What is recession resistant?
Recession resistance can apply to products, companies, jobs, or even entire industries. For example, items such as gasoline or basic food items may be considered recession resistant because people will continue to consume them regardless of a recession.
What is “resilience?
This is what we mean by “resilience”: a company’s ability to generate an economic profit through cyclical and structural changes in supply and demand, balanced on twin pillars of flexibility and productivity. After ten years, total return to shareholders for this resilient group had outperformed their nonresilient competitors by about 150 percent.
What are the most recession-resistant industries?
Industries thought to be recession resistant include consumer staples, alcoholic beverage manufacturers, discount retailers, and funeral services. In addition to belonging to recession-resistant industries, resilient companies are likely to have strong balance sheets.
Why does resilience matter in a recession?
For organizations facing a recession, resilience matters. During previous downturns, resilient companies drove higher productivity to help protect margins. In our new digital age, digital and analytics tools allow organizations to dial production levels up or down to match demand, building a new and important factor of flexibility.