A month of COVID-19

Our third survey shows the industry effects of COVID-19 have leveled off, but many contractors are still in wait-and-see mode.


Lawn & Landscape collected data from our third survey from April 11-14 (about 800 respondents). Below are how the numbers compare from our first survey on March 20-23 (about 1,300 respondents) and second survey from March 28-31 (about 800 respondents). Overall, changes from the second survey to the third have not been too drastic, which is a positive sign, but the numbers still show the overall industry has taken a hit.

Comments left by respondents also show a wide range of expectations and effects. A few have said they may have to close shop and a similar amount have added customers. A majority said they can withstand a short-term reduction of revenue, but are waiting to see how long shutdowns last before assessing the full effects of COVID-19.

S1 = Survey 1

S2 = Survey 2

S3 = Survey 3

 

How is your business situation compared to where it was last week? (This question was not in the first survey.)

S2: Better            6%

S3: Better            7%

S2: Worse           38%

S3: Worse           51%

S2: About the same         56 %

S3: About the same         42%

 

How much have circumstances around COVID 19 negatively affected your business?

   Extremely

S1: 17%

S2: 24%

S3: 20%

    A lot

S1: 23%

S2: 24%

S3: 25%

    Somewhat

S1: 47%

S2: 46%

S3: 47%

    Not at all

S1: 13%

S2: 6%

S3: 9%

 

How much has COVID-19 and the economy affected your company's planned purchases/spending? (Select all that apply)

Cancelled all spending

S1: 12%

S2: 12%

S3: 15%

    Cancelled some spending

S1: 20%

S2: 21%

S3: 22%

    Paused all spending

S1: 21%

S2: 25%

S3: 16%

 Paused some spending

S1: 40%

S2: 39%

S3: 40%

    Hiring freeze

S1: 23%

S2: 23%

S3: 20%

    Layoffs

S1: 10%

S2: 12%

S3: 12%

    No change in plans

S1: 14%

S2: 10%

S3: 14%

 

Has anyone told you directly they are cancelling a job because of the economy’s downturn/COVID 19?

Note: The number of people who said yes jumped from 15% in the first and second survey but only 2% from second to third survey.

Yes

S1: 53

S2: 68

S3: 70

No

S1: 47

S2: 32

S3: 30

 

If you have had jobs cancelled or paused, what segment were they in? (Select all that apply)

Note:  Maintenance saw the biggest increase moving from 37% to 49% from survey 1-3.

Maintenance (Mowing, trimming)

S1: 37%

S2: 44%

S3: 49%

Design/build

S1: 51%

S2: 51%

S3: 54%

Lawn care (Chemical spraying, fertilizer)

S1: 24%

S2: 28%

S3: 29%

Irrigation

S1: 10%

S2: 10%

S3: 13%

Tree care

S1: 11%

S2: 10%

S3: 11%

None cancelled or delayed

S1: 19%

S2: 13%

S3: 10%


What type of customer cancelled or paused?

Residential         

S1: 61%

S2: 66%

S3: 73%

Commercial       

S1: 37%

S2: 41%

S3: 45%

None cancelled or paused           

S1: 21%

S2: 14%

S3: 11%

 

Were you able to get any of the cancelled work back?

Survey 2

S2: Yes  22%

S3: Yes  27%

 

S2: No 78%

S3: No 73%

 

How much revenue do estimate you've lost because of cancellations COVID-19? (This was not asked in the first survey. The bulk of contractors estimate to lose as much as 20%.)

Survey 2

0%          11%

1-10%    37%

11-20% 19%

21-30% 11%

31-40% 5%

41-50% 4%

More than 50% 7%

We've added business    6%

Survey 3

0%          10%

1-10%    33%

11-20% 22%

21-30% 12%

31-40% 6%

41-50% 4%

More than 50% 7%

We've added business    6%

Comments from survey respondents.

I have not been able to start any jobs because the industry is shut down in Michigan. Most of my customers have prepaid for the season, so I am not suffering financially yet. But if this continues, I am expecting to have to make some refunds.

We find that people at home are taking their property more seriously and want upgrades of remediation. They seem bored and are still willing to spend money. (British Columbia) seem to be a little different as the curve seems to be flattening more so here than the rest of Canada

Still too early to tell. We have seen mostly retail maintenance customers reduce services. We remain essential. We expect most of the negative impact in the future as the economy is likely to slow.

Build/Design is approximately 30% of our annual revenue.  We'll projecting a 20% loss in revenue with the current environment.

Lost some customers but getting lots of new customers who are looking for better pricing

We have found that since all the stay at home orders our clients have spent time getting a lot of projects around the house done and walk around the yard and notice things they didn’t notice before. They are far more inclined to make changes or upgrades.

The virus has still not really affected our local area much at all. Most people don’t seem to be very worried about it. The only job cancellations we’ve had are people who are going to try to mow their own lawn since they are always at home now.

If this continues into/through May, the financial impact would be devastating. The continual changes and restrictions are certainly safer, but does not allow for anyone to accurately forecast the season.

I am following the rules of one man per truck while other companies are not. I can’t do the work of my normal staff of 3 men per truck and the companies breaking the rules are gobbling up all of the work we normally do this time of year.

We are most impacted by those customers who had to stop working and thus their income stopped. Most customers said they will be coming back after they start back to work.

We’ve had a cultural impact on our team, with many afraid to come to work or just generally stressed about the situation. The spring “rush” is all but non-existent, although we’re optimistic that we’ll have a late rush this year once the shelter at home order is lifted. We’re hopeful that there won’t be a long-term negative impact from the situation.

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