New research has revealed how much certain industries have been affected after the COVID-19 pandemic. This is in relation to the U.K. business sector, where some businesses will have prospered (such as manufacturers of disinfectants) and others will have stumbled, such as the travel sector. This is cyclical affect seen during periods of disruption, such as during pandemics.
A study by marketing training hub School of Marketing, and provided to Digital Journal, analysed the latest U.K. government data on the number of businesses that were born and died in the last eight business quarters after the pandemic (defined as the period from Q2 of 2020 to Q1 of 2022) and compared this with the eight quarters before the pandemic (from Q2 of 2018 to Q1 of 2020) to see how each industry has been affected in the last two years.
The analysis reveals that the information and communication industry was the worst affected industry by the pandemic. Pre-pandemic, for every 100 businesses born in the industry, 91.51 businesses died. This number had increased by 89 percent post-pandemic with 173.24 business deaths for 100 new ones.
A study by PricewaterhouseCoopers suggests struggles during and after the pandemic in the industry could be caused by decreased overseas consumption and reduced supply of outsourcing due to worldwide restrictions.
It was found that finance and insurance was the industry second-worst affected by the pandemic. Pre-COVID, there were approximately 48.01 business collapses for every 100 creations. Post-pandemic, this number had increased by 50 percent, with an average of 71.95 deaths for every 100 business births in the industry.
The wholesale industry prospered post-pandemic when compared with the others studied. Pre-pandemic, for every 100 wholesale businesses born, 101.5 businesses died. This result decreased by 20 percent post-pandemic, where in the last eight business quarters, only 81.44 businesses have died for every 100 wholesale businesses born.
The outcome is shown in the table below:
| Industry | Number of business deaths, for every 100 business births pre-pandemic (Q2 2018 – Q1 2020) | Number of business deaths, for every 100 business births post-pandemic (Q2 2020 – Q1 2022) | Post-pandemic change |
| Wholesale | 101.50 | 81.44 | -19.76% |
| Retail | 79.75 | 69.94 | -12.31% |
| Accommodation and food services | 90.37 | 80.51 | -10.90% |
| Motor trades | 94.84 | 86.37 | -8.93% |
| Health and social care | 100.53 | 94.62 | -5.87% |
| Education | 82.85 | 87.43 | 5.53% |
| Construction | 80.08 | 85.04 | 6.19% |
| Transportation and storage | 78.23 | 88.96 | 13.72% |
| Real estate | 60.08 | 69.22 | 15.22% |
| Production | 91.31 | 105.25 | 15.26% |
| Agriculture, forestry and fishing | 118.93 | 137.31 | 15.46% |
| Arts, entertainment, recreation and other services | 89.70 | 108.60 | 21.08% |
| Business administration and support services | 89.86 | 108.87 | 21.15% |
| Professional, scientific and technical activities | 97.60 | 142.41 | 45.91% |
| Finance and insurance | 48.01 | 71.95 | 49.86% |
| Information and communication | 91.51 | 173.24 | 89.31% |
| UK Total | 86.58 | 100.67 | 16.26% |
The table shows that businesses in retail were found to be the next most successful after the impact of the pandemic. Pre-pandemic there were on average 79.75 business deaths for every 100 business births, and this number has dropped 12 percent post-pandemic with roughly 69.94 businesses dying for every 100 births since the second quarter of 2020.
It was also found that in the eight business quarters from April 2018 up to March 2020, the UK average was that 86.58 businesses died for every 100 that were born. Post-pandemic this number had increased by 16 percent, with current figures showing that for every 100 new businesses, roughly 100.67 have died, making the average number of business births and deaths almost equal since the pandemic began.
A longer-term business health check will, in a few years time, see how many of the newly created firms last.
