Business Intelligence Lab

Over $400 Billion of Revenue at Severe Risk in the Manufacturing Industry

Written by Nathan Kolb | Nov 16, 2020 3:55:31 PM

The top 10 impacted states not only face massive revenue risk, but also greater workforce reductions 

The global pandemic has caused uncertainty and calamity throughout the US economy. Businesses have closed, employees have been laid off, and entire industries have had to adjust. Many Americans are working from home and companies have shifted to a virtual model of doing business.   

 

However, not all companies could follow the work from home trend. The manufacturing industry, for instance, is generally unable to convert to a virtual way of doing business. In fact, according to our third quarter report on manufacturing, the top 10 most affected states could lose $413.6 billion because of the pandemic.  

 

These states, located across the US, have had a combination of factors come into play which put manufacturing revenue in jeopardy. Shutdowns, preventative health and safety regulations, purchasing habit changes, restrictions on imports and exports, and the overall economic uncertainty have caused issues that many in the manufacturing industry may be unable to recover from.  

 

While the hundreds of billions in possible lost revenue from these states as well as the rest of the country is extremely concerning, it is only compounded by the ripple effect that these losses would have. Additional loss of jobs, tax revenue, property and real estate issues, and a host of other problems could grow due to the problems for the manufacturing industry related to the pandemic.  

 

To understand more about the impact of COVID-19 on the manufacturing industry, hear what the industry experts are saying, and understand the broader scope of these issues, download the full State of Manufacturing report