A cross-sector survey of 50 finance leaders on the COVID-19 epidemic reveals a collection of insights related to their biggest concerns with the outbreak and where they believe the greatest impact will be felt.
The study, from PwC, included responses from 50 leaders from a cross section of industries who weighed in from the U.S. and Mexico during the week of March 9. The survey will continue so that researchers track changing sentiments and priorities.
The potential for the coronavirus (COVID-19) outbreak to lead to a global economic downturn (80 percent) is the top concern for finance leaders based in the U.S. and Mexico, according to the survey data. That concern is followed by worries that consumer confidence (48 percent), financial operations (48 percent) and workforce productivity (42 percent) will be adversely impacted as the unprecedented measures to slow the spread of the virus continue.
Indeed, about half (54 percent) of respondents said that the outbreak has the potential for “significant” impact to their business operations, while 34 percent said the impact has been limited to specific regions, but they are monitoring developments closely.
On Friday, President Trump declared a national emergency around the coronavirus epidemic, setting aside existing regulations to allow for greater flexibility for the leaders of hospitals, clinics, and nursing homes. Among other elements that the president referenced were a broader facilitation of telehealth services to help patient care organizations, and around Medicaid provider engagement.
As of March 17, there have been just under 200,000 reported COVID-19 cases globally, with more than 7,000 deaths. In the U.S., the death toll is still under 100.
Per the survey, companies are prioritizing workforce health and safety, while ramping up remote working capabilities to keep people connected securely, and to keep projects documented and moving forward. The crisis is revealing immediate infrastructure gaps for many businesses, in areas such as digital upskilling, bandwidth and cybersecurity limitations, and that’s likely to increase investments in digital transformation, the data revealed.
Meanwhile, just 30 percent of companies are considering changes to their supply chain, with many having adopted short-term alternative sourcing strategies during the first quarter. However, the duration of the impact is the most important factor, and researchers expect that learnings from the outbreak will likely move the competitive forefront of supply chain operations toward more comprehensive proactive modeling.
On the healthcare-specific front, a recent survey from Premier Inc. found that more than two-thirds of senior living facilities in the U.S. cannot obtain the necessary N95 masks, face shields and other personal protective equipment (PPE) that may be needed to care for current or suspected cases of COVID-19. Primary care practices also are struggling with access to PPE, according to that survey.
How optimistic are finance leaders about bouncing back? A majority of respondents (90 percent) said they expect that their business would return to normal within three months if COVID-19 were to end immediately. Companies that remain optimistic about resolution of the outbreak are focusing on near-term solutions to manage disruptions, rather than longer-term solutions with strategic implications. They are evaluating cost containment measures, such as plans to curb discretionary spending. However, if conditions continue to deteriorate, researchers expect to see a pullback in investment spending as companies shift strategies.
