It seems like a (im)perfect storm right now. An election year that has brought uncertainty. A global pandemic. Wildly fluctuating markets hitting Bear territory. A crude oil price war.
Any single one of these issues could cause economic concern. But together, they may wreak havoc on the economy for months, or years, to come.
Organizations that plan appropriately can weather the uncertainty and storm. Some may even find opportunity for market growth and specialization. There is a lot we can learn from past recessions; let’s take a closer look at some potential opportunities.
8 Sectors That May Grow During a Recession:
During a pandemic, we can expect to see the healthcare industry need an influx of talent and specialists. Early indicators are already pointing to huge increases in demand for nurses, physicians and support staff. Beyond practitioners though, we can expect to see increased needs in housekeeping, administration, insurance billers/coders, food service and more.
With an economic crunch and lower interest rates, more people will look to refinance their home loans. During the last recession, mortgage companies and lenders had a massive increase in home refi’s and had to quickly staff up to meet demand. Additionally, with more economic uncertainty, we can expect to see home sales decline and rentals increase. Sectors like property management, leasing and more may see a big need for additional talent.
While many companies may not make huge, massive IT investments, many will be looking for ways to improve remote access. Additionally, during recessions many companies look to technology as a way to become more efficient and competitive. The fields of remote work infrastructure, communications, AI and machine-learning may all see strong growth.
Unfortunately during economic downturns, the collections industry becomes busier. As more people and more businesses have issues with payment, growth in this sector is inevitable.
- Discount Retail
While much of retail was hit extremely hard during the last recession, Walmart’s net income actually rose in 2008, 2009, and 2010. In uncertain times, consumers become more cost conscious and are willing to turn to generic brands to save money. Not only will discount retailers need more staff, the supply chains tied to those retailers may experience an uptick as well.
- Consumer Staples
During a downturn, the hospitality industry is typically hard-hit. As more people forego eating out and entertainment, they purchase and consume more staples. Large consumer goods companies like Proctor & Gamble, Colgate and others should see an uptick. Additionally, grocery stores may have increased demand and need for staff.
- Sin Industries
When times are tough, people turn to alcohol and tobacco. In states with legalized marijuana, we may see an increase in consumer usage and a need for staff as well. However, during recessions of the past we have seen a decrease in gambling/gaming.
Finally, the service and maintenance sectors should see an increase in demand during a recession. As the population becomes more fiscally conservative, we will see consumers opt for fixing things, instead of just buying new. This can range from cars to appliances to large machinery.
Does your staffing firm have a recession plan in place?
While the above industries may see growth, many others could see steep declines. It’s important to self-evaluate and ensure your business has a plan in place to weather the storm. During the last recession we saw many staffing companies go out of business—but we also saw the strategic and proactive staffing companies gain market share.
By proactively planning, exploring potential growth sectors that align with your current business mix, and actively promoting and marketing your organization, you can limit the impact a recession has on your business, and recover faster than the rest of the market.
If you would like more ideas on how to position your company for growth, contact us today.