The coronavirus hit the global economy unexpectedly. Within a few weeks, many countries globally have drastically reduced air traffic and financial markets have reacted strongly. It remains difficult to predict how long it will take to get the virus under the control, and this has led us to revisit key forecasts for local economies. The pandemic will definitely have a medium-to-long impact on most industries, but which industries are benefiting from this crisis? And if you are looking for a new job, should you consider an industry switch? Some insights from Gemini Personnel.
Large industries like Hospitality, Food & Beverage, Retail, Automotive, Oil & Gas, Banking & Financial Services, and Tourism will, or already are, all experience tremendous cash flow pressure due to declining sales and high fixed costs.
However, the Consumer Goods industry could easily recover as soon as the consumption environment stabilises. A good example of the currently increased consumption environment can be found in farming: ‘The need for workers has increased sharply since the coronavirus began spreading. The cows still need to be milked and the crops must be picked’.
The virus has brought also opportunities for the Life Sciences and Medical Services industries, due to shortages in medical supplies and medicines related to the pandemic. The increase is mainly expected in the supply chain field.
Pharmaceutical companies view the coronavirus as a once-in-a-lifetime business opportunity. The world needs pharmaceutical products, now more than ever. The worse the pandemic gets, the higher their eventual profit.
Jobs as a delivery worker could also be in demand. Amazon for example announced a plan to hire a further 100,000 workers to cope with the surge in online deliveries during the outbreak.
The Technology sector is also likely to benefit from this crisis, particularly in the fields of online education, online entertainment and telecommuting platforms. Advanced technologies such as AI, big data and the cloud are helping to fight the battle against the coronavirus and improving operational efficiency. Therefore, assuming the crisis can be contained, the Chinese Tech industry is expected to grow by 6 to 7% in 2020.
The famous quote by one of the world’s most successful investors Warren Buffett, to “be fearful when others are greedy and to be greedy only when others are fearful”, has been used widely recently. Concluding, stay positive, do what you can do at the moment, because there is always light at the end of the tunnel!