Wow. It’s week 9 of APC’s COVID Survey of contractors, and it’s the first time we’ve seen positive news. And it’s way positive: Contractors are reporting an increase in business from every sector. In the previous eight surveys, positive and negative reports were a mixed bag at best, and were predominantly negative – meaning, contractors were reporting declining revenue from most sectors.
But this week, while sectors continue to struggle, and contractors continue to report declining revenue, they are also reporting a significantly improving business climate. New Construction Commercial and Residential, Residential Exterior, Multi-Family Interior, and Hotel and Entertainment sectors are all way up, more than 20 percentage points.
What gives? Our crack analysis offers three explanations. One, most states have loosened restrictions and are allowing more entities to operate in some capacity. It’s reasonable to expect some of those businesses and organizations to initiate painting. Two, because of the first explanation, contractors may simply be more optimistic and thus offer more positive reports when competing APC’s Survey. Three, it’s painting season, after all.
Check out these numbers:
|New Construction Comm.||62%||38%|
|New Construction Resid||60%||40%|
But, as we referenced, two thirds of contractors continue to report that revenue is down compared to last year. So a very challenging economy persists, no question.
APC also asked contractors their opinions about the economy “re-opening” and whether that was occurring too fast or too slow. Opinions are certainly split, but nearly half of contractors say that government is being too cautious with reopening.
Is The Economy Opening Up Too Fast or Too Slow?
Too Slow..... 48%
Too Fast...... 30%
Just Right.... 18%
Don’t Know.. 4%
Lastly, APC asked contractors who applied for COVID-related government assistance if they were approved and had received the money. Two-thirds report receiving money, one-third did not.
APC would love to hear your thoughts, too – complete our new survey here.