Over 50% of electrical businesses see profit decline

Wednesday, 27 May, 2020

Over 50% of electrical businesses see profit decline

A recent survey showing the impact of COVID-19 on electrical contractors has revealed that 59% experienced a decline in their business of more than 30%.

Master Electricians Australia conducted the survey in order to understand the impact of the pandemic and provide advocacy for the industry to the government.

Only 12% of the members surveyed have actually reduced their workforce, however. This higher staff retention rate may be because just over half had placed staff on leave without pay and 72% had requested JobKeeper reimbursement payments for their employees. In this cohort, 57% had also applied for the BAS cash flow assistance.

“Domestic and commercial were the hardest hit sectors with significant reductions in work. However, there is a high expectation that government work will increase, a key requirement to kick-starting the economy,” said Master Electricians Australia CEO Malcom Richards.

In response to the decline in business and other restrictions, half the respondents said they had changed their business models since the virus hit, with 34% expecting that the changes made will continue going forward.

Considering the impact on the supply chain, 76% had experienced some delays in obtaining products and 80% noted an average price increase of 10% compared to pre-COVID-19 rates.

In terms of price pressure, 20% had increased their charge-out rate to cover the increased product prices.

The overview of these findings will be shared with the federal and state governments to direct ongoing discussions on support and stimulus required for the industry into the recovery phase.

Image credit: ©stock.adobe.com/au/Quality Stock Arts

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