As America tried to control the spread of the Covid-19 virus, life as we knew it had been ground to a halt. This outbreak has affected just about all sectors of the economy, with a few taking the hit harder than others. Some of the industries that have been most affected by the pandemic include:
As the pandemic continues, the demand for vehicles continues to decrease. People are worried about the future and stash away their extra money for emergencies. This has jeopardized the automotive industry, including the 1.3 million employees that work in dealerships. Fiat Chrysler, Ford, and General Motors have all witnessed their shares declining during the pandemic.
Automakers have also faced disruptions in the supply chain. Imported parts originating from China aren’t making their way here fast enough or at all. Approximately 20% of the cars manufactured in the world depend on parts that have been made in China.
Companies have pulled back on their expansion efforts, which has left a large gap in the industry. In addition, both large and small construction companies have had to lay off several workers due to supply chain issues, which has impacted the estimated 7.6 million construction workers across the country. Once again, getting parts from China has been a major problem in the sector.
The restaurant industry has been one of the most impacted segments, and it has been hit hard by Covid-19. Most restaurants across the country have had to close down and offer takeout food only. When the restrictions weren’t as severe and people could still dine-in, limits were often introduced regarding how many people could gather at a time. As a result, millions of jobs in the restaurant industry have either been severely impacted or completely lost due to the outbreak.
Over the last couple of years, the trend has been to stay at home as much as possible and to avoid socializing. This has greatly affected ride-sharing companies as fewer and fewer people go out. Both Uber and Lyft also have to cut back on the services offered since they stopped allowing different users to share the same car. As a result, drivers have reported declines of 50% in their income, and Uber stock has crashed.
The airline industry has also buckled at its knees during the pandemic, with billions of dollars lost revenue. Cruise lines had to shut down completely while freight shipments had been stalled for months at a time. Many ports in China have had to close down since the factories couldn’t supply the materials to send out. With approximately 225,000 people employed in the freight transportation sector in this country, both the industry and workers’ wages have crumbled.
In financial services, companies are scrambling to get many questions answered. How has the credit risk of borrowers been reassessed? How are capitalization costs being affected? There are a lot of unknowns in the financial services sector, with economic forecasts needing to be updated regularly as the pandemic evolves. Employees are also dealing with many instances of fraud.
Many people have become more desperate and insecure about their futures. As a result, fraud has become more of an issue now than ever before. If you have been affected by fraud either in one of the industries listed above or in your personal life due to the pandemic, consider reaching out to a consumer fraud attorney for advice.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.