One word, Bandwidth.
In past recessions, the internet and bandwidth you could get at home was just not strong enough for face to face video calls and sustain business every day. Today it is. Six months ago, companies across America had a dense office workspace, cubicles, full meeting rooms, communal areas etc. In fact, six months ago if you wanted a job, you had to be in the office.
The greatest difference in this recession and past recessions is that companies (when forced to because of COVID) found out they could still function remotely and function well. They also found out that they didn’t need all that expensive office space and labor was cheaper in South Carolina than in Manhattan.
Owners, bosses, staff and employees found out that the bandwidth (ability to connect) was as good in rural areas as it was in say, New York, Chicago, DC etc. and they didn’t have to spend two hours a day in the car driving to and from the office. That is why the results (in my opinion) from this recession will be very different than previous recessions. Take New York for example; most of the vehicles on the streets today are moving trucks because people are leaving the city in hordes every day. They are cancelling those expense apartment rents and moving to other states. Corporate America has found out that they can meet with clients via zoom from their home for free instead of getting on an airplane and spending two thousand dollars just to meet face to face.
Bandwidth and the ability to do business without the expense of office space and travel will have (in my opinion) significant long-term effects to the office building industry, airlines, hotels, travel, restaurants, entertainment and almost every commercial segment you can imagine. Who would have thought six months ago that bandwidth would change the face of corporate America? Well,,,, I believe it has. KT