June 1, 2020—The latest Market Insights with Mike, presented by the Auto Care. Associations, dives into how COVID-19 is disrupting supply chains for half of the auto care industry, according to a press release.
According to the release, Mike Chung, director of market intelligence for the Auto Care Association, concluded via a survey that 66 percent of 208 respondents said that COVID-19 has impacted their business negatively—12 percent of respondents' business demand has been affected by more than 50 percent, 32 percent by 26 to 50 percent, and 22 percent by at least 11 percent to 25 percent. One third of the companies surveyed are highly concerned about their cash position, given hesitancy to take vehicles in for service and reduction in overall traffic.
*Graphic provided by the Auto Care Association
For service, repair, body, and tire shops, there Is not one segment that is not concerned with their cash position—19 percent are slightly concerned, 38 percent are somewhat concerned, 19 percent are very concerned, and 25 percent are extremely concerned.
*Graphic provided by the Auto Care Association
And when it comes to supply chain disruptions, 45 percent of respondents had somewhat to extreme disruption, while 40 percent were only slightly disrupted.
Overall, impacts on business performance and investments have been quite pronounced, according to Chung, with nearly two-thirds experiencing a high level of impact, more so for larger companies.
When it comes to the outlook for organizations, on average, larger companies are slightly more pessimistic, and manufacturing companies are even more so—69 percent are “extremely negative” (5 percent) or “somewhat negative” (64 percent).
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