Over half of the enterprises that make up Georgia’s packaging value chain lost more than 50% of their income to lockdown and 83% considered the pandemic a significant threat to their continued operation, said a new study of the European Union and the United Nations Development Programme (UNDP) based on interviews with over 500 companies.
The research aims to assess the impact of the COVID-19 lockdown and gives advice as to the next steps for the packaging sector in Georgia.
88% of companies had no business-continuity insurance and 58% said they lacked the financial resources needed to survive the crisis.
Company workforces have also been hurt, but 54% of packaging companies have been able to avoid firing or laying off staff. 17% put staff on unpaid leave, while 17% temporarily laid off their employees.
“As our survey makes clear, Georgia’s economy has taken a big hit during the pandemic, with half of the companies in the packaging sector losing at least half of their income. But it is heartening to see that 70% of the same group of companies are exploring new business opportunities”, said UNDP Head Louisa Vinton.
More than 70% of packaging companies see business opportunities emerging alongside pandemic challenges.
Most of them aim to develop new products and services, enter new markets and explore online business tools to modernize their operations. Some have already taken bold steps to repurpose their business on short notice, adapting products and services to the emerging market needs. (Agenda/Business World Magazine)
