Businesses That Thrived During the Great Depression

During the Great Depression, which occurred between 1929 and 1942, many businesses faced severe challenges due to economic hardship. However, certain industries and companies managed to maintain their profitability or even flourish. This article explores some of the businesses that thrived during this period, including those in essential industries and those that adapted to the times.

Railroads and Essential Services

Railroads played a crucial role in maintaining essential services during the Great Depression. Despite the economic downturn, the distribution of goods, regardless of economic situation, remained vital. Railroads, in particular, were indispensable for the transportation of perishables and large loads, where trucking was impractical due to the primitive state of our roads at the time. Railroads often operated at low levels of utilization, yet managed to maintain profitability, making them an essential service during the Great Depression.

Consumer Goods and Growth Amidst Adversity

Some innovative companies in technology or services managed to grow despite the depression. However, it is important to note that they did not necessarily benefit from the economic downturn. Instead, these companies adapted to the changing market conditions and continued to innovate and expand their businesses.

Essential Businesses During the Great Depression

Many companies in essential sectors endured the Great Depression either by maintaining steady performance or by growing. In the Western United States from 1920 to 1940, the situation varied greatly by state, city, town, and region. Here is a list of companies that persevered or grew:

Sears, Montgomery Ward, JC Penney, Atlantic and Pacific Grocers: These retail giants maintained a strong presence, offering essential goods and services to consumers. General Motors, Standard Oil of New Jersey, Standard Oil of Ohio, Standard Oil of Indiana, Texaco, Mobil/Socony Vacuum Oil, Union Oil of California, Conoco, Rexall Drugs, Walgreens Drugs, Johnson Johnson, Procter Gamble, Unilever: The refining and retail sectors, including gas stations and pharmaceuticals, remained resilient. Ford, Chrysler, Mack Trucks, White Trucks, Black Decker tools, Howard Johnson's: Automotive and hardware industries continued to provide essential products, sustaining their market shares. AW Root Beer stands, Coca Cola, Pepsi, Dr. Pepper, Orange and Grape Crush soda, Robert Mondavi vineyards, Gallo vineyards, Budweiser, Schlitz, Pabst, Jack Daniels, Jim Beam, Seagrams distilling: Beverage and alcohol producers adapted to market changes. Kaiser Construction, Bechtel Construction, Morrison-Knudsen Construction, Peter Kiewit Sons Construction, Union Carbide, DuPont, Maytag, Whirlpool, RCA, radio stations and broadcasting in general, magazine publishers in general, movie studios in general, Buster Brown shoe stores, Revlon and Estee Lauder cosmetics, Boeing, Lockheed, Consolidated aircraft, Grumman, Curtiss-Wright, Studebaker, ATT, Consolidated Edison, electric utilities, General Electric after Swope's turnaround, Frigidaire refrigerators, Harry David's mail order fruit company, IBM, Burroughs, McKinsey Company, Bank of America, Caterpillar, Parker Brothers board games, movie theaters mostly owned by the movie studios: From construction to technology and entertainment, many sectors adapted and thrived.

These industries managed to overcome significant challenges and provided critical services, ensuring survival and growth during a tumultuous period.

Adaptability and Innovation

Some businesses particularly stood out for their adaptability. For instance, the Peoples RB (Penny Auction) business worked for banks and helped them manage the sale of foreclosed assets. Neighbors sometimes protected each other through penny auctions to ensure the survival of local businesses. This community support system played a crucial role in helping small businesses survive.

The Pepsi Bottlers also adapted to the economic downturn. By cutting the price of their bottles in half, they made their product more affordable. Additionally, they bought up large quantities of stock bottles from bankrupt soft-drink bottlers and repainted them with a new logo. This strategy enabled them to operate more efficiently and compete with Coca-Cola.

Conclusion

The Great Depression presented numerous challenges, but it also provided opportunities for businesses to innovate and adapt. Essential services, consumer goods, and industries that could pivot and adjust their strategies emerged as survivors and often thrivers. These resilient companies not only weathered the storm but also played critical roles in shaping the economic landscape of the later 1930s and 1940s.