The U.S. Chamber of Commerce and MetLife have released their findings on a June 3, 2020 survey of small businesses. The survey is focused on what percentage of businesses are partially or fully open. It also notes how many are permanently closed. The national data is also broken down by region.
That new U.S. Chamber survey, while it has some dark clouds, is far sunnier than some other research along the same lines.
For instance, on May 18, 2020 – Coronavirus devastating small businesses: “One-third won’t reopen, 55% won’t rehire same workers, Facebook survey finds, said CNBC. A more local survey for Greenville, SC said on June 1, 2020 that “Survey Of Small Businesses Finds 46 Percent Concerned They Won’t Have Enough Money To Reopen.”
The data from the U.S. Chamber will be our featured focus this evening. For newcomers, the featured focus is found beyond the quotable quotes, left-right headline bullets and other market snapshot at the closing bell that follows.
Quotes That Shed Light – American Social, Industry, National Issues…
Headlines from left-of-center CNN Business
- Going mobile
- A person wearing a protective mask rides a scooter past a temporarily closed Starbucks coffee shop in the Brooklyn borough of New York, U.S., on Monday, April 27, 2020. Starbucks Corp. is scheduled to release earnings figures on April 28.
- Starbucks is closing up to 400 stores in shift to takeout strategy
- LIVE UPDATES Fed Chairman Jerome Powell says millions of people won’t get their old job back
- Nasdaq closes above 10,000 for the first time
- The stock market no longer cares whether Trump wins
- Biden wants to undo Trump’s tax cuts. That could rattle Wall Street
- Prices keep falling, even as the economy starts to reopen
- Contact tracing could be a regular part of office life. Here’s how it will work
- Delta is negotiating with lenders to avoid default
- North Korea may be making millions and breaking sanctions selling sand
- The backlash to Silicon Valley returns with a vengeance
- PwC chairman: How Corporate America can stop failing black workers
- Analysis: Hong Kong has only one rival for businesses thinking about leaving
- Sean Hannity: George Floyd and Donald Trump are both victims of bad cops
- Federal Reserve Board Chairman Jerome Powell testifies during a hearing on “The Semiannual Monetary Policy Report to the Congress,” in front of the Senate Banking, Housing and Urban Affairs Committee in the Dirksen Senate Office Building on February 12, 2020 in Washington, DC.
- Fed says it will keep stimulus coming for years
- Customers and employees wear protective masks inside a Sprouts Farmers Market grocery store in West Covina, California, U.S., on Friday, May 29, 2020. In the first quarter, sales rose 16% to $1.6 billion, Sprouts best growth since 2015 and the company plans to add 20 stores this year.
- Here’s what’s getting more expensive — and cheaper — at the grocery store
- L’Oreal dropped her for commenting on racism. Now it wants her back
Headlines from right-of-center Fox Business
- MEDIA
- ‘Gone with the Wind’ is Amazon’s bestseller after HBO Max dropped it
- STARS AND BARS BANNED
- NASCAR bans Confederate flag at events, race tracks
- NOT TO RUFFLE FEATHERS
- LEGAL
- Tyson Foods cooperating in US probe of chicken price-fixing
- BIG MONEY
- MONEY
- Winning $410M Mega Millions ticket sold in this small suburb
- DEFENSIVE PLAY
- NFL
- Panthers to remove statue outside stadium for fear it could be targeted
- ACADEMIC ISSUE
- COLLEGE
- Canceling Ivanka Trump spurs backlash for Kansas college
- ‘NOBODY IS GOING TO FAIL’
- MARKETS
- Stocks ravaged by coronavirus benefiting from market ‘mania’
- LOSS OF CONFIDENCE
- LIFESTYLE
- Economic pain worsens for Minneapolis as businesses exit after riots
- BEST ‘NEW’ ARTIST?
- MEDIA
- Grammys to sing a new tune after decades of criticism
- LICENSE TO CARRY
- POLITICS
- Governor considers requiring cops carry credentials that could be revoked
- AMERICAN ‘RESILIENCE’
- REAL ESTATE
- New data shows how many renters in America missed June payments
- WISH UPON A STAR
- DISNEY
- Disney fans petition ride to be re-themed after ‘Princess and the Frog’
- TECH TITANS CHALLENGED
- SOCIAL MEDIA
- 4 GOP senators push FCC to act on Trump’s social media ‘censorship’ order
- ‘MY RECORD IS PRISTINE’
- MONEY
- Professor fires back after students accuse him of ‘woefully racist’ charge
- BITE OF WALLET
- MONEY
- Why grocery store prices are skyrocketing to record highs
- LIFESTYLE
- Walmart to stop locking up multicultural hair products in stores
- SPORTS
- MLB Draft kicks off amid coronavirus season restart talks
- LIFESTYLE
- San Diego defies demands to defund police by expanding budget
- DISNEY
- Disney World to roll out new reservation system — and it could be huge disaster
- MONEY
- Pfizer, Mylan, Novartis sued by U.S. attorneys general for price-fixing, antitrust violations
- LIFESTYLE
- Popular cosmetics chain could close more than 1,200 stores
- TECHNOLOGY
- Lawmakers slam police after ‘disturbing’ drones spotted hovering over protest
- PERSONAL FINANCE
- Some seniors can supplement benefits with this extra source of income
- PERSONAL FINANCE
- The one reason the IRS may seize your coronavirus economic impact payments
- SMALL BUSINESS
- As states lift coronavirus restrictions, 1 in 5 small businesses remains closed: Poll
- STARBUCKS
- Multi-billion dollar revenue hit burns Starbucks as pandemic forces closures
- MARKETS
- Buyer’s remorse: Mall deal implodes as virus shakes retail
- HEALTH CARE TECH
- Johnson & Johnson will start virus vaccine testing ahead of schedule
- HEALTH
- Simple precaution could ward off second wave of coronavirus, study finds
- TECH
- Amazon sues former exec for allegedly violating non-compete agreement
- MEDIA
- HBO Max yanks classic movie, longtime TV show ending amid racial tensions
- MARKETS
- Fed likely to stress ability to further aid economy
- MARKETS
- Tesla to start mass-producing this vehicle, memo reveals
- MARKETS
- Just Eat Takeaway.com nears all-stock deal for Grubhub
- VIDEO
- NY police union boss on defunding push: We will do ‘honorable thing’
- NEWS
- Amazon demands ‘full accountability’ for Michigan cop who arrested black delivery driver
9 Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Featured Focus – Where Business, Politics and Investing Can Meet
The following is from the U.S. Chamber of Commerce. It will be followed by an MHProNews analysis and commentary.
NEW REPORT SHOWS MANY SMALL BUSINESSES HAVE REOPENED
BUT GROWING NUMBER BELIEVE RECOVERY WILL TAKE MORE THAN SIX MONTHS
American small businesses report they have reopened in some capacity and are showing signs of optimism about the future, even while still dealing with many ongoing challenges related to the pandemic, according to the latest MetLife & U.S. Chamber of Commerce Small Business Coronavirus Impact Poll.1
This month, we find that small businesses’ level of concern about the impact of COVID-19 has subsided slightly. Overall, 82% of small businesses are concerned about the impact of the pandemic, similar to the last two months of the survey. However, the number of small businesses reporting they are very concerned is now 43%, a 10 percentage-point drop from a month ago, and a 15-point drop from two months ago.
Perceptions of cash flow and revenue have also improved. 56% feel comfortable with their company’s cash flow situation, up from last month’s low of 48% and similar to late March (59%). Also, 50% expect next year’s revenues to increase, while 19% expect them to decrease. Last month, 47% expected an increase in revenue and 25% expected a decrease in revenue.
Most small businesses report being at least partially open. 79% of small businesses are either: fully (41%) or partially (38%) open. One in five are closed, either temporarily (19%) or permanently (1%). However, most believe it will take longer for the small business economic climate to return to normal: 55% of small businesses believe it will take six months to a year before the U.S. business climate returns to normal, up from 50% last month and 46% two months ago.
More than eight in ten small businesses report that they are making, or planning to make, adaptations in response to the coronavirus. Nearly half (48%) have either started, or plan to start, more frequent cleaning/disinfecting of surfaces, while 44% are asking, or plan to ask, employees to self-monitor for symptoms and stay home if they feel sick. Four in ten are also making, or planning to make, adaptations around employees wearing protective gear (40%) or requiring six feet of distance (39%) between employees and customers.
Overall, sentiment toward the economy remains similar to last month, but negative sentiments toward the U.S. economy are softening. 53% of businesses believe their business is in good health (50% last month). One in four (24%) rate the U.S. economy as “good,” compared to 21% last month. 27% believe their local economy is in good health (last month the finding was 25%). However, the number of small businesses saying the U.S. economy is in “very poor” health has shrunk to 18%, from 29% last month.
Index Highlights
- Most businesses are partially open. Seventy-nine percent of small businesses are either fully (41%) or partially (38%) open. One in five are closed, either temporarily (19%) or permanently (1%). 51% of small businesses in the South report they are fully open.
- Most say it will take longer for the business climate to return to normal. Fifty-five percent of small businesses believe it will take six months to a year before the U.S. business climate returns to normal (up from 50% last month and 46% two months ago).
- More than eight in ten small businesses report that they are making or planning to make adaptations in response to the coronavirus. Of those doing so, nearly half (48%) of small businesses have either started, or plan to start, more frequent cleaning/disinfecting of surfaces, while 44% are asking, or plan to ask, employees to self-monitor for symptoms and stay home if they feel sick. Four in ten are also making, or planning to make, adaptations around employees wearing protective gear (40%) or requiring six feet of distance between employees and customers (39%).
- Fewer businesses are very concerned about the coronavirus’ impact. The number of small businesses reporting they are very concerned about the impact of COVID-19 is now 43%, a 10 percentage-point drop from a month ago and a 15-point drop from two months ago.
- Most larger small businesses concerned about lawsuits. Two-thirds (67%) of small businesses with 20-500 employees are concerned about the possibility of lawsuits related to the coronavirus. Those with less than five employees are less concerned at 22%.
- Negative sentiments toward the economy are softening. Twenty-four percent of small businesses rate the U.S. economy as “good,” (21% last month). However, the number of small businesses saying the U.S. economy is in “very poor” health has shrunk 11 points to 18% (29% last month).
- Business health steady overall, increases substantially in Northeast. 53% of small businesses report good overall health (similar to last month’s 50%). Retailers continue to report the lowest percentage of those in good health (46%), while small businesses in the Northeast saw an increase in good health since last month: from 41% to 59% this month.
- Revenue expectations improve. Now, 50% expect next year’s revenues to increase, while 19% expect them to decrease. Last month 47% expected an increase and 25% expected a decrease.
- Cash flow improves. Cash flow has been a perennial concern for small businesses during the pandemic. Currently, 56% feel comfortable with their company’s cash flow situation, up from last month’s low of 48%, and in line with findings in late March (59%).
- Fewer see poor local economy. Slightly more believe their local economy is in good health (28%, similar to last month’s 24%). This month, fewer perceive their local economy’s health to be poor (38% believe it is in poor health vs. 50% last month), and more say it is average (33% vs. 25% last month).
- Most firms which shed workers anticipate rehiring them. Seventy-one percent of small businesses say they have the same number of employees as in February before the pandemic began. Among those that report having fewer employees now, more than half.
Their full report is linked here.
MHProNews Analysis and Commentary
Their disclaimer below is worth noting. It may help explain in part the significant difference between what other researchers are founding and what the U.S. Chamber said.
- “The MetLife/U.S. Chamber of Commerce Small Business Coronavirus Impact Poll was conducted via a monthly online survey, in place of the typical phone-based approach. This methodological shift is in response to anticipated lower response rates in dialing business locations as a result of mandated closures related to the COVID-19 outbreak. During Q2, we fielded three waves, each one month apart, with each survey comprised of 500 respondents. Results of the June survey are summarized in this report. While significant changes in data points can largely be attributed to the recent economic environment, switching from a phone to online approach may have also generated a mode effect.”
As was noted further above, their data stands in stark contrast with much gloomier information from other sources. That begs the question, how accurate is the U.S. Chamber’s survey?
The above should be viewed through the lens of the sharp drop in manufactured home shipments, according to the April 2020 data.
Additional insights are available from reports shown below.
Related and Recent Reports:
“Trailer Sales” Surge, Per Mainstream Media – Takeaways for Manufactured Home Independents?
Manufactured Housing Industry Investments Connected Closing Equities Tickers
Some of these firms invest in manufactured housing, or are otherwise connected, but may do other forms of investing or business activities too.
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- NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry lender
- NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
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Spring 2020…
Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
Enjoy these ‘blast from the past’ comments.
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Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.
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Disclosure. MHProNews holds no positions in the stocks in this report.
That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHLivingNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
http://latonykovach.com Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
AEI Flash Housing Market Indicator
