Stars of the Recession

By Foroohar, Rana; Schneiderman, R. M. | Newsweek, November 15, 2010 | Go to article overview

Stars of the Recession


Foroohar, Rana, Schneiderman, R. M., Newsweek


Byline: Rana Foroohar and R.M. Schneiderman

Amid the economic rubble, several industries are standing tall. Here's where the jobs are.

In the fall of 2008, roughly nine months into the Great Recession and just before Lehman Brothers collapsed, Rob Peck, 27, was losing money almost every day. An equities trader working for a small firm in Miami Beach, Fla., Peck and his company were leveraged roughly 30 to 1 and getting killed by computerized trading programs at larger investment houses. "I saw the writing on the wall," he says. "A lot of my mentors were feeling the pain, and they were much better at it than I was. I figured, if the baskets aren't sinking for LeBron, what chance do I have?"

Before the bubble fully burst, Peck found another job as the marketing manager at a small software-development company called SDSol Technologies. "I was still pretty young, and I could afford to figure out what road I was going down," he says. The company, which provides Internet and custom software development for other firms, employs Web developers in Pakistan and the U.S., and a sales and marketing force in South Florida. Its products, still mainly sold locally, also have great export potential to small and midsize businesses in emerging markets. "We're small, but there are opportunities here," he says.

In fact, the same is true across many parts of the economy in the U.S. Yes, growth is still slow and unemployment is high (nearly 10 percent). And the federal government is, post-election, likely to be gridlocked on issues such as tax reform, infrastructure spending, research and development investment and the buildup of social safety nets--all of which could help jump-start the economy or at least cushion the blow for those out of work. But this recession is different from those of the last half century. Previously, job losses were spread broadly throughout the economy. This time around, they are mainly concentrated in three sectors: construction, manufacturing (particularly the automotive sector), and finance. That leaves plenty of other parts of the economy that are relatively untouched, and some--such as education and health care--that are rapidly growing. There are less obvious areas of growth, too. Plenty of export-oriented businesses are booming, as are technology firms and anything to do with commodities or agriculture. Even some high-end manufacturing is starting to rebound.

The connective tissue between many of these categories is overseas markets, particularly emerging ones. The boom in agriculture and commodities of any sort is mostly a tale of the high-speed growth of emerging markets, which are now demanding more of everything from meat to energy. But any company in any sector that caters to fast-growing developing nations such as China, India, Brazil, or a host of others is most likely doing very well. That's quite a few firms--since the majority of the country's largest businesses now get more than half their revenue from abroad. American export growth, typically about 7 or 8 percent, is now in the double digits.

It's no wonder: according to Goldman Sachs, 70 million new consumers are joining the emerging-market middle class every year, and they want the electronics, consumer goods, and furniture sold by U.S. firms (companies such as Apple and Procter & Gamble are among those benefiting off the back of this growth). Their governments are also busy building new factories, roads, and bridges--meaning new business for U.S. firms that make complex machinery. "These countries have huge infrastructure needs. Their markets are going crazy," notes Deborah Wince-Smith, head of the Washington-based U.S. Council on Competitiveness. Hence, despite steep job cuts early last year at companies such as Caterpillar and John Deere, those firms--and a host of smaller ones that service global machinery makers--have now ramped up hiring.

f course, none of this means that manufacturing as a sector is going to rebound as a percentage of the American economy. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Stars of the Recession
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.