The world is finally coming out the other side of the coronavirus pandemic and many things have changed. Due to the extreme changes that needed to happen to help keep Americans safe, the economy has taken a hard turn during the lockdown. Entire industries are falling by the wayside because they just couldn’t handle the unprecedented shift in the market.
Which Industries Were Impacted the Most?
No one wants to be traveling right now. The risk of contracting the virus and taking it to wherever you’re going is fairly high. Under the guidance of the CDC, the government recommended that people try to shelter in place as much as possible and avoid travel whenever possible. People are really taking the advice to heart and airports have turned into surreal ghost towns.
Airline stocks are so incredibly cheap right now that the entire US industry is worth around $48 million; less than a third of Disney’s market value. But even though this industry is taking a hard hit they can’t be allowed to fail. The government will support airlines and will probably supply around $50 billion in government-backed loans to keep it afloat until the market recovers-however long that takes.
Along a similar vein to airlines, cruise operators have taken a big hit during the quarantine. Most have shut down for 30-60 days and are very likely to be extending this until the coronavirus crisis is resolved.
Most cruise operators have at least some kind of liquidity and this has helped them survive thus far. But they won’t be making it out of this unscathed and will most likely need financial assistance from the government.
If you’ve stopped by a gas station in the last couple months, you’ve seen the immense drop in oil and gas prices. Obviously, since people aren’t going to work, social events, or bringing their children to school, most people haven’t needed to fill up their gas tanks in almost 2 months. A great example of what’s going on is the situation with Oasis Petroleum. Last year around this time, their stock value was up to $7.15 per share. But at this point, with the severe impact of the pandemic, their stock prices are down to $0.50 per share.
Almost all gambling destinations have been forced to close their doors for at least a few weeks. Most are closed indefinitely. The pandemic hit just before a major yearly gambling event- the NCAA Men’s Basketball Tournament. So the whole industry suffered an estimated loss of around $8.5 billion. Since the pandemic is ongoing, sports have essentially dried up completely. That’s a lot of missed profit, even if the casinos and other gambling hubs were able to open their doors.
ANY company that hopes to flourish post-pandemic needs to know how to pivot. Adapting to their circumstances and identifying how their clients’ wants and needs have changed is the only thing that will bring their businesses back. If companies play this right, there will be entirely new avenues available to them for profit.
These are obviously not the only industries suffering significant losses or even dying off because of the pandemic.
Here is a list of further industries in danger due to COVID-19’s impact:
- Entertainment Venues
- Wholesale Trade
- Transportation- especially trucking and air
- Real Estate- both buy/sell and renting
All is not doom and gloom. Just think- there were more millionaires after the Great Depression than any other time in history. These people were able to turn around and seize the opportunities they saw during a crisis. This situation is incredibly similar. What business owners need to do is be on the lookout for any possible opportunities during this time. For tips and tricks visit exitrichbook.com, where you can find an abundance of useful information including Michelle Seiler Tucker’s Top 10 Considerations for business owners.