Three of four segments report an increase in demand for their goods and services as impact stabilizes in NKBA’s weekly member poll. By Dianne M. Pogoda

 

While the overall NKBA Pulse measurement of the impact of the COVID-19 pandemic on members’ businesses remained unchanged from last week at 7.5, some significant movement was detected in demand for goods and services. The number of members reporting demand has been increasing has risen steadily over the past three weeks, while those reporting a decrease have thinned.

NKBA’s weekly two-question survey measures the impact of the pandemic and resulting lockdown on members’ businesses on a scale of 1 (no impact) to 10 (significant impact), and whether demand for their goods and services is increasing, decreasing or staying the same.

More than 1,000 members responded, nearly double the number of the prior week. Manufacturers’ rated impact at 7.3, the same as last week. Designers’ ranking edge edged up slightly, to 7.6 this week from 7.3, while builders said impact dipped by 0.3 points, to 7.7 from 8. Even among members who reported a change in impact, the magnitude was less than a half-point either way.

A significant shift was evident in demand. The overall average among those saying demand was increasing rose by 2 points from last week, to 24%. Those who said demand was  decreasing fell by 6 points, to 35% from 41% last week. Just two weeks ago, in the survey published April 23, 51% said demand was off, while just 13% said it was improving.

Three of four categories concurred that demand was rising, with retailers showing an 8-point jump to 31%; manufacturers were up 5 points to 25%, and designers rose 2 points to 21%. The only segment that didn’t register an increase in demand for their services was builders, 21% of whom said demand was increasing compared to 28% the week before. But on a positive note, 50% of builders said demand was even with the prior week — an improvement of 19%.

The shift in demand coincides with some states loosening restrictions on stay-at-home orders and which businesses may start to reopen. This week’s results may reflect the start of a positive trend for the industry, but a better picture will emerge as more states reopen and health and economic concerns begin to subside steadily.

The NKBA Pulse will continue to poll members and report weekly. To participate in the poll, email marketresearch@nkba.org.