COVID-19 IMPACT and OPPRTUNITIES

 COVID-19 IMPACT AND OPPORTUNITIES 

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The COVID-19 pandemic has had unbelievable impacts on not only business, the economy, society but on our lifestyle, behaviour also. This COVID-19 pandemic effect probably remains for long-term. Mainly for labour education, healthcare, supply-chain, Industrial operation etc.

Everybody in the world knows that COVID-19 is pandemic and it is unknown to all because of this many countries has forced to implement lockdown and stopped all the activities including all services, Industrial operation, transportation .As everybody was clueless, they don’t know from where to start and where to stop. There was no forward path to control other than lockdown.

But every coin has two sides. Hence COVID 19 pandemic has an adverse effect, as well as some, has the opportunity.

Here are the main challenges as well as opportunities for the various Industry.  I have elaborated here for IT industry, Real Estate, Chemical Industry and Logistic operations.

IT Industry:

Challenges and Adverse effect

·         The main impact is on hardware business, software business, and IT services.

·         It is believed that the growth of the IT industry is expected to go down by 3-4% in the year 2020-21. Hence the main challenge is for recovery but all depend on downstream projects.

·         Many IT industrial companies have reduced their workforce due to non-availability of projects

·         Due to the lockdown situation many IT industries have encouraged their employees to work from home but due to hook up of personal network it has created cyber threats like, critical data security issues and may lead to the opening of business secrets and hence further future challenges.

Opportunity:

·         Many IT industry has claimed that the work from home system increases the productivity of the employees. Hence it will be thinking of the future of work solution.

·         IT industry can assure their clients for un-interrupted service due to work from home system implementation they got the flexibility on business continuity and security means in any situation IT industry can help to the clients.

·         Making use of next-generation technologies, like AI, faster processing and better accuracy are often provided by advanced analytics and AI to spot trends, patterns and intelligent forecasts about the spread of the Coronavirus. IT vendors should specialise in building/improving capabilities on AI and large Data as new challenges and use cases emerge

Real Estate:

The sector, which has been battling a slowdown for the past five years had started seeing some green shoots of recovery earlier this year. However, the coronavirus outbreak has created many challenges.

Adverse effect:

·         the lockdown that ensued has led to a collapse in sales, halt in construction at ongoing projects and derailment of latest project plans this is because of  potential homebuyers—staring at possible job loss and pay cuts—are likely to remain far away from the market,

·         Also, co-working spaces, a hotdog segment until recently, may struggle to seek out takers within the near-term amid the necessity for social distancing.

·         Due to standstill of the economy, the real estate rate may remain on the lower side for the long term may be at least next three-four years.

·         Delay in delivery of project this will lead to the financial crisis may create business sustainability issues for many builders.

·         The lockdown has impacted the paying guest and co-living operators. The organised ones are especially hit because they need minimum rental guarantees with their landlords

·         Organised players are going to be preferred as they're better positioned to deliver a clean and hygienic environment to students and dealing professionals.

 

Opportunity:

·         Reduction in lower house sale rate as well reduction in home loan interest rate lead to purchase the home for the  potential buyer who can afford to.

·         The adoption of digital technology among developers is probably going to urge a lift thanks to this crisis. With home buyers likely to avoid the site visits, developers would wish to leverage augmented reality and computer game to offer homebuyers a glimpse of their projects.

 ·   Preference for ready-to-move-in One of the trends that might emerge out of this crisis would be that there would be an increase in preference for ready-to-move-in properties

Chemical Industry:

Adverse effect”

·         The lockdowns have adversely affected the demand for chemicals and petrochemicals due to a decline in consumption and shutting down of producing plants, supply chains and distribution networks

·         Due to non-availability of the labour force also impacted the industrial operation. This has created the financial burden also to many Industries like increase in labour cost, Increase in medical expenses on testing the employees as per government guideline.

·         Due to migration of labours created workforce to limit in number this has also impacted productivity.

·         Exports demand has impacted due to port handling and international logistic issues.

 

Opportunity:

·         Indian Industries has received temporarily global order due to interruption in supply from China.

·         Packaging Industries, especially food packaging, sanitary and medical applications have emerged a growth in business due to high health-care focused activities.

·         The sharp decline in petroleum cost has benefited to petrochemical Industry who are using a petroleum product as raw material.