Wednesday, July 15, 2009

Which businesses are recession-proof?

Found this neat article on the CTV site:

* Comfort foods: Campbell's Soup, Stagg Chili, candy-makers, McDonald's and Burger King -- companies that provide low-cost, feel-good foods tend to perform strongly during times of economic recession, and that is expected to be the case this time around.

* Drug stores: With Shoppers Drug Mart set to open a fancy, new high-end new store in a wealthy Toronto neighbourhood, it seems the company isn't too worried about losing its market share during a recession. Indeed, pharmacies are considered a safe-bet for investors during economic slowdowns because they sell products you can't really do without. Well, maybe you don't need the $90 face cream, but you do need toothpaste.

* Education: No matter how bad the economy gets, the school system isn't going anywhere. Teachers are embedded in one of the safest careers going, along with school administrators and support staff. Those who supply the education sector -- pumping text books and other learning materials into classrooms, are also safer than most.

* Security: Airports, train stations, ports, borders -- travel and transport hubs of all sorts rely on security workers to maintain safety and ensure proper protocols are observed. Those jobs also tend to be safe during periods of recession - because there's simply not much fat to cut.

* Wireless service providers: Cellphones have must-have status across Canada and the world. We need them for work, for fun and for just about everything, everyday. So business in the wireless sector isn't likely to take a tumble. In fact it might actually increase as companies try to cut costs and streamline business, turning to technology like video conferencing to reduce travel expenses.

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