TRSA Business Pulse Update: Industrial Operators Show Signs Of Optimism

ALEXANDRIA, Va. — April 20, 2020 — In the wake of the COVID-19 pandemic, TRSA implemented Business Pulse Surveys to provide a periodic snapshot of the economic activity in the various market sectors of the linen, uniform and facility services industry. A total of 118 respondents participated in the association’s second Business Pulse Survey of operator members that closed on April 14.

The recent survey included a question on the impact of recent legislation from the federal government designed to help businesses recover from lost opportunities as a result of the COVID-19 pandemic. The survey findings showed great interest in the Coronavirus Aid, Recovery and Economic Security (CARES) Act Paycheck Protection Program (PPP) loans among industry operators. Seventy percent of the survey respondents said they’d applied for the loans.

Industrial operators showed signs of optimism for a return to normal revenue levels. Of that group, only 12 percent said they expected it to take more than 18 months to return to pre-COVID-19 revenue levels. This number was 26 percent on the first Business Pulse Survey that closed on March 27. A total of 32 percent expected it to take six months to return to pre-COVID-19 levels, up from 18 percent on the first survey.

Less optimism was evident in other sectors of the industry. On the healthcare front, acute-care respondents reported a decline in revenues from the initial survey. The latest results showed that 32 percent of respondents anticipate year-to-date revenues falling well below expectations. That’s nearly double the number of 17 percent from the earlier survey. Likewise, 100 percent of non-acute healthcare operators expected revenues to fall well below expectations 15 days, 30 days and 60 days from the survey date.

Hospitality/hotel operators were even less optimistic, with 88 percent describing their revenues as likely to fall well below expectations, versus 57 percent in the initial survey. For F&B (food-and-beverage) operators, 27 percent said they expected it would take more than 18 months before they could expect a return to pre-COVID-19 revenues. Six percent of F&B operators expected it to take more than 18 months on the first survey.

Supply chain problems for certain products continue to be the new normal. Seventy-nine percent of mixed operators indicated supply chain issues. Hand sanitizer, masks, gloves, personal protective equipment (PPE) for employees and isolation gowns were particularly scarce.

Posted April 20, 2020

Source: TRSA