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The pandemic has hit each person in its own way, causing an economic crisis with job loss, business shutdowns, and a massive health crisis leaving many unable to get back on their feet after such a dramatic hit to their “normal” daily lives.
However, some businesses are thriving. What was once a new trend like curbside pickup or new healthcare technology, suddenly became imperative to survival. Businesses scrambled to offer what their customers needed and some succeeded with large financial benefit.
Which businesses thrived under the pressure of the pandemic, government shutdowns and shelter in place orders?
Car Dealerships – $12.5 Million
Both new and used car dealers saw an increase in sales. Not only did cars offer a way to get from point A to point B without encountering others on public transport, the historically low interest rates and prices caused many in a positive financial situation to take the deal when offered.
Many car dealerships even offer online shopping and purchasing, with the vehicle delivered to your door. Over the past five years the industry revenue has continued to increase and is expected to hit record numbers in 2021, including an increase of 4.9 in 2021 according to IBIS World.
Delivery Services – $5.5 Billion
Home delivery services have seen a substantial increase as businesses were forced to close their doors for several months last spring. Customers had been told to shelter in place and many were afraid to venture out even after the mandates were lifted.
For businesses such as GrubHub, DoorDash, UberEats the pandemic was a push in the right direction. All three had been in talks of merging with competitors or closing prior to the pandemic, when all of the sudden the crisis skyrocketed the need for home delivery for everything from food to home goods. Instead of merging, they hired hundreds more employees and expanded regions for delivery. The boom may not last as the pandemic vaccines rollout and customers are able to go out in public more often, but delivery services and their value certainly made their mark in 2020.
Cleaning Business – $46 Billion
In a world where cleanliness is suddenly the top priority in order to thwart the virus spread, businesses began looking to sanitize in a big way. Professional cleaning services are reporting the need to hire additional employees and incorporate new technology to ensure the area is disinfected and safe.
“Commercial cleaning is a mature industry. It grows in line with [gross domestic product] GDP,” said Tim Mulrooney in a Fortune interview. “After the coronavirus, I think you have a secular tailwind to commercial cleaning. Everyone from governments to corporates to individuals have a heightened focus on hygiene.”
People are paying attention; asking for additional work from their janitorial company and adding new procedures to enhance confidence in employees.
A new device called the electrostatic sprayer has been recently featured in a Delta Airlines commercial. The sprayer spreads disinfectant with an electrostatic charge to attach to the surface yet spread evenly away from each other to create a full coat across the surface.
Others are increasing their HVAC and filtration quality systems as air quality has also gained public interest.
Insurance – $1.2 Trillion
As the world has slowed down and families have the opportunity to think about their future and plan ahead, the insurance industry has heard from many who want to increase policies or open a new policy to protect themselves and loved ones.
Property, Casualty, and Direct Insurance provides protection against car accidents, catastrophe, and medical malpractice. Life insurance and annuities are one of the largest sources of investment in the United States and of course, medical insurance which includes private, group and public healthcare was already on the rise, but with the fear of COVID-19, many families rushed to be covered in the event of an emergency.
Technology – $3.4 Trillion
Computer IT employment is expected to continue to grow for the next decade according to Investopedia. Technology is a popular commodity because it affects almost everything we do. The more advanced we can be in healthcare, manufacturing, transportation, education and energy, the more society is changed in a positive way.
Perhaps most importantly to those staying at home is the connection we’ve discovered through internet and platforms such as Zoom and Microsoft Teams. We can pay bills electronically, work from home, and attend meetings – all with the click of a button.
Retail – $4.04 Trillion
Certain retain businesses saw an increase in electronics, home projects, fitness equipment and others. Schools were closed and children were learning from home, but in need of unique entertainment. Gone were the days of visiting the McDonald’s playground or movie theater for a time and purchases soared for puzzles, board games and video games.
Adults began purchasing items to remodel and fix their home from paint to new furniture and increased sales in new workout equipment allowed exercise outside of the gym. Many tech startups that offered internet-connected fitness equipment like Ergatta, FightCamp, Mirror and Tonal saw an uptick in sales to join in with standard pieces in the home gym according to the US Chamber.
Healthcare – $10 Trillion
It comes to no surprise that the healthcare industry has survived the pandemic and continues to thrive as the necessity for good medical expertise and services is more important than ever. Telehealth services includes the technology aspect as well as medical; patients want to avoid the hospital due to the pandemic but yet require medical advice.
“In the past seven days we were 624% higher than our expected volume for this week,” Mike Baird, President of Customers Solutions at Amwell told U.S. Chamber.
Experts believe the country hasn’t begun to see the effect on behavioral and mental health patients as the pandemic shows clear signs of anxiety and depression in Americans. Digital startups over the past year have increased among investors to the tune of $588,000,000 and as the pandemic slows and patients are able to return to regular health-related appointments, that number is only set to increase.
Sources: IBIS World, Fortune, US Chamber