In total, 73% of firms said they were now operating under modified conditions due to the emergence of the pandemic, up slightly from 70% in the month prior. As the size of the firm in question increased the more pronounced was the prevalence of all types of modifications. For large businesses (with 200 or more employees) 90% said they were operating under modified conditions, easing to 85% for medium-sized firms (20-199 employees) and lowering to 72% for small businesses (0-19 employees).
Overall, the 3 most common modifications that had been brought in across firms of all sizes was; the introduction of new hygiene protocols and practices (64%), limitations being placed on the number of people that could be on site (57%), and other workforce changes such as working from home or operating with a reduced workforce (46%). These changes might be perceived as the result of complying with the advice from governments and public health authorities and could be unwound as the pandemic eases. However, other modifications being made by firms appear more structural in nature and could persist long term such as changes to the ways in which products and services were provided to customers (40%), changes in operating hours (31%), redefined roles or duties of staff (25%) and alterations to the range and types of products and services offered (22%). The full breakdown is shown in the table, below.
Source: ABS
On a more granular basis, the ABS provided a graphic to highlight the prevalence of various modifications being made by different industries (see below).
Source: ABS
In terms of revenue, 2 out of 3 businesses had reported that their revenue was down on a year earlier, while the effects were broadly even across firms of all sizes with 65% of small businesses experiencing a revenue fall and 69% for both medium and large firms. The revenue impact had been broadest across education and training providers (87%) and accommodation and food service businesses (84%) according to this survey. Some 65% of retailers had experienced revenue declines, though the sector also had the highest proportion of businesses that had seen revenue increase (20%) as a result of the pandemic and this would relate to the very strong rates of increase in spending recently recorded by supermarkets, pharmacies, liquor stores and retailers specialising in household goods and hardware.
Looking at the magnitude of the decline in revenue, the survey appeared to suggest that the more businesses were operating under modified conditions the larger the decrease in revenue tended to be (see below).
Source: ABS
On a disaggregated basis, the declines in revenue had been of the largest magnitude in accommodation and food services, arts and recreation and information media and telecommunications. Hardest hit had been the accommodation and food services industry in which 63% of firms had seen revenue fall by more than 50%. The full breakdown is shown in the chart, below.
Source: ABS
The survey examined the resilience of firms by asking for how long could their operations be supported by available cash on hand. The most common response given by firms of all sizes was for a period of 6 months or more with a skew running towards larger businesses.
Source: ABS
Lastly, it has been common for firms to take on external advice in how to navigate their way through the pandemic. Overall, 60% of firms had sought out of some form of advice from external sources, with the most common topics being around government support measures (52%), regulation and compliance (45%), health and safety (39%), management of business finances (32%) and workforce management (25%).
