Pharmaceuticals, shipping companies, manufacturers of sanitary equipment, e-commerce and housing reform are living a golden age
Two years ago, China began detecting the first cases of SARS-like atypical pneumonia. Soon after, when it was confirmed that it was transmitted between humans, the authorities decided to impose the use of masks in open spaces and indoors. In January 2020, it was almost impossible to get hold of one.
The Chinese population acquired what it could from abroad, the Government began to ration them so that there would be no shortage of toilets and demanded that manufacturers increase production to the limit and stop their export. In the end, the shortage moved to the West with the virus. Two years later, the situation repeats itself, but this time with antigen tests. The despair of some is the profitable business of others.
The restrictions and confinements that are repeated in Europe damage the economy. Growth forecasts are lowered in proportion to increased uncertainty. But not everyone is affected. Chinese exports of medical supplies – masks and personal protective equipment – tripled in 2020 to 105,000 million dollars and have remained stable in 2021: in the first six months of this year they registered a record of 48,000 million.
Net exporters
With a 26.7% market share according to the World Trade Organization, China is the main exporter of critical material to combat COVID. However, the bonanza is not exclusive to this country: the market for medical products – which also includes machinery such as artificial respirators – grew by 16% to 2.3 trillion dollars. This is an especially relevant expansion if one takes into account that it occurred at the same time that the total value of world trade fell by 7.6%.
“We have added several production lines and tripled the manufacture of masks. The market has already stabilized, but our results continue to be record highs, ”says Wu Shengrong, CEO of Dasheng, Shanghai. The Chinese government, for its part, shows geopolitical chest and underlines that Chinese industry is being key to protecting the world population from the coronavirus.
Pharmaceuticals
Something similar happens with vaccines. Pharmaceutical companies that have developed effective formulas against the virus have been doing August for a year. The one that has grown the most has been the German BioNTech, which in the first ten months of 2021 has multiplied its income by 136, to 13,400 million euros. Modern follows, with a growth of 4,800%.
But, although its results have increased more moderately – 91% -, the undisputed queen is Pfizer, which expects to earn more than 30,000 million just for the vaccine.
According to Reliefweb calculations, these three companies make a profit of $ 65,000 per minute. “It is obscene that a few companies make millions of profit every hour while only 2% of the population in underdeveloped countries have the complete vaccination schedule. They use their monopolies to prioritize the most profitable contracts with the richest countries, “denounced last month Maaza Seyoum, head of the Africa Vaccine Alliance.
“A lot of money”
No less controversial is the attitude of the large shipping companies, which move 80% of world trade. A handful of them control services and the pandemic has left them record profits. “At first, due to the drop in demand, they retired ships and reduced the number of frequencies,” says Arturo Miguélez, head of Green Ibérica, agent for northern Spain for the Taiwanese shipping company Evergreen. “The point is that demand grew much faster than expected and not all services have been resumed,” he adds.
Thus, the freight between China and Spain has gone from less than 2,000 dollars to more than 15,000. Sources in the logistics sector assure that long-term agreements are now being closed at about $ 6,000, triple than before the crisis. “After many years in losses, now the shipping companies are making a lot of money,” acknowledges Miguélez.
Thus, for example, it is understood that the world’s leading shipping company, the Danish Maersk, closed the third quarter as the best in 117 years: its $ 5.9 billion in profits quadrupled the previous year’s results. And the company hopes that the final stretch of the year will be even better.
Together, the top ten carriers expect to rake in more than € 100 billion in profit in 2021. In this way, it is easy to understand that they are not in a rush to fix supply chain problems, and that Maersk CEO Soren Skou , expect them to be extended in time.
Online trading
Changes in consumer habits during the pandemic have also been good news for other sectors. E-commerce is one of the fastest growing. And platforms like Amazon have squeezed this viral opportunity to the last drop.
Jeff Bezos’ company earned $ 100 billion more last year than the previous year and increased its profits by 84%. And that record is going to be too small: after having acquired new planes and boats to avoid the logistics crisis, the first quarter doubled its profit to exceed 8,000 million dollars, and the upward trend has continued, although with much more modest rates.
As almost all of this is paid with a card, it is not surprising that companies like Visa also live in abundance: in the third quarter the giant of plastic money billed 28% more.
Rehabilitation
So much time locked up at home and saving on travel and leisure has also had an impact on a considerable rise in real estate reforms, whose companies hope to close 2021 with an increase of 13% over 2020, in which, according to OiRealtor, the works have already tripled. And 2022 could be even better if European funds to improve the energy efficiency of buildings materialize.
Until then, those who are also improving are the developers of single-family homes, who between January and April sold 60% more than in 2020. The college of registrars assures that it is the highest figure since the peak of the real estate bubble, in 2007. And among these chalets, the prefabricated and industrialized ones stand out, whose demand has also grown by 60%.
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