April 14, 2020
How the Global Health Crisis is Impacting Different Industries
The global health crisis has changed everything. Everything from the way we work, interact with friends and family, and pass the time is different than it was a few weeks ago.
On the business side of things, impacts vary from industry to industry. Take, managed service providers (MSP), for example. After some research and discussions with Datto partners, we found that MSPs are adjusting their growth expectations for 2020 as a result of the global health crisis, but they largely expect to weather the storm and even find new opportunities.
Like MSPs, businesses everywhere have also had to adjust expectations and adapt to massive changes in their day to day operations. Any businesses that aren’t deemed essential by local governments have been forced to either temporarily close their doors or adopt a remote workforce model. For some, this change has provided only small disturbances. For others, the shift has had a seismic impact.
Despite the uncertain times, some businesses are affected less than others. Some of the industries and industry subsets least negatively impacted in the world so far are:
- High technology and remote working platforms
- Home fitness retail
- Streaming services
- Pharmaceutical companies
- Insurance (property & casualty, multi-line, life & health)
- Healthcare and industrial real estate investment trusts
Conversely, there are some industries that will suffer more than others as a result of the health crisis. According to research from The Brookings Institution as well as S&P, the industries facing the highest risk include:
- Transportation (airlines, cruise ships)
- Mining and construction
- Employment services
- Leisure and hospitality
- Traditional retail
- Sports and entertainment
For some industries, the distinction between positive and negative impacts may be less clear. How the companies in the following sectors fare will depend on the way coming weeks progress and if they’re able to adapt accordingly. These industries are among the most potentially vulnerable, but through innovation, they may evolve and come out stronger than before. Some examples include:
Companies in the healthcare sector, for example, may be quick to adopt telemedicine and treat clients virtually. On the flip side, more traditional small practices may choose (or be forced) to wait to reopen their doors until the crisis subsides.
As businesses across all of the industries continue to navigate the coming weeks and months, many will continue to rely on their MSP partners more than ever for support and guidance. As always, Datto stands alongside our partners to help keep the community informed, connected, and strong. We’re here to help.