BAKU, Azerbaijan, July 14
By Tamilla Mammadova – Trend:
Over half of the enterprises that make up Georgia’s packaging value chain lost more than 50 percent of their income due to lockdown, Trend reports referring to the results of a survey conducted by the European Union (EU) and the United Nations Development Program (UNDP) and based on interviews with over 500 companies.
The study aims to assess the impact of the COVID-19 lockdown and provides recommendations on the next steps for the packaging sector in Georgia.
As reported, 83 percent of Georgian enterprises operating in the sector consider the pandemic a significant threat to their operations.
The study reveals that 88 percent of companies had no business-continuity insurance, and 58 percent say they lack the financial resources needed to survive the crisis.
Company workforce also has been hurt, but 54 percent of packaging companies were able to avoid firing or laying off staff. Some 17 percent put staff on unpaid leave while 17 percent temporarily laid off their employees.
"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 per cent of the same group of companies are exploring new business opportunities", said the report.
As reported, more than 70 percent 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 reorient their business, adapting products and services to the emerging market needs.
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