The survey returns after a month with minimal change. By Dianne M. Pogoda
Since the last NKBA Pulse report on June 11, the overall impact of the COVID-19 pandemic held nearly steady at 6.4, compared to 6.5 a month ago.
Among all four member segments polled, builders and construction pros said the health crisis is having the smallest impact — rating it at 6 — which is a drop from 6.8 in the last survey and the lowest rating recorded by any segment since Pulse began tracking these sentiments in April.
The survey measures members’ sentiments about the effects of the COVID-19 crisis on their businesses on a scale of 1 (no impact) to 10 (significant impact).
Retailers rated impact at 6.2, down from 6.6 a month ago. Manufacturers’ rating rose slightly, however, to 6.4 from 6.3, and designers put impact at 6.8, up from 6.5 in early June.
Based on these figures, it appears that designers are struggling a bit more than the other member segments. As the states have begun to reopen stores and factories and have allowed remodeling to resume in homes, those segments have regained some ground. But many homeowners are not using design services, preferring to do minor do-it-yourself projects, less expensive or simpler jobs in this time of uncertainty.
NKBA Pulse asks members two questions to measure the effects of the pandemic: to rate COVID-19’s impact on their business, and whether demand for their goods and services is increasing, decreasing or staying the same.
This month’s survey, which yielded 570 responses, revealed mixed news about demand. Overall, 48% of respondents said demand was increasing, which was even with the June 11 survey. But 17% said demand was falling, more than the 11% who said so in June.
Again, designers reported softer demand than the other three segments. While 61% of manufacturers, 52% of builders and 58% of retailers said demand was increasing, just 37% of designers said demand was on the rise — and that’s down from 43% who said it was trending upward a month ago. Similarly, 25% of designers said demand was decreasing, compared to 18% in the previous survey.
In contrast, just 10% of builders, 11% of retailers and 12% of manufacturers said demand was down.
Part of this can be attributed to pent-up demand to go shopping, the desire to embark on smaller “quick-fix” remodeling jobs, or normal replacement of appliances and other manufactured goods that don’t necessarily require the skills and aesthetic sense of a designer.
These numbers are likely to swing as COVID-19 ebbs and flows, and how it affects the phased reopening plans in different parts of the country.
The NKBA Pulse will continue to poll members to determine patterns across business segments. To participate in the poll, email marketresearch@nkba.org.
