The COVID-19 crisis has had widespread economic impacts around the world, right down to how companies operate. According to FTI Consulting's recently released annual Resilience Barometer report, 77 percent of companies have been forced to fundamentally change their business models as a direct result of the pandemic.
FTI Consulting surveyed 2,185 leaders in large companies across the G20 nations. The survey found that 3 in 10 companies require restructuring or refinancing because of the pandemic's impacts, while 60 percent are facing challenges servicing debt. Companies surveyed have seen an average revenue decline of 10 percent and a headcount drop of 12 percent.
The crisis has affected nearly every business sector there is, with retail, hospitality, travel, transportation, and oil and gas facing the biggest difficulties, according to FTI.
"From debt servicing to cyber threats, businesses have never faced so many compound crises occurring at once. If 2020 has taught businesses anything, it is that those businesses that invest in resilience will be well placed to succeed when we emerge on the other side," says Caroline Das-Monfrais, a senior managing director and global resilience lead at FTI Consulting.
Most companies surveyed–78 percent–say they think the changes in consumer behavior brought about by the pandemic will be permanent, which means big shifts will be necessary in the retail and food service industries. Retailers expect a sizable move toward e-commerce, and restaurants are putting more emphasis on pick-up and delivery services.
The expected shift in business models is also expected to present some opportunities that will favor companies in certain verticals who manage to pivot in a way to capitalize.
"Such opportunities range from e-commerce sites acquiring established high-street brands, to auto manufacturers investing in green mobility solutions," the report states.
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