Since our previous blogs on COVID-19’s impact on U.S. industries and digital trends, conditions have altered some. Some industries have weathered through the lockdown phase and are able to continue business. While it is nice having low gas and plane ticket prices, it is because of less demand. Here are some industries that took a hit but hope to see a comeback.
Oil – The economy relies on petroleum for the production of plastic and energy fuel. But, its demand is decreasing, along with the workforce. The Oil & Gas Journal says, “COVID-19-led disruptions to demand, combined with its dramatic impact on financial markets, have led to rapid price swings.” Prices of oil & gas have dropped, increasing purchases and helping those who may have faced job losses.
Banking – Banks are going through an intense time right now. Federal bank regulators are encouraging banks to help with those suffering from a loss of business. Importantly, banks are not going to fail, reducing the risk of recession. As the panic dies out, banking is resuming back to normal operations.
Railroad – More demand for products has led to an increase in productivity for Union Pacific Railroad and other railroad companies. However, stock shares have decreased. Railroaders transport everything from automobiles to bath towels across the nation. The railroad will bounce back and resume to normal means of operations.
Insurance – While insurance companies are dealing with a whirlwind of claims and risks, surplus line insurance is witnessing prosperity. The Insurance Journal says, “Many business owners are looking to their business interruption insurance policies to seek indemnification from their insurance carriers.” USAA has lowered automobile insurance, offering relief for drivers.
Hotel & Restaurant – These U.S. industries have seen some turbulent changes. While some restaurants were able to stay open, many hotels had to shut down due to 10% capacity or less. Thankfully insurance companies offer loans for businesses who may need help staying afloat. So far no major hotels have closed, so it looks like those brands will pull through along with restaurants.
Despite financial and workforce losses, these industries and the economy are hopeful for recovery. Patience and economic stimulation will help these businesses prevail, and it’s good to see COVID-19 was unable to stop the essential services we need. Remember to support your local businesses, especially those that have been impacted by the virus.