Impact of Downturn on Services

Yesterday I was asked if there are any news reports on the impact of the downturn on the service industry in Germany.

I could not find anything specific. The German media are full of stories, of course, but the main concern at the moment is on how long and deep the recession will hit Germany, what it means to GDP growth and unemployment. The industry that gets most attention probably is the car industry.

Consumer confidence in the U.S. has cracked much earlier than it did in Europe. So, based on the "weak signals" I gathered from there it can be deduced that service industry will suffer - but there are also new service demands.

U.S. consumers cut spending on extras (including services like eating out, having someone to mow the lawn etc.) and spend more time at home + with family.
From my "signal collection" I see evidence for growing need for services that support:

• Financial security: One of the biggest questions is "where is my money still save"? And another one "where can I earn money"? (An interesting idea to the last question are "gold parties" - modelled after Tupper parties, but instead of buying plastic boxes you get money for gold jewelry in the assuring company of friends in your own house).
  Alternative ownership models: e.g. car sharing, second hand shops, renting toys, buying a stake in farm land and work there during leisure time,...
• Enjoying the home: Americans (and also many Europeans) traveled less during the summer. Their attention turns to house + garden. Interest e.g. in courses/services related to gardening, cooking, pets, bike repairing,...
• Health: it seems that demand for dental services (more teeth grinding, seriously) and psychological consultations went up. Also in health sector “help to help yourself” is seen as having potential
• Professional qualification seen as the best way to face threat of unemployment. One growing field is e.g. brain training
• Security: rising theft and other more threatening delinquencies leave consumers as well as companies and cities in fear. Everything that helps to track “out of the way” behavior (including panic) and helps guard against offenses has potential