COVID-19 has severally impacted the entire world and drastically altered the global economy. Various industries have been affected resulting in job cuts, a drop in production and even bringing the manufacturing sector to a standstill. In turn, it has slashed the wheels of the economy worldwide and huge waves of uncertainties of the future.
We were able to get in touch with a person close to the airline industry and it doesn’t look so good here either. Since the airlines around the world have stopped operating, the maintenance and overhauling of the flights have stopped. Although, most of the pre-existing backlogs have been cleared, this division seems to have been affected the most.
All airline manufacturers are running an all-time low. With no new orders coming in and present orders cancelled, manufacturers are facing one of the most uncertain situations like never before.
The most obvious impact has been job cuts. What’s happening in the airline sector is something that’s happening everywhere, across all sectors of the economy. Lack of new orders, fresh job requirements, contracts and so on, will naturally result in job cuts. Some of the biggest airplane makers like Boeing, Airbus, and Rolls Royce (which is technically an airplane engine manufacturer) have cut off their people globally.
Take Rolls Royce for instance, nearly 8,000 people have been fired making headlines. And Rolls Royce isn’t alone, thousands of companies worldwide have let their people go without requiring their services and lack of new projects to work on and funds to pay them. This also brings to the table various rules by individual governments. For instance, Japan has a strict rule where management is prohibited from firing employees due to natural disasters like earthquakes and Tsunami. Well, the pandemic is no less than a global disaster! But now, the management has to continue retaining the workforce, even with minimal projects to work on and hardly any funds to pay them.
With the airline industry, the COVID-19 might have a long-term effect. For every new airline product out there, it requires nearly 15 years of development, right from design to finally hit manufacturing and to go into service. Our insider tells us that this kind of design-and-development related works will go on. At the same time, the uncertainty of the future has made it so difficult for these workers as well.
“No one knows the future so they’re removing the workforce. Keeping the remaining only for the minimal work,” our source tells us. This means that while the production of various units has come to a near standstill, the backend work of research and design will continue.
But some industries were already going a downhill ride, even before the COVID-19 pandemic struck us. Take the automobile industry for example. Sales in India have been drastically dropping since 2019 and with the virus-clad situation now, it’s going to get worse. Toyota, one of the biggest automobile manufacturers in the world has reported a drastic drop in its profits by 70 per cent, as compared to the 2019 data.
This brings us to the next issue at hand, how will industries bounce back? How will countries revive their economies? More importantly, how will India make a comeback? Of course, the Indian government has announced various revival plans in a bid to help industries. These subsidized packages will certainly play a vital role in backing up the economy.
But as our source points out- production in the economy will be concentrated on basic and essential entities, which means new concepts and research will take a backseat. Everyone is looking at sustenance and survival now, and when we come out of this, the industrial chimney will fire up once again.