COVID-19 And The Work From Home Movement
There is going to be tremendous fallout economically from COVID-`9, above and beyond what we know now. One of the major changes is going to be the idea of working from home. This will have a big impact upon things.
In this video I discuss how the second and third layer is at risk from this shift.
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It's wonderful watching this from your point of view, now if everything slowly migrates to an online platform like services that might require human contact. I feel efficiency will be a problem apart from the vast economic repercussions that might come with it as well.
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Summary:
Task discusses the significant impact of the shift to remote work due to COVID-19 on various aspects of the economy. He highlights that 10% of the workforce is expected to permanently work from home, which will have repercussions on spending, company finances, commercial and residential real estate, and various industries like transportation, retail, and food services. Task emphasizes that this shift will lead to deflationary effects and discusses the potential changes in consumer behavior, office space requirements, and the demand for office furniture and supplies. He concludes by noting that companies are adjusting to a new normal.
Detailed Article:
Task begins by addressing the changing landscape of work brought about by COVID-19. He references a study by Cushman and Wakefield, where the CFO stated that 10% of the workforce will continue to work from home permanently. This shift, Task explains, will amount to approximately 15 million individuals, posing challenges for companies and impacting various sectors of the economy.
The discussion delves into the consequences of this shift on company finances, with a 10% decline in workforce presence potentially leading to significant stock devaluations for many organizations. Sectors like restaurants, businesses, supermarkets, and local shops are highlighted as especially vulnerable to revenue reductions and potential closures due to decreased consumer spending.
Task further explores the broader implications of remote work on areas like transportation, real estate, and consumer behavior. He notes the potential decrease in gas usage, toll road profits, parking garage revenues, and local business sales due to a reduction in commuting. Moreover, the impact on commercial real estate, especially with a potential 10% decrease in office occupancy, is discussed in relation to the already struggling retail sector.
The conversation extends to changes in consumer behavior, with telemedicine provided as an example of a sector embracing remote interactions. Task explores the possibility of various industries, such as accounting and legal services, transitioning to remote work models that eliminate the need for physical office spaces.
Task emphasizes the role of technology in facilitating remote work, pointing out that individuals are becoming more comfortable with video conferencing tools, potentially leading to lasting changes in how people conduct business meetings and consultations.
Furthermore, he touches on the deflationary effects that may result from reduced consumption as individuals spend less on office-related expenses like office furniture and supplies. Companies like Staples and Office Depot are highlighted as examples of businesses that have already been impacted by these shifting consumer trends.
In conclusion, Task underscores that the move towards remote work is ushering in a new normal for companies, necessitating adjustments across various sectors of the economy. He leaves the audience with the notion that the evolution of work practices in response to the pandemic will have enduring effects on the economy and consumer behavior, urging vigilance in observing how these changes unfold over the coming months.