Coronavirus: Top Ten Affected Industries

Published: 09 Mar 2020 Average Rating: 4.3 / 5 Print

Author: Tim Cummins

News headlines, stock market fluctuations, photos of empty supermarket shelves ... should we be panicking, or has there been over-reaction?

It is clear that coronavirus is causing major disruption and it seems likely to become worse. But in terms of actual impact on industry, how severe have things actually become? The stories of supply chain disruption make it sound as though major problems are already occurring and, for some, that appears to be true. However, it is also the case that impacts are not equal. Some businesses are affected far more than others. Last week, IACCM gathered data from 500 of its member organizations to discover to what extent they are experiencing disrupted performance to their contracts, both from suppliers and to customers.

Overall, only about 7% report a severe impact and some 30% a moderate impact – so at this point, it is significant, but not catastrophic. Based on the IACCM data, the position varies substantially between industries. The input covered 25 industries. Here are the top ten based on the extent of disruption:

  1. Automotive
  2. Technology (Hardware)
  3. Transportation / Logistics
  4. Oil & Gas
  5. Health Care
  6. Schools, Education & Training
  7. Aerospace / Defense
  8. Engineering & Construction
  9. Chemicals
  10. Technology (Software / Services)

It should be noted that several key industries, such as consumer goods, retail and travel / tourism, were not covered by the survey. Also, this study looked at disruption as it relates to contracts, so does not reflect other forms of impact.

Full survey results, together with a discussion of other impacts, were contained in an IACCM webinar (Coronavirus: What Should We Be Doing Now?) that was delivered on March 6th and is available in the IACCM Resource Library.


Related Discussions

Please sign in or register to post on this forum

2020-03-28 12:10:03


Would be interesting to see a research on how affected companies are adapting and changing in current situation. Many new articles about how big companies supporting ...
Replies: 1

Hitachi ABB Power Grids
2020-02-27 23:57:03

Corona Virus

If anyone has encountered the same discussion - any ideas how to qualify and cover corona-virus and such nature of potential disruptions in the contract? What approxim...
Replies: 3

2020-07-29 23:12:10

Contract Forgery and other Fraud (Sell-side POV) - What preventive controls do you have in place and does your organization allow sellers to send contracts to customers directly for signature/review

Hello Folks: We have a number of processes in place to present various types of contract fraud for example customer forgery or side letters which we do not tolerate....
Replies: 1

2020-06-09 16:16:56

Change Management - Absence of a clause to time bound negotiations on Work Orders

Is there a risk in a change Management clause drafting for IT Service Provider/ Supplier, if the scope does not explicitly mention the number of days in which parties ...
Replies: 2

Schneider Electric
2020-05-14 08:22:37

Principles of Negotiating

I recently completed an Advanced Masterclass over a 3 day period on Advanced Negotiating Skills with a global expert, Looking back on my notes and comparing to the abo...
Replies: 1
2020-04-13 14:07:05

New contract in covid in technology market place

Since Covid is now a known event and we cannot rely on FM clause.What language or wording should we use in technology contracts and SOW's to cover the risk from s...
Replies: 2

Marshall Denning
2019-06-12 10:55:59

8 payment schemes

Jacko mentions there are 8 different payment schemes - do we know which?
Older entries »
Replies: 1