By Logan Nettesheim
As we know the coronavirus is taking a toll on the economy, the stock markets are shifting dramatically and lots of businesses have closed their doors to consumers. Instead of looking at the DOW ,which shows how the economy as a whole is doing at that moment. Instead of looking at the overall economy let's look at how certain industries are affected.
Airlines have been hit very hard by Covid-19 pandemic, especially international airlines due to the ban on travel that President Trump put into place. Even though this ban is only for 30 days that is a giant impact on the revenue that these companies will bring in. According to CNBC airlines could expect to lose from $63 billion to $113 Billion dollars in revenue due to the pandemic. Due to lower fuel prices the airlines could partly offset early loss of business, but a decrease in travel by more than 20% would wipe out profits.
Other industries that have been hit very hard are professional sports, specifically the National Basketball Association and the NCAA. Rudy Golbert was the first NBA player that tested positive for the coronavirus, after Golbert tested positive the major sport industries postponed their seasons indefinitely. The NCAA had to cancel the March Madness tournament for the first time on record. The division 1 tournament generated about $867.5 million and in 2019 it generated about $933 million from media, sponsorships, and ticket sales according to Fox Business. This hurts the NCAA because the most revenue they bring in is during march madness so the organization would lose roughly a billion dollars in new revenue. The NBA has been hit very hard as well with the season being postponed. NBA stockholders project that a couple hundred million dollars in new revenue could be lost.
At the moment companies that produce hand sanitizer and disinfectant sprays are benefiting the most. According to Forbes Clean Well’s sale of hand sanitizer and disinfectant spray has increased by 400%. This is a really good thing for the company right now but when the pandemic ends they will have a surplus of hand sanitizer due to the decrease in demand. Clean Well expects to be sold out of 6 months worth of product within a month. Due to the increased demand and decrease in supply the consumers are willing to pay more for disinfectants and hand sanitizer. There are some people who realize what is happening and try to profit, for example Matt Colvin. Colvin bouth 17,000 hand sanitizers and would sell them on amazon and ebay as “pandemic packs” for $50. Amazon and ebay prevented him from selling hand sanitizer which left him with a giant stockpile with nobody to sell to, this is one of the reasons why the supply of hand sanitizer is so low.
The coronavirus has affected industries differently over the past couple months due to government shutdowns and mass hysteria caused by the media. Yes the economy as a whole is decreasing, that doesn’t mean that every industry is losing drastic profits. Some industries are benefiting a bit, some are maintaining revenue and some are going to lose revenue. This pandemic is a major hit on the economy but that doesn’t mean the economy is going to fail.
Works Cited
Barrabi, Thomas. “What Coronavirus Will Cost NCAA, NBA and Other US Sports Leagues.” Fox Business, Fox Business, 13 Mar. 2020, www.foxbusiness.com/sports/coronavirus-cost-ncaa-nba-mlb-nfl-nhl.
“Guy Stuck with 17,000 Hand Sanitizers He Can't Sell, after Getting Banned by Amazon and EBay.” Omgbalita.net, www.omgbalita.net/2020/03/guy-stuck-with-17000-hand-sanitizers-he.html.
Timmullaney. “At Airlines, a Coronavirus Cash Crunch Unlike Previous Travel Disruptions.” CNBC, CNBC, 5 Mar. 2020, www.cnbc.com/2020/03/05/at-airlines-coronavirus-cash-crunch-unlike-past-travel-disruptions.html.
Verdon, Joan. “Small Brands See Wild Surges In Sales Due To Coronavirus, But What Happens After Demand Slows?” Forbes, Forbes Magazine, 10 Mar. 2020, www.forbes.com/sites/joanverdon/2020/03/10/small-brands-seeing-rewards-and-risks-of-coronavirus-related-demand-surge/#2f7cb8c3699d.
Such a weird time we are living in. This was a great read, it really opened my eyes to all of the things happening and all of the people effected. It's crazy to see all of these huge industries just stop completely. Also that some are actually benefitting from it is just so bizarre to me. When do you think everything will be back up and running? This article really gave me home for the economy and the future of this pandemic.
ReplyDeleteI think this is an interesting topic, especially because we are living through it right now. With everything, or most things, shutting down it led me to wonder how individual business owners are going to be able to succeed and stay open if they don't have people coming in to make a profit. Additionally, it is interesting because everyone stocked up on many things like toilet paper and food within the first month, which led to stores stocking up on things like these to be ready for more people buying a surplus in items, however, now that people are set for long periods of time, this leaves the grocery stores helpless for long amount of times.
ReplyDeleteClearly there are some very big industries being hit hard by the disease but there is so much more that people don't realize because social media only talks about certain ones. The travel industry is in really bad shape right now, hotels and resorts are closed which is really bad because if they don't have customers they won't be able to stay in business for much longer. There are some industries that we don't think about during these times that are being changed for the worse and it is sad that people are relying on this coronavirus to have settled in order to keep their jobs. At this time everyone needs to realize that there is more at stake than just their personal health.
ReplyDeleteThis is definitely a relevant topic since we are living through it right now. Airlines are definitely taking a big hit but I wonder how small businesses and restaurants are doing with all of the shutdowns and how they are doing without making much profit. It is also true that other companies are flourishing right now due to an increase of a demand in toilet paper, bottled water, and cleaning products.
ReplyDeleteItś hard to imagine waking up in the morning and not knowing if todays the day you get laid off due to covid-19. These businesses are scrambling to find alternatives to making money as people are sitting with millions of dollars in their businesses not being able to move any of that money or make profit.
ReplyDeleteIts pretty difficult to realize the world we are living in today, and I feel as this topic is as relevant as it can get right now with the pandemic. Airlines are for sure taking the biggest hit, and then theirs companies like hand sanitizer, and toilet paper companies who are getting the better end of the spectrum. Small and local businesses are also taking big hits and I'm wondering how that's gonna play out over the course of the next few months. I really enjoyed this blog, good read!
ReplyDeleteYour thoughts on the impact that this pandemic is creating with certain industries are great. Starting with airlines, due to the lack of travel abilities, airlines are going to lose much of their profit. Given that this pandemic is happening over spring break when most people travel, airlines are suffering a great loss. Moving on to the NBA, I agree with you that this is the biggest time of year for basketball with March Madness. Growing up, March Madness was a big deal for my family and with this year's cancellation, it is hard to imagine the impact that this has on the program. With losing almost a billion dollars, this could have astronomical impacts. Lastly, with the increase in demand for supplies such as toilet paper and sanitizer, it is also difficult to imagine the impact this has on stores. It is hard for them to stay stocked up with all this supplies that normally they would have a surplus amount of. Overall, your statements are very accurate to what is happening in the world currently.
ReplyDeleteThe topics you explained although were a bit shocking with the statistics, I was a bit appalled when you stated how much the D-1 tourney generated from the public. I find it a bit disheartening that only when there is a pandemic, people finally take their health seriously. But with all of this immense change in our economy, I wonder if there would be a bigger and surplus in generating money from the public for the sports entertainment industry. Since people have been "stripped" away from their entertainment, wouldn't it be reasonable for people to have parties and attend and evidently spend much more once the dust settles?
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The article about COVID-19 is obviously extremely relevant to our daily lives. Now, multiple weeks into quarantine, the negative effects on the economy are shown clearly. It was really interesting to see how drastic the effect of the NCAA tournament has on our economy, with $800 million added to the economy. With just that taken off, the economy is drastically hit, but almost every business is hit extremely hard, dropping in sales in this very uncertain time.
ReplyDeleteIt is very different situation now and I don't think any of us were expecting things to be this different. People now have to work from home, students have to attend online lessons and others who are unable to work at all are having the hardest time of all during this pandemic. The stock market has shown what this pandemic has done and it doesn't look good. The economy is trying to lift itself back up after the financial aid bills that were signed by president trump so that the people could get the money they need. But how long will it take for that money to run out and newer bills signed..
ReplyDeleteAlthough us 16-18 year old are not heavily engaged in the workforce and the economy, I still think that the economic effects of this pandemic can be felt by all of us. Many industries, which we make up a large demographic of, have been put on halt or canceled indefinitely. Like you stated, take the NBA where the whole league is postponed wit the possibility of being canceled. It's also interesting how this is an economic recession that us students can experience with the knowledge of what's going on. I doubt when all of us were 6-7 during the 2008 recession that we knew what was occuring. However, during this pandemic and our knowledge of the shrinking aggregate demand due to less consumer spending, we can actually understand what's going on and have our own opinions instead of just believing waht we're told.
ReplyDeleteI would agree with your ending statement, I don't think the economy will fall but I do think there will be a little bit of damage when this all ends. I do think that during this pandemic anything deemed "essential" is going to be low in supply as it's high in demand. People are waiting at store doors for toilet paper, they don't care how much it costs. It is the same thing with thermometers when this whole thing started, I went to the store and the only thermometers they had were for infants. People will go out of their way to buy things that they think they need. Which is why these companies are going to be the only ones that thrive, all these other companies that aren't "essential" are getting thrown out the door.
ReplyDeleteThis blog shows the immerse effects of corona on the world today. A lot of businesses are losing out on a lot of revenue due to Covid-19. One that has effected has definitely been the NBA.
ReplyDeleteThere are a lot of unexpected issues that have arised as we as a country still have no idea what to do as we have never face an issue like this in society in today's age. It will be interesting to see what occurs financially in the economy and what the long term results are. Companies are fighting to stay alive in these times as all focus is on the virus .
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