A survey of the automotive aftermarket industry found that many companies are slowly rebounding from the economic impact of the coronavirus pandemic.
SEMA polled more than 1,800 people in the industry between May 20-29, asking a range of questions about how phased re-openings are impacting company operations and sales.
The survey is a follow-up to another one conducted from April 1-7. That survey found 70% of companies were impacted short term, but believed they’d get through it.
Here’s what the latest survey found:
Things are starting to return to normal
Nearly 90% of those surveyed said their companies are “mostly business as usual” or “impacted short-term, but will get through it.” That’s about the same as the last survey, but this time more people said “mostly business as usual.”
But industry growth looks limited
Only 35% of those surveyed said their companies plan to reopen all facilities. What’s more, only 19% will rehire laid-off or furloughed workers, and just 14% will hire new staff.
By the end of 2020, 69% of those surveyed said their companies expect to have the same or more staff as they had before the outbreak started.
Many companies are applying for aid
To get through the economic downturn, many companies are applying for financial aid and loans. More than 60% of those surveyed said their companies have already applied for the Paycheck Protection Program or an SBA Economic Injury Disaster Loan.
The vast majority of companies seeking loans are turning to large and small banks for financing.
Overall, people feel confident
Despite all the hardship, the majority of those surveyed are optimistic that their companies will survive.
In short, coronavirus restrictions are lifting, but our industry is still not out of the weeds. We’re on the right track, but it’s going to take more time and strong planning.
If your auto upholstery shop has been negatively impacted by the coronavirus pandemic, you can apply for a forgivable loan. Click here to find out how. about Dan Miller on Upholstering the VLF Force 1