The next gold rush : Top 5 Industries That Make Money during the Recession
It looks like the recession changed people habits (and hobbies ..) . With the global recession getting deeper and deeper, people are trying to spend their money in more useful products and services than before. The shopping is not anymore a favortie pastime.
Many businesses like ….. are actually profiting from the current climate. It’s cohrent since people are now spending their money in a different way. Now, many people are trying to change their lifes and find new job by training and learning new skills. Also companies are spending more and more money on financial services.
If you go on Commission Junction’s (the biggest affiliate marketing network on the Internet) account and sort the available affiliate programs by generated revenue in the last 3 months , you will figure out that non-discretionary products and services are working really well. In other words, products satisfying people’s basic needs are selling much more than before and thus having a higher growth .
So i did some more research on the internet to compile the list of the top 5 industries which generate money during the recession.
Auto Repairs, Home Repairs
April’s retail sales numbers showed consumers are still shunning big-ticket purchases. So instead of buying new cars or upgrading to bigger homes, they are spending money on maintaining what they already own.
Auto repair shop sales grew 2.4% over the last 12 months while car dealership sales declined by 9.7%.
As more people remodel and fix their homes instead of moving, revenue for electricians, plumbing and heating contractors has grown 4.6% in the last 12 months while home builders’ sales declined by more than 5%.
Supermarkets
Many consumers are looking to save money by eating at home more than eating out. This trend has favored grocery stores, resulting in a 6.7% sales increase for supermarkets in the last 12 months.
By comparison, family-style restaurants logged a slower 3.9% sales increase.
Trade Schools
With an average of 600,000 Americans losing their jobs every month, many are going back to school to learn new skills and improve their chances of rejoining the workforce when the economy rebounds.
Revenue at trade and technical schools has grown by 9.1% in the last 12 months, a faster pace than the 5.9% growth in 2007.
Dentists’ Delight
Hamilton said health care has been one of the most recession-resistant sectors, since people regard it as a necessity.
The average dentists’ office logged sales growth of 6.9% in the last 12 months, up from 4.9% in 2007.
Looking Good
Personal care extends to looking good through the recession. While Americans may be making concessions on high-end services, they are still getting regular haircuts and manicures.
Hair salons, barber shops, nail salons and spas logged sales growth of 4.5% in the last 12 months.
Help With Finances
Many consumers aren’t shying away from paying for financial advice to help them make it through the recession.
The accounting industry ranked among the top 10 industries in terms of revenue growth, with a 10.2% gain in the past 12 months.
“These patterns show that the recession has been lopsided,” said Hamilton. “Although the economy has slumped, we’re not getting a decline across all industries. Very specific industries like real estate are creating a big drag on the broader economy.”