AICPA Business and Industry Economic Outlook Survey Detailed Survey - - PowerPoint PPT Presentation
AICPA Business and Industry Economic Outlook Survey Detailed Survey Results: 3Q 2020 Management Accounting & Finance Survey Background Conducted between July 28-August 18, 2020 Quarterly survey CPA decision makers primarily
Detailed Survey Results: 3Q 2020
Management Accounting & Finance
Survey Background
– primarily CFO’s, CEOs and Controllers
3Q 2020 Economic Outlook Survey
Survey Highlights
3 3Q 2020 Economic Outlook Survey
Overall Index improves from 38 to a level of 54 ▪ US Economy optimism up from 29 to 37 ▪ All components up including US Economic and Organization Optimism ▪ Expansion plans, revenue and profit expectations all trending upward
CPAOI
Optimism about the economy, organization prospects and expansion plans rebound
Economy and Organization
Expansion plans rebound from only 24% to now 43% having plans to expand Overall levels of employment are now expected to be flat, but key sectors are expected to improve, and hiring plans for all sizes of business rebounded from Q2 levels Domestic economic conditions continued as the top challenge, followed by domestic political leadership which jumped four spots to the #2 position
Expansion Employment Challenges
▪ U.S. Economy rebounds from 20% in Q2 to 24% in Q3 ▪ Organization optimism rebounds 11 points to 41%. ▪ Global economy outlook also improves slightly from 11% to 17% optimistic
CPA Outlook Index (CPAOI)
4 3Q 2020 Economic Outlook Survey
The CPA Outlook Index is the composite of the following nine indicators at equal weights:
months
12 months
The CPA Outlook Index is a robust measure of sentiment about the U.S. economy that is supported by the unique insight and knowledge that CEOs, CFOs, Controllers, and
have about the prospects for their own
expectations for revenues and profits, and their plans for spending and employment.
CPA Outlook Index (CPAOI)
5 3Q 2020 Economic Outlook Survey
A reading above 50 indicates a generally positive outlook with increasing activity. A reading below 50 indicates a generally negative outlook with decreasing activity.
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 CPA Outlook Index 71 69 63 68 69 74 76 75 77 79 81 79 79 76 76 75 72 72 76 38 54
71 69 63 68 69 74 76 75 77 79 81 79 79 76 76 75 72 72 76 38 54
6
CPA Outlook Index (CPAOI)
3Q 2020 Economic Outlook Survey
Component 3Q19 4Q19 1Q20 2Q20 3Q20 ∆Q to Q ∆Y to Y U.S. Economic Optimism 60 64 74 29 37 08 23 Organization Optimism 72 73 78 46 58 12 14 Expansion Plans 72 71 75 33 54 21 18 Revenue 76 76 81 27 51 24 25 Profits 70 71 73 26 47 21 23 Employment 68 70 71 38 54 16 14 IT Spending 80 80 81 59 71 12 09 Other Capital Spending 74 71 74 43 56 13 18 Training & Development 72 72 73 45 56 11 16 Total CPAOI 72 72 76 38 54 16 18
7
CPA Outlook Index (CPAOI) vs. GDP
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 CPA Outlook Index 75 72 72 72 38 54 Change in GDP 2.0% 2.1% 2.1%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 10 20 30 40 50 60 70 80 90 100
GDP Growth CPA Outlook Index
3Q 2020 Economic Outlook Survey
8 3Q 2020 Economic Outlook Survey
Optimism for U.S. economy gains 4 points
Pessimists obviously cite the COVID-19 disruption impact on the economy, consumer demand and government spending Optimists cite the possibility of pent-up demand and lower energy costs, along with resilience and innovation
Organization optimism recovers 11 points from 30% in Q2 to 41% in Q3
Expansion plans rebound from only 24% of respondents having plans to expand their business in Q2 to now 43% with plans to expand. Of the balance, 23% expect to stay the same, 25% expect to contract a little, now only 9% expect to contract a lot
U.S. Economy, Organization and Inflation
Concern about inflation remained at 20%; concern about deflation dropped to11%
Concern about labor costs as most significant risk increased to 37% Raw materials cost concerns ticked up to 36%. Interest rate concerns eased from 13% to 12%. Energy cost concerns remained constant at 6% Food cost concerns as most significant eased from 12% in Q2 to 5% in Q3
9
Optimism & Expansion
The economic
U.S. economy, your organization, and the expansion plans over the next 12 months
3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 U.S. 64% 74% 79% 74% 69% 57% 57% 57% 42% 50% 61% 20% 24% Organization 66% 70% 71% 70% 69% 68% 65% 62% 58% 58% 66% 30% 41% Expansion 65% 71% 72% 70% 70% 67% 66% 63% 61% 59% 64% 24% 43%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3Q 2020 Economic Outlook Survey
10 3Q 2020 Economic Outlook Survey
Inflation or Deflation?
For your business, over the next 6 months, which are you more concerned about? Inflation
26% 27% 49% 47% 47% 49% 34% 29% 23% 19% 17% 20% 20% 5% 5% 3% 2% 2% 2% 6% 5% 11% 8% 7% 18% 11%
3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Inflation Deflation
11 3Q 2020 Economic Outlook Survey
Inflationary Risk Factors
Which of the following potential inflationary factors represents the most significant risk to your business?
Food costs Energy costs Raw material costs Labor costs Interest rates Other 3Q19 2% 5% 32% 37% 20% 4% 4Q19 3% 5% 26% 47% 13% 7% 1Q20 1% 6% 26% 46% 12% 9% 2Q20 12% 6% 28% 29% 13% 12% 3Q20 5% 6% 36% 37% 12% 5%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Key Performance Indicator Summary
12
Revenues and Profits
Revenue and profit improve but still expected to decline
Expected revenue for coming twelve months improve from an expected decrease
Profit projections also improved from -5.5% in Q2 to -1.2% in Q3
Headcount plans also show some recovery
Anticipated rate of headcount change improved from -1.1% in Q2 to 0.0% in Q3 Salary and benefit expected costs are now expected to increase at a rate of 0.9% going forward from Q3 rather than the expected Q2 decrease of -0.7% Healthcare costs are now expected to increase at a rate of 4.3%, up from an expected rate of increase of 3.5% in Q2
Spending Plans
Spending plans improve
Expected rate of increase for IT spending improves to 1.9%, up from only 0.4% Other capital spending now projected to increase by 0.1%, up from -2.0% expected in Q2 Training spend now expected to decline by only -0.2%, which us up from -1.7% last quarter Marketing spending cuts ease from -2.4% to -0.5% R&D spending plans turn positive from -1.6% to 0.1%
3Q 2020 Economic Outlook Survey
13 3Q 2020 Economic Outlook Survey
Key Performance Indicators
Thinking about the coming 12 months, please comment on the probable change for your
each of the following key performance indicators
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Revenue 2.9% 3.6% 4.3% 3.9% 4.3% 4.8% 5.0% 4.8% 5.0% 4.3% 4.4% 4.2% 3.5% 3.4% 4.3%
Profit 2.3% 3.1% 3.5% 3.2% 3.5% 3.8% 4.4% 4.0% 4.3% 3.4% 3.6% 3.1% 2.8% 2.7% 3.3%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Expected Growth in Revenue and Profits
14 3Q 2020 Economic Outlook Survey
Key Performance Indicators
Thinking about the coming 12 months, please comment on the probable change for your
each of the following key performance indicators
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Employees 1.3% 1.6% 1.8% 1.8% 1.9% 1.8% 2.1% 2.1% 2.3% 2.0% 1.9% 1.9% 1.7% 1.6% 2.0%
0.0% Salary & Benefits 2.1% 2.3% 2.3% 2.2% 2.4% 2.5% 2.7% 2.8% 2.8% 2.6% 2.6% 2.7% 2.4% 2.5% 2.6%
0.9% Healthcare 5.6% 6.1% 5.6% 5.5% 6.3% 5.9% 5.6% 5.9% 5.7% 5.3% 5.2% 5.1% 5.1% 5.2% 5.1% 3.5% 4.3%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Employees, Salary & Benefits, and Healthcare Costs
15 3Q 2020 Economic Outlook Survey
Key Performance Indicators
Thinking about the coming 12 months, please comment on the probable change for your
each of the following key performance indicators
Pricing & Other Costs Average Change Expected
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Prices Charged 1.5% 1.8% 1.9% 1.9% 1.9% 2.1% 2.1% 2.5% 2.5% 2.2% 2.1% 2.2% 1.9% 1.8% 2.0% 0.2% 0.9% Input Prices 1.9% 2.4% 2.4% 2.5% 2.4% 2.5% 2.7% 3.2% 3.2% 3.0% 2.6% 2.6% 2.4% 2.3% 2.3% 1.4% 1.8%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
16 3Q 2020 Economic Outlook Survey
Key Performance Indicators
Thinking about the coming 12 months, please comment on the probable change for your
each of the following key performance indicators
Spending Plans - IT, Other Capital & Training
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 IT 2.8% 2.9% 3.0% 3.2% 3.5% 3.6% 3.7% 3.7% 3.6% 3.3% 3.5% 3.4% 3.4% 3.5% 3.6% 0.4% 1.9% Other Capital 2.4% 2.7% 2.6% 2.8% 3.3% 3.1% 3.9% 3.6% 3.5% 3.0% 2.9% 3.0% 3.0% 2.5% 2.9%
0.1% Training 1.6% 1.6% 1.8% 2.0% 2.1% 2.2% 2.4% 2.4% 2.3% 2.0% 2.3% 2.1% 1.9% 1.9% 2.1%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
17 3Q 2020 Economic Outlook Survey
Key Performance Indicators
Thinking about the coming 12 months, please comment on the probable change for your
each of the following key performance indicators
Spending Plans Marketing & R&D
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Marketing 1.4% 1.5% 1.9% 1.8% 1.8% 2.0% 2.1% 1.9% 1.9% 1.9% 2.0% 1.6% 1.6% 2.0% 1.8%
R&D 1.1% 1.5% 1.7% 1.5% 2.0% 2.0% 2.0% 2.2% 2.0% 1.7% 1.9% 1.5% 1.4% 1.7% 1.7%
0.1%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
18 3Q 2020 Economic Outlook Survey
Hiring Plans Summary
Have right number of employees Maintained Q2 levels Have an excess of employees Down 9% from Q2 Have too few, but hesitating to hire Up 1 point from Q2 Have too few and planning to hire Up 6 points from Q2
Remain relatively strong
19 3Q 2020 Economic Outlook Survey
Hiring Plans
Overall staff situation relative to your needs
Given current conditions, how would you characterize your overall staffing situation relative to your needs
(i.e., do you have excess capacity or are employees stretched)?
We have an excess number of employees We have approximately the appropriate number
We have too few employees, but are hesitating to hire We have too few employees and are planning to hire Other 3Q19 9% 51% 13% 25% 2% 4Q19 8% 46% 15% 28% 3% 1Q20 7% 51% 14% 26% 2% 2Q20 25% 51% 13% 7% 3% 3Q20 16% 55% 14% 13% 3%
0% 10% 20% 30% 40% 50% 60%
20 3Q 2020 Economic Outlook Survey
Challenges Facing Organizations
Indication of the top three challenges for your organization
falling off in 1Q20
Top
Challenges YTD
21 3Q 2020 Economic Outlook Survey
Top
3Q19 4Q19 1Q20 2Q20 3Q20
1 Availability of skilled personnel Availability of skilled personnel Availability of skilled personnel Domestic economic conditions Domestic economic conditions 2 Domestic economic conditions Domestic economic conditions Domestic competition Stagnant/declining markets Domestic political leadership 3 Domestic political leadership Domestic competition Domestic economic conditions Liquidity Employee and benefits costs 4 Domestic competition Employee and benefits costs Domestic political leadership Global economic conditions Availability of skilled personnel 5 Employee and benefits costs Regulatory requirements/changes Regulatory requirements/changes Regulatory requirements/changes Stagnant/declining markets 6 Regulatory requirements/changes Domestic political leadership Employee and benefits costs Domestic political leadership Regulatory requirements/changes 7 Staff Turnover Staff Turnover Developing new products/services/markets Financing (access/cost of capital) Global economic conditions 8 Stagnant/declining markets Developing new products/services/markets Staff Turnover Availability of skilled personnel Changing customer preferences 9 Developing new products/services/markets Stagnant/declining markets Global economic conditions Employee and benefits costs Domestic competition 10 Changing customer preferences Changing customer preferences Materials/supplies/ equipment costs Changing customer preferences Materials/supplies/ equipment costs
Industry, Region and Business-size Outlook
22
Retail and wholesale trade recover Manufacturing improves; Technology also bounces back Construction rebounds; Real estate declines further
Retail trade recovered from only 29%
Wholesale trade also rebounded to 43% optimistic Hiring for retail also recovered from an expected decrease of 4.12% to an expected increase of 1.0% going forward from Q3 Manufacturing hiring plans also improved to an expected increase of 0.7% from a decrease of 2.0% in Q1 Technology hiring, which had been projected to decline by 1.2%, is now expected to increase by 1.5% Construction optimism rebounded from only 29% in Q2 to 49% optimistic in Q3 Real Estate and Property declined another 7 points, to now only 31%
Construction hiring plans which had also been expected to decline by 1.3%, are now expected in increase 0.10% Real Estate hiring is expected to decline by 0.1% Manufacturing optimism improved from only 31% to 54% optimistic Technology bounces back from only 35% in Q2 to 55% optimistic in Q3
3Q 2020 Economic Outlook Survey
Industry, Region and Business-size Outlook
23
Finance & Insurance improves; Professional Services also rebounds Healthcare providers
recovers; Healthcare –
and hiring both decline
Finance and Insurance optimism improves from 40% to 49%
Professional Services rebounded from only 27% optimistic in Q1 to now 40% optimistic Finance and insurance hiring is expected to improve from -0.6% in Q2 to 0.6% in Q3 Professional services hiring is now expected to be flat, after an expected decrease of 2.1% in Q2 Healthcare provider optimism recovered from only 24% optimistic in Q2 to 39% in Q3 Healthcare–other declined from 48% optimistic in Q2 to 38% in Q3 Expected hiring by Healthcare providers, which had been expected to decline by 1.8% is now expected to increase by 0.6% Healthcare – other hiring eased from an expected increase of 1.8% in Q2 to 0.5% in Q3
3Q 2020 Economic Outlook Survey
Organization Optimism by Industry
24
61% 69% 56% 40% 54% 63% 57% 29% 48%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Retail Trade
78% 67% 57% 57% 51% 55% 59% 31% 54%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Manufacturing
60% 82% 65% 70% 75% 48% 76% 35% 55%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Technology
63% 63% 89% 75% 52% 58% 68% 26%26% 43%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
Wholesale Trade
3Q 2020 Economic Outlook Survey
Organization Optimism by Industry
25
66% 75% 64% 67% 52% 69% 68% 38% 31%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Real Estate & Property
69% 69% 74% 83% 76% 66% 83% 29% 49%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Construction
84% 79% 65% 61% 67% 61% 68% 27% 40%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Professional Service
78% 72% 74% 77% 67% 75% 74% 40% 49%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Finance & Insurance
3Q 2020 Economic Outlook Survey
Organization Optimism by Industry
26
67% 65% 56% 57% 42% 60% 71% 48% 38%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Health Care - Other
61% 60% 51% 63% 58% 67% 54% 24% 39%
0% 20% 40% 60% 80% 100%
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Health Care Provider
2Q 2020 Economic Outlook Survey
27 3Q 2020 Economic Outlook Survey
Expected Employment Change by Industry
Thinking about the coming 12 months, please comment on the probable change for your organization for number of employees
1.8
0.0 0.1 0.5 0.6 0.6 0.7 1.0 1.5
0.0 1.0 2.0 3.0 Q3 Q2
Technology Retail Trade Manufacturing Finance and Insurance Healthcare - providers (hospitals, nursing homes, etc.)
Healthcare - other (pharma, device suppliers, etc.) Construction Professional, Scientific and Technical Services Real Estate & Property Wholesale Trade Banking Not for Profit Transportation, Distribution and Warehousing Mining, Natural Resources and Oil & Gas Hospitality and Food Services (incl. travel and leisure)
28 3Q 2020 Economic Outlook Survey
Industry, Region and Business-size Outlook
Midwest – optimism improved from 27% to 37% West – optimism improved 12 points from 30% to 42% South – improved from 34% to 46% Northeast – improved from only 26% optimistic in Q2 to 38% in Q3
For employers with > $1 billion in revenues, 20% now have excess employees, while 34% have too few. Of those with too few employees, 19% remain hesitant while 15% are planning to hire. Of those in the $100 million to $1 billion category, 29% say they have too few employees; 18% are hesitant; while 11% are hiring. In the $10 - $100 million range, 26% now have too few employees; of those with too few, 12% are hesitant; 14% are hiring. Of employers with revenues < $10 million 25% have too few employees; 14% are hesitant; 11% are hiring. Expectations for expansion by businesses with revenues < $10 million improved 16 points to 40%. Plans for companies in the $10 - $100 million category improved 17 points to 41%. Companies in the $100 million to $1 billion range recovered 25 points to 48%; those with revenues in excess of $1 billion gained 21 points to 44% having plans to expand.
Regional
big drops across regions Employment projections by business size and expansion plans by size also reflecting lower optimism
29 3Q 2020 Economic Outlook Survey
Organization Optimism by Region
The rating that best describes your view for the economic outlook for your own
the next 12 months.
3Q19 4Q19 1Q20 2Q20 3Q20 Midwest 54% 58% 67% 27% 37% West 60% 63% 67% 30% 42% South 61% 61% 68% 34% 46% Northeast 59% 55% 61% 26% 38%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
30 3Q 2020 Economic Outlook Survey
Expansion Plans by Business Size
Indicate whether you expect your business to expand or contract over the next 12 months
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 < $10 million 63% 64% 60% 63% 62% 52% 62% 24% 40% $10 to <$100 million 70% 70% 67% 66% 64% 59% 64% 24% 41% $100 million to <$1 billion 73% 62% 67% 63% 54% 62% 65% 23% 48% > $1 billion 74% 71% 66% 64% 63% 68% 63% 26% 44% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
35% of all businesses expect to expand a little in the next twelve months 8% expect to expand a lot 23% expect to stay the same 25% expect to contract a little 9% expect to contract a lot
Percentage expected to expand is consistent across business size
31 3Q 2020 Economic Outlook Survey
Business hiring plans by company size
Given current conditions, how would you characterize your overall staffing situation relative to your needs
(i.e., do you have excess capacity or are employees stretched)?
We have an excess number of employees We have approximately the appropriate number of employees We have too few employees, but are hesitating to hire We have too few employees and are planning to hire Other < $10 million 14% 58% 14% 11% 3% $10 to <$100 million 16% 54% 12% 14% 3% $100 million to <$1 billion 12% 58% 18% 11% 2% > $1 billion 20% 43% 19% 15% 3%
0% 10% 20% 30% 40% 50% 60% 70%
Demographics
32
24% 34% 13% 10% 5% 4% 10%
Size of Organization
$0 to under $10 million $10 million to under $50 million $50 million to under $100 million $100 million to under $250 million $250 million to under $500 million $500 million to under $1 billion $1 billion or more 67% 18% 12%
2% 1%
Type of Organization
Privately Owned Entity Not for Profit Publicly Listed Company Other Government 45% 22% 7% 7% 7% 5% 2%
2%2%
Position
CFO Controller/Comptroller CEO/COO Director/Managing Director President Vice-President/SVP Chief Officers (CAO/CIO/CTO/CRO/KMO) Other (please specify) Accounting, Audit, Tax or Technology Manager 2Q 2020 Economic Outlook Survey
34 3Q 2020 Economic Outlook Survey
Pandemic greatest concern
What is your greatest concern about the COVID-19 pandemic right now?
4% 2% 5% 5% 22% 29% 33%
0% 5% 10% 15% 20% 25% 30% 35%
Other Liability issues Integrity of supply chain Cash, financing, capital challenges Customer demand/ability to pay Uncertainty about stay-at-home restrictions Safety/well-being of employees and/or customers
35 3Q 2020 Economic Outlook Survey
Pandemic greatest concern – other
Greatest concern – “other” responses Impact on our customers Lack of work to bid Lifting of hiring freeze Impact of multiple paradigm shifts in customer expectations The extent of return of business Significant reduction of consumer spending Getting product from overseas and then customer ability to pay.
What is your greatest concern about the COVID-19 pandemic right now?
36 3Q 2020 Economic Outlook Survey
Provided that stay-at-home restrictions will allow, how does your company expect to handle remote work versus on-site
the next 12 months?
Pandemic – remote work vs. on-site plans
15% 5% 9% 22% 33% 17%
0% 5% 10% 15% 20% 25% 30% 35%
N/A -The nature of our business has not involved significant remote working Too much uncertainty at this point to say Continue to be primarily remote Majority remote with mix of onsite activity Majority onsite with mix of remote activity Return to primarily onsite with limited exceptions
37 3Q 2020 Economic Outlook Survey
Pre-pandemic remote work capabilities
How would you describe your company’s remote work capabilities pre-pandemic?
14% 28% 32% 20% 4%
0% 5% 10% 15% 20% 25% 30% 35%
Non-existent Spotty throughout company Strong in some parts of the company, uneven in others Strong in all aspects as most workers could operate virtually We were completely virtual
38 3Q 2020 Economic Outlook Survey
Planned Safety Measures
What is your business planning to do over the next 12 months to ensure the safety of employees and customers at your physical location? (Check all that apply)
Mandating masks in workplace 74% Providing socially distanced interior workspaces or areas for customer interaction 71% Providing PPE (personal protection equipment) 64% Screening workers daily (i.e., temperature checks) 52% Staggering worker shifts to minimize contact 37% Screening customers 24% Upgrading filters and making other improvements to HVAC systems 21% Automating point-of-sale and other flash points for customer interaction 10% Providing covered outdoor areas for our employees and/or customers 8% Other (please specify) 5% Does not apply because we are operating entirely virtually 4% None of these 3%
39 3Q 2020 Economic Outlook Survey
Planned safety measures – “other”
What is your business planning to do over the next 12 months to ensure the safety of employees and customers at your physical location? (Check all that apply)
Other safety measures
Staggering start times Split our employees into pods that do not physically interact Social distancing everywhere in offices and plants Implement paperless transactions More virtual sales tools Restricting access to outside vendors/customers to essential interactions Discontinued vending services/coffee and water fountains Quarantine when and where necessary Additional cleaning and sanitation Disinfecting high touch point surfaces
HCQ (hydroxychloroquine) education
40 3Q 2020 Economic Outlook Survey
Office footprint
Are you planning on changing your
12 months? Office space plans %
We plan on reducing footprint by less than 10 percent 5% We plan on reducing footprint by 10 percent to 24 percent 5% We plan on reducing our footprint by 25 percent to 49 percent 3% We plan to reduce our footprint by 50 percent or more 4% We are giving up all our traditional office space 1% We plan on increasing our office space 5% We don't plan any changes 77%
41 3Q 2020 Economic Outlook Survey
Office footprint reduction rationale
If you indicated you were reducing your
what is the reason?
(Check all that apply)
27% 20% 81% 23%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other (please specify) Decline in business operations Shift to remote operations Reduction in staffing
42 3Q 2020 Economic Outlook Survey
Office footprint reduction rationale – other
If you indicated you were reducing your office footprint, what is the reason? “other” responses
Other reasons for reducing office footprint
Combine locations Opportunity to sell a building Close remote office Giving up unused capacity Closing business when lease expires Relocating staff out of the US
43 3Q 2020 Economic Outlook Survey
Current cash position
How would you describe your company’s current cash position?
47% 38% 12% 2% 0%
Strong Acceptable Concerning Dire Not sure
44 3Q 2020 Economic Outlook Survey
Liquidity concern level
How concerned are you about your company’s liquidity position
months?
10% 25% 25% 14% 26% Significant concern Moderate concern Slight concern Neutral No concern
For additional information contact:
Kenneth W. Witt, CPA, CGMA Senior Manager Management Accounting Ken.Witt@aicpa-cima.com Cary Jones Associate Manager Management Accounting Cary.Jones@aicpa-cima.com