2021Business Impact Survey Results Wave 1
25th February 2021
bvrla.co.uk
Financial Impact Sales Transactions 2019 v 2020
Down more than 50%
• 73% of companies report the number of sales
11%
transactions down year on year
Down up to 50%
No Change
62%
Up more than 50%
transactions down year on year.
• 26% of rental companies report the number of sales
3%
Up, up to 50%
• 77% of rental companies report the number of sales transactions down more than 50% year on year compared with the industry average of 11%.
22%
4%
bvrla.co.uk
Falling Staffing Levels The Industry
(77 Companies responding)
Comparing February 2020 with February 2021
44% have lower staffing levels 38% have the same staffing levels 18% have greater staffing levels
Rental Operators
(27 Companies responding)
Comparing February 2020 with February 2021
70% have lower staffing levels 22% have the same staffing levels 7% have greater staffing levels
14% of the industry suggest that their staffing levels have fallen by more than 25%. 37% of rental operators suggest that their staffing levels have fallen by more than 25%. Of the 11 respondents suggesting staffing levels had fallen by more than 25%, 10 were rental operators.
bvrla.co.uk
Government Support Government Support Measures Being Used
Whole Industry
Coronavirus Job Retention Scheme (Furlough)
45%
VAT deferment
59%
42%
Business rates relief
39%
Bounce Back Loan
38%
None being used
48% 67% 52% 11%
23%
CBILS (Coronovirus Business Interruption Loan Scheme)
30%
18%
Local Restrictions Support Grant (for open businesses)
15%
9%
Additional Restrictions Grant (ARG)
4%
Local Restrictions Support Grant (for closed businesses)
4%
The Kickstart Scheme
3%
Temporary reduced rate of VAT for hospitality, holiday…
Rental Sector
3%
4% 7% 0% 7%
Coronavirus Statutory Sick Pay Rebate Scheme
3%
0%
Closed Businesses Lockdown Payment (CBLP)
1%
0%
CLBILS (Coronovirus Large Business Interruption Loan Scheme)
0%
0%
bvrla.co.uk
Government Support Government Support Measures Of Most Use If Extended (select up to 3) Coronavirus Job Retention Scheme (Furlough) Business rates relief VAT deferment None being used Bounce Back Loan Local Restrictions Support Grant (for open businesses Small Business Grant Fund (SBGF) Additional Restrictions Grant (ARG) Retail, Hospitality and Leisure Grant Fund (RHLG) CBILS (Coronovirus Business Interruption Loan Scheme) The Kickstart Scheme Temporary reduced rate of VAT for hospitality etc. Local Restrictions Support Grant (for closed businesses) Coronavirus Statutory Sick Pay Rebate Scheme Closed Businesses Lockdown Payment (CBLP) CLBILS (Coronovirus Large Business Interruption Loan Scheme)
Whole Industry
Rental Sector
47% 39% 34% 22% 21% 17% 13% 9% 6% 6% 4% 4% 4% 3% 0% 0%
56% 67% 44% 15% 22% 22% 11% 11% 15% 4% 0% 7% 4% 0% 0% 0%
bvrla.co.uk
Barriers Preventing Businesses Returning To Normal Barrier – Supply of vehicles
The current supply of vehicles to your organisation is….
No Barrier, 9% Somewhat, 27% Moderate, 26% Extreme, 38%
Moderate, 37% Extreme, 11%
17% 18%
0ct 20
Feb 21
Getting better
No Barrier, 24%
Barrier – Access to finance
No Barrier, 40% Somewhat, 15% Moderate, 24% Extreme, 21% Oct 20
Oct-20
Somewhat, 28%
Moderate, 26% Extreme, 12% Feb 21
34%
The same
Oct-20 53%
65%
48%
•
Around half suggest that the supply of vehicles is getting worse.
•
Access to finance is seen as a barrier by 54% of respondents with 1 in eight suggesting it is an extreme barrier for them.
•
Three in ten think getting access to finance is getting worse.
Getting worse
Feb-21 62%
14% 9% Getting better
Vehicle supply is seen as a barrier for businesses recovering from the impacts of covid-19 by 76% of respondents. This is lower and less extreme than when measured in October.
Feb-21
The current access to finance for your organisation is….
No Barrier, 46% Somewhat, 16%
18%
•
The same
33% 29%
Getting worse
bvrla.co.uk
EU Exit Impact of EU Exit on Aspects of Members Businesses Increases in the cost of vehicles
25%
Challenges with parts supply
13%
Issues with customs procedures for moving vehicles into Northern Ireland
12%
Issues with customers driving into the EU
12%
Increases in the cost of parts
49% 45%
42%
38%
50%
34%
9%
New rules around product liability and placing vehicles on the market 3%
26%
54% 55%
13%
Issues with data flows between the EU and UK 3%
84%
21%
76%
New Northern Ireland VAT rules 3% UK leaving EU VAT regime 2% New rules for employing staff from the EU 0% Challenges selling used vehicles into the EU 0%
36%
35% 27% 29% 27%
62% 71% 71% 72%
Base: Challenge where applicable
Major Impact
Minor Impact
No Impact
bvrla.co.uk
The next six months…… Business for UK Lease Sector
The Economy
Improve
47%
Stay the same
16%
Deteriorate
37%
Size of your fleet..
39%
Stay the same
38%
Deteriorate
Rental sector, against total sample:
23%
Business for UK Short Term Rental Sector
Increase
54%
Stay the same Reduce
Improve
32% 15%
Improve
54%
Stay the same Deteriorate
30%
•
Less likely to see deterioration in the economy but also less likely to see improvement.
•
Less confident about an upturn in business.
•
Slightly more likely to see increase in fleet size.
16%
bvrla.co.uk