How Coronavirus will Impact Industries & Sectors Around the World

by in Business
Impact Industries & Sectors

The efficacy of communication determines the quality of life. Coronavirus has disrupted this vital aspect of our lives and turned the commercial sector upside down. Every sector from mining to agriculture remains affected because people are afraid to come together to work. All big industries such as textiles, petrochemicals, power generation, and telecommunication have gone to sit on the sidelines. Everyone waits, something is bound to happen soon. Meantime, let us see how trade and China are doing after the pandemic broke out and read out how Coronavirus will Impact Industries & Sectors Around the World.

Impact of China Being a Major Player in Trade

China makes up one-third of global production and is the biggest producer of goods. Sales, investments, and industrial production inside China fell during the first two months of this year. The drop in industrial production was 13.5% and car sales dropped by 80% as more customers stayed away from the showrooms. Tesla and other companies have shifted their sales online. Big companies have turned to SMS messaging to hold on to their customers. Having a dependable SMS platform helps these companies maintain constant contact and boost customer confidence.

Direct Impact on Trade

Countries that have trade with China will need to analyze the potential points of exposure to avoid early disruptions. Since direct communication will improve trade, the big traders use SMS platforms for interactions with trade partners and inform the customers of the availability of new offers and updates on their next trade. When gold prices tumbled for a short while in March, investors were afraid that it could lead to another recession. But, gold recovered. The oil market slumped at the same time and is continuing at the 2016 low of $27.25.

GDP Rate Could Fall

China contributes a huge slice to the global GDP (19.73% of the global GDP) and now due to the deceleration of production, we could see a GDP drop of 1-1.2 percent in China. This will impact the global GDP and reduce it to half its present growth. The November 2019 growth rate was 2.9% and we could see a drop to 1.5% by March 2020. One could still order merchandise online using the SMS texting service offered by some service providers. These SMSes keep you updated on the latest products released by the manufacturer so you can place your order for delivery when it is possible.

Shortage of Specific Items on the Market

Many items that need the interaction of the transport sector and other assembly-line products could see a shortage as the manufacturers are facing quarantine measures. People expect these restrictions to go soon and they will begin to make these products. A shortage of material could cause a big disruption in production. The supply chain is vulnerable to this Coronavirus and so most of the suppliers will keep their workers out of circulation for a while.

Increase in the Prices of Products

All the prices will increase due to the shortage of supply of products. Coronavirus will impact the commodities market both globally and domestically. Protectionist measures by individual governments could precipitate a food shortage through export bans and tariffs. When governments begin to restrict the flow of food, the people will feel the pinch. Kazakhstan is one of the biggest producers of wheat flour in the world and since its government placed restrictions on the export of wheat flour (it has also restricted the export of potatoes, carrots, and onions) other nations will feel the shortage in the coming months.

Vietnam Succumbs to the Pressure

Vietnam is the third biggest exporter of rice and it has suspended all export of rice temporarily. Experts say volatility in the trade barriers is natural and one should expect it. Among global importers, China is the second-largest and among exporters, it is the third-largest global exporter. Since the outbreak of the Coronavirus, the decrease in the amount of trade will tell on the prices of commodities.

Travel Restrictions will Affect the Life

Airlines have reduced the number of flights due to the travel restrictions placed all around the globe. The EU has banned travelers from outside the bloc for 30 days. A similar ban exists in the US and European travelers cannot enter the country as long as the ban lasts. For 2020, the number of daily flights has plummeted from the usual 170,000 daily flights to 75,000 since WHO announced the outbreak of the pandemic.

Keeping up Communication Channels

Restrictions on travel and social interaction are disrupting normal life everywhere. People are hard-pressed to maintain communication channels and resort to SMS text messaging to stay in touch. One may send mass messages and automated services in case of an emergency by using the platform provided by some text messaging service providers. The effort is ongoing in countries to organize land armies to take care of harvests. This will reduce the panic of food shortages and keep the food chain flowing. The government is assisting the people thrown out of work and advertised work positions they need urgently. This included seasonal farm work, planting, and harvesting.

How to Maintain Communications (Even in Times of Crisis)

Looking at which industries are thriving even doing business under COVID 19, we see that the things they all have in common are a digital online presence, remote employees working from home, and policies in place for working with remote employees and remote service providers. Doing business under COVID 19 has changed very little in the way the companies already working online are conducting daily operations. While the coronavirus outbreak has affected industry, supply chain logistics, and other business operations in a different way, the people doing business under COVID 19 through remote employees and work from home environments online were far better prepared to deal with the crisis. Furthermore, it looks as if even in the post-COVID 19 world, remote employees working from home and a digital presence will become an even more important part of “the new normal” we hear so much about today.