The number of businesses expecting a decline in revenue of more than 25% due to Covid-19 has jumped from 73% two weeks ago to 84% now according to Chambers Ireland.

The business lobby group canvassed 1,150 members, and the organisation says the findings highlight the severity of the economic impact of the Covid-19 lockdown.

The headline results of the Chambers Ireland survey include:

Revenue

• 84% of businesses expect revenue to decline by more than 25% in the next three months, up from 73% in the survey published on March 24.
• One in four firms expect their revenue to decline by more than 90% over the next three months
• Smaller firms are more concerned about loss of revenue and are more likely to expect a 100% reduction in revenue.

Closures

In Association with

• Four out of ten chamber members responding to the survey have closed entirely, and 30% of businesses having closed the public facing offices and are now working from home
• Of those that have closed, most expect to be closed for 12 weeks.

Staffing

• Half of the firms surveyed have laid off staff, with over half of those laying off in excess of 30% of staff
• One in five firms have laid off their entire staff.

With regard to commercial rates, three out of four chamber members believe that the two-month deferral of payments is not enough to have any meaningful impact, with most believing it would need to be a six-month holiday to be of use. A significant minority believe that the extension would need to be for 12 months.

Virtually all the respondents said the timelines for existing support measures will have to be extended, with 95% saying liquidity grants will be essential.

Chambers Ireland chief executive Ian Talbot (pictured) commented: “We need action on a scale we have not seen before. The unprecedented nature of Covid-19 must be met with an unprecedented response. This view is shared by our members, where there is almost unanimous agreement that a post-Covid-19 stimulus package will be required and that part of these measures must include the provision of grants for business to help them reopen their doors and restore jobs lost.

“Measures already introduced, while critical in the first response to support business, will need to evolve in scale and scope. For example, the two-month deferral for commercial rates is found to be insufficient by three-quarters of businesses responding to our survey. “If a deferral is to have any meaningful impact, it will need to last at least six months, if not a full year, as is the case in the UK.”

Details of the Chambers Ireland survey are available here.

A survey in the past week of 72 members of the Executive Institute has slightly less gloomy findings. C.60 of the respondents are in enterprises with more than 50 staff, and 85% of the survey sample said they do not anticipate layoffs before May 1. However one in four have reduced working hours.

Average annual revenue reduction anticipated by Institute members this year is one-third, and 80% anticipate imminent cost-cutting outside of pay costs. Nine out of ten respondents said they are satisfied with government’s response to the crisis.

Pic: RollingNews.ie