National Auctioneers Association
State of the Auction Industry Amid COVID-19
May 6, 2020
On March 25, 2020, we released the first State of the Auction Industry Amid COVID-19 report, showing data on effects of the COVID-19 pandemic, including the unprecedented number of event cancellations. Surveys are continually improved to gain the most accurate, relevant data for the industry. As states begin to consider re-opening, auction professionals are entering a new unknown world of limitations and regulations that continue to alter the way they do business. We added a question about whether a respondent's state was planning to lift regulations in the next week—62% responded yes. Anticipating this, we asked respondents to tell us what preparations they were making to re-open, of which there are many. 42% of respondents see these restrictions as a vulnerability. Nearly 50% of respondents now say they will not participate in government assistance programs. In this report, we were also able to get our first accurate look at affected asset values with the estate and antique market most negatively affected. Our next report will be released on June 3, 2020.
Contact Hannes Combest, FASAE, CAE, Chief Executive Officer hcombest@auctioneers.org Media Inquiries Erin Shipps, Director of Marketing & Communications eshipps@auctioneers.org
Please contact us if you did not participate in this survey and wish to be a part of future surveys.
Methodology The National Auctioneers Association sent a 29question survey built in Survey Monkey via email to 7,336 member and non-member contacts. The survey was also distributed through a targeted Facebook ad. The association received 175 responses. Raw data was collected and tabulated using Survey Monkey.
Compliance
Job Status
19% 23%
77%
Yes
Mostly
81%
Full-time
Part-time
<1% reported â&#x20AC;&#x153;noâ&#x20AC;?
Are you following CDC guidelines?
Are you a full-time auctioneer?
<1
1-5
6-10
Years
How long have you been in the auction industry?
11-20
21-30
30+
0
10
20
30
40
50
# of respondents
60
70
How many employees are in your company or the company you work for?
Are you planning to participate in the federal governmentâ&#x20AC;&#x2122;s economic stimulus program?
Employees 90
75
# of respondents
60 60
50 40
45
30 30
20 10
15
0 0 30+
20-30
10-20
5-10
<5
Payroll Protection Plan
Loan
Expanded Unemployment Program
No
State Regulations Lifting
Is your state lifting any regulations in the next week?
38%
62%
Yes
No
What preparations/restrictions are you planning to re-open your business? Preparations/Restrictions Unsure Online payments only Outdoor/larger sites Limiting face-to-face interactions/enforcing distancing Curbside pick-up and staging drop-offs Limiting preview/pick-up numbers Transition to online-only, more simulcast Hand washing stations, sanitizer, extra cleaning Masks, gloves Wait until there are no limitations Adhering to CDC/local guidelines None 0
5
10
15
% of respondents
20
25
Rural
What type of market(s) are you typically operating in?
Small Town
Small City
Mid-sized City
Large City
0
20
40
60
# of respondents
80
100
Marketing & Management
Benefits
Real Estate
Personal & Commercial Assets
What is your primary source of income?
Marketing & Management
Benefits
Contract
Real Estate Personal & Commercial Assets
What is your secondary source of income? *22% of respondents chose N/A
Contract
nt iq ue s an d
A
C
ol le ut ct o/ ib M le ot Fu s o nd rc ra yc i si le ng s /C ha Re ri t Ba cr y n ea kr up ti o tc na Bu y l Ve sin Es es hi ta cl sL te es iq /P u er id so at He Fa na io rm av n l P / y R ro Eq an pe ui c rty pm h/ Liv e In nt es du /C to st ck on ria st l /M ru ct an Re io u G st n f a a ov u c r er tu n m ant ri n g Eq en ui tS pm ur pl en In u t s/ te Se ll e izu ct ua re s lP r F op C in om e er Ar ty m t /J er ew ci Re al el Re sid ry a en lE ti a sta lR te ea La lE nd st at Re e al Es ta te
A
# of respondents
NAA Member Yes
Respondent Statistics No
14%
86%
Which assets do you market?
120
100
80
60
40
20
0
What percentage of your sellers or clients are canceling their summer auctions or events?
Cancellations
% of respondents
30
20
10
0 0% April 1
<10% April 8
10-49% April 15
50-79%
80-99%
100%
April 22
Since our last report, weâ&#x20AC;&#x2122;ve seen a large shift in cancellations. Those seeing less than half of their auctions canceled rose sharply while those above 50% cancellations dropped. This marks the first shift back to more auctioneers resuming business.
Seller Questions Should I reschedule and when? When will you be able to sell my assets/hold live events/galas? Will the government allow us to have the auction? What liabilities exist? Will this affect turnout, participation? Will this affect buying, prices and values? How are other sales going? Are you still accepting consignments? How safe is it, what steps are being taken to ensure safety? How do we move to virtual/online? Will online only auctions do as well as live? We are online only, so nothing has changed. Clients are not asking questions. 0
20
40
% of respondents April 8
April 15
April 22
May 6
What are your sellers or clients asking regarding COVID-19 and the impact to their auction or event?
60
Seller Confidence Positive reinforcement Providing guidance Giving reasonable timeframes/realistic alternatives/flexibility inâ&#x20AC;Ś Keeping in contact, following up, informing Discussing pros/cons of postponing vs. canceling Showing recent auction results/sales data Counseling on benefits/success of virtual live/online only auctions Assuring we have tools/knowledge to conduct online auctions Providing more options for previews and pickups Using SignUp Genius for scheduling and pickups Encouraging back-up plans Staying calm Not currently conducting auctions We are online-only so nothing has changed 0% April 8
April 15
April 22
10%
May 6
20%
30%
40%
50%
% of respondents
What are you doing to give sellers confidence to move forward with an auction?
60%
70%
How are most of your buyers or donors behaving in your market?
Buyers & Donors 80 March 25
70
April 15
April 1 April 22
April 8 May 6
% of respondents
60 50 40 30 20 10 0 Adapting
Frustrated
Worried
Too Early to Tell Same as Usual
Declined
No auctions
Adapting and frustrated buyers both rose again since our last report, and while those who are worried and respondents who say itâ&#x20AC;&#x2122;s too early to tell are trending down, those auctioneers conducting business as usual is now trending up.
How has your live auction attendance been affected? 50
% of respondents
40
30
20
10
0 Lower
All Canceled March 25
Mostly Canceled April 1
Transitioned to Online April 8
Normal
April 15
Increased
April 22
No auctions
N/A
May 6
Even though many or all auctions were still affected for this report, this report shows the highest number of respondents transitioning to online since March 25.
Challenges with Preview/Load out Scheduling
Canceled/Postponed
Decreased Results
How has your online bidding participation been affected?
Decreased Traffic
Increased Results
Increased Traffic Online bidding participation saw a surge in increased traffic since the last report. Increased results remained consistently high. Decreased traffic and results continue a downward trend. Respondents starting online ventures peaked in April.
Just Started Online
No Significant Effect
N/A 0 March 25
April 1
April 8
April 15
April 22
May 6
10
20
30
% of respondents
40
Are you currently seeing a drop in asset values? Affected Assets Land real estate
Asset Values 100
Residential real estate Commercial real estate Fine Art/Jewelry Intellectual property Government Surplus/seizures
75
Restaurant equipment Industrial/Manufacturing equipment Heavy Equipment/Construction
50
Farm/Ranch/Livestock Estate/Personal property Business liquidation
25
Recreational vehicles Bankruptcy 0 22-Apr Yes
6-May No
Not currently conducting auctions
Fundraising/Charity Auto/Motorcycles Antiques and collectibles 0%
10%
20%
30%
% of respondents
40%
March 25 April 15
April 8
April 1
May 6
April 22
In Person Radio
How are you communicating to your community regarding auction or event cancellations?
Signs Newspaper Direct Mail Website/App Phone Text Social Media Email Through nonprofit 0
10
20
30
40
50
60
% of respondents
70
80
What vulnerabilities are you currently seeing in your market? Vulnerabilities % of respondents
80 60 40 20
C
an ce
on e N
ll a tio ns /P os
tp on Re em st ri c en t io ts ns /R eop en Fe in M g ar ov of in g Fa to ce O -to nl -F in ac e e Fe In te ar ra of ct Un io ns kn ow n Ec on om y Bu ye A ss rF et un sa ds re N on -e ss en tia l Se ll e rI ns Lo ec ss ur of i ty Bu sin es s/ In co m e
0
March 25
April 1
April 8
April 15
April 22
May 6
Many vulnerabilities are continuing their downward movement as states begin lifting restrictions. Seller insecurity is still a concern, as well as limitations and restrictions for reopening, which was added to this report.
What new opportunities are you seeing as a result of COVID-19? Opportunities 40 30 20 10
N
sk ill s /
ot hi ng
ew
N
tra in in g
ng es ha C N
A
ss et
pp ra i sa ls
s Bu ye r C
on su lti ng /A
ew N
in g
In ve st m en ts Bi zD ev el op m en M or t e Fu tu re As se ts
M ar ke tin g/
ew
Se
lle r
s/ Ex pa nd
N
ew
Te c
M ar ke t
h
0 O nl in e
% of respondents
50
March 25
April 1
April 8
April 15
April 22
May 6
For seven weeks, online opportunities have topped respondentsâ&#x20AC;&#x2122; lists. As respondents begin looking at re-opening, the new sellers and expanding market opportunity becomes clearer as well.
How are you or the company you work for responding financially for the business?
40
20
e
A
dv er ti
si n g
M or
su al sa sU
tu ni tie s
fo rO
W a
tc hi ng
Bu sin es
in g Ho ld
pp or
Pa tte rn
ou rs H nd ff a
St a
Ex pe ns es Re du ci ng
M in im i zi ng
/H al tin g
In ve st in g
on se rv
in g
0
C
% of respondents
60
We continue to see a drop in companies minimizing and halting expenses, though many remain in a holding pattern. Investments have seen an upward trend.
March 25
April 1
April 8
April 15
April 22
May 6
March 25 April 15
April 8
April 1 April 22
May 6
We've Gone Virtual
Are real estate closings currently being affected as a result of COVID-19? 21% of respondents who work in real estate still say closings are definitely being affected. This statistic has remained strong for weeks. 17% say they are slowed by other industries To adapt, more respondents have gone virtual than in any past report.
Unknown
Nothing Yet
Slowed by Other Industries
Expect Changes
Definitely Affected
N/A
0
10
20
30
% of respondents
40
Bank Response 50 45
% of respondents
How are you seeing banks respond to the COVID-19 crisis?
40 35 30 25 20 15 10 5 0 25-Mar
1-Apr
8-Apr
15-Apr
22-Apr
29-Apr
Status Quo
Hesitant to Lend
Major Changes
Unknown
Minor Changes
Busy with PPP loans
6-May
What are your non-profit clients doing because of event cancellations? Non-Profit Clients
% of respondents
40
30
20
10
0 Still Evaluating
Exploring Options
Rescheduling
March 25
April 1
Canceling
April 8
Online Auctions
Other Fundraising Efforts
April 15
April 22
Unknown
N/A
May 6
Cancellations and reschedules in the benefit auction community dropped significantly since the past report. Many respondents are still utilizing online auctions and other fundraising methods.
Chart Title
100
% of respondents
What other fundraising methods are you and/or your nonprofit clients currently utilizing?
120
80 60 40 20 0 25-Mar
1-Apr
8-Apr
15-Apr
22-Apr
Online/Virtual
Telethon
Direct Donation Campaigns
None/Waiting
Exploring Options
6-May
Sponsors
Contact: Adam Kenne akenne@auctioneers.org (913) 563-5421
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