2021 MODC OUTLOOK SURVEY Business Outlook Survey Presentation.pdfSee how we compare to other regions...
Transcript of 2021 MODC OUTLOOK SURVEY Business Outlook Survey Presentation.pdfSee how we compare to other regions...
Presented by
Stephen Reed, CPA, PSA, CGMAShareholder, Core Services GroupCg Tax, Audit & Advisory
Don Cowan, CPA, PFS, PSA, CFP®Shareholder | Managing DirectorCg Tax, Audit & Advisory
732.676.4100cgteam.com
2021 MODC BUSINESS OUTLOOK SURVEY
Objectives
• Determine the effects of the COVID-19 pandemic on businesses in Monmouth and Ocean counties.
• See how we compare to other regions in New Jersey.
• Determine what business issues affect companies in Monmouth and Ocean counties.
• Assess projections for business and economic conditions in 2021.
• Utilize this information to determine ways for MODC to advocate for local organizations throughout the year.
The primary location of your business is in:
Monmouth County, 55%
Ocean County, 32%
Other, 13%
In what industry segment is your business?
Healthcare, 4% Manufacturing, 0%
Nonprofit, 25%
Professional Services, 38%
Education, 4%
Service Industries, 12%
Technology Services, 3%
Tourism/Hospitality/Retail, 3%
Other, 11%
How many people did you employ prior to the COVID-19 pandemic in 2020?
57%
7%
20%
8% 8%
0%
20%
40%
60%
80%
100%
1-25 26-49 50-250 251-1,000 1,000+
How many people do you currently employ?
57%
7%
20%
9% 7%
0%
20%
40%
60%
80%
100%
1-25 26-49 50-250 251-1,000 1,000+
Has your business been negatively financially impacted by the COVID-19 pandemic?
Yes, 75%
No, 25%
How have you dealt with the financial impact of the COVID-19 pandemic?
41%
32%
89%
75%
0% 20% 40% 60% 80% 100%
Reduction in business/work hours
Staff furlough/lay off
Cut back on spending
Event/Services cancellations
Are you concerned about the negative financial impact of the COVID-19 pandemic on your business in 2021?
Yes, 81%
No, 19%
During the pandemic, what percentage of your workforce was reassigned to work from home or work remotely?
12% 14% 11%
27%
36%
0%
20%
40%
60%
80%
100%
0 1-50% 51-75% 76-99% 100%
What percentage of your workforce has returned to in-office work?
23%
36%
15%11%
15%
0%
20%
40%
60%
80%
100%
0 1-50% 51-75% 76-99% 100%
Did you furlough or lay off any of your workforce due to the coronavirus pandemic?
Yes, 33%
No, 67%
How many employees did you furlough or lay off due to the coronavirus pandemic?
72%
8%4%
16%
0%
20%
40%
60%
80%
100%
0-10 11-25 26-50 50+
Do you plan to furlough or lay off any of your workforce due to the coronavirus pandemic?
Yes, 4%
No, 96%
How many employees do you plan to furlough or lay off due to the coronavirus pandemic?
67%
33%
0% 0%0%
20%
40%
60%
80%
100%
0-10 11-25 26-50 50+
Have you recently brought back any furloughed or laid off employees?
Yes, 72%
No, 28%
How many recently furloughed/laid off employees did you attempt to bring back?
78%
0% 0%
22%
0%
20%
40%
60%
80%
100%
0-10 11-25 26-50 50+
Did your business participate in the Paycheck Protection Program (PPP)?
Yes, 54%
No, 46%
Have you received your PPP loan?
95%
5%
0% 20% 40% 60% 80% 100%
Yes
No
If you’ve received your PPP loan, have you begun using the funds?
97%
3%
0% 20% 40% 60% 80% 100%
Yes
No
Have you rehired part of your workforce or maintained workforce levels specifically to maximize PPP loan forgiveness?
Yes, 79%
No, 21%
A few reasons why some did not participate in the PPP Not eligible Sole proprietor Did not qualify Too many unknowns All volunteer Still had income Not applicable Business started in 2020 Gave funds back due to Medicaid funding and concern for
“double dipping” Not needed Didn’t want to deal with loan forgiveness
Did you apply for the Economic Injury Disaster Loan (EIDL)?
Yes, 31%
No, 69%
Have you received your EIDL loan?
Yes, 65%
No, 35%
Do you anticipate needing additional financial support in 2021?
60%
40%
0% 20% 40% 60% 80% 100%
Yes
No
With remote work, do you plan to reduce the amount of space needed for your business in 2021?
23%
0%
49%
28%
0% 20% 40% 60% 80% 100%
Unsure
Yes, outside of NJ
No
Yes
Are you a for profit business?
Yes, 66%
No, 34%
How did the coronavirus pandemic affect your revenue/sales in 2020?
54%
23%
23%
0% 20% 40% 60% 80% 100%
Decrease
Remain the Same
Increase
How do you expect your revenue/sales will be affected by the coronavirus pandemic in 2021?
28%
44%
28%
0% 20% 40% 60% 80% 100%
Decrease
Remain the Same
Increase
Compared to 2019, did the services or programs you provided in 2020:
Increase, 28%
Remained the Same,
28%
Decrease, 44%
Did you decrease services in 2020 because of the coronavirus pandemic?
52%
48%
0% 20% 40% 60% 80% 100%
Yes
No
What benefits do you currently provide your employees?
75%
38%
66%
0%
59%
0%
47%
0%
17%72%
30%
64%
0%
43%
0%
36%
0%22%
0%
20%
40%
60%
80%
100%
2020 2019
Benefits: 2020 vs. 2021Did you reduce the amount of benefits offered to your employees due to the financial impact of COVID-19?
Do you anticipate that in 2021 your overall benefit package will:
Yes, 13%
No, 87%
Increase, 11%
Stay the Same, 71%
Decrease, 18%
Did you make investments in technology infrastructure or IT as a result of the COVID-19 pandemic?
Yes, 67%
No, 33%
In which areas of technology infrastructure or IT did you invest?
47%
93%
78%
62%
0% 20% 40% 60% 80% 100%
Cybersecurity
Video conferencing
Software/Equipment
Cloud-Based Services
Has the COVID-19 pandemic made it difficult to locate employment applicants for your business?
Yes, 42%
No, 58%
How did you deal with the labor shortage due to the difficulty in finding applicants?
15%
33%
44%
78%
0% 20% 40% 60% 80% 100%
Temporary Help
Outsourced Work
Increased Pay
Cross-Trained Staff
Significant Concerns to Executives in Monmouth & Ocean Counties
24%
34%
39%
48%
60%
85%
0% 20% 40% 60% 80% 100%
Unemployment Rate
Reduction in workforce
Tax impact
Decrease in consumer spending
Health and safety
Economic Recession
Do you plan to expand your business in 2021?
17%
30%
9%
9%
11%
24%
0% 20% 40% 60% 80% 100%
Unsure
No
Yes, virtually
Yes, outside NJ
Yes, in NJ
Yes, in Monmouth/Ocean
What is the reason(s) you plan to expand or move outside of New Jersey?
75%
25%
38%
25% 25%
13% 13%
25%
0%
20%
40%
60%
80%
Please share your thoughts about the business climate in Monmouth & Ocean counties.
Climate seems stable, but worried about longer term impact of COVID on state and local budgets, and therefore taxes.
Forced facility closures and capacity limits, coupled with a vast reduction in sales due to consumer health and safety concerns, are making it tough for businesses to survive.
The senior population is fearful to come out and we do not think they will until 6/2021. Also, the digital divide became so real for seniors during the pandemic. Internet service should be an affordable utility in the future.
Stable, but precarious due to the pandemic. Impact to key retail, hospitality, and tourism sectors is devastating and looks to worsen over the winter. Very concerned regarding the impact on restaurants and commercial real estate. The election is going to play a big role in the economy and with the numbers increasing - local businesses
need even more support in ensuring that consumers see the value in supporting local businesses and discovering new niches for growth and investment.
Horrible. Real estate market and construction industry are busy. Very concerned about the number of businesses that are closing permanently.
What Did the Survey Tell Us?
Both the MODC and NJBIA survey results illustrated the financial impact of the COVID-19 pandemic on businesses.
The coronavirus pandemic has caused a bleak outlook for the NJ economy in 2021.
Quite a few companies in our area and statewide sought federal and state funding.
Many business executives in Monmouth & Ocean county are concerned about the lasting effects of the COVID-19 pandemic.
Our respondents are also concerned about the pandemic’s effects on the retail, hospitality, restaurant, and tourism sectors in our area.
There was a significant decrease in plans to expand in Monmouth and Ocean counties and New Jersey this year.
An economic recession, health and safety, and a decrease in consumer spending are major concerns for businesses in Monmouth and Ocean counties.
Questions?
Stephen Reed, CPA, PSA, CGMAShareholder, Core Services GroupCg Tax, Audit & [email protected]
Don Cowan, CPA, PFS, PSA, CFP®Shareholder | Managing DirectorCg Tax, Audit & [email protected]