COVID-19 Impact: Results of Member Survey
The results of the survey to all NCMA members shows that large majorities of companies are concerned about both short- and long-term impacts of the coronavirus pandemic.
Ninety-five percent of respondents to an NCMA member survey are expecting negative revenue impacts as a result of the COVID-19 pandemic. Thirty percent of the respondents are expecting the negative revenue impacts to be ‘very negative’.
The survey, conducted by Industry Insights, was performed between Monday March 16 and Wednesday March 18. NCMA was one of many groups that had their members participate. In all, 2,500 individuals responded to the survey, of which 82 were NCMA members.
The results indicate that NCMA members are concerned about the overall negative impacts of coronavirus on their business. In addition to the revenue concerns already discussed, 63% of respondents are worried the situation will require reduction in staff, with 54% considering moderate staff reductions and 9% considering major staff reductions. Slightly more than 50% are expecting reductions in advertising spending, and nearly 40% are considering technology spending reductions.
As far as duration, the largest percentage of respondents (31%) expect that the coronavirus will impact their operations for 3-6 months. An additional 8% expect the effects to last 6-12 months, while nearly 6% expect the impacts to last more than 12 months.
The large majority of respondents indicated some level of concern of the effects of coronavirus on the long-term viability of their company. While 75% indicated some level of concern, most indicate ‘mild concern’ (44%) or ‘moderate concern’ (22%).
Despite these concerns, no manufacturers indicated they have completely shut down operations, and reports in certain areas of the country indicate little current effect on construction and manufacturing. As of this survey, no manufacturer that responded indicated that they have shut down operations because of coronavirus. Anecdotally, in many areas of the country construction and manufacturing have been largely unaffected by quarantines and shut-downs to date.
Nearly all companies have taken action to reduce the spread of the virus. Large numbers of companies have increased availability of hand sanitizer, cancelled large group activities, instituted employee distancing, and started daily office cleanings/sanitization. More than half of respondents, however do not have a formal plan to deal with some of the effects of the virus, such as major employee absenteeism or suspension of operations.
“The survey indicates that most members expect the effects of COVID-19 to be significant on their business,” says Bob Thomas, President of NCMA. “We implore Congress and the Trump administration to provide stimulus opportunities swiftly to help our members. Additionally, we are working hard to ensure that construction and concrete product manufacturing are essential business functions that need to continue operating. Our membership and industry is resilient and we will weather this storm.”
The results from NCMA members is very similar to the results of all 2,500 respondents to the survey. To read more about these overall results, click here.