Just How Bad Has the Financial Fallout Been for US Galleries? A New Survey Crunches the Numbers—and They’re Bleak

While there is no question that the effect of the pandemic has
been devastating for galleries (and small businesses everywhere),
exact numbers about the extent of the damage have been hard to come
by. But now, the results of a recent survey by the Art Dealers Association of
America give some sense of the fallout.

The 168 galleries surveyed from across the US, between April 14
and May 4, projected a gross revenue loss of 73 percent in the
second quarter of 2020. That’s on top of a 31 percent revenue loss
in the first quarter of the year. While 85 percent of full-time
gallery staff have retained their positions, 74 percent of regular
independent contractors are no longer employed. About 10 percent of
staff have been furloughed and a surprisingly small
number—just five percent—have been laid off entirely.

About three-quarters of galleries that furloughed employees said
they were continuing to provide some form of benefits to them,
while 37 percent of galleries that laid off employees were still
providing them some benefits.

Not surprisingly, the unemployment numbers were far higher for
contractors and freelancers: 82 percent of art handlers and
installers were laid off or had contracts terminated. Other jobs
that commonly fell into this category included accountants,
conservators, curators, drivers, editors, servers, fair booth
consultants, translators, and web developers.

And things could still get worse. Ten percent of respondents
expected to lay off or furlough full-time employees and freelance
or contract workers within the next 90 days. Just over half (53
percent) said they do not expect to make any more cuts in that
time. (The remaining 37 percent said they didn’t know if they
would make staff reductions.)

“While the survey is focused on near-term impact, the
implications are far-reaching and long-term for art galleries and
the even greater number of employees and artists they support, both
financially and as key partners in fostering their practices and
careers,” said the Art Dealers Association of America’s executive
director, Maureen Bray, in a statement. “Such immediate and
devastating revenue losses will undoubtedly have a ripple effect on
these small businesses and the broader arts community for the next
12 to 18 months, if not longer, and it is still uncertain how long
such losses may continue.”

The majority of responding galleries (78 percent) had applied
for one of the government’s Paycheck Protection Program loans,
which were instituted as part of the CARES relief act. Of those who
applied, 78 percent received some response to their applications,
while just 28 percent received confirmed loan acceptance. Of those
who did not apply, 37 percent said they plan to apply in the
future, 30 percent were undecided, and 33 percent do not plan to
apply.

In an effort to push ahead policy solutions, members of the Art
Dealers Association have been advocating for the New York State
Senate to pass Michael Gianaris’s proposed bill S8125A, which would
provide rent and mortgage relief to galleries, as well as artists,
freelancers, and contractors.

The post Just How Bad Has the Financial Fallout Been for US
Galleries? A New Survey Crunches the Numbers—and They’re Bleak
appeared first on artnet News.