THE IMPACTS 

Since the COVID virus engulfed the world in 2019, the hand truck market has also experienced a slowdown as a result of the pandemic. According to Statista, the total global revenue for the hand truck market in 2019 was approximately US$ 3.94 trillion, down from a value of US$ 5.4 trillion in 2014. COVID-19 has had a significant impact on nearly every aspect of the hand truck industry, namely business closures, employee shortages, processing disruptions, and logistics.

1. Business closures

In the big picture, 41.3% of businesses reported that they were temporarily closed because of COVID-19. A far smaller number—1.8%—reported that they were permanently closed because of the pandemic. As Asia-Pacific accounts for the largest share of the global hand truck market and China is the world's largest producer of hand trucks, the severe COVID outbreak in this country has had a significant impact on the industry's global supply chain. Under the lockdown policy and restriction rules of China government during the peak time of the pandemic, many warehouses and factories of hand truck manufacturers had to declare contemporary closure or partial closure. In the United States, the widespread pandemic and its resulting public policies have prompted permanent closures for many small businesses.

2. Employee shortages

The COVID-19 pandemic has precipitated one of the worst job crisis episodes since the Great Depression. Up to November 2022, COVID has caused 7.52 million cases and 12,427 deaths worldwide, causing businesses significant losses and impacts due to a labor shortage. COVID-19 undoubtedly resulted in massive layoffs for big players in the hand truck market, such as America and China. Employees are unable to work or can only work for a limited number of hours due to many factors, such as health issues, fear of being contagious, company closure, social distance policy, and restriction rules. According to a recent Cornell University study, up to 31% of employees in America who were added back to payrolls following COVID-19 layoffs have been laid off again. Companies like Amazon and grocery delivery services were rapidly hiring at the start of the COVID-19 pandemic to meet the high demand placed on their markets. However, data shows that over 13 million Americans are now receiving unemployment benefits. Even when job opportunities in the material handling industry arise, people would prefer to remain stable and unemployed rather than take a job that they may lose.

3. Processing disruptions

Manufacturing production has been hit particularly hard by the pandemic, characterized by supply disruptions, drops in demand, and an overall recession. The industrial zone in some countries and regions, including China, East Asia, and Europe, was higher affected since their factories are unable to operate or even shut down due to rules on social distancing, labor shortages due to sickness, and lack of materials.

4. Logistics barriers

For the hand truck industry, logistics companies play an important role in value chains both within and across international borders, facilitating trade and commerce and assisting businesses in getting their products to customers. The majority of products are exported and shipped to customers all over the world via containers, ocean liners, or cruise ships. However, the COVID-19 pandemic created obstacles in the form of country restrictions, customs regulations, and trading costs, making the import/export process extremely difficult. Covid-19 has had a direct impact on logistics companies that deal with the movement, storage, and flow of goods.