“There is a light at the end of every tunnel. Some tunnels just happen to be longer than others” – Ada Adams
As the world comes to grips on how to deal with the coronavirus, this is the mantra that we all need to chant and remind ourselves; as individuals, organizations, and industries. Rumours have been rife about how various industries are going to survive the economic impact of the pandemic, and what kind of future they can expect to have. While nobody has all the answers yet, we thought we’d break down the situation that some major industries find themselves in, and their outlook for the future
Current: The industry that has been hit hardest is the hospitality industry. With restrictions on movement imposed amidst the lockdown, all the sectors within the industry have experienced a drastic decline. Travel & Tourism, Lodging, and Recreational activities have come to a standstill as they’re deemed to be non-essential. The Food & Beverage sector has had some respite as online food delivery still remains an essential commodity. But restaurants that are dependent on the dining out aspect of customers have been severely hit.
Future: Given the degree of uncertainty over the issues surrounding the pandemic, it seems very likely that it will take a while for things to start looking up for this industry. Travel & Tourism will continue to be slow as nations close their borders off to avoid another wave of infections. Recreational activities will remain closed as they tend to attract large gatherings. Food & Beverage might see a slight upturn, but will also take a significant amount of time to reach its previous levels of activity.
Banking & Financial Services
Current: Banking & Financial services have been impacted to varying degrees during the pandemic. Since banking operations are deemed to be an essential service, financial institutions have been given the go-ahead to provide services such as withdrawals, deposits, etc. Further, due to its nature, the industry has also received clear guidelines and policies to follow with regards to outstanding transactions with its customers. However, the challenge in this sector has been the ability of institutions to implement these policies at the required scale and speed. This coupled with the temporary hold on lending has resulted in a slow downturn for banks.
Future: The biggest takeaway for this sector from the current situation would be to develop digital banking and financial services that are agile, flexible, and optimized. This will ensure minimal disruption in the event that such a scenario should happen again. The other takeaway would be to prepare for such eventualities with a keen eye on risk management.
Current: The manufacturing sector is another that has been hit hard by the ongoing crisis. And in this case, it has triggered a domino effect on multiple other industries. With factories being shut down due to health safety issues, organizations with complex supply chain models have been left stranded. The problem has been further exacerbated by the fact that the “world’s factory”, China, was the source and the epicenter of the virus spread. As a result of this, production of various commodities ranging from smartphones to cars has come to a standstill, causing loss of revenue and jobs in several industries.
Future: While the situation is going to be complex in the coming months for organizations dependent on the manufacturing sector, one facet that they will definitely have to relook at is their supply chain model. The pandemic has once again highlighted the dependence on China as the world’s factory, while also revealing the inflexibility of current processes. A gradual overhaul to new and agile supply chain technologies will enable organizations to absorb global shocks such as this in the future.
What are your thoughts on how the world is going to change and cope in a post-coronavirus world? Tell us in the comments!