Page 145 - COVID-19: The Great Reset

2.2. Industry reset

As a result of the lockdowns, the pandemic had immediate
effect on every possible industry around the world. This impact is
ongoing and will continue to be felt in the coming years. As global
supply chains are reconfigured, as consumer demands change,

as governments intervene more, as market conditions evolve and
as technology disrupts, companies will be forced to continuously
adapt and reinvent themselves. The purpose of this section is not
to offer a precise account of how each particular industry might

evolve, but rather to illustrate with impressionist brush strokes
how some of the main features and trends associated with the
pandemic will impact specific industries.

2.2.1. Social interaction and de-densification

Effects on travel and tourism, hospitality, entertainment, retail,
aerospace and even the automotive industry

The ways in which consumers interact with each other as well

as what and how they consume have been significantly affected
by the pandemic. Consequently, the ensuing reset in different
industries will vary fundamentally depending on the nature of the
economic transaction involved. In those industries where
consumers transact socially and in person, the first months and

possibly years of the post-pandemic era will be much tougher than
for those where the transaction can be at a greater physical
distance or even virtual. In modern economies, a large amount of

what we consume happens through social interaction: travel and
vacations, bars and restaurants, sporting events and retail,
cinemas and theatres, concerts and festivals, conventions and
conferences, museums and libraries, education: they all
correspond to social forms of consumption that represent a

significant portion of total economic activity and employment
(services represent about 80% of total jobs in the US, most of
which are “social” by nature). They cannot take place in the virtual

world or, when they can, only in a truncated and often suboptimal
form (like a live orchestra performance on a screen). Industries
that have social interaction at their core have been hit the hardest

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