Results of the 2nd Covid-19 barometer for the digital sector: sales down 25%, but recovery on the way
Still hard hit by the Covid19 crisis, the sector is anticipating a drop in sales of minus 25% for the second quarter of 2020, but is focusing on the future, with 7 out of 10 business leaders already thinking about a business recovery plan.
As the details of the deconfliction process begin to take shape, Syntec Numérique continues to work closely with its members to assess their economic health and consolidate its proposals to the government.
- An economic situation that continues to deteriorate
81% of business leaders surveyed (vs. 74% for the first edition) anticipate a fall in their sales forecasts for the second quarter of 2020, averaging -25.1% (vs. -22.9% for the first edition).
This estimate can be explained by several factors: on the one hand, by the suspension or cancellation of projects started pre-Covid: only 60% of projects are currently being maintained for digital companies; on the other hand, order intake forecasts from April to June 2020 will be down due to the pandemic for 95% of respondents.
- Recourse to state schemes to stay afloat during the crisis
Faced with this situation, digital companies continue to organize themselves, with the support of Syntec Numérique, to limit the impact on health and the economy. Following the government’s instructions, telecommuting has been implemented wherever possible, involving 99% of companies and 4,156,550 employees. Almost 11,800 employees are still working on site, a proportion that has been divided by 2 since the beginning of April. An estimated 23.8% of the sector’s employees (120,000 people) are on short-time working. This number has almost doubled since the beginning of April, as all applications have now been submitted. Among the other social and financial measures put in place, those designed to keep cash flow afloat are the most interesting: nearly 6 out of 10 company directors say they have had or could have recourse to social security or tax payment deferrals, and more than 4 out of 10 to state-guaranteed loans.
- Companies ready for the recovery
In addition to the actions implemented to support their business during the containment period, 70% of business leaders have already thought about a plan to revive their business. 95% of business leaders anticipate an acceleration in digital transformation for companies following the Covid19 pandemic.
However, more than one business owner in two believes that the upturn in activity will be gradual and spread over several months (September/December 2020).
“We expect our customers to secure their cloud infrastructures and invest massively in cybersecurity, to cover the new risks inherent in the massive use of telecommuting, which is set to continue,” says Godefroy de Bentzmann, President of Syntec Numérique.
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“Digital is one of the solutions for recovery”.
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“Since the start of the Covid19 pandemic, our priority has been to protect digital businesses and enable them to weather the crisis as calmly as possible. That’s why Syntec Numérique regularly takes the pulse of companies in the sector through barometers and assesses their needs in order to propose the most relevant stimulus measures to the government. All the indications are that digital transformation is set to accelerate as we emerge from the crisis. New technologies are indispensable assets: for the service provided to citizens and businesses, as well as for the competitiveness of the economy. We must collectively succeed in overcoming this crisis, and digital companies are part of the solution!” declares Godefroy de Bentzmann, President of Syntec Numérique.
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