The German-British Chamber of Industry & Commerce has released the details of a survey conducted to gauge the impact of the coronavirus on their operations, finding that the community has been profoundly affected.
Germany UK
The Spring survey of members has shown that like all other businesses, the German-British business community is profoundly affected by the Covid-19 pandemic. Currently, many companies are looking to reduce costs and/or staffing levels, but the majority can only do this at a pace which is substantially slower than the reduction in activities/turnover experienced. The Chamber said that a substantial hit to the bottom line will be unavoidable.
More than three quarters of the German-British business community expect a decrease of more than 10% in this year’s turnover, with nearly 30% of businesses expecting a decline of more than 50%.
A decline in demand and increased cancellation of orders, combined with restrictions on travel restrictions, cancellation of trade fairs and cancelled investments are having the biggest effect on business.
80% expect their business operations in the UK to recover within six months following the end of the pandemic. However, they are less optimistic about the UK economy overall, for which they expect a significantly longer road to recovery.
Dr Ulrich Hoppe, Director General of the German-British Chamber of Industry & Commerce, commented: "The survey results suggest that the German-British business community, despite being severely impacted by the Coronavirus pandemic, is comparatively well-positioned to recover once the pandemic is over. However, very challenging months lie ahead.”
60 online interviews were conducted with members of the German-British business community with UK operations. The study was part of the World Business Outlook survey of the Association of German Chambers of Industry & Commerce. Fieldwork was conducted between 27 March and 1 April 2020.
The full results can be found here.
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