Winners And Losers Under The COVID19 Pandemic
Never in the world did it once occur that a threat would shut down operations of multiple businesses. For once, the aviation industry completely grounded to a halt. The daily fleet of cars rushing to beat time for their occupants have since gone quiet with life slowly returning to normalcy as countries quietly lift lockdowns despite the enemy still being present.
Emerging from lockdown has signaled to a race to recovery with some businesses attempting to return to normalcy. However, others have benefited from the economic shutdown. In this week, we take a look at the losers and winners from the COVID19 menace.
Essential Service Providers
The presence of COVID19 has led to the dominance of new terms including essential service providers. Health and technology industries have benefited from this mainly. IBIS World indicates that the data storage services have grown with over 12.7% in Australia alone during the COVID19 period. Online food ordering services and delivery platforms have also seen a 26.5% surge in revenue.
The bottom line in the IBIS World report is that companies offering technology related services have made a kill. Zoom has raised to become a major player in the video conferencing arena due to the lockdown. Companies relied on their services to keep offices operating. Remote working increased with 44% in the last 5 years as reported by Forbes. The COVID19 menace just escalated the growth and dominance of companies such as Zoom supporting remote working services.
However, the healthcare service providers have also benefited from the global pandemic. Forbes indicates that pharmacies have had increasing demand for their products with healthcare workers also leading the essential service providers list. Each of these have benefited due to reference as essential workers in addition to grocery services, tech support services and online payment systems that registered an upsurge in service/product demand during COVID19.
Non-essential Service Providers
The losers have mainly been those that offer services considered non-essential. The tourism industry ranks highest on this list. As soon as the World Health Organization declared COVID19 a pandemic, global borders were closed in addition to limitation in transport services within the countries. Public transport suffered the most with lockdowns and social distancing a think that defined the period.
The sports fraternity also suffered significantly with months of darkness surrounding top leagues globally. The English Premier League, the Laliga and other leagues were stopped. Tokyo Olympics have also been postponed to 2021 as reported by international media globally including the Guardian.
Entertainment spots also tasted closure with operations not proceeding due to the social distancing and health recommendations. Also, affected were retail spaces, marketplaces and restaurants as these were closed. Last but essential to note, the Fintech field was also affected significantly with financial markets expected to register the biggest hit as per MarketWatch due to decline in transactions. These have been categorized by many as non-essential during this pandemic and have in deed lost for not being lifesaving.
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