except for the Southeast and Southwest. Sales in these areas varied across the board, but the majority of respondents indicated sales were steady

Survey

Weekly Employment Changes:

  • 9% of respondents reduced employee compensation in the past week
  • 32% of respondents reduced employee hours in the past week
  • 13% of respondents laid off employees in the past week
  • 17% of respondents furloughed employees in the past week
  • 8% of respondents hired new employees in the past week

Customers:

  • During the week, 62% of participants indicated their customers have applied or plan to apply for a loan, 20% indicated their customers are shutting down, 74% indicated they are still seeing business and 18% indicated their customers need more help
  • 43% of respondents have seen no recognizable change to customer’s paying performance while 34% have less than 15% of their customers extending payment schedules

Suppliers:

  • 65% of respondents have not seen any supply chain disruptions. 15% have seen parts disruptions and 12% have seen equipment disruptions
  • 63% of respondents have heard there will be no expected product shortages from suppliers
  • 69% of respondents have not asked their supplier for extended terms. 21% have asked their supplier for extended terms and were accommodated with no penalty. 14% have asked their supplier for extended terms and were not accommodated. 5% said their supplier was not helpful and will be looking for a new supplier after this crisis

Supplier Snapshot (over 25 manufacturer responses)

Weekly Sales:

  • 75% of respondents have seen sales down more than 5% this week
  • 3% have seen sales down less than 5%
  • 12% have steady sales compared to last week
  • 10% have reported sales increases

Weekly Employment Changes:

  • 50% of respondents did not have any employment changes.
  • The other 50% of respondents who had employment changes broke down the following ways:
    • 32% have hired or rehired employees
    • 32% have reduced hours or pay
    • 36% have laid off or furloughed staff

Production Facilities:

As seen from the graph below, production from responding supplier members was strong with over 81% saying their production facilities have not closed. There were two responding members who had plant closings across the states of Texas, Pennsylvania and Michigan.

Screen Shot 2020-04-14 at 3.23.56 PM

Challenges Meeting Distributor Orders:

  • 78% of respondents do not expect challenges meeting orders
  • 8% expect challenges in meeting Parts orders
  • 8% expect challenges in meeting Equipment orders
  • 6% are currently unsure

 Distributor Ability to Pay

  • 41% of respondents have reported no change in paying performance
  • 44% state that less than 15% of their customers are asking for extended payment terms
  • 15% state that more than 15% of their customers are asking for extended payment terms

 

HARDI Pulse-01


Stay tuned for the next survey, which will come out in our next COVID-19 Weekly Resources email on April 17th.

And remember, the weekly pulse is a compliment to our scientifically significant Monthly Sales TRENDS Reports and survey responses are due April 23.  Please contact Sarah to start receiving this monthly report.