Fastest Growing Industries in USA during the Pandemic
Take a look at which market segments are growing the fastest and how businesses can pivot their operations to take advantage of changing consumer demand.
Which companies and which industries are not only surviving but thriving?
We take a look, market segment by market segment, starting with Big Tech and E-Commerce.
Big Tech Gets Bigger As Sales Skyrocket At Amazon And Walmart
What do we do when we're locked down at home during the pandemic?
We go online!
And indeed, we have. During the height of the pandemic, web traffic at the four most popular websites (Google, Amazon, Facebook, and its subsidiary Instagram) rocketed up by double digits.
Over the last year, analysts estimate the big five tech companies – Apple, Amazon, Facebook, Alphabet (Google's parent company), and Microsoft – collectively earned a net income of around $500 million per day!
With many physical retail stores shut down during the height of the pandemic, consumers turned out in force to purchase goods from Amazon.com, which has been rapidly hiring to support its growing logistics operations. The company has also stepped up its real estate acquisitions to expand its network of offices and warehousing / distribution centers. Amazon is also looking at converting underutilized shopping malls into fulfillment centers to beef up its logistics real estate portfolio within more densely populated areas.
Arch-competitor, Walmart, has also seen its sales boom. Its stores, most of which were deemed "essential businesses" thanks to its grocery departments, stayed open during the pandemic. The company continues to invest heavily to compete for Amazon's online sales. Their new strategy revolves around an Amazon Prime-like paid subscription membership, dubbed Walmart+, which promises goods will be shipped out from a nearby Walmart location the same day they are ordered. (It's estimated that 90% of Americans live within 10 miles of a Walmart store.)
As we'll see in the next section, domestic airlines are facing a similar crisis as the USPS. Their traditional revenue streams have been upended due to the collapse of demand for business and leisure travel. Air cargo shipments have been a lifeline for airlines during the pandemic, however, as many have successfully converted their routes into all-cargo flights – with some airlines even resorting to ad hoc measures, such strapping packages into passenger seats, to make up for lost revenue.
Consumer Taste In Travel And Recreation Takes An Outdoorsy Turn
With Canada and most of Europe saying no to entry by American tourists, the Great American vacation has become a domestic affair in 2020.