|Which Industries are Winning During Isolation
Coronavirus continues to have a devastating impact on industries around the world. Entire sectors are failing, millions of people have lost their jobs, and global governments have unveiled their biggest stimulus packages in history. Amidst all the chaos and destruction, however, some industry sectors are flourishing like never before. From healthcare and logistics to e-commerce and video conferencing, let's take a look at some of the winners from COVID-19.
Before we talk about the success stories,
it's important to put things in perspective. Global markets have fallen
sharply, with the FTSE, Dow Jones Industrial Average, and Nikkei all seeing
huge falls over the last few months. The US Senate passed a record-breaking
USD$2 trillion aid bill to help people survive, with most other nations passing
their own relief packages. The global tourism industry was decimated overnight,
the arts and events management sectors are pretty much non-existent, and the
entire hospitality sector is a shadow of its former self.
Despite the major economic downturn and
immense recovery ahead, not everyone has been suffering during this difficult
time. As you might expect, some healthcare companies are thriving, with
pharmaceutical companies set to play a huge role in the crisis recovery. Some
major players include Gilead, who own the rights to the treatment drug
Remdesivir; Moderna, who are actively working on a vaccine; and Roche, a major
supplier of testing kits. Medical supply companies are also doing well, as are
other manufacturing companies who have been brought in to meet demand.
With everyone staying at home and most
physical shops either closed or extremely quiet, the logistics and delivery
industry has been picking up the slack. From huge interstate trucks to food
delivery bikes, the streets are full of delivery vehicles. No-contact delivery
services have become the new normal, with more than 80% of all food orders from
China during the COVID-19 peak requesting contactless delivery. While far from
thriving, delivery services have even helped some cafes and restaurants to stay
in business during this tough time.
The online world has also enjoyed a huge
boost in traffic over the last few months, from streaming services to remote
working apps and video conferencing tools. People have more time on their
hands, which means more time for TV, more time for Instagram, and more time for
gaming. Platforms like Netflix, Amazon Prime video, and Disney+ have all
reported increased viewers and healthy sales. The mobile gaming industry has
also exploded, with streaming platforms for competitive games like "League
of Legends" seeing more traffic than ever before.
With the opportunity for physical
connection greatly reduced, people have been searching for new ways to meet and
talk with friends and family. Working from home is common, and online education
and learning tools are seeing a sharp rise in the number of users.
Videoconferencing start-up Zoom has seen both sales and share prices increase
by 50% in 2020, with Webex from Cisco, and both Skype and Teams from Microsoft
also seeing a massive jump in new users. As we emerge from the COVID-19 peak,
hopefully to a brighter tomorrow, some of these industry sectors may have
cemented a new place in the modern economy.