COVID-19 - The Industries Thriving During the Pandemic
Countries around the world have put in place unprecedented restrictions to avert the spread of COVID-19 or novel coronavirus. While these governmental actions are necessary to keep the disease in check, it has come at a considerable socio-political and economic cost that is hard to overlook.
The spread of the virus and the subsequent reactions by governments will likely forever alter how business is conducted within individual nations and across the geopolitical spectrum.
Technology has evolved to an extent to allow for large scale automation in several industries. However, what must small and medium businesses do to prepare themselves if, and when, the next global pandemic hits?
COVID-19 - The Social Impact
Entries societies have been impacted as entertainment venues, restaurants, public transport, social gatherings, etc have been off-limit to the general public.
Innocent public gatherings like religious meetings, ceremonies, and wedding receptions have been canceled leaving a vast majority of the public having to participate in virtual social engagements.
COVID-19 - The Economic Impact
Perhaps the most detrimental effect of COVID-19 is the way it has brought the world economy into an almost virtual standstill. Businesses large and small have been driven to bankruptcy and have been forced to lay off employees. The ability of working members of society to earn and provide sustenance for themselves and their families has come under severe pressure.
The Coronavirus pandemic couldn't have come at a worse time with some countries still recovering from the economic impact of the Great Recession of 2008 and with the setbacks from the trade war between the US and China.
The current global economic crises is having an adverse ripple effect throughout the global economic system.
Manufacturing of non-essential products is being de-prioritized. Material supply chains are lagging. This is having a domino effect leading to more economic chaos leaving sections of the economy further bruised and beaten.
However, some industries are thriving during these times of economic hardship. Where some businesses are dying, others find themselves in a much better position thanks to a little foresight and timely effort.
The Industries Thriving During the COVID-19 Pandemic & Why
Several industries are doing well or, at the bare minimum, continuing operations during this time of economic turmoil.
Many businesses had the foresight of already building an established online presence. Though they may have been forced to scale down operations, they are not suffering as badly as others.
Some businesses are obligated to keep functioning considering the essential nature of their business. Where some businesses have seen profits soar, others have ensured their account books are the least of their concern during this time.
E-commerce
COVID-19's impact on the global e-commerce industry has been mixed. It is assumed that with a majority of the population being forced to stay indoors, the e-commerce business is sure to record unprecedented sales.
In truth, turnover for e-commerce businesses is dependant on the nature of goods - medical equipment, essential supplies, consumer goods, etc. Another factor is the business' reliance on the global supply chain.
Given that the pandemic first affected Chinese manufacturers, all players from global retailers to e-commerce businesses have had to take a hit. As a result several e-commerce businesses have been forced to down shutters due to the inability to restock their inventory.
On the flip side, other e-commerce businesses have been unable to cope with demand as purchases continue to stock, and at times 'hoard', essential commodities.
The Medical Industry
COVID-19 has elevated the medical industry across the globe into overdrive. While production and demand for medical products and services have skyrocketed, it wouldn't be good to classify it as 'booming'.
Everyone from pharmaceutical companies to medical professionals worldwide are stretched to the limit being faced with diminishing medical supplies while cases are refusing to abate.
The COVID-19 pandemic has put some of the most healthcare infrastructures under the severest of pressure. Healthcare professionals, medical device manufacturers, pharmaceutical companies, and disinfectant producers are working round the clock to keep up with the escalating demand.
Even non-traditional medical services like online mental health welfare services, telemedicine, etc are seeing an unprecedented rise in demand. As doctors, nurses and similar medical professionals are at the frontline of the fight against the pandemic, they are most vulnerable to a viral transmission. For patients facing non-serious symptoms, telemedicine is the safest way to seek medical advice.
The sudden and unparalleled social isolation is having a heavy toll on people's mental well-being. This isolation, in some cases families being forced to isolate themselves from near and dear ones has had an adverse effect on the mental health of some individuals.
Energy and Utilities
With an increasing number of people being forced to stay at home and having to work and study from the confines of their homes, energy & utility companies have seen a historic, but not unexpected, increase in demand.
However, it is not clear whether energy and utility companies are profiting from this spike. Many such companies across the globe have extended bill payments up to over a month to soften the financial impact faced by businesses and families.
That said, for most energy and utility companies, profit may not be the priority at this time. More important is the provision of uninterrupted services while not exposing personnel to the virus.
The Technology Industry
With a majority of the population under lockdown and facing a quarantined lifestyle, it is natural to turn to the virtual world to pass the time.
Social media platforms are facing a deluge of content with people having more time to spare than usual. Streaming services like Netflix, Hulu, Amazon Prime Video, YouTube TV, and Disney+ are making hay while the sun shines during this period when people are left with few other avenues to occupy the time.
When it comes to electronic goods, the trend in consumer purchases has changed from bold spending to more practical purchases. Luxury consumer electronic goods like the latest iPhone or Playstation are much less in demand than a BP monitor or an electronic thermometer.
Logistics
The logistics industry in each country is the single thread holding together the global economy. From healthcare centers, medical manufacturers, supermarkets, relief operations, to families, logistics companies are working round the clock to ensure essential goods and vital medical supplies are delivered to those that need them the most.
At the same time, given that the logistics personnel are also highly vulnerable to virus exposure, some logistics companies have found themselves on the losing end and have been forced to decrease operations for the time being.
The Freelance Workforce
Online freelancers have observed a record spurt in demand for their services. This is both in terms of the number of people looking for freelancers as well as the volume of work or tasks being transferred to the online freelance community.
However, the boom in the freelancer economy is not consistent across workstreams and varies between verticals and industries. Where a majority of freelancers are experiencing a boom in demand, there is almost an equal number that is facing an especially rough time. Freelancers in film and television, on-site consultants, etc are particularly hard done by.
The Language Industry
Many areas within the language industry are booming. This is especially true for those offering online translation services. This can be largely attributed to the sheer number of academicians, scientists, and medical professionals working across countries to counter the health effects of the COVID-19 pandemic.
The research, breakthroughs, analysis, and conclusions of professionals the world over need to be accurately and quickly translated and distributed among relevant communities worldwide.
Medical manufacturers and suppliers also require translation services for instruction manuals for test kits that are supplied to the various countries in the throes of the pandemic.
On the other hand, live interpretation services are lesser in demand as live events are either rescheduled or canceled. If rescheduling is not possible, the events are moved to online, virtual conferences where online translation services and software are implemented.
Where other industries are faltering, the online translation industry is experiencing a surge in demand.
Learn More
You can read more about how COVID-19 is affecting small and medium businesses and the measures that can be taken to minimize the impact of the pandemic on daily operations.
DECIMARK offers free consultations to businesses that are looking to move their businesses online. Reach out to us and we will be happy to work with you to chalk out a plan.