It's not all bad in our economy...

This article was in our local paper. It's a little long but I thought it was worth sharing.


One mans recession often proves another’s big break
By Mary Paulsell - Saturday, March 14, 2009

As spring approaches and I start to see garage sales signs in the neighborhood, I’m reminded of the old saying: “One man’s trash is another man’s treasure.” And as I consider the economic health of our communities, I find myself paraphrasing that adage: “One industry’s misfortunate can be another industry’s opportunity.” It is proof, once again, that there is a cyclical churn to business. Companies are formed and grow. Then markets or conditions change, causing decline in one sector but creating growth in another.

For instance, I saw a news item the other day reporting how busy shoe repair and clothing alteration businesses have become in the recession. Rather than buying new apparel, we’re fixing and adjusting what we already have.

Contrary to what one might think, residential trade contractors typically see their businesses grow during difficult times. Reticent about buying a new home, we tend to invest instead on remodeling and sprucing up our current residence, which also can increase sales for do-it-yourself centers.

The stress of living in recessionary circumstances makes us less immune to illness. Working longer hours or second jobs exposes us to more colds, the flu or other infections. Couple that with fatigue caused by sleepless nights, and you have greater need for medical services and pharmaceuticals.

We look for comfort during difficult times, and for many people, constant companionship and consistent affection come from their pets. As a result, pet supply stores do extremely well during recessions. In addition, our puppies and kittens are not going to decide to eat less just because we’re struggling financially. Their needs don’t change, and we spoil them all the more.
Stress can cause accidents — particularly traffic accidents. That, plus the fact that we might conserve money by postponing car maintenance or repairs, creates a good market for towing companies.

Compare the cost of a movie in the theater and the accompanying concession treats with renting a DVD and microwaving a bag of popcorn, and you can see why movie rentals and video games hold their own during an economic downturn.

When families need to downsize their living arrangements by moving to a smaller home or apartment, self-storage facilities fill up quickly. While we’re saving money by heating, maintaining and insuring less, we need a place for our “stuff.”

Security services are more in demand during tough times, as we want to ensure we protect our possessions and investments against theft, which tends to rise when times are hard. Stores want to guard against shoplifting and employee theft, so they might hire additional help to keep inventory from walking out the door.

As parents pick up extra hours and extra jobs, the demand for child care increases. And that demand increases job opportunities for those who are willing to watch the kids while Mom and Dad burn the midnight oil.

Low-cost entertainment, such as zoos, parks and nature areas, becomes more popular. Those areas need landscaping services, food service and maintenance, creating opportunities for vendors.

Flea markets, antique malls and secondhand stores go gangbusters during hard times — for obvious reasons. Not only do some of us want to fill a booth to turn some of our extra possessions into cash, many others want to find our treasures at a lesser price than picking up the same thing unused in a posh retail store. Pawnshops tend to do well for much the same reason.
This business churn is testament to the resourcefulness of our entrepreneurs. And it goes to show that even when the chips are down, someone will find a way to turn the challenges into profitable opportunity.

Mary Paulsell is the director of the University Center for Innovation and Entrepreneurship at the University of Missouri. Reach her at paulsellm@missouri.edu or visit http://www.missouribusiness.net/.

Reach Mary Paulsell at paulsellm@missouri.edu.