Impact of Governmental Anti-COVID-19 Measures on the Activities of Czech Businesses

24.07.2020

In March, many companies were forced to suspend or largely restrict manufacture and sales activities due to the imposed governmental measures. We decided to ask selected Czech companies what this unprecedented situation entailed for them and how they reacted.

We succeeded in getting answers from more than thirty major companies from various industries (Automotive, Retail and Wholesale, Banking and Financial Services, IT, Insurance, Food Industry, Logistics etc.).

Most of the respondents agreed that the measures, i.e. restricted operation, closed borders or social distancing in public, did interfere with their business activities. Every other employer had their employees working from home almost immediately and distance communication (teleconferencing, online meetings etc.) took precedence.

Covid_1

Except for logistics firms, all the responding companies experienced a decline or stagnation in demand for their services and products.

Covid_2

Governmental measures had an impact on the operation of more than one half of the responding companies and resulted in significant restriction of operation for 35% of them.

Covid_3

64% of the responding companies either expect a reduction in profit or an eventual minor loss that they can afford. Less than half are planning smaller investments this year and the next.

Covid_4

There were also changes in the planning of ongoing or future projects. Most of them were suspended or cut back.

Covid_5

As the companies had to quite promptly establish teleworking, half of them are now planning to digitize their internal processes more and start shifting selected activities previously done only personally with the customers into the online world.

The answers also generally revealed that the responding companies were not satisfied with the governmental aid and that they considered it insufficient, chaotic and overcomplicated.