4 Industries That Are Recession Proof

4 Industries That Are Recession ProofSource: Pexels

Anybody that hasn’t been living under a rock for the past decade knows that the world economy was hit by a recession. So many industries struggled and countless businesses went under. Huge amounts of people lost their jobs and it seemed as though everybody was having a hard time. But not everybody was affected in the same way. While some businesses simply cannot survive during a recession, others can, and some might actually thrive. Those that can keep their head above water will find that they have far less competition and it could actually be beneficial for them. Even the world’s best economists struggle to anticipate a recession and we often don’t have that much warning. If you’re worried about getting caught out, the best way to protect yourself is to go into an industry that is recession proof. Any one of these businesses is a safe option.

1. Shipping

Retail businesses are often the hardest hit during an economic downturn. When times are hard, people don’t want to spend that much money on nonessential items. That means shipping companies might have to redirect some of their business but there are still essential items that people will always need to buy regardless of the economic situation. Container transport companies that deal with food or clothes are always going to have business because people aren’t going to stop buying those essentials.

2. Luxury Retail

While a lot of retail stores are going to struggle, the more high-end ones should be ok. People often think that the recession affects everybody equally but that isn’t the case. The number of billionaires in the world actually rose by 20 percent in 2008 and since then it’s doubled, rather than decreasing as you’d expect. People at the higher end of the earning scale tend not to be affected as much and so they still have the money to spend on luxury goods. Any luxury retail stores selling more expensive items will be more likely to sustain itself than one that sells goods to the average earners.

3. Repossessions and Removals

It’s a sad reality of the recession that people are going to lose their homes and businesses. It isn’t a pretty job, but somebody has to move all of their stuff out or repossess goods from people that can’t afford their debts. The companies that deal with this kind of thing always thrive in a time like this, so if you set one up, you won’t struggle. However, when times are good, you might find yourself struggling to find work.

4. IT

Computer technology has become such a vital part of almost every industry out there at the moment. When times are tough, companies are going to start cutting back on a lot of their expenses. However, they can’t really cut back on IT services without seriously damaging the infrastructure of their company. Things like their website and social media presence might take a small hit, but without them, they will struggle to maintain sales during a trying time. Cyber-security also cannot be cut back whatsoever otherwise you put your company at serious risk of attack.

If you are worried about the dangers of an economic downturn, try these recession proof industries.