When the economy slows, consumer habits shift — fast. People cut back on spending, businesses tighten their budgets, and the market gets ruthless. In this environment, companies with the lowest cost structures tend to win. Not because they’re flashy, but because they’re built for resilience.

Low-cost companies are agile. Their overhead is lean, their supply chains are optimized, and their pricing stays competitive even when customers are watching every dollar. These businesses can lower prices without bleeding out, or maintain margins while others collapse.

Think of brands like Walmart or Southwest Airlines. During downturns, their cost advantages don’t just help them survive — they help them grow. While others retrench, they capture market share.

The lesson is simple: in good times, efficiency is nice. In bad times, it’s everything. The cheapest don’t just survive the storm — they come out stronger on the other side.