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Social distancing and stay-at-home orders won’t last forever. But when the dust settles after COVID-19 peaks, businesses might be looking at a new normal.
Fiat and Hyundai are among the many international companies relying on Chinese inputs. Both companies halted production after coronavirus hit China. It’s moves like these that have analysts predicting more geographic diversification of supply chains.
Other forces already set in motion could accelerate. Weakened by giants like Amazon, brick-and-mortar retail may see further declines as a consequence of the shutdowns. Corporations may also demand less office space, turning to decentralized (or completely remote) work arrangements instead.