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Turnover expected to drop drastically after Summer
Online since 20-04-2020
The Corona-virus leads to concern and uncertainty amongst citizens. Many Dutch companies such as machine and material suppliers in the agri, turf, communal and industry are hit by the consequences of this crisis.
Although the traditional activities peak in spring, the consequences of corona slightly conceal a drastic downward development later in the year. So the results of a recent survey amongst the Fedecom members. Over 75% of the members experience moderate consequences of the corona crisis. On the other hand, a quarter experiences already many problems. 50% of the members expect substantial problems in the next few months.
For 62% of the respondents turnover and order developments are hardly affected at the moment. On the other hand, 38% of the members experience a more than 10% turnover drop already now. For the next few weeks and months 75% of the members expect a further slow-down in orders with over 20%. Especially manufacturers and distributors are hit hard in turnover: 45% resp. 50% have lost 10% of their turnover in the last few weeks. Several company directors expect the biggest problems during and after the summer. Around that time the traditional peak of spring activities will be rounded off and the orderbook will run dry.
Orderbook
The declining order intake is the biggest concern: 78% of the members expect an order decline of over 10% and 46% a decline of over 20%. Companies have taken measures in order to limit the effects. Office personnel and representatives work from their respective homes (36%), contracts with flexible workers have not been prolonged (18%); workhours reduction and multiple shifts have been introduced (16%). For the next few months extension of a shorter working week (31%) and (temporary) reduction of production (18%) will be introduced as complementary measures. A (temporary) company closure is not considered a realistic option.
For 62% of the respondents turnover and order developments are hardly affected at the moment. On the other hand, 38% of the members experience a more than 10% turnover drop already now. For the next few weeks and months 75% of the members expect a further slow-down in orders with over 20%. Especially manufacturers and distributors are hit hard in turnover: 45% resp. 50% have lost 10% of their turnover in the last few weeks. Several company directors expect the biggest problems during and after the summer. Around that time the traditional peak of spring activities will be rounded off and the orderbook will run dry.
Orderbook
The declining order intake is the biggest concern: 78% of the members expect an order decline of over 10% and 46% a decline of over 20%. Companies have taken measures in order to limit the effects. Office personnel and representatives work from their respective homes (36%), contracts with flexible workers have not been prolonged (18%); workhours reduction and multiple shifts have been introduced (16%). For the next few months extension of a shorter working week (31%) and (temporary) reduction of production (18%) will be introduced as complementary measures. A (temporary) company closure is not considered a realistic option.