Author: Emily Cashen
March 22, 2021
The COVID-19 pandemic has delivered a merciless blow to companies over the course of the previous 12 months, with whole industries successfully placed on pause and little indication as to once they would possibly have the ability to reopen. Travel, hospitality, leisure and the humanities are among the many hardest hit sectors, being primarily unable to function as nations world wide transfer out and in of restrictive nationwide lockdowns. But the place some industries have struggled, others have thrived, with repeated lockdowns proving no barrier to their success. As the vaccines begin to take impact and the worldwide financial system begins to tentatively recuperate in 2021, there are a handful of industries which have proved themselves to be pandemic-proof, in a position to face up to the shocks of the previous yr and placing themselves in a powerful place because the world appears to be like in the direction of a post-Covid future. Here, World Finance takes a have a look at 5 of these pandemic-proof industries.
1 – Real property
COVID-19 has despatched the world right into a deep recession – the worst for the reason that Great Depression of the 1930s. Redundancies and diminished wages have sadly turn into all too widespread in households the world over, however even with households feeling the pandemic-pinch, the demand for properties has been skyrocketing. With WFH changing into the brand new regular, individuals have been reconsidering their residing preparations, seeking to relocate from metropolis centres and exhibiting a rising curiosity in bigger properties with outside house. This so-called ‘race for house’ has despatched house costs hovering, making a ‘Covid increase’ for the true property business. In October 2020, UK home costs rose at their quickest charge in 4 years, with mortgage lender Halifax confirming that the typical value of a house had reached £250,000 for the primary time in historical past. In the US, in the meantime, 2020 noticed house gross sales attain their highest degree since 2006, exhibiting a spike in demand on either side of the Atlantic. Even because the world enters what is about to be a protracted and gradual restoration from the COVID-19 disaster, property brokers predict that home costs will proceed to rise, without end for the true property increase.
2 – IT and digital providers
This one absolutely comes as no shock. Since the onset of the pandemic, we’ve got turn into ever extra reliant on digital providers – with WFH, distant education and digital socialising all depending on dependable, high-speed digital applied sciences. Even because the vaccination programme gathers momentum world wide, providing a glimpse at a return to ‘normality,’ it appears seemingly that our working habits can be completely modified by the pandemic, with agile, distant working seemingly right here to remain. This is, after all, an actual boon for the digital providers business, with large tech seeing their income soar for the reason that begin of the pandemic. Amazon’s cloud computing arm – Amazon Web Services – helped to drive the corporate to a file revenue of $6.3bn within the third quarter of 2020, as firms throughout the globe proceed emigrate to digital. Apple, too, posted file revenues of $59.7bn in its third fiscal quarter, and greater than 3.Three billion individuals now use a Facebook-owned app at the very least as soon as a month, with social media utilization hovering through the pandemic. Records like these go to point out that tech firms aren’t simply pandemic-proof, however pandemic-profitable.
3 – Construction
While stop-start lockdowns have introduced many industries to a standstill, work has continued steadily within the building sector – albeit not fairly ‘enterprise as regular.’ In the UK, building websites have been allowed to stay open all through the nation’s three nationwide lockdowns since March 2020, and regardless of a contraction within the spring, the sector has bounced again at a exceptional charge. A increase in infrastructure tasks has seen building work prime pre-pandemic ranges, with an elevated demand for housing fueling an increase in new tasks. In November 2020, the worth of all UK building work reached £14.01bn – the best degree since pre-lockdown January 2020. In the US, building tasks have additionally continued largely unabated in most components of the nation, with 18.Three p.c of building companies saying in a latest JustBusiness survey that the pandemic had had no impression, or a constructive impression on their output.
4 – e-Commerce
The world of retail has been fully reworked by the pandemic. Government-mandated lockdowns, social distancing measures and COVID-19– anxieties have seen footfall at conventional bricks-and-mortar shops dwindle right down to file lows. Unsurprisingly, whereas bodily shops have suffered, e-commerce operations have boomed, with knowledge from the Office of National Statistics exhibiting that on-line gross sales grew by a exceptional 24 p.c within the UK in 2020. To put that determine into perspective, earlier than the pandemic, on-line purchasing was rising at an estimated charge of 4.5 p.c globally, exhibiting simply how profound the pandemic has been in ushering within the age of e-commerce. According to a brand new report from IBM, the pandemic has fast-tracked the shift from bodily shops to e-commerce by roughly 5 years – and plenty of imagine that this can be a everlasting change in client behaviour.
5 – Pharmaceuticals
Before this yr, how many people would have been in a position to reel off an inventory of pharmaceutical firms from reminiscence? Moderna, Pfizer and AstraZeneca are maybe as acquainted to us now as Coca-Cola, Disney and Nike. The pharmaceutical business has taken centre stage this yr, enjoying a central function within the world struggle in opposition to COVID-19. The world rejoiced on the discovery of a number of profitable vaccines in opposition to Corona Virus, and the information despatched pharmaceutical shares hovering within the latter half of 2020. What’s extra, the pandemic has served to spotlight the significance of infectious illness prevention, remedy and analysis, with the drug discovery market predicted to be valued at a exceptional $71bn by 2050.
Photo by Gunnar Ridderström on Unsplash