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Cyclical Industry
(redirected from Cyclical Industries)

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Cyclical Industry
An industry that tends to do poorly when most of the economy as a whole is performing poorly, and well when the economy is doing well. Cyclical industries may represent publicly-traded companies that are perceived to sell luxuries or products. For example, car companies sell expensive products (cars) that many people perceive to be necessities. However, because cars are expensive, consumers in bad economic times may decide to wait to buy cars until the economy improves. On the other hand, car companies tend to do rather well when the economy is doing well.


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[ILLUSTRATION OMITTED] Job losses in a recession, at least at the outset, usually impact men more severely than women because men are more likely to work in cyclical industries that become the first to lay off workers.
These include Conrad's reliance on cyclical industries, principal customers and government contracts, its ability to finalize contracts on projects for which it has bid, and its ability to perform contracts at costs consistent with estimated costs used in bidding the contracts.
Chemical firms, like many customers in cyclical industries such as automobiles and electronics, tend to be relatively sensitive to economic swings.
 
 
 
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