AIA survey reveals depth of coronavirus impact

The vast majority of aftermarket businesses in Canada have suffered business disruption as a result of the coronavirus pandemic, according to a survey conducted by the Automotive Industries Association of Canada.

Fully 94% of respondents to the survey reported some degree of business disruption in March and April. A third described the disruption as ‘slight,’ while 61% said the public health emergency has been ‘very disruptive.’

Two per cent of respondents reported a complete shutdown of business operations.

Only 4% said they were functioning normally.

The survey was open from April 20 to May 8, targeted at aftermarket business owners and employees across the 13 provinces and regions of Canada.

Half of those who said their businesses had been very disrupted reported a drop in revenue of 50% or more.

“There are still high levels of uncertainty among parts manufacturers, wholesalers, and mechanical and collision shops on business continuity and outlook,” the report found.

“The impact of reduced businesses has been swift and significant with over half the respondents having to lay off staff (61%).”

There was a degree of optimism, however, over the question of how long the impacts on business will last. Forty-two percent of respondents expect recovery to begin very soon. Thirty per cent expect we have not yet seen the worst days. Only a small percentage (6%) believe that business will return to pre-COVID conditions while some businesses (9%) have raised doubts if they will even be in operation.

“The business outlook is highly uncertain,” the report concludes.

www.aiacanada.com