New ways of conducting business after the pandemic outlined in BMO report

COVID-19 has accelerated a number of business and employment trends while some industries may face long-term challenges, others will strengthen and step into the gap, says a report by BMO Financial Group.

“The global economy has overcome many challenges, which inspires confidence in the future," said Darryl White, CEO, BMO Financial Group. “To cross the economic bridge we now find ourselves on, we must be agile and innovate. Sector by sector, industry by industry, we are seeing numerous examples of how new ways of doing business will support the economic recovery. We will emerge from this difficult period stronger." 

Rapid changes have taken place

Specifically for Canada, which has long struggled with productivity relative to key peers and lagged on innovation, the changes that have been abruptly foisted on businesses and workers by the shutdowns may be the spark that closes that gap, says the report. Changes have been made in the past month that took days or hours which, in "normal" times, may have taken months or years.

The report focuses on some of the developments or industries that could potentially grow above average in the coming years, which could help reinforce a recovery in a different environment. The report specifically notes supply chain dynamics, remote working, e-commerce (and mobile banking), robotics & AI, industrial real estate, real-time data, e-learning, local tourism, autonomous vehicles, and general preparedness (pre-cautionary savings and redundancies).

People are resourceful

"Economies are resilient, and people and businesses can be incredibly resourceful in the face of challenges; don't underestimate the ability to recover from this tough period," said Doug Porter, Chief Economist and Managing Director, BMO Financial Group.

When it comes to financial planning, the report specifically notes the importance of maintaining emergency savings to cover at least three months’ worth of living expenses. The report notes that during a period of low interest rates, consumers will be looking for higher-yielding, but still-safe options such as money market funds that invest only in short-term government securities.

“At the very least, the crisis and sudden income losses may reinforce the need for precautionary savings among households,” says the report.