The impact of Covid-19 has been felt across the country. For many manufacturers it has caused disruption to expected revenue as well as ways of working. Some sectors have seen demand rise rapidly as people have been forced to stay indoors or work from home, causing a different set of problems for them.
Today we look at 5 manufacturing sectors that are still showing signs of growth and the impact that Covid-19 has had on demand.
All data in this article comes from IbisWorld reports.
Respiratory Protection Equipment Manufacturing
Between 2016 and 2021 the annual growth of revenue for the sector was expected to be 4.2% with profits increasing by 0.8%. This has been driven by an increase in work-related respiratory disease where the incidence of work-related ill-health per 100,000 workers has remained steady over the past 5 years.
Covid-19 has caused an unprecedented surge for respirator masks with the healthcare sector being the biggest driver. This caused rapid expansion of both domestic and global production, with larger firms being awarded government contracts. An influx of smaller firms has supported the industry growth with revenue expected to grow by 25.8% in the current year.
Bread & Bakery Goods Production
Between 2016 and 2021 the annual growth of revenue for the sector was expected to be 3.2% with profits increasing by 10%. Growth has been slow due to challenging operating conditions over the past 5 years, such as changing consumer preferences, fluctuating raw material prices, and falling consumer confidence levels.
This year saw demand skyrocket as the government issued stay at home orders during the height of the Covid-19 pandemic. With people unsure what to expect they stockpiled traditional food items and the continued working from home has increased demand further. This has led to an increased revenue of 16.6% this year.
Breakfast Cereals & Cereal-based Foods Production
Between 2016 and 2021 the annual growth of revenue for the sector was expected to be 0.9% with profits decreasing by 2.8%. This has primarily been due to the changing consumer trends which weighed on performance of the sector. Health concerns have impacted consumers food choice while high sugar content in processed cereals put customers off purchasing.
Covid-19 disrupted this trend however as people were ordered to stay at home. This drove demand for breakfast cereals and with more free time consumers were returning to more traditional breakfasts. The impact of this means revenue is forecast to increase by 4.1% in the current year.
Soap & Detergent Manufacturing
Between 2016 and 2021 the annual growth of revenue for the sector was expected to be 4.4% with profits increasing by 7.8%. The past 5 years has seen manufacturers innovate their product offering frequently to contend with overseas competition and address growing environmental concerns. This is expected to continue over the next 5 years with ethical consumerism being the key driver of change.
Demand for soap has sored during the Covid-19 outbreak as the number of high-volume orders has increased. Low oil price coupled with these high-volume orders is expected to boost profitability while the industry will see a 6% revenue growth rate in the current year.
Between 2016 and 2021 the annual growth of revenue for the sector was expected to be -0.3% with profits decreasing by 0.3%. The drop in revenue and profit is expected due to changing consumer habits as well as the intense price war between supermarkets. Product innovation and cost cutting have been key to ensure companies can remain profitable in a tough climate.
Covid-19 has bolstered demand for biscuits due to their long shelf life and an increase in watching or streaming television has increased snack food consumption. This has increased the revenue of the industry by an estimated 3.7% this year.