Industry survey highlights short-term impact on business.

 

A third of British companies involved in the office supplies sector have experienced significant disruptions in their supply chain arrangements due to the COVID-19 crisis.

 

According to a survey commissioned by UK office supplies trade association BOSS Federation and the British Printing Industries Federation (BPIF), nearly one-quarter (23 per cent) of businesses also  reported a significant increase in bad debt exposure, with 71 per cent of respondents experiencing debtors withholding payment due to the uncertainty COVID-19 has created.

 

The BOSS/BPIF COVID-19 Impact Survey was carried out during the period 23 March to 06 April 2020 and was open to all companies in relevant industries, not just BOSS and BPIF members. 

 

The combined turnover of fully responding companies is over £3.1 billion in businesses employing more than 22,000 people. 

 

Business Impact Survey findings:

 

Over one-third (36 per cent) of respondents have experienced considerable disruption to their supply chain as a result of coronavirus.

 

Forty per cent are confident (‘very’ or ‘somewhat’) that supply chains will be maintained. However, comments allude that supply chain security is more at risk as staff shortages increase and a dichotomy between firms remaining operational and others shutting down stresses supply chains.

 

Nearly three-quarters (74 per cent) or respondents have reported a ‘considerable downturn’ in order levels. The average change in order levels, from the expected monthly level, was down 65 per cent.

 

Forty per cent of firms are ‘extremely concerned’ about the short-term* survival of their clients’ businesses (*next three months).

 

On average, 27 per cent of responding firms’ business is supporting critical services (in the food, pharmaceutical, health & social care, education, public services and local government sectors).

 

Just over one-third of respondents (34 per cent) are ‘extremely concerned’ about the short-term survival of their own business. Slightly more, 38 per cent are ‘extremely concerned’ about long-term* survival (*beyond six months).

 

Nearly one-quarter (23 per cent) have reported a significant increase in bad debt exposure. Furthermore, 71 per cent have experienced debtors withholding payment due to the uncertainty.

 

Over three-quarters (77 per cent) require some degree of emergency assistance to maintain cashflow, cover costs and survive – 38 per cent stated that they require this assistance either ‘immediately’ or ‘in the next week or two’.

 

Over one-quarter (27 per cent) have already made redundancies – for these companies the level of redundancies averaged at 41 per cent of the workforce.

 

Further redundancies are expected (18% ‘definitely’, 22 per cent ‘probably’ and 29 per cent ‘maybe’) in the short-term. The average expected level of redundancies is 37 per cent of the workforce.

 

A majority of companies have implemented COVID-19 prevention measures, the most common being social distancing (91 per cent), working from home (86 per cent), banning visitors (74 per cent), banning off-site meetings (69 per cent) and banning business travel (65 per cent).