Cold Comfort - What Industries Will Thrive on Recession?

[legion]

As the economy turns south, what businesses will be in the best position to GAIN from a downturn?

I'll start...

While general contractors will be hit hard by the lack of new housing starts, I think that certain contractors will do very well. Specifically, those that specialize in home improvements. For example, I am putting in a concrete patio this year, my contractor, who doesn't do new construction, says he is on track to have his best year ever, and it's only March! He hasn't poured a single patio yet this year (waiting for the ground to thaw), and he is already booked until September. He has had so much money come in already from deposits, he is looking at adding a second crew (which entails buying a second cement truck, a second powered wheel-barrow, etc...). That's quite a capital investment for his small business.

I'm also going to say that Apple will do well. I don't think they will sell many new iPods or laptops, but I think their iTunes business will serve as comfort food as people buy a new song here and there and ramp down spending on larger items.

[ckissick]

But won't more people do their own home improvement, with no contractor, due to lack of money and surplus of time?

The movie industry could see more customers, looking for escapism.

[gassy]

Alcohol distribution--I've already started helping them.

[Jims5543]

I am starting a company the scrubs sidewalks clean after building jumpers hit them.

[Tim Walsh]

Walmart, people will start "downgrading" purchases, and walmart is the largest cheapest for just about everything.

[vash]

movie rentals soars when the economy doesnt. i read this in money magazine last time this schit happened. i dont expect any diff this go-round.

[cgarr]

Beer and snack foods.

[gr8fl4porsche]

Tell your contractor buddy not to spend the money just yet. Let's see if there are any cancellations first.

I am a contractor and just had a $500,000 contract put on 'hold'. That is not good. The company is called General Growth and they don't feel like growing.

They put the project on hold less than a week before I was scheduled to start. I had been preparing for this project for months. I had a dozen men ready to start. Now most are sitting at home drinking.

Invest in budweiser.

[JeremyD]

Credit counseling services, bankruptcy services, pawn shops, cash advance companies, auto parts places (for the DIY type) Grocery stores (people eat out less often) walmart, k-mart, dollar stores, discount tires (they buy new tires instead of buying a new car). American car companies (foreign cars become expensive.

[Porsche-O-Phile]

McDonald's (MCD). I've already bought in.

[cstreit]

Alcohol, cigarettes, anti-depressants.

[GothingNC]

Collection Agencies
Security and alarm system personnel
Educators
Trash haulers, cleaners and locksmiths dealing with forclosed homes
Mining for gold, silver etc
Professional Resume writers

[Jim Richards]

Originally Posted by cstreit

anti-depressants.

CANNOT AFFORD.

[72doug2,2S]

Easy-

Anybody doing business with the Federal Government, preferably inside the beltway.

[look 171]

Originally Posted by gr8fl4porsche

Tell your contractor buddy not to spend the money just yet. Let's see if there are any cancellations first.

I am a contractor and just had a $500,000 contract put on 'hold'. That is not good. The company is called General Growth and they don't feel like growing.

They put the project on hold less than a week before I was scheduled to start. I had been preparing for this project for months. I had a dozen men ready to start. Now most are sitting at home drinking.

Invest in budweiser.

Forget that. Once they signed, don't you have something in your contract that protect you from them getting out of it just because they have cold feet? After all, you did spend lots of time and maybe order materials and hire additional workmen for the job. They should pay for that. I give them 5 days after they sign and they have to give it to me in writting if they cancel. They are to pick up the tab on materials ordered and workmen's pay if there are any. Delay sucks. They should pay for the materials if there are any.

Thankfully we have work for the rest of the year. I talk to my vendors, they are all feeling the pinch a little. According one, we are back to normal, instead of the non stop crazy ordering that was going on last year.

[Jims5543]

Originally Posted by look 171

Forget that. Once they signed, don't you have something in your contract that protect you from them getting out of it just because they have cold feet? After all, you did spend lots of time and maybe order materials and hire additional workmen for the job. They should pay for that. I give them 5 days after they sign and they have to give it to me in writting if they cancel. They are to pick up the tab on materials ordered and workmen's pay if there are any. Delay sucks. They should pay for the materials if there are any.

Thankfully we have work for the rest of the year. I talk to my vendors, they are all feeling the pinch a little. According one, we are back to normal, instead of the non stop crazy ordering that was going on last year.

In a perfect world.

One local builder here was stuck with a lot of unfinished homes as the buyers pulled out due to the price drops. Put them out of business, good luck collecting.

[onewhippedpuppy]

Any business that sells abroad, but especially aviation. Sales of GA and commercial aircraft is booming in the USA, despite the slowdown. A weak dollar, combined with emerging aviation markets in China, India, Russia, etc has led to record bookings. Suprisingly, the domestic market is still strong, though many of our local companies are now selling more than 50% of their aircraft outside the USA. 9/11 and the nightmare that commercial flying has become are also helping to fuel growth in business aviation.

Beyond that, I'd invest in cheap liquor. Is McCormick's Vodka publicly traded?

[legion]

I had to put down a 10% deposit when I signed the contract. He is gearing up with cash-on-hand (although I imagine financing some of the larger capital equipment).

Still, the local area historically has had a pretty stable economy that is only affected mildly by recession. Not saying this time can't be different though.

I think he is making the right moves for this area...

[asphaltgambler]

Pawn shops
Payday lenders
Vehicle title lenders (see above)
By-Here/ Pay-Here stores (used cars, furniture, appliances)

[Groesbeck Hurricane]

buying at wallfarts is just sending our money to china and India and such. Besides, I've said this too many times until I'm blue in the face, they are NOT DISCOUNTERS OF PRICE!!!! wallfarts makes money by discounting the quality of the merchandise they sell, beating up vendors until THE VENDORS go out of business, helping sell off US Vendors equipment to china, and achieving (in MOST states) illegal tax credits/cuts for building new stores where old ones used to exist. wallfarts makes money off our backs. Don't go there to buy American or save American jobs. Just does not work that way.