The impact of the Corona crisis on the trade sector
The Corona crisis and the associated restrictions on public life are giving the trades sector in Germany a hard time. On the one hand, the measures taken have led to a drop in demand, in some cases considerably. On the other hand, companies are facing challenges in trying to keep production up and running because supply chains are interrupted and employees are absent due to illness or quarantine. This quickly leads to existential hardships, especially for small companies.
What are the economic consequences for businesses in the trades industry? And how can and must policies counteract them? In a recent study, Prof. Dr. Gunther Friedl and Benedikt Tratt from the Chair of Controlling at the TUM School of Management together with the Ludwig Fröhler Institute for Handicraft Science, addressed these questions and developed concrete recommendations for action.
For example, the current crisis is affecting trades businesses to a varying degree depending on the sector. While the construction and finishing trades are still little affected by the crisis as things stand, the consequences for the consumer-related trades such as hairdressers, beauticians and photographers are greater. This makes it all the more important that politicians do everything possible to ensure that healthy companies can bridge the current crisis and quickly get back to work after the shutdown, write the authors of the study. One option is to grant the necessary aid and bridging loans quickly and unbureaucratically. Overcoming the crisis is possible only with unconditional cooperation among political decision makers, trade organizations and companies.
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Technical University of Munich
TUM School of Management