How the Coronavirus is Affecting Company Revenues?

How the Coronavirus is Affecting Company Revenues?

The highly infectious disease COVID-19, a Coronavirus, which originated in Wuhan, China late last year has affected all aspects of life around the globe. With more than 90,000 cases of Coronavirus and over 3000 deaths, the toll that this outbreak is taking on personal lives is paramount. So is its impact on the global market.

China, USA, France, Italy, Iran, Germany, Kuwait, South Korea, and Australia are only a few of the 67 countries that are currently affected by this outbreak. As a result, many global business operations are in danger of being suspended or depressed, thus impacting the revenues that these businesses generate. In fact, American companies making big bucks from their operations in China are already expecting a 50% decrease in their revenue from China if the outbreak continues for much longer.

Here is how the coronavirus is affecting company revenues:

Seeking new locations for materials and manufacturing

China is the major exporter of raw materials for several industries. However, in the current situation of the coronavirus outbreak, China cannot fulfill the requirements of raw materials or finished products for a lot of industries. Therefore, many businesses are seeking new manufacturers to outsource their production operations. This poses two major problems. One, companies will not have enough visibility if they are outsourcing their production completely, which means that there will be no warning if operations suddenly come to a halt. Two, new locations to which manufacturing is being outsourced (or from where the raw materials are now being sourced) may not have enough experience and expertise, which will affect the quality of the deliverables. Both problems are bound to affect company revenues.

Market has shrunk

On the other side, China is also the world’s largest market for numerous businesses. Since hundreds of millions of people in China are affected, the market size has also suddenly shrunk for many industries. Import and supply chain operations in China have also been disrupted. Both of these issues are affecting company revenues.

Infected or quarantined employees

If some of your employees are infected or quarantined due to suspicion of coronavirus infection, the tasks that those employees were handling for your company will become affected. Therefore, the coronavirus outbreak is not only presenting a huge hazard for the health of your employees but also for your company revenue.

Fear and panic – the recipe for an unproductive work environment

There is a general environment of panic and fear in public places in a lot of countries that are already in the grip of the coronavirus. Work and productivity automatically get affected in such situations. If the employees do not (or are unable to) come to work, a lot of business operations

that cannot be handled remotely will get severely affected. This will have a huge impact on the

revenue generated by many companies.


With the coronavirus knocking the doors of numerous countries worldwide, an unprecedented new factor may be affecting company revenues worldwide. It is time to take this issue seriously not only in terms of its impact on health but also because of how it may further influence company revenues.