April 8, 2020
A just-completed PEI member survey shows a marked deterioration in business conditions in the past three weeks. As the following table indicates, supply chain disruptions are more severe, and revenue losses greater for manufacturers, distributors/service contractors and affiliate members.
With just under six months to go until the Oct. 1 U.S. EMV forecourt liability shift deadline, the survey also reveals:
- 37% of PEI members’ U.S. retail fueling customers have completed their EMV forecourt upgrades.
- 62% have not yet placed their EMV upgrade orders.
- Average lead times (which typically overlap) are:
- 5 ½ weeks to receive EMV equipment orders;
- 4 ¾ weeks to schedule and complete the upgrades.
- To help retail customers meet the deadline, 70% of U.S. distributors and contractors have hired additional technicians and incurred related capital expenditures (e.g., vehicles and equipment).
To ease the financial burdens of the COVID-19 pandemic, 55% of U.S. manufacturer members, 72% of distributors/contractors and 51% of affiliate members intend to apply for Paycheck Protection Program loans or other Coronavirus Aid, Relief and Economic Security (CARES) Act benefits.
Complete survey findings, including steps PEI members are taking to boost productivity and protect their employees, may be found here.
Results are based on responses collected April 6-7, from 281 PEI member companies (19.9% of all PEI corporate members).
Executive Vice President
If you have questions or feedback on PEI Industry Alerts, contact Rick Long at email@example.com.