Energy & utilities feel greatest risk, but reveal highest resilience scores
As the pandemic took hold, energy and utility businesses were in the vanguard of sectors most significantly affected by its impact on society with 41% of executives ranking this their top risk. As populations stayed home, the collapse in demand for fuel at one point saw the price of oil plummet to minus $37/ barrel. Confidence was strong that economies would recover, particularly in the UK where the government was very much on the front foot with economic support programmes.
Government action bolsters financial services’ confidence
As inventory swelled, oil traders grew increasingly concerned not just over pricing, but over the world’s capacity to store crude oil. Banks and pension funds were acutely worried by similarly fundamental risks – the very real prospect of a global recession and a collapse in the value of assets. The sector was the second most concerned by pandemic risk, rated top by 39% of executives. Government interventions to support the economy provided confidence however that the impact of the pandemic would be well managed, particularly in the US.
Manufacturer sentiment reveals cross-Atlantic split
Manufacturers of every kind were buffeted by fast-changing demand dynamics, workplace restrictions and of course supply chain issues during the high points of the pandemic. As we move out of the crisis phase of the pandemic – not all manufacturers have experienced a resurgence in demand. However, US manufacturers are notably more bullish with 59% of executives feeling very prepared to anticipate and respond to this risk, compared to 34% in the UK.