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Higher Percent of Manufacturers Open Normal or Expanded Hours with Reduced Staffing
The percent of manufacturers that were closed dropped to 9% from 16% the week prior. That decrease was split between manufacturers open usual hours or expanded hours. Meanwhile, nearly 50% of manufacturers were operating with some level of reduced staff.
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During the week of April 20th, Gardner Intelligence conducted a survey to gauge the effects of COVID-19 on discrete parts manufacturers across all the industries that Gardner Business Media covers. The survey focuses on two basic questions:
- What changes has your business experienced as a result of COVID-19?
- What adjustments has your business made as a result of COVID-19?
For each of those questions, respondents were asked to compare the current state of their business to the norm prior to COVID-19 and rank the severity of the change or adjustment from minimal to moderate to major. You can go here to view all the charts for the survey results.
The most recent survey had its fewest respondents than in the eight weeks of the survey (look for a survey with a new focus next week). The percent of manufacturers that were closed dropped to 9% from 16% the week prior. That decrease was split between manufacturers open usual hours or expanded hours. There was a 4 percentage point decrease in manufacturers operating with significantly reduced staff that was counteracted by a 3 percentage point increase in manufacturers using moderately reduced staff. There was almost no change in manufacturers using the usual or increased level of staff. There was also a sharp increase in the percent of shops serving the medical and defense industries.
In the most recent survey, there was a significant decrease in the percent of manufacturers experiencing standing orders either being postponed or canceled, but there were still 52% experiencing a change in standing orders. Almost all the other changes experienced showed a modest increase in the most recent survey. The changes in business practices and supplier lead times had a significantly more severe impact during the week of March 20th. Meanwhile, the changes in standing orders, ripple effects and parts availability all moderated.
The most significant changes to adjustments made by manufacturers this week were to production/capacity and staffing/headcount with nearly 50% making both adjustments. This was likely a result of nearly 50% of manufacturers operating with less than normal levels of staffing. However, these two adjustments had a much less severe impact during the most recent week. Adjustments to compensation had a less severe impact, perhaps due to manufacturers receiving money from the Paycheck Protection Program, but the adjustments made to budgets/spending were more severe.
