Headline Diplomat eJournal – Issue 1
The perilous lenses of COVID-19: The impact on the economy
Writes Brock Cooper, Journalist, Profitable Prose, LinkedIn
COVID-19 has impacted every aspect of society, but few have felt it as hard as the technology sector. While some areas are seeing dramatic declines in sales and the ability to produce, others are not only weathering the storm but also thriving in it.
Is there a light at the end of the tunnel for the tech sector or have some areas been hit so hard they are irrevocably changed? We’ll look at how this disease has impacted technology for the good and the bad.
As the world struggles to recover, the tech industry is poised for either a great depression or evolve into something even greater than it is today.
Supply Chain Issues Hurt Tech Manufacturers
Many technology manufacturers are having trouble keeping up with demand as COVID-19 strangles supply chains and sickens workers. Travel and trade restrictions are causing massive delays in components created in other countries such as China as they sit in customs waiting to pass inspection.
Important supplies that once took weeks now take months to arrive and tech companies create products without them.
Susan Lund, a Partner at the McKinsey Global Institute told consultancyuk.com, “The average company can expect to have a month to two months’ disruption of production every 3.7 years, which is incredibly frequent… So although you don’t know what the next shock is going to be, the fact is, in most industries, these have become quite significant.”
COVID-19 Rallies Cloud-Based and Virtual Technology
While some sectors are struggling to make ends meet, cloud technology is seeing a massive increase in interest and sales. As workers are forced to stay home to prevent the spread of the virus, businesses have leaned heavily on remote and virtual offices.
Zoom meetings and cloud storage has made it easier for people to work from home. They no longer need files or other materials from the office because everything is available online. In the long term, this may usher in a new dawn of remote working.
“Jobs are being saved thanks to remote working. Human connection continues thanks to video chat. Doctors and mental health professionals can virtually (and safely) continue some of their crucial services. Even personal trainers are able to keep their clients healthy and active thanks to the tech sector. However fast the virus may spread, information and hope spreads faster thanks to our technologically-enabled world,” according to Forbes.com
Zero-Emission and Clean Energy Pushed Forward
The virus has caused many companies to move forward plans for ecological initiatives and reducing carbon emissions. This is leading to an increase in research and development of clean energy technology.
“Despite the dramatic consequences COVID-19 is having on the global economy, we predict the energy transition will be accelerated by several years. Trillions of dollars are expected to flow through economic relief packages into the deployment of low- and zero-carbon infrastructure as well as research and development into technologies that enable it,” Lux Research told Yahoo Finance.
Conclusion:
While some tech industries are growing because of COVID-19 and others just try to keep the lights on, it’s obvious the effects of the virus will be felt for years to come. It will lead to the development of new technology for healthcare and clean energy but also cause many tech businesses to struggle or even close. This will bring out many losers and some winners. For sure, small businesses will struggle to the point of closing, making room for the bigger companies to flourish even more. Still, innovation may be the key of smaller companies to take their business to the next level. Will they or will they actually be forced to close?
Featured photo by Julia M Cameron, Pexels
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