Coronavirus Responses & Impacts Bioeconomy Survey Results – March 2020

Notes

The US Federal government is expecting a sharp recession in Q2 2020 and a recovery in the second half, and Goldman Sachs is too. The bioeconomy respondents are not so sure. 

More than 60 percent of readers expect impacts into at least Q3 in production volumes, product sets, financing, prices, staffing, R&D, partnership development and (ironically) federal sector support. There’s more optimism on logistics, and outsourcing.. Long-0range impacts include financing plans, long-range R&D and partner development. So expect impact on the technology pipeline and the IPO window.

Readers comments were generally of the “winter is coming” or “winter is here” type, though some added in a note of “winter is here, but spring riseth eventually”. The point about added pressure (financing) on contractors and subs points to perhaps more pain in financing projects than in financing everyday operations.

Comments from readers

• IF CAUTION IS NOT TAKEN IT CAN GO BEYOND 2021
• On-person consulting business; mostly N/A
• we sell into diverse markets that will see different levels of impact. We are just now starting to see potential impact on our demand. The magnitude will depend on how long it takes to resume normal life
• Staff reductions coming soon.
• All employees are covered for rest of year if that’s what’s needed. Financial plans have been covered for sometime due to major influx of capital and more readily available (thank God). 
• Contractors and Subs will be impacted unless they are capable of maintaining internal financial constraints. Logistics will be a situation for certain along with increase in costs during this whole timeframe which we do not know at this point.