5 INDUSTRIES MOST AFFECTED BY THE COVID-19
The rise of Covid-19 has had a profound impact on the way businesses operate.
For example, employees in some industries have been able to become relatively easily accustomed to social distancing at work, such as working from home. The ability to do this varies widely by industry and company. It depends on the nature of the business and the extent to which it is necessary to have direct contact with customers or other employees.
Working from home is more prevalent in industries such as finance, insurance, business and science, information and communications. These are all more productive service sectors. In addition to low demands, firms may also reduce production because they are unable to obtain essential inputs or supplies. About 40% of companies in the surveys have reported disruptions in their supply chains in the second quarter of 2020.
It was reported that supply disruptions were greater in industries and companies that expected larger impacts on sales, implying that supply effects may have been a factor that also slowed down production and more in some sectors than in others.
Here are few of the most affected sectors during this pandemic.
- Travel & Tourism
The travel and tourism industry is severely affected by the corona virus outbreak. Since COVID-19 is a pandemic, people are avoiding travel to different countries and cities, which has negatively impacted tourism activity and tourism benefits of affected countries.
2. Fintech
The COVID-19 spread is proven to be the major danger to the international financial system and monetary market. If we look at the short term impact, we could see people making safer investments in the market. This means that there is less investment in the stock market, negatively impacting the venture capital funding of existing and new FinTech companies. The FinTech sector has seen a decline in transactions at all levels.
As people have isolated themselves to protect themselves from the spread of COVID19, they are spending less than usual, resulting in a low transaction rate.
3. Manufacturing
The COVID-19 pandemic has deeply affected manufacturing industries. As after other major upheavals, such as the 2008–2009 financial crises, the return to pre-crisis levels took several years.
In 2008, manufacturing industries took three years to return to pre-crisis levels. This time around, the course of the crisis will be at least as severe as during the financial crisis, if not worse.
The simultaneous shock of supply and demand with the lock-downs has led to extremely deep collapses and a “high and low” recovery is more likely than a stable curve. In addition, China is failing as a growth engine and the industrial disruption already underway is accelerating.
4. Real Estate
As the effects of COVID-19 are felt around the world, real estate companies are experiencing a different impact, largely depending on region and asset class. In the short term, real estate executives are concerned with preserving value and liquidity, protecting tenants and visitors, including improving cleanliness and meeting government agency requirements.
5. Ports & Logistics
Ports provide key infrastructure to support international trade and the global economy. Their size ranges from jetties that carry a few hundred tons of cargo at most a year to major international ports or multi-modal hubs that combine a wide range of logistics services, from warehousing to full supply chain management.
During the COVID19 pandemic, ports had to adapt to the reality of declining volumes, labor shortages, the implementation of occupational health and safety measures for dock-workers, ground staff, adoption of teleworking and remote operations for employees. In some countries, cruise ship stopovers have been badly interrupted.
