Already now millions of office workers, thousands of teachers, journalists, artists and even personal trainers have switched to working from home. With very few industries being prepared for such fundamental shift, it's unclear how this ongoing experiment will reshape future operation of specific industries, but it will bring a change.
COVID-19 could even reshape globalisation as we know it. Remember Wuhan and the wider Hubei Province? It was responsible for 4.5% of China's GDP and 300 out of the world's 500 top brands had facilities there. Once local businesses stopped, the ripple effect was felt across the globe. With the virus spreading globally, international supply chains for car, tech or clothing brands collapsed within days, forcing questions about how to prevent such situations in the future.
Locating factories in China or South East Asia seemed the best way when maximising profit was the only goal. Cheap labor, fast delivery, satisfying quality, no questions asked about human or labor rights. But with the trade war between US and China and now the pandemic, American companies are leaving China in search for a better, more resilient manufacturing model. According to the latest annual Reshoring Index published by consultancy firm Kearney, the trend of locating facilities in China is seeing a “dramatic reversal”.
It would be premature to predict what changes will come after COVID-19 is no longer a major threat. But all the signals indicate the world will change on all levels.
