Could there be a hidden benefit to rising gas prices? Challenger, Gray & Christmas, Inc., a Chicago-based outplacement consultancy says yes. In a recent report, John A. Challenger, chief executive officer of Challenger, Gray & Christmas made some interesting observations.
"You definitely would not want to be looking for a job selling SUVs, right now. However, companies making and selling bicycles or motorized scooters are flourishing and in need of assembly workers, marketing professionals and sales people. At higher levels of the job market, chemists and engineers who can help research alternative energy sources are in high demand,” said Challenger.
“We might also see more opportunities at office supply stores as more Americans take advantage of telecommuting. The point is that job seekers have to ignore the doom and gloom perception of the current job market and look for the positives," Challenger said.
WHO WILL WIN
Alternative energy companies - Public interest in alternatives to gasoline is increasing steadily, which will boost investment and research in these areas, leading to more job opportunities.
Nearby vacation retreats – Long vacations are increasingly being replaced by shorter getaways, closer to home to cut costs. Workers are more likely to visit free local attractions, such as parks and zoos to fill their free time.
Home entertainment makers - Americans may spend more time at home and decide to upgrade their entertainment options.
Online retailers - Online holiday sales in 2007 rose 20 percent over the same period in 2006 according to e-commerce tracking firm JupiterResearch. The online shopping trend continues to dominate over traditional retail sales despite the slump in the sector overall.
Farmers Markets – As food prices continue to soar due the cost of transporting items, local farmers markets could win big as consumers opt to avoid the middleman.
Commuter transportation – In Chicago, the number of first- quarter passengers increased 5.7% from last year to a record 20.7 million
Bicycle manufacturers, shops – Bike shops, especially used bike stores, are seeing an up tick in business as workers find alternatives to driving. Bicycle manufacturers and mechanics will undoubtedly need more help if this trend continues.
Source: Challenger, Gray & Christmas, Inc.©
WHO WILL LOSE
Outlet malls - Bargain hunters, who were willing to drive many miles to outlying discount centers for the best prices, may decide it is not worth the fuel cost.
Driving tourist destinations - National parks, camping grounds and other outdoor recreation areas that depend on gas-guzzling SUV- and RV-driving tourists will most likely see fewer guests this summer.
Fast-food restaurants - Fewer motorists could mean fewer customers visiting the drive-through and heavy weekday noontime traffic dwindling as workers brownbag lunch.
Will drive-up cyclists gain acceptance?
Tour bus operators - Those charging higher ticket prices will lose customers, while those who simply absorb higher fuel prices will see profits fall dramatically.
Center-city parking garages - In major cities like Los Angeles and New York where parking can cost upwards of $20 for a quick meal, more people may take public transportation or stay in the suburbs.
Vehicle maintenance providers - With more cars sitting idle, less wear and tear means fewer visits to the repair shop.
Source: Challenger, Gray & Christmas, Inc.©
Back to Industry News