By Sawyer Horan
The Corona virus has swept through more than 85,000 people, disrupting travel and hobbled supply chains that produce items from smartphones to pharmaceuticals. In a matter of days this virus went from low concern to top notch priority. Big conference meetings and businesses are closing, like the Disneyland in Toyoko to the Ceeraweek energy conferenece in Houston. The uncertainty of the virus has put on hold large investments, acquisitions, and hiring’s.“A lot of damage is already being inflicted, purely from major decisions being delayed”. Many green projects and global collaboration with firms have been put on hold due to this virus surfacing in the United States. An unfortunate time for the virus to strike as U.S companies were riding atop America’s longest economic expansion on record with incredibly profitable stock returns. Since the virus the stock prices have decreased due to rising labor costs and trade disruptions.
In China, were the virus originated from, manufacturing and services sectors plunged to a record low in February. Since China has the second largest economy this affects all other global economies’ as China is a main manufacture of U.S products and many other countries. Executives has mentioned how the virus will curb consumer spending on products from Corcs sandals to Gucci handbags. No matter the quality of the product, the virus has affected its manufactures. Many experts have also struggled to project the extent of the economic fallout, saying it solely relies on if the epidemic continues to spread. Unfortunately, there are no signs of this virus slowing down and with that being the case it is safe to assume businesses will continue to struggle. The airplane industry has especially taken a harsh downfall from this epidemic. United Airline Holdings Inc said they would postpone their investor meeting until March 5th as they couldn’t have a productive conversation on its long-term strategy until the virus dies down. Airplanes connect these global travels as well, and people are hesitated to travel to countries overseas because they have a higher chance of catching the virus than in the States. Another main industry that is taking a beating is the pharmaceutical. China, a key supplier of the chemical and raw materials used by many pharmaceutical manufacturer pose a potential problem for these companies as key ingredients in class old antibiotics are found and manufactured in China, and cant not be produced while this virus is ongoing. As previously stated, China is a main global partner with other countries such as the U.S so when Chinas’ economy is hurting so is the United States economy.
The positive news throughout this whole event is that the shock from the virus is hitting at a time when households appear to be in good shape, but the virus needs to be solved because people cannot live like this forever. It can only do so much harm until it wipe out society completely.