Industries that thrived during the Great Depression — Sharpen (2024)

Written By JD Jordan

Industries that thrived during the Great Depression — Sharpen (1)

We’re living through “interesting times.” Damnit.

Watching the chaos Covid-19 wreaks on the economy, our public social and healthcare infrastructures, and my house (the kids have been home for SIX DAYS, OMG!), it’s hard not to think about the greatest analogous disruption of American and global life. No, not the 2008 financial crisis—though that certainly shook up many a career and perhaps an entire generation’s ability to own a home. I mean the transcendent modern crisis, The Great Depression.

As hard as it may be to believe, some markets thrived during that global economic buzz kill. Actually, a lot did. Most are pretty obvious, but if we’re looking to roll in new clients or land new jobs during our current economic unpleasantness, these might be the sectors to watch. And one of the things they all have in common isn’t just their indispensable utility, but the way each one historically managed the balance between risk and uncertainly—that is, long-term objectives versus the needs of short-term crises.

Food.

People still eat (well, most of us do) regardless of income and even when foregoing health care expenses.

The classic Depression-era example is Kelloggs versus Post. The former choose to advertise more during the depression while the latter slashed their advertising budget. And when the market and consumer budgets recovered, Kelloggs remained top of mind and benefited from their consistent position.

Household products + essential consumables.

People still need soap and solvents and diapers and gasoline and stuff. And they still need their perceived essentials, too, like alcohol, coffee, marijuana, and … toilet paper.

Camel almost destroyed Lucky in the 1930’s because people still needed cigarettes. In our epoch, maybe people need coffee like they once needed cigarettes (could this be the perfect opportunity for Jittery Joe’s to destroy Starbucks? Or for a liquor delivery service to transform Saturday nights?).

Healthcare.

We are living through a severe test of Americas semi-capitalist, semi-socialist healthcare system. And within that ecosystem, the need for disposable good to keep our health professionals safe, ventilators to keep patients alive, and symptom-mitigation products (typically, pharmaceuticals like Tylenol or Zofram, which my wife was prescribed for her Covid-19 diagnosis). The race for a cure, a vaccine, and a scalable treatment is already generating a lot demand and investment.

Communications.

Print and radio boomed during the depression. Nowadays, streaming and teleconferencing. I’m reminded of a friend of mine who recently canceled his cable because it wasn’t essential but kept his fiber Internet and cell services, because he needs those to work from home and to binge watch Lego Masters with the kids and Devs with the wife (the friend was me…).

In particular, teleconferencing services like Zoom are the ones to watch. With social distancing dominating public discourse, teleconferencing may end up being the glue that holds society together—from the elementary classroom to the creative workspace and everything in-between.

Capital goods.

While the new production of capital goods during the Depression was almost zero, the resale value of those same good increased as the crisis dragged on year-over-year.

Nowadays, there are a lot of industries preparing to sell off their means of production or transform that production to support the healthcare space. And someone must handle that transaction. You can bet that if a stimulus package hits, and infrastructure or logistics projects are incentivized at the state and national levels, the market for repurposed or resold capital goods will quickly follow.

Security.

It’s the simplest arithmetic of the Depression, or of any recession: As the economy declines, crime rises. Despite budget shortfalls, local, federal, and military security forces will be increasingly called upon to secure our safety and cordon quarantines communities. Likewise, security consultants aren’t only needed overseas in war zones—as a recession kicks in and economic and health struggles lingers, they may become more valuable domestically.

Anyone who keeps advertising & innovating.

This is the single greatest economic truism of the depression: The companies that survived and grew during the Great Depression weren’t representative of any one market category. Rather, were those that continued to act as though there was nothing wrong and that the public had money to spend on their services or products.

They advertised. They innovated. They kept working confident the crisis would end. This is the arithmetic of risk versus uncertainty. Successful Depression-area businesses didn’t know how or when the Depression would end (uncertainty) but they knew it would end and that efforts and expenses made in the interim would pay off when it did (risk).

Who says a history degree is useless. Just wait ’til Germany invades Poland again and you’ll see what I mean (’cause you know they will…)

Innovate & thrive.

We’re excited to show you how Sharpen’s premier team of creative problem solvers (with their fingers on design thinking, technology, architecture, and more) is the right team to help you. Because we do a lot more than just create beautiful, functional solutions—and that “lot more” informs how we approach every problem.

Contact us for a free remote consultation with our innovation leaders to see how we can help you and your company bring your visions to life and be more innovative than ever.

JD Jordan

Awesome dad, killer novelist, design executive, and cancer survivor. Also, charming AF.

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Industries that thrived during the Great Depression — Sharpen (2024)

FAQs

Industries that thrived during the Great Depression — Sharpen? ›

Tobacco companies did well. Lucky Strike cigarettes climbed to the top of the heap during the Depression. Procter and Gamble sailed through the Depression and actually increased sales. And of course, bootleggers did extraordinarily well.

What industries thrived during the Great Depression? ›

Tobacco companies did well. Lucky Strike cigarettes climbed to the top of the heap during the Depression. Procter and Gamble sailed through the Depression and actually increased sales. And of course, bootleggers did extraordinarily well.

Who profited during the Great Depression? ›

Business titans such as William Boeing and Walter Chrysler actually grew their fortunes during the Great Depression.

What industries did not suffer during the Great Depression? ›

Answer and Explanation: Despite the widespread impact of the Great Depression in America, two industries did not suffer. These industries included entertainment and alcohol.

What industries thrived in the 1920s? ›

In the 1920s, ownership of automobiles jumped from 7 million to 23 million. The enormous growth in automobile ownership greatly affected many aspects of American life. Automobile production helped stimulate other industries, since cars required vast amounts of steel, glass and rubber.

What did good during the Great Depression? ›

UNDERNEATH the misery of the Great Depression, the United States economy was quietly making enormous strides during the 1930s. Television and nylon stockings were invented. Refrigerators and washing machines turned into mass-market products. Railroads became faster and roads smoother and wider.

What sells during Depression? ›

Toothpaste, deodorant, shampoo, toilet paper, and other grooming and personal care items are always in demand. Offering these types of items can position your business as a vital resource for consumers during tough times. People want to look good, even when times are tough.

What businesses failed during the Great Depression? ›

Banks, factories, and stores closed and left millions of Americans jobless and penniless. Many people had to depend on the government or charity to provide them with food. President Herbert Hoover held office when the Great Depression began.

Did the Great Depression create millionaires? ›

It is a little known fact that more millionaires were made during The Great Depression than in any other era in U.S. history. Want to know how that happened so you can cash in on the economic crisis looming on the horizon?

How did people thrive during the Great Depression? ›

Farm Families and the Great Depression

Farm families were often better suited to weather hard times than town residents. Farmers could grow their own food in large gardens and raise livestock to provide meat. Chickens supplied both meat and eggs, while dairy cows produced milk and cream.

How did people prosper during the Great Depression? ›

The average American family lived by the Depression-era motto: “Use it up, wear it out, make do or do without.” Many tried to keep up appearances and carry on with life as close to normal as possible while they adapted to new economic circumstances. Households embraced a new level of frugality in daily life.

Which industry was hit the hardest because during the Great Depression? ›

The US economic sector hit hardest by the Great Depression was the banking and finance sector. The Great Depression, which began in 1929 and lasted until the late 1930s, was a severe worldwide economic depression that had devastating effects on many sectors of the US economy.

What jobs were laid off during the Great Depression? ›

Those who toiled on farms and in factories were displaced in very large numbers. States whose economies were dependent on agriculture and manufacturing reported high unemployment rates.

Who had it the worst during the Great Depression? ›

The country's most vulnerable populations, such as children, the elderly, and those subject to discrimination, like African Americans, were the hardest hit. Most white Americans felt entitled to what few jobs were available, leaving African Americans unable to find work, even in the jobs once considered their domain.

What sells during depression? ›

Toothpaste, deodorant, shampoo, toilet paper, and other grooming and personal care items are always in demand. Offering these types of items can position your business as a vital resource for consumers during tough times. People want to look good, even when times are tough.

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