The COVID-19 coronavirus outbreak, which has intensified in the rest of the world outside China since March 2020, has forced many countries to announce either full or partial lock-downs.

The developments during the outbreak continue to affect the operations of companies in multiple industries, especially those categorised as non-essential for the public, including the defence industry.

Verdict has conducted a poll recently to understand what industry observers and participants think about the impact of COVID-19 outbreak on the revenues of defence companies.

Nearly 80% of the respondents foresee at least a moderate impact on the revenues of defence companies, due to the novel coronavirus (nCoV) outbreak.

COVID-19 impact on defence company revenues: poll results

A majority 48% of the respondents opined that defence companies will feel a ‘high’ impact of COVID-19 on their revenues, while 31% opined the impact will be ‘moderate’.

A low impact of COVID-19 on revenues is foreseen by 21% of the respondents.

The analysis was based on 686 responses received between March and April 2020.

COVID-19 impact on defence: What leading analytics firms such as PwC and GlobalData say

Budgeted spending by governments will safeguard the defence industry, says professional services provider, Pwc , which adds that the financial impact due to COVID-19 on defence companies will be lesser compared to aerospace companies.

Defence companies in the US and the UK, such as Honeywell and Qinetiq , are announcing fiscal measures to contain the COVID-19 impact, such as entering delayed draw term loan agreements and postponing dividend announcements to preserve capital, according to GlobalData, a leading data and analytics company.

GlobalData, which predicts a lower GDP in the US and UK economies in 2020, anticipates a potential decrease in defence spending in the short to medium term due to reduced tax revenues.