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.
Distributor Snapshot (over 90 distributor respondents)
- 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
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
- 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
- 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)
- 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
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.
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
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.