In 2019 Fortune Global 500 companies generated $33.3 trillion in revenues and $2.1 trillion in profits. In total, they reportedly employed almost 70 million people in 32 countries.
Impact of the Pandemic on Global 500 Companies
Fortune Global 500 companies experienced significant losses in revenue as a result of the pandemic. Considered to be the first financial decline in 5 years, after achieving a record high of $33.3 trillion in revenue in 2019, the world’s largest 500 companies saw a decline in total revenue of 4.8%, reducing overall reported income to $31.7 trillion in 2020.
Energy and Automotive Sectors
The pandemic had a big impact on the global economy. As country after country went into lockdowns, sales in the automotive and energy sectors dropped by more than 10%. The travel sector was badly hit too as airline travel was reduced to a mere shadow of its former self. The six airlines that made the Global Fortune 500 list in 2019 including American Airlines and Delta Airlines, didn’t even make the list of Fortune Global 500 companies in 2021.
Optimism for the Future
Despite the negative economic impacts brought on by the pandemic, the outlook for the Fortune Global 500 companies is optimistic. With pent-up consumer demand for travel as well as goods and services on a worldwide scale, the combined sales of the Fortune Global 500 companies are still reporting impressive revenues.
Business Trends for 2022
Innovation in manufacturing, as well as new playbooks for running companies in disrupted economies, are starting to emerge on the world stage. In 2022, the biggest winners on the list of Fortune Global 500 companies will likely be those that learned to overcome the supply chain management issues that plagued the world’s business operations throughout the pandemic shutdowns in 2020 and 2021.
Elaine Allan, BA, MBA
Technology & Business Blogger
Vancouver, BC, Canada