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Effects of Coronavirus on Businesses

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The coronavirus has not only caused countless deaths across the world; it has also had widespread economic effects that are being felt across the world. Businesses of all sizes have been affected by the virus in some way.

China, the place of origin of the coronavirus is a country where there is non-stop action. Factories hum at all hours, and the city streets team with people late into the night. As the world’s top manufacturing country, China accounted for more than 28% of global manufacturing in 2018. These facts, along with cheap labor costs make China a popular business hub for businessmen from around the world. And yet, several months ago, the impossible happened; everything stopped in a country that never stops producing. Factories ceased production. Trade shows were shuttered. Millions of dollars were lost to multitudes of businesses, and the story is still not over.

Being the manufacturing king that it is, many of our everyday products are made in China. Once production was halted, stores slowly ran out of these products and were unable to restock. The few factories that remained open in China, were all used to produce medically essential items related to coronavirus. Those relying on these items had to look elsewhere, yet smaller factories around the world couldn’t work fast enough to meet the demand.

This affected businesses across the spectrum, from designer clothing stores to car dealers; their orders were simply not being filled. A trip to the grocery store will reveal that certain products have gone up dramatically in price, while others are completely out of stock. A box of non-medical grade vinyl gloves that would typically sell for three dollars, is now being sold for nine. The same is true for antibacterial hand soap and alcohol wipes.

And then there are other businesses that were also affected by the virus yet reveal a totally different picture. Businesses selling medical supplies, as well as nursing scrubs, are busier than ever. A representative from Medical Scrubs Collection, one of the largest online nursing uniform store says that they sold more jogger scrub pants, a popular uniform piece, in the past 3 months than they usually sell in a time frame twice that long.

GOJO, the company that produces Purell, saw their profits soar as a result of the virus; their items were flying off the shelves so fast, you’d think they were worth a hundred times their value. Other companies selling masks, gloves, and similar items reported similar situations.

And then things went the other way as well, Huge companies who had been doing well before the virus were forced into bankruptcy. Herz, the mammoth car rental company, filed for bankruptcy protection in May, and other companies did the same. Yet for companies such as Brooks Brothers, who was already hurting before the pandemic hit, this was the last straw, forcing them to file for bankruptcy now.

The virus has created a lot of change and all businesses have been affected on some level. Yet, all is not bleak and gray. Yes, some businesses had to close their doors, yet many others saw new opportunities for advancement, and will always look back at the coronavirus pandemic as the catalyst for their company’s growth, bringing them to the next level.