During recessions, plumbing is a reliable career choice. This is due to the fact that people will always need plumbers, and this demand will not go away just because the economy is in bad shape. A high school graduation is required, as is completion of a four- to five-year apprenticeship program. Apprenticeships in the plumbing business are usually paid professions. Some states additionally need plumbers to complete an exam in order to be licensed. According to the Bureau of Labor Statistics, the number of plumbing employment will increase by 26% between 2010 and 2020.
What kind of occupations withstand a downturn?
8 industries with the best job security during a downturn
- Health-care services. People get sick and require medical care regardless of the state of the economy, thus the demand for health-care occupations is fairly stable, even during a downturn.
Which industry is immune to the downturn?
A recession-proof business can be extremely profitable for people in both good and bad times. Whatever the state of the economy or the stock market, certain company concepts, such as those listed below, have a good possibility of succeeding despite the rest of the financial doom and gloom.
Many well-known or historically successful enterprises were founded during economic downturns. The Walt Disney Company was created in the late 1920s, at the commencement of the Great Depression, and the Hewlett and Packard electronics company was founded in the late 1930s, during the second recession.
Rising interest rates and shifting GDP pose far less of a threat to the finest recession-proof enterprises mentioned below than they do to most other businesses, with many of them having the ability to do even more business than usual.
Food and Beverage Business
Because everyone still needs food and drinks to live, the food and beverage business is one of the most recession-proof industries. Because it is not a luxury that can be put aside in difficult times, enterprises in this area can thrive even in a downturn.
Medical professional
Within the medical field, there are numerous vocations and specialties. This group includes Registered Nurses (RNs), pharmacists, physicians, surgeons, paramedics, dentists, dental assistants, and even veterinarians. People and animals become ill regardless of the economy, thus they will always require the assistance of trained professionals.
Specialized care, therapy, and counseling
Consider elder care, physical therapists, occupational therapy, substance-abuse counseling, chiropractic treatment, home health aides, mental health specialists, social workers, and other professionals who operate in this field. People place a high importance on their health. They will spend money on services that will help them to be productive while also being pain-free. Some of these services are covered by insurance, encouraging consumers to use them even when they are short on cash.
Law enforcement officers
The specific link between crime and economic cycles is difficult to pin down. Some crimes predict a downturn, while others coincide with it, and still others show no link at all. Communities prefer to invest in physical safety for local companies and citizens in any economic scenario, which means that police officers and the professionals who support them are in high demand even during a downturn.
Public utility services
During economic downturns, electric, water, sewage, waste, trash, and recycling services all continue to operate. Utility personnel, after all, are essential to ensuring public order and health. Surprisingly, consultants that serve those utilities appear to get the same benefit. Many cities, for example, are obligated to undertake annual audits of their trash-collection companies. Even in a down economy, consulting businesses that undertake such audits will have work to do.
Financial services
The importance of money mobility explains why financial specialists are always in demand. Accountants, auditors, actuaries, claims adjusters, tax preparers, and insurance underwriters are just a few of the employment available in the financial services industry. Many jobs necessitate professional certificates such as Enrolled Agent (EA), Certified Public Accountant (CPA), or Certified Financial Analyst (CFA) (Chartered Financial Analyst).
Education services
Economic booms come and go, but putting money for the future is always a good idea. Regardless of the economy, jobs in primary education, secondary school, higher education, special education, and adult education are in high demand. Those interested in following this path should be aware that the method education is given is changing. New types of distant and on-demand education are becoming more relevant in addition to traditional classroom educators. As a result, a teaching career might be flexible in terms of both location and delivery manner.
Looking for a job that is recession-proof? A skilled resume writer can reframe your experience in order to help you advance in your job.
Are dentists immune to economic downturns?
We were in the midst of one of the longest eras of economic prosperity and growth in history until recently. The most current bull market, which began in March 2009 and lasted 11 years, was officially the longest bull market in history.
During the Great Recession of 2007, the dental business proved to be essentially recession-proof, thriving even while other industries teetered on the verge of failure. As a result, the end of the Great Recession in 2007 prompted unprecedented non-dentist investment interest in the dentistry business. This has resulted in the Great Evolution and Great Consolidation of dentistry, with dentist-owned solo practices and groups monetizing the value of their practices at an unprecedented rate by affiliating with DSOs.
With EBITDA multiples for large DSOs and group practices consistently topping the double digits, and some even exceeding 18X, this dynamic M&A climate has provided once-in-a-generation rewards for sellers. DSO market penetration is currently just under 25%, leaving a huge window of opportunity for continuing growth over the next ten years.
However, based on historical statistics, another recession is very certain to occur in the not-too-distant future, and many in the DSO business are asking what impact a recession may have on the industry’s Great Evolution and Consolidation.
A recession happens when the economy grows at a negative rate for two or more quarters in a row. During a recession, business sales, revenue, and expansion tend to decline. During a recession, the unemployment rate usually rises as well. While recessions might be severe, they are usually only temporary.
According to Brent Little, the founder of Odyssey Wealth, a renowned financial and strategic planning organization serving the dental profession,
“A recession lasts an average of 17.5 months and happens every 4.7 years. The Great Depression, which lasted 43 months, was the longest recession in history. The Great Recession of 2007 was the second longest, lasting barely 18 months.”
As a result, historical data suggests that we are long overdue for a recession, but that it will most likely last no more than 18 months.
- If practice owners are unable to sell their businesses during a downturn;
- How a recession may alter the timing and value of second equity events for sellers who have rolled over a portion of the purchase price for shares in the DSO business.
The following elements may help the dental industry cope with a recession:
- If patients continue to visit the dentist, as they did during the Great Recession of 2007, and the dental sector as a whole thrives;
- To offset some of the damage caused by a recession, the dental business taps into its vast development potential (an estimated 60% of the population does not go to the dentist, representing a large untapped resource);
- The demand for dentists continues to outpace the number of available dentists, indicating that major layoffs are unlikely; and
Based on historical data and an examination of the most likely hazards and mitigating factors in the dentistry sector, it appears that:
- Financially susceptible are current DSO organizations that are failing or just modestly successful.
- During a recession, some lenders may reduce their lending activity or become more selective, but the lending markets are unlikely to fully collapse, as they did during the Great Recession of 2007.
- During a recession, some investors may reduce their activity, while others may take advantage of the situation to execute all-cash transactions and earn a higher return than the market.
- During a recession, strong financially sound practices should still be able to be bought and sold, but at a lower multiple;
- Weaker practices may be forced to postpone an equity event until the recession is over; and
- If an equity event happens during a recession, practice owners who earlier sold and rolled over part of the purchase price in shares of the new DSO company may receive a lower-than-anticipated return, or the second equity event may be postponed until the recession is passed.
While no one can predict when the next recession will strike, there are certain things you can do now to prepare. According to Brent Little, you should:
- On a personal level, you should have one to two years’ worth of cash on hand for unexpected expenses.
- On a personal level, you have a well-diversified portfolio that can sustain a stock market decline of 10% to 30%; and
- If necessary, an equity event might be postponed for 18 months to two years.
Overall, the dentistry business is in good shape, and if history is any guide, any negative effects from a recession are unlikely to last more than a few months. The massive consolidation of dentistry is expected to continue largely unabated over the next seven to ten years, with many observers forecasting that DSOs will account for upwards of 80% of the industry by 2030.
Brian Colao, Director of the Dykema Dental Service Organizations Industry Group, wrote this article.
Brian will be speaking at Dykema’s 7th Annual Definitive Conference for Dental Service Organizations, July 1517, 2020, at the Omni Dallas hotel in Dallas, Texas. It is an engaging event with themes deliberately chosen to appeal to buyers, sellers, practice owners, executives, entrepreneurs, investors, DSOs, and in-house lawyers from all aspects of the DSO sector. Use the code GDNOW20 to receive a $150 discount on registration.
Are teachers immune to the economic downturn?
Teaching is a recession-proof profession that offers job security. It’s also a fantastic job opportunity for anyone who enjoys interacting with others. Yup! Teachers have not stopped working throughout the COVID-19 pandemic, despite the fact that other industries have been severely impacted.
What are two items that are recession-proof?
At least one of two main concepts governs recession-resistant enterprises. Both are used by some of the most stable and profitable industries.
- The given product or service is a less expensive alternative to another product or service.
- The product or service given is a necessity that cannot be avoided.
Let’s take a closer look at the two elements that make certain sectors recession-resistant.
Low-Cost Alternatives
In a circumstance when consumers must spend less moneyeither because it is difficult to obtain work, their income is stagnant, or other prices are risingconsumers will seek out low-cost alternatives to save money. This is why organizations and sectors that have a low-cost competitive edge fare better during a downturn.
Discount Stores
Only 25 equities in the S&P 500 achieved positive returns during the Great Recession of 2008, with Dollar General at the top. While there are other factors at play, Dollar General did well during this period in large part because these stores offer low-cost alternatives to core commodities like food, detergent, and basic apparel.
Low-Cost Products
Few products are as well-known as Campbell’s Soup when it comes to the ability to weather a recession on an individual level. Campbell’s Soup did well during the 2008 recession, as it has done in the previous 28 recessions in its 139-year history. Campbell’s Soup, like Dollar General, benefits from both recession-proof principles: food is a staple, and a can of soup is about as cheap as it gets.
Repair Shops and Consignment Stores
Buying new is generally not an option during a recession. Repairing an existing item or replacing it with a used one is a low-cost option to this. As a result, thrift stores, pawn shops, and repair shops are recession-resistant enterprises that typically do better during downturns. When money is tight, auto repair firms thrive because mending a big-ticket item like a car is far more realistic than buying a new one. Large resale marketplaces like Ebay offer a diverse range of things at low rates, which might satisfy a specific need or provide some relief and pleasure when circumstances are rough.
Needs
It’s simple to see why necessities create recession-proof industries. There are some things and services that are hard, or nearly impossible, to live without, even when times are tough. Businesses that meet a demand remain steady or perform better during recessions.
Food, water, and shelter are typically the first things that come to mind. Medical treatment and pharmaceuticals, hygiene goods such as soap and toothpaste, and basic services such as power and garbage pickup are all examples of necessities. Some businesses, as previously indicated, combine needs with low-cost alternatives, resulting in low-cost items that meet needs.
Medical Services
Medical services were three of the top ten best-performing equities during the 2008 crisis. This includes, for example, hospitals, pharmaceutical companies, and medical equipment makers. The necessity for medical services during a recession is obvious, as recessions increase stress and make maintaining a healthy lifestyle more difficult.
Logistics
Trucking is certainly not the first thing that springs to mind when you think of a need, but it is an important service that takes place behind the scenes. Whether it’s trucks, railcars, ships, or planes, every product that makes its way into stores or between production facilities passes via logistics. Despite the fact that demand for commodities is declining as the economy slows, logistics services remain stable.
Packaged Food and Bottled Water
Food and water are important even in the most desperate of circumstances. Consumers stock up on nonperishable food and clean water during recessions because they are worried about the future. Affordable commodities having a lengthy shelf life, such as Campbell’s Soup, and bottled water, encounter spikes in demand, especially during unpredictably occurring events. In reaction to COVID-19, bottled water sales jumped 52 percent during the initial lockdown period, while ice and water vending sales increased 10 and 30 percent, respectively, over the same period last year.
There are a few other issues to consider during the COVID-19 pandemic-induced recession. Soap and sanitizer sales have surged more than would be expected in prior recessions due to the demand for cleaning and sanitation. In reaction to health difficulties, medical services are anticipated to increase much more than usual. As a result of the closure of many public places such as restaurants and bars, sales in grocery shops and liquor stores have skyrocketed. Despite this, all of these enterprises are based on the concepts that make a sector recession-proof.