Cyclical Industry

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.
References in periodicals archive ?
However, as IHG operates in a highly cyclical industry, Stern believes the current valuation is not factoring in significant downside risks associated with a macro economic slowdown.
So, what is our secret sauce for measuring the ebbs and flows of our cyclical industry? Sentiment.
Our firm has a national practice in the construction materials industry, and we closely monitor the headwinds and tailwinds that drive our cyclical industry. And as we all know, the news about the housing market in 2018 was dominated by the slowdown in new housing starts, attacked on multiple sides by land and lot shortages combined with rising interest rates, increases in materials costs across the board, and ever-increasing prices that affect affordability.
This announcement hasn't been a surprise for many of our people as this is a cyclical industry and we have been openly working with them on solutions to our financial challenges at Morrison, but that certainly doesn't make this any easier.
While Seagate has improved its product offerings in the last few years, hard disk drives remain a cyclical industry, and one "facing secular challenges in many parts of the market," Delaney tells investors in a research note.
Cyclical Industry; Intermediate Player: The inherently cyclical nature of the commodity chemicals sector means Unigel is subject to feedstock and end-product price volatility, driven by prevailing market conditions and demand/supply drivers.
But, as the Final Report of the Long Island Index noted, "Construction is a cyclical industry" and "regional recreation jobs are among some of the lowest paid."
"Two pieces of very positive news, and in-between is sandwiched all this stuff about how great the market is."<br />On the other hand, Handy cautioned that chipmaking remains a cyclical industry because, generally, it's a commodity market.
We have to create a system that fills and sustains a pipeline of skilled, capable workers despite the challenges posed by a cyclical industry. One of our initiatives will include getting early-age high school students directly involved in the industry through internships and other similar arrangements.
In a nutshell, the large problems that we are trying to solve include reducing the number of people onsite (robotics, automation, IOT) both onshore and offshore, adapting to a hyper cyclical industry that rises and falls with the commodity price (new business models including on-demand labor) and increasing the efficacy of production (technologies that improve completions and maximize production which include better chemistry, software and downhole tools).
This means that since the IT sector, which has enjoyed rapid growth over the past years, is a highly cyclical industry, it is probable that it might experience a slowdown this year.
Ultimately, the industry needed "institutional learnings," with lessons that were remembered in organisations "for a long time," Dudley said, to prevent the pitfalls of a cyclical industry.