For many, these industries will be obviously struggling but some have more safety nets or capital reserves than others. The extent of the lock down will also mean a broader range of businesses will be affected. Below is a list of industries that are not getting specific government support that is available to Retail, Leisure and Hospitality companies. These industries can make use of the emergency loans and other schemes but it might not be enough.
The Airlines and Airports
Obviously they have been very hard it in that nobody is flying except for the reason of repatriation. The government has simply said that they should not seek bailouts from them but look for alternative finance first. Could this be because they need to consider the climate change implications? Over capacity in the airline industry has been an issue. Flybe was the first to fail and others may follow. That said, much of their costs have simply gone right down...staff all furloughed, no fuel being used, and maybe they no longer will be paying for leasing planes they cannot fly.
- Even if the restrictions are lifted will people fly as much as they did?
- Difficult to answer as lots of people will rush to book that holiday, but will they be able to afford it?
- Will companies send executives overseas as much as they have done in the past.?
Heathrow has come to a standstill and staff have been told to take a 10-15% pay cut otherwise they will be made redundant.
Haulage and Distribution Industry
Amazon and Supermarket deliveries can't make up for the extraordinary decline in economic activity that means there is no restocking of non-essential shops and no purchases. Most lorries are going out not fully loaded and so are therefore losing money. The issue is that they are still on the road therefore they cannot easily put drivers on furlough or mothball as part of their fleet and fuel is still being used. The cost of fuel has gone down a bit but all other costs such as insurance still have to be paid.
Ferry companies transport people and goods in and out of the UK. But because of the steep drop in passenger numbers, the firms are cutting back on services, putting essential supplies of food and medication at risk.
Those suspending their passenger services include P&O Ferries, which carries about 15% of the UK's imported goods, including food and medicines. It is furloughing more than 1,000 staff, using the government's job retention scheme.
P&O Ferries has said it needs £257m to keep going and it wants a sizeable chunk of that to come from the government.
The Horticultural Trades Association (HTA) has warned that up to a third of producers could go bust. It is asking the government for financial assistance of up to £250m to help the industry avoid collapse.
This time of year is one of the busiest times for garden centres and nurseries. However, with all non-essential shops being closed they simply can't get their goods to the public and they can't be just be put in storage. The plants will just be left to die or grow too big.
Other industries include Charities, recruitment agencies, steel industry, estate agents, travel agents, all of which have seen a near complete drop off in trade or funds.
Some of course will be back as soon as this Pandemic is over. Heathrow will reopen and lorries will redeliver but for some industries it is going to be a long hard road.