(5) Lack of Demand from Consumers
However, in spite of industry growth due to their expansion in foreign regions, the existing plants and manufacturing sites in America barely had enough work opportunities to offer. There were not enough consumers buying their products.
Other developments greatly affected the demand for their products as environmentalists, naturalists and consumer advocates had launched their own movements against the depletion of natural resources. There were the calls against the use of synthetic chemicals, as well as informing the buying public about the possible harms these products could do to human health as chemical carcinogens in industries.
An increasing number of consumers have been heeding the call of going back to basics, of eating and growing fresh and organic produce, and of concocting their own cleaning materials, cosmetics and personal care products. Recycling had become prevalent and buying from second-hand retail shops had become a norm. Perhaps, this was also borne out of consumers’ lack of buying power, since many are still jobless or have very little earning capacity.
As a result, businesses now found it more difficult to survive, because they not only have to contend with rising costs, there was also the lack of demand. Product lines and entire plant facilities were being shut down; hence, more moves for downsizing of the labor force were carried out.