In the face of a recession with very high rates of inflation right now, it is make or break for some industries. The nature of the economic difficulties right now means that supply chains and costs are the issues, making it difficult for manufacturing companies and the like to source their raw materials. But, those who provide the raw materials, commodities, and energy seem to have been doing very well since the invasion of Ukraine.
Here are the five evergreen industries that are performing well in the face of a recession.
Minerals and mining
It’s an important time right now for mining as they’re undergoing a lot of change. There’s a strong surging demand for critical minerals, but equally new players are emerging, causing a spike in sales for drilling rigs for water well and mineral sectors.
Revenues are up 32% whilst net profits are up 127%. Whilst many double down on ESG, the race to net zero has never been more important. Drilling machines atlas has been changing hands and new players seek to bring value in other ways.
Energy & Utilities
There are only two industries that have seen growth in the past 12 months: Energy (+38.12%) and Utilities (+12.95%).
It’s no secret that Putin has been looking to weaponize natural gas supplies, whilst oil has also been an issue for Europe too. As a result, energy prices have skyrocketed and stocks have reflected that.
However, there is a debate over how evergreen natural gas really is, with Europe now strategizing toward a quick transition to greener alternatives. Many companies claimed they could easily replace most of their gas usage within the next 12 months.
Transport
Again, when there are supply-chain issues and shortages, it seems to be the providers of those that can price gauge. Logistics remains a strong market participant despite the driver shortage, in part because of the permanent shift that the pandemic had caused on society, where buying products from home become normalized.
Agriculture
Agriculture is under great threat right now with the current climate crisis, but there’s no doubt that it’s a robust industry when it comes to recessions. With the droughts and hotter-than-usual weather in much of the world, many yields have been lost, but it is posing opportunities too for innovative farming methods that are more robust to climate change.
The global agriculture market is expected to grow to $12,541 billion from $11,287 billion in 2022. Let’s not forget that the global population is expected to reach 10 billion, too.
Healthcare
Healthcare is very well positioned for the upcoming recession. Not only has society’s increased dependence on healthcare due to the pandemic boosted profits, but processes are becoming more efficient and productive thanks to AI and telehealth – the latter in which is driven by tech firms like Zoom, Cisco Sytems, and Talkspace revolutionizing how we receive treatment. the pandemic has motivated more workers to join the market, whilst the SP Healthcare Index is set to rise to 5%-15%.
