Executive Summary of the WFSGI Covid-19 Impact Survey June Edition
Manufacturing Companies Responses:
On the demand side orders seem to decrease less. Compared to the last two months in all regions a slight improvement has been reported except for Latin America where the situation has aggravated.
On the supply side double as many respondents as last month face material shortage in the sporting goods industry.
Supply chain disruption remains roughly unchanged. With regard to the geographical impact, disruption only continues to diminish for Far East and Europe whereas it slightly increased in all other regions.
Labor shortage remains a challenge for 40% of respondents. This is however a positive development as it is more than 10% less than last month. Travel restrictions and closed public transport are still impacting staff’s ability to pursue their tasks.
An unchanged percentage of over 75% of sporting goods manufacturing companies are still impacted by specifically implemented regulations due to the COVID-19 pandemic.
There is a slight decrease of respondents facing issues due to low cash flow. But the number remains high with nearly 70% of manufacturing plants continues to be challenged by low cash flow.
Looking ahead, 84% of survey participants forecast that the Covid-19 pandemic will impact their business. Again, this is just a little improvement of 6% compared to last month. Compared to the last months, nobody expects a business drop of more than 90%.
While only 7% of the industry respondents do not expect any recovery, there are only half as many respondents as last month expecting a near-complete recovery between 70 and 90%. Most survey participants expect a recovery within 91 to 180 days, while 30% think it will take more than a year.
The regions mostly affected by the crisis remain Europe and Northern America according to over 60% of respondents.
Close to 50% rely on government loans and financial assistance.
While the pandemic lasts on, businesses seem to develop plans to counter the impact of this crisis. There are less than 10% of respondents having no measures planned, that’s half as many as when the survey was initiated at the beginning of the pandemic.
With a total of 60%, most of the participants want to consolidate production capacities followed by relying on government loans, which is an option for 50% of respondents. A downtrend is apparent for measures such as retrenching workers and adopting lean production.