Survey: COVID-19 Has Positive Impacts on Operations, Says Majority of Large and Mid-Size Companies

Originally published on newscenter.td.com.

View the full infographic.

After conducting two 2020 CFO surveys of large and mid-size companies, one before the COVID-19 pandemic and one during, TD Bank has surprisingly discovered that 61% of respondents say the pandemic had a positive impact on operations, while some even stating an uptick in revenue.

As can be expected with a global pandemic, the results of the survey, which drew from 569 executive decision makers before the pandemic and then 353 executives during, was mixed.

More than 50% of respondents said that they are expecting their revenue to go down, with half of these respondents expecting that revenue decrease to be between 11% to 20%.

But the analysis revealed that COVID-19 also accelerated the pace of large and mid-size companies achieving 2020 business priorities.

Unexpected Impacts of COVID-19

Unsurprising was that technology has become pivotal in keeping operations afloat, and 1 in 2 respondents acknowledged this as their most significant business goal for the remainder of 2020.

And for those that were already prepared, they saw gains.

Businesses, which had a disaster plan already in place before the pandemic hit, were better prepared for the impact. Two-thirds of those respondents who had a disaster plan said that they had seen their revenue increase.

COVID-19 Revenue and Priorities Impact

When delving further into the survey results, 18% of respondents said that revenue following the start of COVID-19 would be between 1% and 10% higher, while another 22% said it would be between 11% and 20% higher than previously anticipated.

But another 52% of respondents stated they believed revenue would be between 1% to 20% lower because of the pandemic.

When it came to priorities in 2020, it is no surprise that 48% of respondents said it was to invest in technology and innovation with many now shopping online and virtually to combat the spread of the pandemic.

Cost reduction was also a top priority for 41% of respondents while expansion to new markets was third with 33% and raising capital next at 28%. Paying off debt was not far behind with more than a quarter citing that as a top priority.

Looking to 2021

Optimism continued, as the survey turned to outlook on the coming year.

As many as 41% expect a strong and quick rebound to the US economy, while another 26% expect a positive rebound, but one that will take more time. Just 2% of respondents expect the economy to be even more challenging in 2021 than it was during a turbulent 2020.

Another positive from the survey is that 54% of businesses are looking to grow their staff in 2021. Only 5% stated they were looking to reduce staff, while more than 40% said they plan to keep the same amount of employees this year as last.

When it comes to activities planned for 2021, 32% said they will launch a major new product or service or expand into new vertical (specialty) markets, 31% will undertake a major technology overhaul and 27% will leverage new technology such as AI and blockchain. It is perhaps not surprising that 9 in 10 respondents cited they will have financing needs in the next 12 months.

Related

Trending Now

Follow us

Most Popular

Join Our Newsletter

Get the top workplace fairness news delivered straight to your inbox