It looks like China is recovering economically from the corona crisis but this will recovery will go through, and the workplace of the world will soon feel the effects of the lockdowns elsewhere: warnings by SHV top-executive Jeroen Drost in his comments on the annual figures for SHV.
On the dependency of animal feed producer Nutreco, the last big acquisition of SHV, on India for ingredients and vitamins: 'Every company in the world is suddenly very aware of the origin of their ingredients and components'. It is a trend that was set in motion last year with the China-US trade tensions, and which is now accelerated by the COVID-19 pandemic.
Furthermore, Drost predicts a decrease in business travel and changes in earnings models of the travel industry, hospitality and big event agencies, which will have to make adjustments in their concepts that go deeper than creating a 1.5 metre distance between tables and chairs. 'Entrepreneurs will have to be creative, because the government can and should not bail out companies that do not have an earnings model solely for the purpose of saving jobs'.
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Read full article by FD here (Dutch).
Jeroen Drost graduated from Erasmus School of Economics in 1986.
