Release: NC Tech Mid-April Poll Results

FOR IMMEDIATE RELEASE

NC TECH Staff Contact: Rachel Kennedy

North Carolina Technology Association

919-999-6046 / rachel@nctech.org

NC Tech Leaders Poll: Mid-April Results Released

Raleigh, N.C. (April 2020) – At the end of March, the North Carolina Technology Association (NC TECH) polled leaders in North Carolina’s tech sector to get their insights and predictions on business effects of the COVID-19 pandemic.

“Strong interest in the results from the initial poll caused us to schedule a bi-monthly repeat of the poll to gauge sentiments over the next few months,” said Brooks Raiford, CEO of NC TECH. The poll will be conducted at the mid-point and end of each month during April, May and June, with results released immediately thereafter.

The mid-April poll was conducted on April 15, and the results in large measure track with the responses from the initial poll at the end of March, with just a few shifts. The most pronounced shift was on the question of what type of recovery is most likely: V-shaped or U-shaped.

More than 80% of respondents said that nearly all of their organizations’ employees are working from home. This is up slightly from the 75% figure when the poll was taken at the end of March. And there is a nearly even split in percentage of respondents who predict working from home will become more common in the long-term aftermath of the stay-at-home orders presently in effect.

The tech sector appears to be faring better than many other parts of the economy; fully 60% of those polled report that demand for their offerings has increased or remained neutral, with 40% indicating a reduction in business. There was no change on this question from the March 31 poll.

Over 44% of tech sector leaders say that their organizations are continuing to hire, with 46% saying their organizations have frozen hiring (up 5% from the last poll). Almost 10% reported that their employers are exploring or implementing furloughs, layoffs, or compensation reductions – this is up from under 7% from the last poll.

These tech leaders remain fairly optimistic on when business and social activity might start to return to pre-shutdown levels. When asked what month they predict in-person meetings and events will resume, almost half of the respondents said June and 27% indicated July. Less than 2% predicted later than September. These responses mirror the results of the last poll.

However, predictions on when the economy would see measurable rebound have shifted slightly since the last poll: 31% anticipate improvement showing up in June or July, with 32% predicting August or September (down from 41% in the last poll), and 32% saying later than September (up from 27% in the last poll).

The most pronounced shift in this poll compared to the last one is that 77% of respondents predict what is known as a “U-shaped” recovery (gradually bottom out, then begin to recover), which is up from 66% previously. Only 23% predict a “V-shaped” recovery (quick pivot to accelerated growth), down from 34% in the last poll.

Some economists predict a third potential recovery model – a “W-shaped” curve, in which there is an initial recovery, followed by another downturn, before a stronger recovery begins in earnest. NC TECH will add that option to future polling.

When asked for comments on what has been the most difficult/challenging aspect of the past few weeks, some of the themes were similar to responses in the initial poll: lack of in-person interaction; unclear/inaccurate/conflicting information from government officials; delayed or lost revenue; keeping employees’ morale and productivity high; loss of revenue; and managing the work from home environment (kids, technology, distractions, long hours…). Additional themes emerging in the latest poll include: video meeting burnout; inability to forecast sales/revenue; having to layoff/furlough employees; and knowing how to prepare now for ensuring organizations are well-positioned when the recovery begins.

Dennis Stearns of Stearns Financial Group, sponsor of the poll, noted that these latest poll trend’s mirror their firm’s “whack-a-mole” scenario, a U-shaped recovery with un uneven C-19 endgame and an uneven economic rebound. “We like to be optimistic that the massive resources directed at the pandemic will create a V-shaped recovery, but our research leads us to conclude that some businesses, even some technology businesses, will struggle to regain their footing into 2021,” he said.

For more on the impact of the tech sector on North Carolina’s economy generally, and how the state compares to other states in strength of the sector, visit www.ncstir.org to view the 2020 North Carolina State of Technology Industry Report . This annual report is commissioned by NC TECH and released in January of each year.

Poll Methodology: NC TECH conducted a poll of 302 persons with a 48% response rate. Those polled came from three categories: The Association’s Board of Directors, its Board of Advisors, and select CEOs and top state executives of non-headquartered companies with large tech sites in North Carolina. Graphic representation of the poll questions and responses attached.

About NC TECH: NC TECH is a not-for-profit, membership-driven trade association and the primary voice of the technology industry in North Carolina. NC TECH’s mission is to foster growth and champion innovation in North Carolina’s tech sector, while providing a voice for the tech community. NC TECH’s membership includes 700+ member companies, organizations and institutions employing more than 200,000 workers in North Carolina. For more information, visit nctech.org .