Managing Projects During the Covid-19 Pandemic: Impact Across Industries
By Sabrina Chapados
Mass layoffs, service disruptions, and changes in consumer demand resulting from the COVID-19 pandemic have forced sudden unprecedented change in almost every industry worldwide. This article will look at how business leaders and project managers are responding to the “new normal,” and what strategies have been effective at keeping projects going in the midst of global lockdowns.
About 28% of manufacturing is based out of China — more than any other country (the USA follows with 16%). It’s no surprise that this over-reliance on overseas production has allowed the pandemic to disrupt the world’s supply chain. Countries, in response, have begun to produce more goods locally.
Significantly decreased demand in the automotive industry has also led to automakers (such as Ford) collaborating with mask and ventilator manufacturers to meet the increased need faced by our hospitals.
In the future, we may see more automation and AI-driven manufacturing operations that are more reliable and don’t put workers’ health at risk, which will lead to an increased need for skilled tech workers over cheap labour.
The travel and tourism industry has taken a massive hit, and could see a loss of $2.1 trillion USD (according to the World Travel and Tourism Council) directly due to the pandemic. Airline companies have frozen hiring and reduced flight schedules, and may raise ticket prices and widen the gap between high class and “cheap” flights in order to mitigate these losses. The industry’s future will also depend heavily on governments and border statuses.
In retail, stores selling essential products (groceries, pharmacies, etc) have been the least impacted, but have had difficulty keeping up with inventory demands from panic buyers.
Online shopping is bigger than ever. Although it still only accounts for 10.7% of total retail sales in the USA, 58% of American are making more online purchases than they would normally, including those who have until now avoided shopping online such as older folk who are most at risk from COVID-19. Large retailers like Target and Walmart have transitioned some of their stores into fulfillment centres to meet the increasingly high numbers of online orders.
Companies that are centred around professional, scientific, or technical services have been overall better off, as many employees in this group are able to work from home. Those who had virtual teams already in place before the pandemic are even better prepared.
For project managers, the pandemic has brought about a number of challenges. Many companies responded by reducing costs through salary deductions and layoffs affecting almost one-quarter of Canada’s entire workforce. Many projects have been put on hold due to the unavailability of necessary people; however, fixed costs such as rent, electricity, and interest on bank loans still need to be paid.
For the workers who remain, leadership skills and communication have become more important than ever. The shift to remote work means that teams need to adjust to virtual meetings, and project managers need to ensure that all changes and new requirements are communicated and re-confirmed with clients, sponsors, and other stakeholders. For example, deliverables that require physical presence may need to be adjusted, there may be scheduling changes, supply chain disruptions could cause delays for shipments or supplies may not be available at all, and costs may increase for high-demand products or services.
While most industries will eventually recover and return to normal operations, in other cases, the changes brought on by the pandemic are here to stay. Many remote workers, for example, will not be going back to the office, especially as companies start to see benefits in the reduced need and cost for office space as well as the ability to hire people from anywhere in the country. It is becoming increasingly likely that the future of project management is virtual.
References
- Azwir, Akbar (2020). “Managing Project in the Middle of Covid-19 Pandemic”. https://magnaqm.com/project-management-articles/managing-project-in-the-middle-of-covid-19-pandemic/
- “Effects of COVID-19 Intensifying Across Industries” (28 April 2020). https://www.globaldata.com/effects-of-covid-19-intensifying-across-industries/
- Egeland, Brad (2020). “How Will a Global Pandemic Affect Project Delivery”. https://www.projecttimes.com/articles/how-will-a-global-pandemic-affect-project-delivery.html
- Hall, Peter G. (16 April 2020). “COVID-19: The impact on industry”. https://www.edc.ca/en/weekly-commentary/covid-19-industry-impact.html
- Jain, Vaibhav (23 May 2020). “COVID-19 Effects On the Top Line And the Bottom Line Of the Company”. https://www.entrepreneur.com/article/351049
- Saha, Sudip (15 May 2020). “What the Future Holds for Industries Most Affected by COVID-19”. https://www.valuewalk.com/2020/05/what-the-future-holds-for-industries-most-affected-by-covid-19/
- Thau, Barbara (20 March 2020). “Experts Unpack the Massive Cross-Industry Impact of the Coronavirus, From Retail to Hospitality”. https://www.uschamber.com/co/good-company/launch-pad/coronavirus-effects-on-major-industries