The global economy has faced a series of challenges recently, leading to downturns in various industries. These economic struggles have caused significant disruptions, impacting businesses and livelihoods across multiple sectors. This list investigates several industries that have been hit hard by the economic downturn, exploring the factors that have contributed to their decline.
Hospitality and tourism industries
Various factors have affected the tourism industry worldwide, brought on by the coronavirus pandemic, including the security of jobs, domestic and international travel, safety concerns, a decline in spending, the shutting down of travel agencies, and more, as revealed in this study published on the Statista website.
The property market
Another industry that falls into this category is the property market. This is due to several factors, some of the main ones being a rise in inflation, stringent lending restrictions, and an increase in interest rates. The economic global uncertainty has increased housing prices, and only a few people can afford them anymore, leading to a decrease in demand.
Print media
Print media, such as magazines and newspapers, have been on the decline since digital media took over. This change has led to a loss of jobs and reduced advertising revenues, as consumers now prefer digital varieties of media over traditional print formats. One can say that print media has been replaced by an increased demand for the Internet and all that it provides.
Retail industry
Many brick-and-mortar retail shops have closed down and swapped their platforms online due to a decrease in operational expenses and a decline in consumer spending. Those shops that weren’t fortunate enough to make this move and save face were forced to declare bankruptcy. Since December 2023, the retail industry has fallen by 3.2%.
Telecommunications
A decline in the media and technology industries because of excessive competition among companies has seen the performance rates of the markets significantly drop. The industry is now constantly testing its competitors to see whether they can still deliver their services within existing market challenges. It has become costly to maintain infrastructure and communication platforms globally.
Steel manufacturing
Metal markets have suffered a loss in demand, and prices of various metal products have been steadily dropping since the early part of 2023 due to an increase in the price of raw materials. The steel industry has been facing decreased demand from sectors such as construction and the automotive industry. Although many are saying that the worst is over, it is yet to be seen how things can improve in the coming years.
Fashion industry
A ‘global showdown’ is what Business of Fashion is calling the industry’s steady decline. The industry started to improve gradually after COVID-19, but this hasn’t lasted very long. In 2022, economic and geopolitical factors weighed heavily on the sectors, and many brands are now facing the challenge of staying adrift.
Construction industry
The construction industry, especially housing construction, has been steadily declining since 2023 and is expected to continue this trend if things don’t improve. The activities within the construction industry have either slowed down or stopped altogether. Factors such as a lack of employment opportunities, disruptions in the global supply chain, and challenges in funding these projects all contributed to this decrease.
Shipping industry
Logistics and shipping industry operations have also been facing significant challenges due to the disturbance of supply chains and a change in consumer preferences. All these things have led to challenges and disruptions in the shipping and logistics industries, leading to significant financial challenges.
Oil and petrol industry
A combination of different factors has adversely impacted the oil and petrol industries, and this has been seen over recent months. Since the pandemic and its effects on the economy, aspects such as volatility in pricing, a change toward other energy sources, global job losses, and a reduction in the demand for these resources have all been factors that have created this change. It is yet to be seen if things improve.
Entertainment industry
Since COVID-19, because of social distancing, many businesses have been forced to close their doors. These closures were geared toward places where crowds would normally gather, such as entertainment centers, theme parks, and cinemas. Due to this, there was a decline in business and financial hardship, and till today, not all of these facilities are back up and running.
Mining industry
A decrease in demand within the mining industry has caused a lot of financial instability worldwide. Concerns such as changes in environmental factors, a lack of demand for mining goods and products, and fluctuations in the number of trained workers available for employment have all seen a decline in this industry.
Automotive parts suppliers
Delays in delivering critical pieces of machinery within the automotive industry are just one of the many reasons why automotive parts suppliers’ businesses have faced challenges. Industries such as these are layered and involve many shareholders, like manufacturers, distributors, and suppliers. When factors such as labor, inflation, and demand are disrupted, it can strain other operational aspects as well.
Automobile manufacturing
The motor industry has recently faced a decline, especially in consumer spending. The economic collapse has led to disruptions within the supply chain, in particular, and a negative shift toward vehicle manufacturing. Major car manufacturers in European countries, such as Germany, have not seen a significant price boom since 2018.
Banking and Finance
Since the emergence of COVID-19, there has been an obvious impact on many industries around the world. One of these that has suffered is the banking and financing sectors. It has led to the instability of global markets, and the knock-off effects have created a steady decline since 2019. The pressures have been realized around things like credit risk and fintech, which have been directly affected, especially among corporate and retail clients.
Airline industries
The airline industry has also been negatively affected since 2021, and the International Air Transport Association (IATA) has stated that even though there may have been an increase of 27% in revenues generated since 2020, this is still not as significant as previous years such as 2019, where profits were estimated to be 44%. This was due to the travel restrictions imposed during COVID-19 and the apprehensions around safety.
Agricultural industries
Unfortunately, changes in both social and environmental factors have harmed certain industries, especially the agricultural sector. Climate change, shifting consumer preferences, and trade disputes have all impacted this industry. The direct result has been a decline in profits for farmers as well as instability within the industry. Many farms are no longer in operation and are stopping their operations.
Electronics manufacturing
The demand for certain electronics is not as high as it was in the past few years. Competition, changes in consumer preferences, and supply chain issues have put a wedge between these industries’ financial health and general growth and revenues. When raw materials, wages, and energy prices increase, the negative effects on this industry are inevitable.