Competition is even tougher than it was before. Most sectors of the economy are expected to post losses through 2009 with little improvement expected until sometime in 2010. The bottom line is that for the next year or two everyone is going to be scrambling for a bite of a much smaller pie. In our last post we shared survival tips from DJ Products’ own experience and from Doug Gregory of Diamond Group Marketing (see his February 9, 2009 article on Manufacturing & Technology eJournal). Aggressive marketing, superior customer service and strategic diversification can help your business survive a bear economy, but to thrive you’re going to have to start searching for new customers.
Gregory and others agree that there are bright spots glimmering amidst the general economic gloom. Certain industries are expected to thrive and grow in the coming few years despite the downturn. Savvy firms will target marketing and sales campaigns to take advantage of expected growth in the following economic sectors:
- Food industry. As Rally’s, a local burger joint, advertises, “You gotta eat!” The entire food supply chain from farm to table provides multiple opportunities for growing your customer base. Agricultural equipment, fertilizer, transportation, processing, packaging and retailing are just the tip of the food industry pyramid.
- Pharmaceutical/health care industries. Baby Boomers, the world’s largest population segment, are aging. Demand for pharmaceuticals, health care products and health care services is expected to increase and remain steady over the next three decades.
- Energy industry. Companies that produce, process or deliver energy products are excellent growth targets. With support from President Obama, increasing federal funds will fuel the development of alternative energy options. However, viable nationwide replacement of current energy sources is years, even decades, in the future. Current oil, gas and coal operations are expected remain strong with increases coming in their development of new, cleaner, more cost efficient applications for their products.
- Transportation industry. Traditional transportation will still flounder for a while until production volumes and consumer spending improve. But there will be opportunity in infrastructure improvement and rebuilding fueled by federal stimulus spending and job creation. And watch for opportunities in new public transportation options still on the drawing board. Last year public transportation ridership posted a 52-year record high. As America struggles with energy issues and global warming, expect increases in innovative mass transit projects.
- Look south. Southeast and Gulf Coast states are experiencing a manufacturing boom benefiting in part from post-Katrina spending. Census figures indicate that Americans are moving south, seeking jobs and better weather. Environmentalists are leery about the Southwest, however; which is already experiencing water shortages and some fear believe is on the cusp of long-term, possibly terminal draught.