Online booms while banks are doomed

By Jessica Stanic on Tuesday, 13 January 2009

If you work in online and retail, breathe a big sigh of relief. However, if you work in banking or air travel, get ready for a rocky 2009. That is the message from IBISWorld, as they predict the “Top 10″ industries to weather the financial crisis.

While many companies have already stated their intention to cut jobs in 2009 in order to survive the global downturn, IBISWorld general manager (Australia), Robert Bryant believes that there will be a number of industries that will perform well. These include:

Biotechnology

Online information services

Non-building construction

Cosmetic and toiletry retailing

Grain and livestock farming

Blood bank and health services ISP’s

Passenger rail

Waste disposal services

Online shopping

Online information services remain a massive growth industry as more people turn to the internet for news, shopping and information. According to IBISWorld research, online shopping has shown strong growth among the 25-44 year old market in recent times, along with cosmetic and toiletry retailing.

“As the economy slows and consumers tighten their belts, history has shown us that women continue to spend, however they transfer spending from more expensive fashion items to cheaper alternatives,” said Bryant.

Those industries expected to suffer during these turbulent times include:

Banking

Tyre manufacturing

Domestic airlines

Boatbuilding

Real estate agents

According to Bryant, the banking sector is continuing to suffer thanks to the credit crisis, with rising bad debts putting mounting pressure on margins.

“Next year, commercial banks will be forced to cut jobs, with many of the losses to come from middle management as operators attempt to rationalise their hierarchies.”

Domestic airlines are also feeling the pressure with consumers cutting back on travel and limiting their spending to essential items.

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