Business Services | Third Quarter 2020

November 2020 – The SCA Business Services Index increased by 4.9% in Q3 2020, compared to a 16.5% increase in the S&P 500. While most Business Services sectors experienced a level of stabilization during the quarter, almost every area is adapting to a “new normal” in which year-over-year sales are expected be down anywhere from 15% to more than 50% as compared to 2019. A recent survey by Staffing Industry Analyst reported temporary staffing revenues are expected to decline by 17% in 2020 with several subsectors down over 30%. Similarly, a recent survey by Chief Marketer projected corporate marketing budgets being reduced by 50% as companies eliminate corporate entertaining, tradeshows, and even elements of digital advertising. A bright spot remains in IT spending, as companies invest in enhanced infrastructure to facilitate expanded ecommerce, virtual customer meetings and work from home employees.

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