Industry pulse: Your feedback on the impact of COVID-19
21 May 2020
Recently MEA surveyed electrical contractors across the industry to understand the impact COVID-19 has had on businesses to accurately support our advocacy to Government. Below are the insights from this survey.
Significantly, 59% of contractors declared they’ve experienced a decline in their business of more than 30% – notably the eligibility threshold for many of the Federal and State Government support packages.
Only 12% of those members have actually reduced their workforce. This higher staff retention rate maybe because just over half had placed staff on leave without pay and 72% had requested JobKeeper reimbursement payments for their employees. In this cohort, 57% had also applied for the BAS cashflow assistance.
Master Electricians Australia CEO Malcom Richards noted that “Domestic and Commercial were the hardest hit sectors with significant reductions in work. However, there is a high expectation that Government work will increase, a key requirement to kickstarting the economy.”
In response to the decline in business and other restrictions, half the respondents said they had changed their business models since the virus hit with 34% expecting that the changes made will continue going forward.
Considering the impact on supply chain, 76% had experienced some delays in obtaining products and 80% noted an average price increase of 10% compared to pre-COVID-19 rates.
In terms of price pressure, 20% had increased their charge out rate to cover the increased product prices.
The overview of these findings will be shared with the Federal and State Governments to direct ongoing discussions on support and stimulus required for the industry into the recovery phase.
Source: MEA survey, April 2020 | Impact of COVID-19 on the electrical industry