The COVID-19 pandemic has caused almost every industry and sector of the economy to grind to a halt. The few exceptions include healthcare, pharmacy and grocery stores. Once health experts and governments are able to gain control over the pandemic and perhaps implement an effective treatment or vaccine, economists will be looking at certain industries to lead the economic recovery. Here are four industries that are most likely to enjoy a rapid recovery soon after the COVID-19 pandemic slows.
Internet Meetings and Video Call and Chat Development
Many people’s offices closed as a result of the COVID-19 pandemic, resulting in many employees working from home. So, in order to maintain productivity, many managers implemented video meetings, which has put video call and chat services in high demand. Governors in most states also ordered that schools switch to remote learning, which further increased the demand for these meeting services.
As a majority of interaction moved to video calls, many people found that their current internet plan did not provide enough bandwidth for such intense video and audio activity. Some people upgraded their internet service or bought a router with more capacity. For people who have operated an Airbnb service from their homes, they could find that the improved Wi-Fi could help them with how to make money with Airbnb.
Renewable Energy and Clean Energy Power
The price of a barrel of oil dropped to a negative amount and stayed there in April 2020, and there is no indication that oil prices will make a considerable recovery any time in the short-term future. The result of this drop, though, is a pull-back on investments in fossil fuels, which could open a door for an increased use of renewable energy and clean energy power. The drop of oil prices was partly a result of an escalation between Saudi Arabia and Russia. A large drop in demand is also partly to blame. With people working from home, bans on leisure travel and most stores temporarily closed, people had few places to drive to. Air pollution dropped in many places, and people have enjoyed the cleaner, healthier outdoor air. Businesses and developers of clean energy could use this time to encourage use of their renewable energy resources.
Restaurant Take-out and Delivery Food Services
Restaurants may have a difficult time returning to traditional in-person dining. However, restaurant owners who are able to reconfigure their kitchens and staffing plans could enjoy a more rapid recovery if they are able to ramp up their take-out and delivery food services. People still want to eat from their favorite restaurants. If a restaurant can set up a cost-effective solution for getting meals to those in need while also reducing in-person interactions, they could enjoy a smooth recovery.
Upstart Food, Hygiene and Cleaning Product Production Companies
Because mayors and governors ordered bars and restaurants closed, people who would usually dine at a restaurant or get their food to go had to buy groceries and prepare their own food at home. At the same time, Americans were also told to limit their number of trips to the grocery stores and to hurry through their shopping trips. People were also told to have a two-week supply of food in case they became ill with COVID-19 and would be unable to go shopping for themselves. Panic buyers also hit retailers hard, emptying grocery and big box stores of paper products, cleaning and disinfecting products, hygiene items, bread, dairy products and shelf-stable foods. When consumers visited their local grocery stores, they were often unable to find their preferred brands of food, household and hygiene items. According to Fredonia Group, this opens a place for entrepreneurs and upstart companies to fill the gaps. Consumers became willing to branch out when their usual product was out-of-stock, and they may be more willing to continue trying new products from different brands and companies in the future.
Consumer buying patterns have already changed because of the COVID-19 pandemic, and some of those changes could be permanent. Even so, there are areas of the economy that are more likely to enjoy a full recovery as soon as the pandemic comes to an end. Each of these four industries is in a good position to grow and thrive under the new normal and post-pandemic world.