Fri. Apr 3rd, 2020

Productive activity plummets 66% due to uncertainty and lower orders

The coronavirus alarm decree is not only seriously affecting those companies that have had to cease their activities, but also those that are allowed to continue operating. This follows from the last poll made by the employers Cecot to analyze the impact that the decree is having on business activity.

The study, carried out on a sample of 507 companies during May 24, concludes that, although the vast majority can continue operating – specifically, 91% of the total -, 75% are carrying out their activity ” with many difficulties ”. The two main reasons given by companies are that a quarter of the workforce is not operational and, secondly, operating capacity has been reduced to a third of the usual.

Construction sector

Cecot denounces multiple cases in which the municipalities have forced to stop works allowed by the decree

The current situation affects above all the construction sector, mainly due to the obstacles that the municipalities are putting in place so that they can continue working. “We are aware of multiple cases in which the local police have forced the closure of works that were being carried out with the protection measures indicated in the decree,” denounces the Cecot management.

Services, shops, transport and industry also have serious problems to move forward, since in the best of situations the capacity to operate is around 40%. The main reason is falling orders, followed by the uncertainty in the application of the decree, “something that generates a lot legal uncertainty Regarding what can and cannot be done, especially due to the contradictory messages that come from the different administrations, ”argues Cecot.

An excavator working on the construction of a hospital

An excavator working on the construction of a hospital

Despite this, 45% of employers say they will try to continue with the activity in the coming weeks, while 39% will only do so in sectors considered strategic for the Spanish Government. The positive note of the survey is the adaptation of companies to stay active thanks to the telecommuting, an option that has incorporated the 42% of templates, although it is limited to those activities that the decree of alarm status allows.

The data it yields the Pimec survey, the employers’ association for small and medium-sized companies in Catalonia, is no more hopeful than that of Cecot. The study warns that about 56% of SMEs and the self-employed have plans to apply temporary employment regulation (ERTE) files and finds that close to 90% are suffering the effects of the coronavirus crisis. And to show a button: the report concludes that the injured companies are registering a contraction in sales or cancellation of reserves, higher than 20% in 74% of cases.

Crisis effect

75% of SMEs suffer treasury tensions

Half of the small and medium-sized companies affirm that they have serious problems in the supply of materials and components and more than a third are in danger of stock breakage. In addition, 75% of SMEs and self-employed respondents admit that they have treasury tensions, to which it is added that more than a third have registered an increase in sick leave.

As a consequence of this situation, 55% of those surveyed stated that they would benefit from extraordinary additional financing lines, and a large part of the self-employed – 86% -, to specific measures directed at this group.

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