Recent market turbulence has left investors with questions about what this moment means for the industrial sector. Its dramatic evolution over the past few cycles — largely the result of rapid e-commerce growth — offers several lessons and opportunities that can insulate the sector from total disruption. David Egan of Stockbridge dives into how the sector performs in a recession and future opportunities.

How does industrial typically fare in a recession? 

Industrial, as an asset class, tends to track closely with the economic cycle. As the economy slows, demand will typically follow, often lagging a quarter or two. Looking back at data over the past few decades, we can see a tight correlation between GDP and demand. 

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