NDIA survey shows what’s next for business as pandemic fades


NDIA survey shows what defense businesses face as the pandemic recedes


ARLINGTON, VA – As the COVID-19 pandemic starts to retreat in the United States., businesses of the defense industrial base are finding where they are now and what lies ahead, so says the results of a pulse survey from the National Defense Industrial Association, done under the Vital Signs project of the Strategy & Policy Department and released Monday, June 14.

The survey of more than 200 NDIA members was conducted over several weeks in April and May, and revealed many points, including:

• 18.5% of respondents said their businesses have returned to normal operations, while 31.5% said they do not expect a return to a normal level for more than six months.

• Small businesses in the defense industrial base — particularly those with 25 or fewer employees —reported large negative effects on their businesses due to the pandemic far more than larger businesses. When compared to U.S. small businesses that do not specialize in defense, these businesses were nearly 32% less likely to experience large negative effects, but about 19% more likely to experience moderate negative effects.

• 34.7% of businesses reported that COVID-19 had a major impact to revenue expectations in July 2020, which has fallen to 19.3% as of May 2021.

• The four areas of operations most affected by the COVID-19 crisis are revenue expectations (41.7%), confidence in supply-chain partners (31.7%), availability of workforce (30.5%) and ability to perform on contracts (29.6%).

• At 41%, availability of employees to work was the most common factor affecting operating capacity. Physical distancing of customers or clients and limits on the number of concurrent customers or clients was the second most responded factor at nearly 10%.

The complete survey results are available here.

NDIA conducted two surveys in 2020 at the Defense Department’s request to gauge how business, particularly small business, was doing during the pandemic. NDIA did this survey on its own but does plan to share the information with interest officials at the Pentagon, said Corbin Evans, principal director of strategic programs. “Defense is such a broad industry with many facets, and many of its companies and employees are our members. We felt another survey was in order to understand what is going on now compared to the start of the pandemic, but also what lies ahead for these companies,” he said.

For media queries or to speak with survey leads Corbin Evans or Nicholas Jones, please contact Evamarie Socha at the information below.

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Evamarie Socha

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