Just as no industry operates in isolation, no economy operates in isolation.
. In the wake of the Coronavirus pandemic, Chinas moment of crisis is causing a ripple effect across the global economy.
With the average car comprising about 30,000 parts, the intricacy of automotive manufacturing necessitates vast supply chains spanning multiple economies. The recent disruption of Chinese suppliers will weigh on the entire North American auto manufacturing subsector. Despite the continent�s cohesive supply chain under the United States-Mexico-Canada Agreement (USMCA), auto manufacturers still source essential components from Chinese suppliers.
Pandemonium has set in, and industries are suffering � food and beverage taking the brunt of the whole fiasco. In result of the rapid expansion of COVID-19, consumers are staying in. Netflix streaming, family game nights and home-cooked meals are becoming the norm. Restaurant sales are declining, and industry leaders are concerned. Never the less this has not stopped savvy marketers to take the leap and repurpose their campaigns. We have seen it with McDonalds, Burger King and Cracker Barrel adapt to the circumstances. But you don�t have to be a giant company to make an impact.
The coronavirus has impeded on the tourism and hospitality industry. Companies are playing it safe by canceling important conferences and meetings, leading to a decrease in travel. These losses could possibly extend to casinos, concert venues and sports arenas. After the pandemic subsides, the leisure and hospitality sector hopes to see a surge in demand as consumers confined to their homes become more confident about spending time in public and traveling. It would be an important economic boost, take advantage of it. We have stated before how outdoor advertising helps this particular industry.
As expected, Coronavirus has caused an increased demand for all things healthcare. Hospitals, pharmaceutical companies and home health care are facing impossible numbers. The biggest cause for concern will be a shortage of supplies including masks and medicine. Healthcare companies are expending all of their resources to accommodate the rapidly spreading disease. Once the epidemic subsides, healthcare providers are expected to see a spike in patient visits and demand for elective procedures.
Finance & Insurance Industry
While lenders are at risk of clients missing payments and defaulting on loans, they have opportunities to extend credit to borrowers and ease temporary cash flow worries resulting from the coronavirus pandemic. During quarantine periods and business shutdowns, income for many businesses and households has declined, while expenses have remained or even increased.
The retail sector has experienced mixed results stemming from the coronavirus outbreak and efforts to contain its spread. Food retailers and drug stores have seen a strong increase in sales as consumers stock up on groceries and medical supplies for quarantines and to limit the number of trips to stores. On the other hand, retailers of nearly all other products are experiencing reduced traffic, lower sales, and temporary store closures.
Grocery and drug stores as well as mass merchandisers like Walmart, Costco and Target have struggled to keep products on the shelves as consumers and businesses stockpile goods in fear of shortages. Some grocers are limiting hours of operation, limiting quantities that a single shopper can purchase and controlling traffic in the store to allow for social distancing. To remain open, some retailers are allowing customers to purchase in-stock merchandise online, then pick it up curbside.
Is your business fighting off the effects of COVID-19? Now more than ever is the time to invest in marketing. Contact us for all of your marketing needs.
Source: IBIS WORLD, VERTICAL IQ, BURKART AD