Coronavirus: Top Ten Affected Industries
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:
- Technology (Hardware)
- Transportation / Logistics
- Oil & Gas
- Health Care
- Schools, Education & Training
- Aerospace / Defense
- Engineering & Construction
- 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.