Cabinet Making and COVID19 17 Jun 2020
The Cabinet Makers Association of WA and WA Furniture Manufacturers Association conducted a survey of businesses between 28 May and 5 June 2020. The survey was conducted prior to recent Commonwealth and State announcements of incentives to the building industry.The emailed survey had 51 respondents. The findings were:
89% of respondents said that their businesses were affected by COVD19, 67% significantly.
80% of respondents were utilising JobKeeper to retain staff, suggesting their turnover was down at least 30%. Concern was expressed about the future of JobKeeper post September.
The economic impact was strongest on larger employers (more than 5 employees).
30% businesses thought they might emerge smaller while 1 mid-size employer might close.
25% of respondents had reduced staff from early February to June. Some others reduced working hours to avoid putting off staff. Most who reduced staff put off 1-2 staff, while 4 employers had put off larger numbers (2 had put off between 7 and 14)
16 employers expect to put off a similar number of employees between June and November
A very rough estimate suggests a workforce reduction of about 13%, in total within 6 months, given conditions at the time of the survey.
The major concern raised by 76% of respondents was a lack of confirmed orders into the future.
28% saw work on hand as major concern while 28% saw the lack of new quotations as a major concern. The most concern about future orders were larger employers.
39% were getting the 50% COVID 19 Apprenticeship subsidy.
80% would allow their staff to undertake online training on COVID hygiene requirements.
23% saw publicly funded marketing and marketing software training as a possible aide to recovery. Smaller proportions nominated training in production technology, kitchen and bathroom design and managing teams as aides.
These businesses play a crucial role in the WA economy. So, PLEASE SUPPORT WA MANUFACTURING when you next consider your cabinet and furniture making purchases!
For more information contact Trevor Hislop.
Growing Skills for Industry
fftitc.com.au | 08 9361 2800 | suggestions@fftitc.com.au
