Industries Most Affected By The Recession

Industries Most Affected By The Recession

A vast majority of major economists agree that the worst damage of the economic downturn has passed, and that slow, post-recession growth should begin. No one can say for sure when large-scale economic growth will resume, but we can look back to when the economy did bottom out, and the data available in that period is still relatively fresh.

These days we are in 2020, and businesses are still suffering from the damage done in 2009 and 2010. But some companies still hold onto their culture from when they were in trouble. Here are some lessons they can share, by way of 2020.

Traveler Accommodation

When there is a lower level of cash circulating, one of the first casualties for consumers is the travel budget. This means that the hotels, motels, and other accommodations will see a sharp drop in the number of customers checking in. This was reflected in the lowest point of the 2008-2009 recession.

Travel accommodation, which include all sort of privately-owned hotels, saw no sales increase during the recession. Consumers might have taken fewer vacations or business travelers spent less of their money on vacations.

Office Supplies, Stationery, and Gift

Fast retailers took a hit as belts tightened and purses were dropped to the ground. These include stores selling small items such as school supplies and office supplies.

According to a report by First Research, office supplies, gift stores, and stationery decreased average annual sales by $7 billion in 2009 and $4 billion in 2010. This decline suggests that consumers and businesses may have tried to save by reducing the purchase of these supplies.

Printing and Related Support Activities

Businesses in this industry use tangible products, which are goods that are capable of being touched. They also provide support activities, like data scanning services, printing services, and bookbinding services. According to the US Census Bureau, the industries in this sector are responsible for creating a product and then manufacturing and distributing

Printing businesses experienced a sales decline during the recession in 2009: specifically, strong printers mainly in the U.S. ran extra shifts and expanded in-house manufacturing lines, so the demand for hefty printers fueled business growth.”

Furniture Stores

During an economic recession, people tend to postpone costly transactions such as home furnishings. Such businesses dealing in them tend to be hardest hit during the cycle. That was the case in recent years, and this is the bigger question

Bierman believes that consumer thrift was one factor, while the reduced new build volume during the recession contributed to the decline. “The sales decline of furniture stores, such as home furnishing stores, could be attributed to the reduced number of new home builds in an era of reduced consumer thrift. This industry has recovered from its early recession. Yet, why did the recession start?

The sales decline for publishers of newspapers, periodicals, books, and magazines should not be seen as anything relative to the changes in the industry because, despite the increasing use of technology and e-readers, this industry picked up between 2009 and 2010.

Cement and Concrete Product Manufacturing

Construction saw the biggest damage during the recession, with the shutdown of new projects and the slowing of existing ones causing many industries to suffer. These included the furniture industry and the healthcare sector, which are respectively dependent on furniture and healthcare construction. The recession also contributed to a slowing of government spending, which hurt industries located

Cement and concrete producing plants couldn’t escape the downturn in construction,”

Motor Vehicle Dealers

The auto industry has dominated the industry for some time. However, with the US economy’s uncertain future some have been overspending money on expensive vehicles such as RVs and motorcycles.

 The industry’s consumers weren’t willing to continue with these purchases, while the forecast for the strength of the economy was uncertain. Since consumers delayed or passed on big-ticket items when jobs and the economy were unstable during previous years.

Lumber and Other Construction Materials Wholesalers

The construction industry is one in which demand for materials is on the rise. Some studies indicate that material manufacturers have not been hurt much by the COVID-19 pandemic, but as the demand for building materials increases, firms should be able to make some money again.

Bierman is certain that demand for lumber and similar goods will be higher in the aftermath of the government’s sudden shift away from residential, commercial, and industrial construction projects. Therefore, it is likely that demand for these materials will also increase, and firms to make good money from selling more of that product.

Home Furnishings Stores

When the two earners in a double-income home have just been laid off, certain purchases are demoted. That luxe new chandelier suddenly doesn’t seem so necessary now that the family has shrunk. And even though there is a great deal of work, the distressed industry, as well as those that servicers see a hit.

This just demonstrates that even industries, despite not being this directly tied to each other, do not operate in a vacuum. When the construction industry slowed down, it jostled those industries that relate to it, and things did not go well for those in related industries.

Building Material and Supplies Dealers

We know that the construction sector has decreased in activity throughout the entire decade, but Sageworks data indicates that businessman and the construction material industry has decreased notably throughout the last few years. It was the hardest hit sector throughout the entirety of the recession, and the risk is that a lack of work will lead to the slow rise of sales”