Drawing on analysis from trade analysts and economists, The Freedonia Group’s COVID-19 Financial Affect Tracker reveals some fascinating insights into the results of the coronavirus on a wide selection of companies and markets.
Listed here are a number of current highlights.
1. Pandemic Heightens the Enchantment of Automation
Previous to COVID-19, automation within the meat processing trade was typically seen as wasteful and inexact, however now the usage of robotics might change into an more and more standard technique on account of security considerations and employee shortages amid ongoing virus outbreaks.
As manufacturing applied sciences have superior, robotics equipment has change into less expensive and better performing than prior to now. Corporations like Tyson Meals and Cargill have invested closely in automation know-how, and different producers in different industries might observe go well with to cut back manufacturing prices.
2. Extra Owners Tackle Reworking Initiatives
How do you fill your time if you end up caught at residence? Throughout the COVID-19 pandemic, an growing variety of customers have determined to renovate their areas. Within the second quarter of 2020, the proportion of house owners engaged on a transforming venture practically doubled from 19% to 36%.
3. Meals & Beverage Corporations Regulate Their Merchandise to Match Smaller Gatherings
Many individuals are deliberately avoiding massive, indoor gatherings as a result of virus, together with vacation and birthday events. Retailers are adjusting their merchandise to suit smaller-scale celebrations as nicely. Costco modified its half sheet desserts to smaller 10” desserts. Farmers are providing smaller turkeys, and grocers are growing smaller seafood and appetizer platters.
4. Work-from-House Ripples All through the Financial system
Corporations are rethinking how vital facetime is for his or her workers. Nonetheless, if a major share of employees find yourself working from residence completely, the results on the economic system may very well be huge.
Business actual property and eating places in workplace parks will endure long-term. As well as, extra folks will assemble residence workplaces and purchase high-quality workplace furnishings. Customers may also have much less put on and tear on their vehicles and should quit a second automotive altogether, impacting the auto trade.
5. The Closure of Film Theatres Hits A number of Industries
The closure of film theatres doesn’t simply impression the leisure trade. Suppliers of soda and snacks similar to popcorn and sweet may also see falling gross sales. Packaging firms, particularly those who produce cups and lids, will lose a beneficial income stream as nicely.
6. Workplace Breakrooms Get a Makeover
Group breakrooms shall be revamped to suit new hygiene wants associated to COVID-19. This may increasingly end in the usage of extra espresso machines that provide touchless know-how, particular person grab-and-go drinks and snacks, and low supply subscriptions for distant employees.
7. The Battle for Similar-Day Supply Intensifies
Amazon and Walmart have fought to dominate same-day supply, however now different gamers are coming into the fray as on-line procuring turns into an more and more vital channel.
Mattress Tub & Past is increasing same-day supply. Goal-owned Shipt now delivers orders for Costco, CVS, and Kroger, and the web grocery supply service Instacart has seen its order quantity skyrocket as nicely.
The place to Be taught Extra
Curious to know extra? Take a look at The Freedonia Group’s COVID-19 Economic Impact Tracker for extra analysis and new updates.
