nologThe COVID-19 pandemic had an unprecedented impact on companies across the world. In the two years since initial lockdown, far too many businesses continue to struggle to make a comeback.
The Prime Minister of England has officially urged people to go back to their offices and normal work environments. His goal is to get everyone back to living their pre-COVID lives as soon as possible.
But can a business continue to flourish in the lingering aftermath of the coronavirus?
Initial COVID-19 Shutdown
Today much of the world's manufacturing occurs in China, where the coronavirus is suspected to have originated. The impact hit companies worldwide.
Lockdown in the UK officially began in March 2020 and compelled many firms to close or operate only virtually. Manufacturing and construction were allowed to continue, but parts and supplies were limited due to difficulties in delivering them.
Overall corporate debt increased moderately by around 6% compared to pre-pandemic levels. This happened primarily among small and medium-sized enterprises that had limited equity in their business.
How Companies are Bouncing Back
By mid-January of 2022, nearly 80% of all business in the UK began trading offshore again. A recent study found that business closures spiked upwards to 14% from last year, however, mainly targeting small firms.
The economic impact opened up a new trading relationship with the European Union (EU) on January 1, 2021. This free-trade agreement involves various regulations and tax implications for many companies but is supposed to be a viable solution for all parties.
Remote Work Has Taken a Lead
Various companies have had to adapt to remote work options or a hybrid model. Business owners have had to opt for outsourcing some of their critical needs rather than maintain their full-time employees.
This has resulted in an increase in freelance work, such as hiring a virtual assistant for administrative work rather than employing someone in-house. The UK Prime Minister would like to try to reduce such trends.
"My experience of working from home," Prime Minister Boris Johnson told the Daily Mail, "is you spend an awful lot of time making another cup of coffee and then, you know, getting up, walking very slowly to the fridge, hacking off a small piece of cheese, then walking very slowly back to your laptop and then forgetting what it was you're doing."
Some have branded Johnson's belief that going back into the office would drive up productivity as ridiculous and called him an irresponsible leader. Many firms continue to maintain a remote or hybrid operation to conduct their business and keep employees safe, although this incidentally cuts down on operating costs as well.
Influx in Technology Adoption
Developments in technology have continued to alter the way owners run their company, too. Since the start of the pandemic, online tech has achieved a completely new role.
Video conferencing platforms, increased-cyber security, and a shift toward cloud-based applications have accelerated their role as business tools. Unfortunately, this has left many small firms falling behind.
Even when they managed to remain in operation during the pandemic, manufacturing companies have had to learn how to adapt. Through the use of fleet maintenance software, such companies can maintain better safety and compliance standards, as well as scheduling to promote reduced labor.
The Future of Business in the UK
The future of business in the UK in a post-pandemic world will depend on several factors.
Industries that aren't dependent on social distancing have a higher chance of sustaining and returning to normal operations. Those in manufacturing that also rely heavily on the new EU trade agreement may experience disruption across borders.
Despite whatever obstacles might remain ahead, future growth is projected to be relatively positive. Some companies may decide they're facing too many uncertainties to make risky, bold moves. Others are rethinking their growth strategy to meet the needs of their customers if another major global disruption were to occur.
But as the UK moves ahead, experts declare that businesses who are learning from this experience and express a willingness to adapt should experience a higher probability of success.
