The COVID-19 Pandemic had a deep impact on the economy of the United States. The COVID-19 induced recession has made it hard for the US to recover. With the many lockdowns, restrictions and social distancing guidelines, industries and businesses felt a severe handicap when it came to economic movement.
In this article, we will discuss how the pandemic has impacted American businesses and how America is slowly recovering from the dire effects of the pandemic.
Post-Pandemic Recovery Efforts in the US
The US recovered in a matter of few years when the previous recession happened in 2008. However, the circumstances of this recession are quite different and unique. Economic health is now largely informed and determined by how the Government responds to the COVID-19 crisis.
With good government policy measures, increased vaccination and healthcare efforts, the US is still likely to recover in a matter of five to six years. It is hard to correctly predict the exact amount of time it will take for the US to come back to its pre-pandemic economic levels because of the uncertain nature of the spread of the virus.
The manufacturing, retail, tourism and health sector have taken the hardest hit in the pandemic. Many small and medium-sized businesses have taken a huge hit. Many of them even had to shut down because of the restrictive atmosphere in which business owners had to conduct their businesses. There have been many impediments and operational challenges coming in the way, along with health concerns for family members and employees.
Many businesses had to shut down because of the rise in occupancy costs and rigidity in lease agreements. But we now see the American businesses are adopting a resilient approach to the pandemic. The US sees a rising trend in many businesses adapting to the unique situations that the pandemic has brought about. The health and safety of workers have become very important. Hence, there is a positive trend towards a smart and technology-powered approach to work.
Businesses are forced to reconsider their business models in order to adapt to the business environment in the pandemic effectively. Finding the money for this is no easy task. It is also important to note that customer trends and expectations have undergone a considerable change because of the pandemic. Hence, we see new marketing and advertising trends emerging from businesses.
The pandemic has forced businesses to innovate and think out of the box. The market for finance technology, also known as fintech, has improved immensely in the pandemic. With smart digital solutions like cash forecasting and treasury management, banks and businesses have been able to focus on more important core functions.
There is no doubt that technology has been a savior for businesses in the pandemic. With a fast-growing fintech market and incredible artificial intelligence developments taking place, many business functions have become easily automated. Many businesses are also using remote employee engagement software, which can recreate the feeling of co-workers working together.
E-commerce platforms have become very prominent in recent times. There is an increase in the number of people now using online shopping, and while there was a trend of people only going for essential goods at the start of the pandemic, they are now also going for non-essential goods. It is likely that this shift to e-commerce platforms and people’s dependency on them will continue even after the pandemic as people get habituated to it.
Restaurants, fast-food franchises and even retailers are now showing great improvement in the last few months. Most fast-food franchises have developed smartphone applications where people can easily order from the comfort of their homes, and people are finding contactless delivery to be a safe experience. Retail stores are limiting the number of people who enter the store and are only open for a few specific hours.
Latino-owned businesses, also known as LOBs, are proving to be a blessing for the American economy. These ethnic communities tend to be tight-knit in nature and highly supportive of each other. The networking and social capital of Latinos are strong as they want to survive in a competitive American market. Many Latino entrepreneurs even have families in Latin American countries that depend on remittances from them.
Virtual events and zoom-based services are also becoming increasingly popular. Many professionals like lawyers and doctors are offering their services on online mediums. In fact, virtual education is also picking up at a fast pace with many online courses being offered.
The New Labor Department data shows that the US has positive signs of economic growth and recovery. The US is now also seeing the gradual re-entry of the workforce with safety, health and compliance strategies in place. However, the speed at which the American economy can recover largely depends on the spread of the virus, the degree to which human interaction is permissible, along with free movement.