Name- Nushakha Israt

Email- nushesrat@gmail.com
Institute- Jahangirnagar University
Department-Marketing

The Survival of Industries in Pandemic

2020! It’s the year which was predicted to be more developed than past years, be it
research, biology, technology etc. The humankind had been thinking to recreate the record of
astonishment through their works is when the chaos and mayhem took place. No doubt the world
is approaching towards advancement in dramatic speed whereas the world economic outlook
states that Global growth has been estimated at 2.9 percent in 2019, is projected to increase to 3.3
percent in 2020 till now. Financial conditions, emerging market all has started to take an ease in
its respective positions. And in the midst of this, Corona virus (COVID-19) created havoc all
around the world. Taking birth in Wuhan it out broke all around the world causing crash in
global market and affecting every single business. This pandemic created social distance and
lockdowns in states. Quick forward to now, there are more than 3,000,000 cases and the
infection unleashes further worldwide devastation. There barely stays any industry around the
globe that hasn't been affected. In the course of the most recent 20 years, the medical care
industry was viewed as downturn confirmation. Be that as it may, the pandemic has doctors and
dental specialists decreasing staff to adapt to the evolving times. Today we investigate the most
seriously influenced enterprises by COVID-19 and the ensuing lockdown. The harm brought
about by COVID-19 isn't restricted to just choose pockets of organizations yet it is a far and wide
disease that is relied upon to keep the economy wiped out for a more drawn out time. While the
size of the effect may differ from area to area, there are a few areas that have endured the most
and keep on misery. Market specialists are of the view the areas that are at the front among the
areas that are hurting under extreme agony now.
Aviation and Hotels- With the warning of the industry body no doubt aviation industry is the
most exceedingly terrible hit area, with both worldwide and homegrown flights by lockdown.
Directorate General of Civil Aviation has given roundabout that no choice has yet been assumed
the resumption of tasks after May 4 and furthermore asked the flight organizations to avoid
making any crisp booking. Pandemic caused nearly $160B losses whereas IATA claims about
top $84B in 2020 so far. The association says it expects traffic to be 66% than 2019. Industry
specialists feature that the flying area internationally brings about higher fixed expenses and
works at extremely slim edges because of high rivalry from minimal effort transporters. On
account of the lockdown is broadened, the area will have a genuine liquidity emergency which
will bring up issues on their endurance. Even after routine returns, it is normal that the area will
have a more drawn out time of lull because of movement limitations and maybe a conduct
change in broad daylight spending. Rusmik Oza, Executive Vice President, Head of
Fundamental Research at Kotak Securities is of the view that the avionics business is required to
see pointedly bring down incomes during Q4FY20 and Q1FY21. The ongoing sharp decrease in
rough costs is positive for the flight area. Notwithstanding, the advantage of lower flight fuel can
come just when carriers work at ideal use.

“Companies’ ability to manage fixed costs will be the key to survive this event. Even after lifting
of lockdown travel activity be very slow as people would still avoid travelling for some time,"
Oza said.

Leading aircraft manufacturers Airbus, Boeing, Bombardier, and Embraer have

been compelled to suspend era and acquiesce orders. A number of without a doubt was lying
off specialists. The Monetary Times has nitty gritty the flying portion in India may lose as much
as Rs 85,000 crores adjacent to 29 Lakh businesses. The total boost package-1 stood at 1.7
crores. The masters inside the carrier industry that were not ended were compelled into unpaid
take off. Falling fuel costs as well didn’t deliver any lightening caused by the require of ask.
Preventive measures of the airborne contamination have driven to the devastation of any
trade undoubtedly closely related with the tourism industry. The impediments were to
start with constrained against East Asian travelers and development amplified to Europe.
WHO in addition released a clarification where they recognized that the transmission of
the illness may happen between travelers inside the same locale of the plane. With no vaccine in
sight, countries were forced to close their borders and eventually led to the suspension of all
forms of travel. The losses were not limited to commercial airlines but also any company
connected with the industry. The International Air Transport Association estimated a $252
billion revenue loss globally. By mid-April, it was observed that a 95% fall in traffic in the Asia
Pacific and the Middle East. Indian airlines are estimated to incur a loss of 600 million USD. The
only demand that exists in the airline industry is those for aircraft storage. Runways and taxiways
in normally busy airports were closed to make room for storage.

The restaurant industry is one in every of the foremost exposed industries to major upheaval as a
results of the pandemic, because the Centers for illness management and hindrance has
counseled avoiding teams of over fifty folks. Some cities and states have told restaurants to
modify to takeout solely. a lot of jobs within the sector may either be lost or severely wedged by
the natural event. Some yank staff have already been ordered off or furloughed, and a lot of job
cuts area unit seemingly. As folks begin to socially distance themselves, those in white collar
jobs can a lot of simply be ready to work from home, whereas hourly staff in sectors like cordial
reception and retail is also discarding as their corporations get less business. This additional
jeopardizes a number of the smallest amount financially secure staff within the country – jobs in
these fields area unit usually part-time and generally pay low wages. Restaurants and bars in
seven states –– American state, Connecticut, Ohio, Illinois, New Jersey, New York, Maryland,
Massachusetts and Washington are ordered to shut with the exception of take-out services. The
governors of recent York, New Jersey and Connecticut conjointly in agreement to shut pic
theaters, gyms and casinos additionally to forbidding gatherings of quite fifty folks, effective
weekday at eight p.m. This didn't show up in last week's out of work claims report wherever out
of work claims born four,000 to 211,000 within the seven days over March seven. The entire
variety of individuals already assembling state advantages declined by eleven,000 to 1.72
million. That variety reached nearly vi.6 million close to the top of the good Recession. Thomas
Simons, senior market economic expert at Jefferies LLC, expects to envision a rise in out of
work claims in Thursday's report.

“That will be the start of a trend,” he said, adding that “The travel, leisure & hospitality, airline,
and other industries are going to experience layoffs, as well as small businesses in areas where
large public gatherings have been cancelled or postponed.”

Already, there have been 634 job cuts in the U.S. specifically tied to the outbreak of novel
COVID-19 as of March 15, according to Challenger, Gray and Christmas, a Chicago based
outplacement and career-transitioning firm. Challenger arrived at that number by tracking
company announcements and news reports that explicitly link job layoffs to the COVID-19
outbreak. Besides, Virgin Atlantic and American Airlines announced of cutting 1150 and 19000
more jobs respectively on the top of 3500 jobs being already cut at the beginning of the year.

Automakers Industry- For a sector, which had been endeavoring to surmount myriad challenges
already, the outbreak of COVID-19 is no less than an imprecation. In FY20, automobile volumes
declined on account of impotent economic scenario, price increase due to BSVI transition,
inventory rectification by OEM’s and Covid-19 impact in March 2020.

"We expect the auto sector to gradually recover from the second half of FY21, supported by rural
demand and expected improvement in the economic scenario. Financial performance of auto
stocks in the near-term is expected to get impacted on account of lockdown and COVID-19,"
Oza of Kotak Securities said.

Geojit Financial expects a partial renaissance in the car segment post lockdown which was
deferred by consumers in anticipation of incipient emission standards from April 1, 2020,
provided the salaried class or urban demand is less impacted. As the COVID-19 pandemic
lingers, the ordinate dictation for cars is decrementing. Workers who are concerned about their
job security and endeavor to preserve their maxima for emergency use are less liable to buy a
car. This jeopardizes the jobs of the proximately 1.3 million Americans who work in incipient
and used car dealerships. Researchers have said that American auto sales could decline year-
over-year by as much as 20% in 2020. The portions of General Motors, Ford, and Fiat Chrysler
have all lost over 25% of their value since the commencement of March. Automakers have
additionally faced earnest supply chain disruptions as components imports from China have
become much more arduous as the country grapples with the disease. Researchers have said that
American auto sales could decline year-over-year by as much as 20% in 2020.

Construction- This industry suffers from the direct implications of the virus. Presently most of the
relief measures introduced by the government area unit directed towards staff within the land
sector.

“The manufacturing and construction industries will be more likely to hold off on making any
big decisions on layoffs, but the same may not carry over for people working in the food,
hospitality and transportation sector.” said Rubeela Farooqi, chief U.S. economist at High
Frequency Economics, a New York-based economic research company.

Some 7.6 million Americans add the development sector and earn a median hourly wage of
$31.35, in step with Bureau of Labor Statistics knowledge from February’s jobs report; twelve.8
million Americans add the producing sector, earning $28.20 AN hour on the average. (That’s
slightly higher than the national average hourly wage of $27.69.) within the producing business,
several employers are literally troubled to fill openings as a result of the positions became
additional technically refined than they were in past decades, in step with AN April 2019 report
printed by the National Association of makers, a trade organization primarily based in
Washington, D.C., with 14,000 member corporations. Last week, NAM frees a group of COVID-
19 policy-action recommendations.
As the COVID-19 devastates the U.S. economy, companies will likely pull back on expansion,
leaving a huge gap in the construction industry. Two large airlines, Delta and United, each
announced plans to reduce capital investment by $2 billion each as a result of the pandemic's
economic impact. Companies in many other sectors are expected to follow suit. Smaller
construction firms ought to lay off employees as their offer of apparatus and components from
China is non continuous. There are associate calculable seven.6 million Americans operating
within the construction sector WHO can be stricken by these changes. This is often because of
the high range of daily wage employees within the trade. The world was already affected within
the month of February and March. The results are to last because of its reliance on China for
Raw Materials. Even luxury construction segments ar to face material inadequacy. This is often
as a result of European nation the world’s leading provider for stone and piece of furniture has
been the worst hit. These inputs are seen within the variety of higher prices and delayed project
completion throughout the trade.
Textile Industry- The textile industry in India employs over a hundred and five million and earns
round $40 billion in foreign exchange. This industry much like the construction industry is labor-
in depth. And for this reason, it adds to the issues because of the lockdown. The character of the
enterprise would require concentrated relief efforts by using the authorities. The metropolis of
Tripura serves as the best embodiment of the textile industry. With over 10,000 factories it
generates Rs 25,000 crores wealth via exports and the same domestically. A 3-month loss
because of the pandemic would quantity to rs.12000 crore. Of the 129 lakh people who depend
on the town’s fabric industry, 25% could have to face job losses. The fabric industry in India
relies upon on china for both imports and exports. India exports 20 – 25 million kg’s a month to
china. These exports have been affected due to a lack of call for from china. Imports from china
include $460 million well worth artificial yarn and $360 million really worth synthetic fibers.
Further, India relies upon on china for buttons, zippers, hangers, and needles which make up $1
hundred and forty million. The fabric enterprise faces demanding situations now not best from
china but additionally from Europe. That is because of the international locations laid low with
the pandemic like Italy and Spain have requested no longer to export to them. The revival of the
fabric enterprise could best be possible with directed comfort measures from the Indian
authorities. This observed by way of a hopeful give up to the pandemic within the next zone.
This will permit India you bought clothing industries seeking out an opportunity to the Chinese
fabric industry.

Freight and Logistics- The freight and logistics industry face issues because of the lockdown in 3
shipping phases. Loss of drivers, loaders, and unloaders has plagued the supply chain. The
destiny after the lockdown is unsure as the demand will decide if the freight and logistics
industry thrives. The fear of economic uncertainty may additionally pressure customers to
tighten their spending. However, to support all of the different industries a good way to wake up
after the lockdown will require an boom in capacity to satisfy the needs. The three phases also
highlight the issues which could still persist if the government most effective lets in the delivery
of vital items without that specialize in loading and reloading issues. With the covid-19
pandemic main to decrease GDP increase for 2021, the threat of a precipitous fall in mortgage
boom is getting more potent. Except, there is a fear that the banks and NBFCS may see a upward
push in NPAS as covid-19 has hit organizations strongly as numerous small and medium-scale
industries are at the cusp of collapsing.

"Loan growth demand is likely to be led by negative outcomes such as worsening working
capital cycles, moratoriums or restructuring or slower pre-payments," said Oza of Kotak
Securities.

"In the near-to-medium term with growth likely taking a back seat, we expect NBFCs and HFCs
to yet again focus on liquidity and risk management as key priorities. Post the lockdown, growth
recovery would be divergent across business segments," said Motilal Oswal Financial Services.
“Assuming that the lockdown effect is likely to reverse post Q1FY21, the asset quality though
weaken will be at manageable levels given the benefit of moratorium, liquidity and cut in interest
rate. Healthy banks with the strong capital base will be able to bear the higher interest cost and
provisions, but net interest margins will be hit, NBFC’s and HFC’s could see liquidity concerns
given the moratorium and will largely depend on the effectiveness of LTRO and further funding
from banks. The business could be back to normal in H2FY21 provided no further restrictions to
lockdown and after effect to the economy. The majority of the concerns are factored in the
valuations even though the valuations may correct in the short-term” Nair of Geojit Financial
said.

Metals and Mining- The metallic manufacturing and allied sports such as mining have been
included under the important commodities act. This doesn't offer plenty remedy because the
manufacturers and miners face the undertaking of producing with all the call for wiped out. The
crucial commodities act, but, does not cover nonferrous metals including aluminum, copper,
zinc, and lead. These add to the issues as not like other industries metallic production cannot be
switched off and commenced once more while required. The price of starting again would
involve losses incurred because of the disruption of the continuous method involving smelters
and pot traces. The metal supply-facet disruptions were already resulting from china, Japan, and
Malaysia who had been impacted by means of the covid-19 lots earlier due to the pandemic.
They account for over half of India’s metallic and metal manufacturing. The nifty metallic index
as of march 21st has already fallen 43% in assessment to 29% of the Sensex.

Oil and Gas Industry- The oil costs have confronted a decline in value on the grounds that mid
February. The cheaper crude oil, however, will help in lowering the cutting-edge account deficit.
This will also offer more than one other benefit for the government. The gasoline subsidies
furnished can also be predicted to say no. Similarly, the authorities can also increase duties to
reinforce sales. The sales mopped up may be used to revive different sectors.

Power Industry- The lockdown has reduced power intake with the aid of 46000 mw due to the fact
march twentieth. That is one of the number one demanding situations faced by way of most
effective the electricity sectors i.e. No scope for stock. Gadgets as soon as generated during the
lockdown are represented as misplaced demand. The lockdown has decreased power intake
because of industries being close. In addition, the government has asked power turbines to
continue the supply of power despite the fact that the bills aren't received for the following three
months. The simplest silver lining is the possibility for gas-based totally power technology to
take benefit of the low prices. However the reduced demand has saved them from leveraging this
possibility. The energy sector has been a loss-making corporation even earlier than the
pandemic. The overall great dues of the energy quarter stood at Rs 88,311 crores as of January
2020.

Consumer and Retail Industry- Organized retailers’ area unit heavily wedged by the closedown of
malls and retailers whereas the influence on essential merchandise retailers is minimum. Nair of
Geojit money Services believes this vast impact is probably going to remain till the economy is
opened phase-wise, having a most profit to on-line retailers. The disruption caused in Q1FY21
operations is expected to drag FY21E earnings estimates significantly. While the demand for
food and retail grocery could come back to normalcy as and when the complete lockdown is
lifted, the demand for discretionary items will take time to revive and to that extent, other
retailers might see the impact for a longer period.

In retail Food and Grocery accounts for concerning $550 billion. The textile and attire account
for $65 billion. Client electronic sturdy is value $50 billion. Every of those sectors are laid low
with the buying power within the hands of the customers. The nice imprisonment has place stress
on the buying power within the hands of the folks. This can be because of the duty losses and
handiness of alternative sources of financial gain. Additionally, folks brace themselves by
reducing disbursement on nonessential things in textile and attire and also the client electronic
consumer durables. The additional impact are supported the period of the virus. The textile and
attire and client physics might lose out on their seasonal demand. Once the imprisonment is
upraised the scale of the retail business will play a job to see what quantity stress it'll face.
Ancient and freelance retailers typically have fewer workers. Larger retail businesses can face
the warmth because of their giant worker necessities to be met and extra burden because of rent.
Chemical Industry- The industry is value 163 billion covering over 80000 chemical products. The
impact on the industry is primarily because of its dependence on China for the acquisition of raw
materials. Any impact on the industry} are going to be additional felt within the agricultural
industry too. This can be because of the dependence of fertilizer firms on China for imports of
material.

Movie theaters- It's been it slow currently that health officers nationwide have urged social
distancing, and picture show theaters felt the impact of that recommendation. Currently that the
government agency has requested that Americans avoid gathering in teams of fifty or additional,
picture show theaters haven't any selection however fold. U.S. box workplace revenue for the
weekend of March 13-15 came in at simply over $54 million, very cheap since Gregorian
calendar month 2000. For context, no weekend box workplace in 2020 force in but $80 million.

The effects might stretch for months, as blockbusters like "Mulan," "A Quiet Place half II," "Fast
9," and therefore the latest James Bond film, "No Time to Die," were slated to be free within the
coming back weeks, however of these releases were pushed back. Over one hundred theaters
have closed, and additional area unit expected to imitate. Major theater chain AMC has
proclaimed the closure of all U.S. theaters. majestic proclaimed it might shut all of its theaters till
any notice, over five hundred in total, going over twenty five,000 workers while not work.

Live sports- The postponement or suspension of sports leagues just like the NBA, NHL, XFL,
and additional have created a large vacuum not only for the leagues and players, however
conjointly the wide-ranging scheme that has cropped up around them. 538 estimates that, since
regarding twenty first of the NBA season remained once games were halted, the league stands to
lose $350 million-$450 million from price ticket sales alone if those games aren't compete –
which doesn't even embrace lost competition revenues. The league might conjointly lose up to
$200 million in non-ticket revenue, from sources like parking, concessions, merchandise, and
more. Still, several NBA franchises – beside their homeowners and star players – have
committed countless greenbacks to confirm that area uniting employees hourly staff are paid
throughout the pandemic. There are a unit calculable 300 employees staff in a very 20000-seat
arena, like people who host NBA games. The NHL doesn't create the maximum amount because
the NBA however might lose a bigger share of its expected yearly revenue. As a result of the
league doesn't draw as several TV viewers, it depends additional heavily on price ticket sales.
The MLB can be affected yet, because it won't begin games till time period, at the earliest.

Cruises- After a luxury Diamond patrician ship became the primary giant irruption cluster
outside China, with a minimum of 634 confirmed COVID-19 infections among passengers and
crew and 2 deaths; the cruise business has taken a large hit. Additional recently, a Grand
patrician cruise moorage in Oakland resulted in twenty eight cases of the sickness. As of March
sixteen, there have been a minimum of seven cruise ships in limbo as a result of passengers
tested positive or were showing symptoms of the virus and no country was willing to require
them in. Shares of 3 major cruise firms – Royal Caribbean, Carnival house and Norwegian
Cruise Line Holdings – born over five hundredth within the wake of the COVID-19 pandemic.
Business cluster Cruise Lines International Association aforesaid the cruise business contributes
$53 billion to the U.S. economy once a year. The White House has created clear it intends to
assist the business weather the monetary issue with some kind of relief bill.

Shipping- A provide management survey found that 3 out of each four yank businesses tough an
interruption to some a part of their path because of the irregularities within the shipping business
stemming from the COVID-19 pandemic. China is one in every of the world's foremost shipping
hubs, however COVID-19 has forced the country to shut ports and send industrial plant staff
home. The International Chamber of Shipping aforesaid the pandemic has value the worldwide
business around $350 million per week. In January, North yank transport volume was down
nine.4% compared to identical month of 2019. There are units over 225,000 Americans operating
within the freight transportation business, and therefore the disruption has jeopardized over
billions in wages for these staff.

Conventions- As mass gatherings of individuals are declared unsafe; several of the large
conventions that draw thousands of attendees from across the world are canceled. The
cancellations of school conferences like E3, SXSW, and additional have seemingly value native
economies over $1.1 billion. In 2019 alone, SXSW's regular associated seasonal staff had an
economic impact of over $150 million on the capital of Texas, Texas, economy, in keeping with
house Greyhill Advisors and SXSW. The cancellation of the E3 conference has conjointly value
the computer game business its biggest week of the year. New games and consoles area unit
typically disclosed at the event, that sometimes hosts over 65000 guests a year. Facebook and
Google conjointly had to scrap their own conventions. This moratorium on giant gatherings
might devastate the 55000-person business of convention and fair organizers within the U.S.

Food service- Between full- and limited-service restaurants, caterers, buffets, and more,
overflow ten million Americans add the food industry. Major cities have ordered restaurants to
solely supply takeout choices as a safety measure. This might jeopardize billions in wages for
workers, several of whom area unit hourly staff. Chinese restaurants are significantly onerous hit
over unwarranted stigmas associated with the eruption. Nation's eating place News rumored that
in point of entry, restaurants were expected to lose 2 hundredth of sales within the 1st week of
March. By March sixteen, a dozen states had obligatory restrictions on restaurants hosting dine-
in customers. On the weekend of March fourteen, restaurants in most of America's major cities
rumored a decline in occupancy of anyplace from 30%-64%. Analysis firm contender, grey &
Christmas rumored that over 600 food industry job cuts were directly associated with the
pandemic, and that 7.4 million jobs within the sector might either be cut or severely wedged.

Theme parks- Large theme parks have stopped hospitable guests within the wake of the
COVID-19 pandemic, closing an enormous business for the predictable future. Filmmaker
rumored over $26.2 billion revenue from its parks in commercial enterprise 2019. Dividing this
equally throughout the year would mean the corporate might lose revenue of around $500
million per week that its parks were closed, forward identical earnings this year. Different
distinguished parks are affected yet. All SeaWorld parks area unit closed; Six Flags quickly
closed ten of its parks; and Universal Studios closed its metropolis and Hollywood Park’s
through the tip of March.

Gyms- Gyms were already facing challenges from home exercise corporations like Peloton, and
social distancing recommendations and also the concern of the unfold of the COVID-19 have
any supplementary to the challenges giant gyms and cluster fitness classes’ face. Gyms and dress
shop fitness categories have ballooned into a $94 billion business that's currently in peril.
Equinox had to shut its gyms in NY, New Jersey, and Connecticut, and Barry's Bootcamp cut
capability in 0.5. In L.A, the city manager ordered all gyms to be closed. Gold's athletic facility
and Orange theory shuttered all company in hand locations. Planet Fitness stock lost forty eighth
of its market price.

The industries we tend to ascertained on top of wouldn’t usually resort to lying off staff. This is
often as a result of these industries it's costlier for the new staff to be trained once more
compared to keeping them used. The lay off’s show that the pandemic and also the nice
internment has forced industries into a corner. The revival of those industries would force a
private industry-wise focus to spice up the economy. As we tend to look another additional tidy
relief package it's worthy to note however Germany aims at relieving its economy. Germany has
declared a five hundred billion dollar package. In this, the businesses will avail loans at third
interest and repay them once their companies are in a very position to. The relief packages
cannot be matched however a package creating up a better proportion of the GDP would offer
the specified boost. It doesn't need a better consider the on top of sector-wise impacts to note
overreliance on the Chinese markets. Such reliance would depart any economy halting once the
opposite is in crisis. This, however, doesn't mean that economies should finish off when the
pandemic. Finding alternative reliable markets to fall back on and not inserting all the eggs in a
very single basket would do.