When rocket sirens echo on the factory floor of Rav-Bariach Industries, Israel's largest security door manufacturer, workers quickly take refuge in the bomb shelters equipped with their own emergency kits. As Israel grapples with the ongoing conflict between Hamas and Israeli forces, the country's economy is adjusting to the uncertain rhythm of life during wartime.

According to CEO Idan Zu-Aretz, the demand for blast-proof safe room hatches and security doors has skyrocketed amidst the barrage of Hamas rockets and Israel's "Iron Dome" anti-missile system. However, Zu-Aretz hopes for a shift in this reality and emphasizes the need for the threats to be eliminated entirely.

Since the war broke out, Rav-Bariach, located in Ashkelon, near the Gaza Strip, has experienced frequent missile strikes. Fortunately, no one has been injured, but the events have created an unsettling environment for the employees. Ravid Brosh, head of international development, shared that in the initial weeks of the conflict, there were numerous alerts causing disruption in production.

The impact of the conflict extends beyond the immediate vicinity of Gaza. Over 125,000 Israelis residing near Gaza and in the north have been forced to evacuate their homes due to the ongoing cross-border strikes from Lebanese militants Hezbollah. Additionally, over 360,000 army reservists have been mobilized as part of Israel's ground campaign in Gaza.

The situation has taken a toll on Rav-Bariach's workforce, as many employees have been recruited by the army or are unable to travel to work due to safety concerns. With less than two-thirds of the 600 employees available, CEO Idan Zu-Aretz expressed concern about the shortage of manpower.

Economist Benjamin Bental from the Taub Center, an Israeli think tank, notes that the current conflict surpasses previous Israeli-Arab conflicts in scale and impact. The construction sector, heavily reliant on Palestinian laborers, has been severely affected since travel permits have been canceled due to the war.

The economic repercussions are becoming evident, with credit card transactions dropping by 10 percent after the conflict's outbreak and a subsequent 20 percent decline following the ground invasion of Gaza. Many economic institutes have consequently lowered their growth forecasts for the current and upcoming year.

Although the Israeli central bank remains optimistic, predicting a 2.8-percent GDP boost in 2024, economist Bental cautions that the scenarios are contingent upon many factors. He warns that a further deterioration of the situation, particularly along the northern border, could have devastating consequences for the economy.

As the conflict continues and Prime Minister Benjamin Netanyahu foresees a "long and difficult" war, significant amounts of state spending are expected to be allocated to military operations. Last month, a group of 300 economists addressed Prime Minister Netanyahu, expressing concerns about the magnitude of the crisis faced by Israel's economy.

In the face of ongoing challenges, Rav-Bariach Industries, like many other businesses in Israel, persevere and adapt to the economic uncertainties caused by the conflict.