After a month, the survey reveals effects of COVID-19 dropping and business steadily improving. By Dianne M. Pogoda
Since the last NKBA Pulse report on July 9, the overall impact of the COVID-19 pandemic declined to a rating of 6, down from 6.4 in the previous survey.
The rating dropped among all four member segments polled — designers, builders and construction pros, retailers and manufacturers.
Retailers rated impact at 6.1 (down from 6.2), while designers came in with a rating of 6 — but this segment improved the most, easing from 6.8 in July. Manufacturers’ rating dropped by 0.5 to 5.9, and builders came in with the lowest impact at 5.7, down from 6 last month.
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). More than 900 NKBA members responded to this month’s query.
Prior Pulse surveys indicated that designers were struggling somewhat more than other segments, as some homeowners were not using their services, instead preferring to tackle smaller jobs and projects themselves. But more designers have begun to report increased business.
NKBA Pulse also asks members whether demand for their goods and services is increasing, decreasing or staying the same.
This month’s survey revealed good news for all four segments, with most reporting that business was stable or staying the same. Overall, 50% of respondents said demand was on the rise (up by 2 points) and 39% said it was steady with last month.
Within the member segments, builders were most optimistic, with 55% reporting an increase in demand (up 3 points), and 37% saying it was the same. Just 9% said demand was falling.
Among designers, 48% said demand was rising, reflecting an 11-point gain, while 37% said it was steady, and 15% said it was falling. Half of manufacturers said demand was rising, and while that’s down 11 points from July, 42% said it was the same, a 12-point jump, indicating that business is stabilizing.
Finally, there was no change in the number of retailers who said demand was falling (11%), but 42% said it was the same (a gain of 11 points) and 47% said it was on the upswing, an 11-point drop.
The numbers have been steadily improving since the benchmark survey in April, in the eye of the pandemic storm. The positive takeaway is that now, 89% of respondents report stable or increasing demand, which is an indicator of business potentially on the rebound and improving consumer confidence.
The NKBA Pulse will continue to poll members to determine patterns across business segments. To participate in the poll, email marketresearch@nkba.org.
