Businesses may be temporarily turning away from services such as advertising, web-design, legal services, and landscaping to rely more on in-house resources for their needs as part of their overall cost cutting strategy. Employees with these skills may have been able to hang on to their jobs over the downturn if they can add additional value to be tapped by their employers …at relatively lower costs.

Advertising and marketing services are especially at a low point in sales growth, dropping down into negative figures after posting a healthy sales growth rate of 8.90% at the onset of recession in late 2007.

The table below lists the average sales growth for 10 service-oriented industries. The data is for year end 2008 through October 2009.  

It’s been a year now since the collapse of Lehman Brothers and the subsequent/concurrent fallout in real estate and consumer spending. Below is a list of the 20 industries that have been affected the greatest, for better and for worse.

• Oil drillers, food & medicine manufacturers, and trade schools were some of the best.
• Real estate, wood products and auto dealerships fared the worst.

Here is a brief list that was just compiled by the financial information company, Sageworks, outlining a handful of interesting recession-time behaviors, all of which are small indulgences that have seen growth in the last 12 months. People may not be spending on large luxuries like cars, jewelry and vacations but they are still keeping room in the budget for small luxuries like gym memberships and dining out.   

Sageworks compiled this list of 4 favorable changes in the business world over the last year, showing the upside of the down economy for businesses.  The data is elaborated on by Sageworks CEO, Brian Hamilton, on this Fox Business segment.

Sageworks released a study this morning outlining what types of retailers are holding their inventory the longest over the past 12 months, compared to pre-recession 2006.  Jewelry stores are holding their inventory 19 days longer in the last 12 months, compared to 2006, the largest increase of any retail sector. Nurseries and lawn equipment stores are second on the list, with an increase of 14 days.  As we all know, the longer it takes for inventory to turn, the more serious the implications are on cash flow and profits.

Below is a list of successful small businesses that those who are unemployed may want to consider starting. These businesses have been very successful despite the downturn and are a particularly good idea for new entrepreneurs to consider because they are service based and have low barriers to entry. They offer great opportunity for growth and profits, and carry little to no overhead expense.

Computer program design – People have big ideas but don’t necessarily know how to make them happen.  This is where computer systems designers come in; they design technology to fit their customers’ needs.  Computer systems designers have seen their sales increase by 10.4% over the last 12 months.

Child day care – While day care can be a big expense for a family, it is also one of the most important.  Believe it or not, people are still working and leaving their children in daycare. Sales of daycare providers have grown by about 4.3% over the last 12 months.

Consulting – This is especially a great option for industry experts in any given topic (real estate, retail, advertising, etc.) that have recently been laid off. People           always need advice, especially when trying to navigating out of tough economic times.  Management and technical consulting firms have experienced growth of 5.4% over the last 12 months.

Hair and nail services ­– People haven’t been letting their looks go by the wayside and it is unlikely that they will start now, with signs of an upturn imminent. Personal care service providers saw their sales grow by 5.1% over the last 12 months.

Home & office painting – While many people aren’t moving right now, they are taking care of what they currently own or rent. Painting contractors experienced sales growth of just over 5% over the last 12 months.

The commerce department reported a 0.8% unexpected gain in construction spending for April, marking a two month consecutive increase despite predictions that spending would drop 1.2%.  

Sageworks Index data also supports a rise in construction activity, but for an additional consecutive month as the data below indicate that sales rose 4.55 % in May after rising 2.94 % in April and 1.66 % in March.

Housing starts also showed a surprising 17.2 % increase in May after a 12.9% drop in April. While housing starts provide an outlook for future construction activity, the large number of unsold homes on the market will be a limitng reactant for new growth in residential construction.

With all of the talk of large bankruptcy filings, Sageworks released a list of 10 types of private companies that are most likely to file for bankruptcy in the coming months. The list is based on the average debt-to-equity ratio in the industry over the last 12 months. A high debt-to-equity ratio generally means that a company has been aggressive in using debt to finance growth.