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COVID-19 EFFECTS - BUSINESS REOPENING AND RECOVERY

17 August

COVID-19 EFFECTS - BUSINESS REOPENING AND RECOVERY

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COVID-19 EFFECTS - BUSINESS REOPENING AND RECOVERY

MEMBERS’ SURVEY ON BUSINESS RE-OPENING AND RECOVERY SURVEY

 

  1. Introduction

ICPAU undertook a survey of its members, represented by professional accountants across all sectors of the economy, to understand how businesses have been impacted, how and when they envision reopening, and what they might need to aid their recovery. Responses came from members in organizations across different sectors.

The sectors represented were: Professional services (25%), Financial Services (15%), Government (11.7%), Educational (5.8%), Healthcare and social assistance (5%), Manufacturing (4.2%), Energy (3%), Logistics and transportation (3%), Hospitality, culture and entertainment (2.5%), Construction (0.8%), Retail (0.8%), IT & Tech (0.8%), and others (21.7%). Included among the other sectors were; Not for Profit Organizations, Aviation, Oil and gas, Insurance, Telecoms, International Development Organizations, and Media.

The details provided below are a breakdown of sector representation:

 

The open survey was administered electronically to members by email and on social media from 13–30 June 2020. A total of 120 responses were analyzed.

  1. Detailed Survey Responses

Following are the detailed survey responses:

    1. When do you expect your organization to fully reopen?

While over 35% percent of the responding organizations indicated that they were already fully open and operational, another almost 40% percent indicated that they would only consider opening when it is safe to do so.

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. What has been the biggest impact of Covid-19 on your organization?

The biggest impact for most responding organizations (almost 60%) has been on operations and reduction in demand coming in next (with 26%).

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

    1. What kind of recovery do you expect for your organization?

Recovery for most responding organizations (over 55%), is that of continued business volatility with renewed COVID-10 infections or re-infections and disrupted demand with major businesses contracting beyond 2021. Others (20%) were hopeful of a rapid rebound after the easing of lockdown restrictions and about 25% believed that though the downturn would extend to the 3rd quarter of 2020, but would rebound afterwards.

 

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. Given current information, when do you anticipate that demand for your products or services will begin to increase?

Over 25% of the organizations do not expect the demand for their products/ services to increase again until 2021 or beyond. About 25% indicated that they expected demand for their products/ services to increase in the 3rd and 4th quarters of 2020. Another 25% indicated that they could not predict at this time, while almost 20% of the respondents indicated that the demand for their products/ services had not declined during this period.

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. What impact do you expect on your organization’s revenue and/or profits for 2020 as a result of COVID-19?

More than half of the respondents expected a decrease in revenue and/ or profits this year as a result of COVID-19. Only 9% of the respondents say the impact of the crisis is still difficult to assess and about 5% expect no impact, or an increase in revenues and/or profits.

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

    1. Based on the information you have so far, what is your organization’s revenue outlook for 2021?

Again, over 70% of the respondents say, that based on the information they have so far, their revenue forecast for 2021 will decrease. About 17% indicated there would be no effect or could not predict, and only 5% indicated that their forecast revenue for 2021 would increase.

 

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. Please indicate some of the measures your organization has been taking to prepare for reopening

 

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

To prepare for reopening, respondents indicated some of the measures that were being undertaken. These included; Developing policies and procedures to prevent the virus spread in the workplace (83%), Procuring masks and other protective equipment (73%) and Procuring necessary supplies/services to ensure effective workplace sanitation (73%), among others.

 

    1. When returning to the workplace, how confident are you with your organization’s ability to do the following: Meet customers’ safety expectations; Provide a safe working environment; Retain critical talent; Balance needs of all stakeholders; Manage employee well-being and morale; Build skills for the future; Identify new revenue opportunities

Confidence among organizations about safety preparations is high. Respondents report feeling confident about their organizations’ ability to provide a safe environment for customers (90%) and employees (92%).Fewer respondents say they are very confident about building skills for the future (19%) and identifying new revenue opportunities (20%).

 

 

Very confident

Confident

Not very confident

Meet customers’ safety expectations

36.13%

54.62%

9.24%

Provide a safe working environment

40.68%

52.54%

6.78%

Retain critical talent

35.59%

50.85%

13.56%

Balance needs of all stakeholders

16.81%

55.46%

27.73%

Manage employee well-being and morale

15.13%

61.34%

23.53%

Build skills for the future

19.17%

52.50%

28.33%

Identify new revenue opportunities

20.34%

38.14%

41.53%

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. Given the layout of your office and the need to ensure social distancing in a reopened office setting, what percentage of your staff do you project can safely be in your offices on any given day?

More than 55% of the respondents projected that they could safely have more than half of their staff in office and still meet the social distancing requirements, and about 1.7% were unsure.

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. What percentage of your employees commute to the office using public transport?

 

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

Majority of the respondents (52%) indicated that half of their employees commute to office using public transport, 2.5% were unsure, while 9 % indicated that none of their employees commuted to office using public transport.

 

    1. Which of the following financial actions is your organization considering as a result of COVID-19?

Implementing cost containment measures remains the top financial action Organizations are considering as a result of the novel coronavirus (82.5%), but almost half (47%) of respondents are considering deferring or cancelling planned investments as well. Organizations are also likely to change financial strategy as a result (48%).

 

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. If considering deferring or canceling planned investments, which of the following investment types are being considered in that regard?

Organizations are more likely to cut facilities and general capital expenditure investments (63%), than digital transformation, research & development, customer experience or cyber security.

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. Has your organization been able to access additional financing to address any cash flow interruptions you may be facing?

 

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

Majority of respondents (54%) indicated that they did not need to seek additional financing during this period. 23% of the respondents had sought additional financing and were able to secure it, while the rest (22%) sought access to additional financing but were unable to secure it.

 

    1. As a result of COVID-19, in which of the following areas are you planning changes to your supply chain strategy?

Top priorities for many organizations as they plan changes to their supply chain strategy include: improving risk-protection measures; developing additional, alternate sourcing options; and use of automation to improve the speed and accuracy of decision-making regarding supply-related issues.

 

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. How will the current COVID-19 situation make your organization better in the long run?

Organizations indicated that the pandemic situation would make them better in the long-run with regard to: implementing flexible working arrangements (71%); considerations for technology investments (65%); new ways of serving customers (65%); and better resilience and agility (62%).

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

 

    1. Do you expect new opportunities for your organization due to the COVID-19 pandemic?

Most of the respondents (62%) indicated that they expected new opportunities for their organizations on account of the pandemic. Only 10% of the respondents indicated that they did not foresee any opportunities, while about 28% were not able to make any forecasts.

Source: ICPAU, Members’ Survey on Business Reopening and Recovery, 13-30 June 2020

Base: 120

COVID-19 Surveys