Coronavirus hitting at the heart of the supply chain says financial expert
THE Coronavirus crisis is creating a chain reaction effect for struggling businesses says a leading Sheffield financial expert.
Adrian Graham, of Sheffield business turnaround and insolvency practice Graywoods, points out that while high profile industries like hospitality are clearly suffering, the impact of the strain they are experiencing goes to the heart of many other sectors.
“There has been a lot of media interest surrounding hospitality and the levels of government assistance that has been provided,” he said.
“But restaurants and bars represent the top of the food chain and if they are struggling we have to think just as much about the other businesses that feed into it.
“We’re not just talking about breweries and drinks suppliers but those things that so often people simply don’t even think about - the companies supplying everything glassware to table linen and cutlery.
“And while venues are struggling to stage weddings and events, again there is a whole chain of people who are suffering but not in such a high profile way - everybody from florists to photographers.
“Even a field like dentistry has its own chain and while dental surgeries are not functioning at full capacity, that has to have a major impact on everything from dental labs to specialist equipment suppliers.”
Adrian added that there wasn’t any part of the commercial and industrial landscape that was not being affected by this supply chain effect, with the smallest companies inevitably suffering the most.
“Things might recently have seemed to pick up for businesses at the top of the chain but for those companies further down the line the outlook is difficult, with the possibility of everything from redundancy to insolvency seeming increasingly likely as they struggle to make up their own costs.” he said.
“The latest further lockdown will not have helped. The additional support measures may just delay the inevitable for some businesses.
“While certain sectors may be experiencing unprecedented high levels of business through the pandemic, we have to think about those that are being hit the hardest.
“The best advice I can give, though, is to take advice because there is help available.”
This was posted in Bdaily's Members' News section by John Highfield .
Enjoy the read? Get Bdaily delivered.
Sign up to receive our popular morning National email for free.