Cyclical Industry

Another reason that could damage long-term profits is that businesses due to recession had to borrow money from banks which have to be repaid. For example, the car industry was most badly hit by the recession as people could not afford to buy luxury cars and traded down. In fact, GM, the world’s biggest car company was the first one to go for the bankruptcy protection and had to borrow about £21bn of government loan. This means that during times of recovery GM would have to repay their loans with interests which means less profit being made. Once in recovery, the profits made by the business are used to repay loans which lower the firm’s overall profit margin.

The rise of crude oil has also effected the sales of trucks. With comapnays no buying or spending as much on a truck has hurt the econonmy.

The worst-case scenario would be that the livestock hauling business decreases rapidly and work cannot be found, requiring equipment to be sold to keep supporting the business. There is the potential, since most companies own the semi-truck and trailer, to branch into other industries in a financially difficult time. Being able to haul freight or look into hauling heavy equipment until the livestock market will be

Most importantly the automobile industry basically makes the economy keep moving in America. During the recent recession in 2008 car industry in Detroit and other places started to dry up. Fortunately the economy and the car industry started to pick up, some say because of the automobile

Big businesses would try to lower their expenses by stop hiring or even cut the personal, which we saw previously with unemployment. Furthermore, businesses would cut costs by stop buying new equipment or eliminate advertisings which eventually would affect big and small companies involved as well. And that is how the cycle begins. Other problem companies and industries face are that because of the lousy economy recession carries, costumers might be delayed with their debts to the company. Consequently, the company pays late their own debts which can result in reducing the valuation of the corporation's debt and its ability to obtain financing. The companies that cannot pay their loans may enter in reorganization or get out of business. On the other hand, small businesses get yet worse than big businesses. Without big cash reserves and capital assets it makes it harder for these businesses to survive the recession (Davis, 2016). In conclusion, that is how many businesses get in bankrupt during the recessions. In the chart below is the data about the rate of bankruptcies in the United

The first is abundant natural resources such as oil, steel, lumber, and coal. Improvements in the refining of steel and obtaining oil led to steel and oil being much cheaper and easier to obtain. Steel was used for things such as making railroads, farm machinery, bridges, and skyscrapers because steel was much stronger and more flexible than previously used materials. Oil was a much better energy source than previously used materials.

It is widely known that logistics is the life blood of anything major. The logistics and transportation industry in the United

The United States as it stands today, is an extremely technologically advanced country, but as advanced as it may be, it is still lagging behind other countries in the use of technology. It ranks number five out of 138 countries surveyed for their technology advancement. It falls behind Sweden, Singapore, Finland, and Switzerland. The same study found that the country also had inconsistent rankings on several areas that played into its competitiveness. The U.S. came in at 24th in households with a personal computer, 76th in mobile phone subscribers, and 52nd in math and science education (http://madamenoire.com/109303/united-states-continues-to-fall-in-technology-ranking/).

Transportation is an important sector that drives economic activities within and outside the state. Although transportation as a sector does not bring in significant revenues to the economy of Arizona, it does assist the smooth operation of other industries such as manufacturing, tourism, agriculture and mining. Without roads, rail, and airports, it would be difficult to move goods and services from one part of Arizona to another. Arizona’s transportation industry does not have a great impact on its economy because the state is largely used as a transit hub. More than half of the freight that comes into Arizona originated from outside, rests for some few days and moved to their destinations in other states. This means that the Arizona state government can only gain relatively small revenues from the freight may be in the form of storage charges, repackaging, and accommodation for truck drivers. The remaining 50% of freight is intra-state implying that no money is brought in from outside Arizona. Transportation sector acts as a vital factor in attracting investors because modern businesses critically examine the transport infrastructure before deciding whether to relocate or not. For instance, manufacturing companies depend on well-established road and rail network to move large volumes of bulk freight. Some also rely on the trucking to move containerized freight on highways with low congestion levels.

Stagflation in US economy threatens outlook for the airline industry profitability. US airlines forecasting Q108 losses citing high fuel costs and a potential economic slowdown.

The fluctuations in the supply and demand of automobiles have an effect on other industries. One such industry that is affected in a measurable way is the after-market automobile parts industry. When the demand for new automobiles is high the demand for after-market parts is lower. When the demand for new automobiles is low the demand for after-market parts rises. The only explanation is uncovered when looking at individual households. Individual households have a limited amount of money to budget for transportation. If new cars are in high demand the income is higher for individual households. If new cars are not in high demand individual households have less money to budget for transportation. With less money to budget for transportation, individuals are more likely to use after-market parts to make repairs on their existing vehicle rather than purchase a new vehicle when their current vehicle needs costly repairs. The cost to repair a vehicle is far less than the cost to purchase a new vehicle. (Lamonica,

People depend on their cars for everyday life. They need it to go to work, school, and events. What if one day the automotive industry crashes? People across this country rely on this industry to provide them the safest and most affordable cars. But just recently the car companies in Detroit almost came to an end. Just in "Ohio, about one out every eight jobs has ties with the carmakers" (Cohn, 2012). If these industries did actually come to an end then it would have caused so many people to lose jobs in the Metro Detroit area as well as surrounding areas. However, The Big Three Companies such as General Motors, Ford, and Chrysler, almost did crash do to their

186,627. That is the exact number of fast food restaurants that existed in the United States in 2012, according to Numberof.net. The fast food industry has become the face of America. On every intersection there is a McDonalds, Burger King, Jack in the Box, Taco Bell, Chipotle, or Church’s. As an American, one can go anywhere in the country and find the same fast food that they’re used to in nearly every state. Many of these places have already figured out how to attract their customers and leave them wanting more, which in turn has caused an increase in the market size of these corporations. On the surface, many would argue the positives of the fast food industry, but, if one looks closer, it is easy to see the negative side that the fast food industry contains. The fast food industry is horrible for a person’s health, provides low paying jobs, and false advertises their products.

The fuel crisis is no stranger to the business world, especially to the airline industry. Many airlines were forced to adopt new approaches to this high cost issue in order to stay afloat. The realistic concern of the effect to the consumer has not only impacted the cost to travel, but the profits for the airline industry. The 2008 US economic recession has greatly impacted how often people are traveling. Most consumers’ disposable income is very little and they categorize travel, especially travel via airline, to be a luxury product. According to the U.S. Department of Transportation, the bulk of airline travelers, about 50%, are those who are going on holidays or vacation, 40% are traveling for business and the rest are categorized under other. Airlines are fearful that their majority of travelers will be affected by the raise in cost and choose other alternatives for satisfying their escape from reality needs.

Closely linked to economy - The airline industry can be described as highly cyclical since it