After a month, the survey reveals only minor changes in the pandemic’s impact on the industry, with positive anecdotal answers about business demand.
By Dianne M. Pogoda
In the five weeks since NKBA last conducted a Pulse survey on Aug. 13, member sentiment about COVID-19’s influence on their businesses showed only minor change, with overall impact slipping 0.2 points to a rating of 5.8.
Among the four member segments tracked, there was no movement greater than a half-point on the scale of 1 (no impact) to 10 (significant impact). About 700 NKBA members responded to this month’s query. Designers rated impact at 5.8, down 0.2 point; manufacturers came in at 5.6, down 0.3, and retailers showed the biggest decline, at 5.7, off 0.4. Builders ticked up 0.1 point, coming in at 5.8. This month’s survey was the first in which all segments rated impact lower than 6 since the benchmark poll on March 26, which placed overall impact at 7.4. The rating had been as high as 8.2, in early April.
The percentage of members who said demand was rising was up 9 points overall, with designers up 5 points, builders up 11 points, and retailers and manufacturers up a robust 14 and 15 points, respectively.
Responses about demand for goods and services, however, showed greater movement. The percentage of members who said demand was rising was up 9 points overall, with designers up 5 points, builders up 11 points, and retailers and manufacturers up a robust 14 and 15 points, respectively.
On the other hand, the overall percentage of members who said demand was decreasing rose by 1 point, to 13%. Of the four segments, retailers said there was no difference in demand from August, while the other three groups said demand was slipping: The percentage of designers and manufacturers who reported demand was falling was up by 1 point — to 16% and 9%, respectively — while 12% of builders reported decreasing demand, up by 3 percentage points.
Adding a new question to the poll, the Pulse asked members about the number of projects and orders in the pipeline compared to this time last year, and the results support anecdotal evidence reflecting high demand. Overall, 47% of respondents said the number of projects was “somewhat larger” (33%) or “significantly larger” (14%) compared to 2019. Of the four segments, manufacturers were the most positive, with 53% saying the number of projects was “somewhat larger” (39%) or “significantly larger” (14%).
In contrast, 33% overall said the pipeline was “somewhat smaller” (18%) or “significantly smaller” (15%), while 17% said it was the same.
The survey also asked an open-ended question: “Six months into the COVID pandemic, what remains your biggest business challenge and your biggest success?”
Some of the most common challenges were backorders and availability of product and materials, managing lead times, securing skilled labor to work on jobs, and continued apprehension about going into clients’ homes — from both client and designer/remodeler perspectives.
The biggest successes were overwhelmingly that business is on the upswing, with new leads coming in at a vigorous pace — which in some cases also presents a challenge in keeping up with the work. Many respondents said they have amped up their digital skills, like use of video technology and social media marketing. Said one member, “My biggest challenge and biggest success is that I have never been busier.”
The NKBA Pulse will continue to poll members to determine patterns across business segments. To participate in the poll, email marketresearch@nkba.org.
