COVID-19 has had a dramatic affect on the world economy, and while many industries have had catastrophic results, others have actually flourished due to high-demand and necessity.
During these uncertain times, it helps to stay informed. Below, we break down the industry sectors most positively impacted, those relatively unscathed, and others that have faced a significant downturn.
Industries that Flourished as a Result of COVID-19
We have yet to see the total impact on the agriculture industry as a result of the pandemic. As of now there are some modest setbacks with the primary being global trade. The United States has a low dependency on exports, and because our exports to China are reduced, domestic prices are likely to rise.
The agriculture industry relies on seasonal employment and workers being hired on an as-need basis. Layoffs and worker shortages are unlikely to hit the agriculture industry as hard as it hits manufacturing.
The driving force of agriculture is the never-ending demand for food. Food is not a luxury item, and there will always be consumers.
Though it is clear there are struggles in the healthcare industry, there is an increased need as our frontline workers face this pandemic head on. There is a significant increase in demand for hospital workers and medical staff with so many people seeking COVID-19 testing and treatment.
This outbreak also means there is an increased need for hospitals. There may be a call for restructuring of other buildings to be used for hospitals or the creation of temporary treatment centers. Two medical facilities were built in Wuhan, China, and we should expect to see similar efforts in the United States. There is also a surge in telehealth services with people calling in for a diagnosis rather than visiting hospitals and outpatient centers to limit their exposure to the virus.
The primary setback for the healthcare industries is running low on supplies and workers. The federal government is seizing medical supplies and hospitals are urging those with extra materials to donate them.
We categorize Utilities here because they are dependent on demand. With people mandated to quarantine under various stay-at-home laws, utility usage is anticipated to increase in consumption of domestic electricity, water, and gas.
Many utilities companies are offering aid during the pandemic. Many others are also waiving late fees, offering free select services, or halting disconnections. Though the future is uncertain, as of now, the residential utilities industry has not been as negatively impacted as other industries.
Industries with Minimal Impact as a Result of COVID-19
Because elementary and secondary schooling is compulsory, education should not experience a significant decrease in demand from school closures. The concern lies in online education and how this will impact the children as schools hustle to get lesson plans digitized and every kid on board. The demand is there, but the quality of the education is a widespread concern.
Universities have taken a harder hit because although they have switched to online learning, enrollment is said to decline as people are postponing until the pandemic passes. Universities are prepping for an economic fallout from the loss in international student enrollment who pay higher rates to attend.
Retail is a massive industry in the United States and despite retail stores being forced to close due to the pandemic, online shopping has seen a significant uptick. This offsetting revenue has primarily impacted those organizations who rely solely on brick and mortar locations but overall, retail has managed to stay afloat during this crisis.
The beauty and fashion industry has taken a staggering blow with major brands and department stores closing its doors. Sephora, the beauty retailer, was one of the first to close laying off all part-time employees. Companies like JCPenney and Macy’s are furloughing and laying off both hourly and corporate workers. With people quarantined in their homes there is no need to dress for work and events or to buy that summer bikini. Instead, they are turning to fashion retailers for face masks.
Though the fashion industry is taking a hit, online shopping in general is increasing. With people staying at home, people will need to take alternative routes to brick and mortar stores for the sake of social distancing; however, companies like Amazon are still having difficulties for items sourced from overseas.
Other retail industries, like food and beverage or health and personal shopping, are said to increase with stores like Target making adjustments in response to the outbreak with services such as curbside pickup and order delivery.
Industries Significantly Impacted by COVID-19
Although there is an increase in online streaming, the entertainment industry has taken a huge hit. There are virtual concerts and some movies have been released early to stream online, such as Trolls World Tour premiering now at home, but it is not enough to counterbalance the revenue typically resulting from live events.
The film industry is suffering, putting television and movie filming on hiatus as actors like Tom Hanks and Idris Elba have tested positive for the virus. This year’s box office is projected to fall more than 40% with the lowest revenue since 1998.
Nearly every professional sport has been put on hold. Both major and minor leagues have been postponed and cancelled, and stadiums are empty. Even the Olympics Summer Games were moved to July of next year. From athletes to media coverage to loss of ticket sales, this $471 billion industry marks entertainment as category red.
One of the hardest hit industries is manufacturing. With supplies coming from China, automotive industries have been especially impacted. There has also been a sharp decline in demand for automobiles and other household items that would be purchased on credit, such as washing machines or furniture.
The largest impact of COVID-19 is on computer and electronic products. Manufacturing employees cannot work from home so the factories have closed entirely. Even items like the Nintendo Switch are sold out, which has been noted as a quarantine essential.
Oil and Gas
With fewer oil and oil-based products being produced, the impact to the oil and gas industry is severe. It could be larger when factoring in remote workers lessening the demand for gas. There is also a consideration that more companies will adopt WFH policies because it works so well.
Since this is a highly globalized industry that is dependent on commodity prices, China being a major distributor of raw materials is a big factor. Oil and gas prices are declining, and the demand for jet fuel has plummeted. Because of this, oil and gas drilling will likely decline as well.
Professional services, like Code Authority, have experienced a lot of churn. Demand for these services has slowed as large projects and services have been delayed due to uncertainty and unpredictableness of the current economy. Businesses will need to move their work remotely as much as possible. Migrating to the cloud is a good solution.
Many services will need to be put on hold. This affects not only how these businesses operate but the demand for the services that they provide as well.
Code Authority During the Crisis
Code Authority has already implemented a remote workforce to keep both our employees and clients safe. We have many alternatives to face-to-face meetings, such as meeting through Microsoft Teams.
Smart business leaders with strong balance sheets are investing in technology capex because of the deep discounts available at this time—Code Authority included. Our 2019 rates hovered at an average of $150 per hour and are now reset in the $100 to $120 range.
Contact our professional software development team today to take advantage of these reduced rates!