top of page
Search

𝗛𝗼𝘄 𝘁𝗵𝗲 𝟭𝟵𝟳𝟯 𝗢𝗶𝗹 𝗖𝗿𝗶𝘀𝗶𝘀 𝗥𝗲𝘃𝗲𝗮𝗹𝘀 𝗦𝗲𝗰𝗿𝗲𝘁𝘀 𝘁𝗼 𝗧𝗼𝗱𝗮𝘆’𝘀 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀

  • Writer: Benjamin
    Benjamin
  • Mar 18
  • 3 min read

Updated: Mar 19

How the 1973 Oil Crisis Reveals Secrets to Today’s Founders

 

 

When Amal Al-Jaber, a 32-year-old shipping coordinator in Dubai, arrived at the port one crisp October morning in 1973, the horizon bristled with idle supertankers bobbing uselessly. Normally, he'd orchestrate the loading of crude oil bound for Europe, the U.S., and Japan amid the clang of steel and the roar of pumps. But that day, Arab nations had slashed oil exports to the U.S. and allies in retaliation for Yom Kippur War support.

 

Oil orders vanished overnight. In weeks, their geopolitical flex spiraled globally into empty shelves, skyrocketing prices, and a scramble that upended the world's economy.

 

 

The 1973 oil crisis hit the U.S. economy like a sledgehammer. Some statistics:

  • Oil prices rocketed from $3 to nearly $12 per barrel virtually overnight, igniting double-digit inflation (peaking at 12.3% by 1974)

  • The GDP contracted 0.5% that year causing a brutal recession

  • Unemployment surged to 9% by 1975, worse than anything since the Great Depression

 

Energy shortages cascaded through every sector: factories throttled production due to power rationing, 400,000 jobs vanished in auto and steel alone, and the stock market plunged 45% from its peak.

 

Big companies like GM slashed 83,000 jobs and closed plants indefinitely as gas-guzzling cars rotted on lots, while airlines like Pan Am grounded dozens of jets and laid off thousands amid 50% fuel costs hikes.

 

Small businesses fared worse. Independent truckers rioted at stoppages with "Let Us Work" signs, mom-and-pop gas stations shuttered as supplies dried up, and family-owned manufacturers in the Midwest idled assembly lines.

 

Small Businesses Adapt to Survive

 

Independent truckers, facing empty highways and fuel rationing, banded into co-ops to pool diesel and backhaul loads. These owner-operators, who hauled 80% of U.S. freight at the time, organized by sharing routes to bypass shortages that idled 1 in 5 rigs nationwide and slashed costs by 30%.

 

Mom-and-pop gas stations pivoted to mini-marts stocked with shelf-stable goods, capitalizing on shortages to hawk canned veggies and batteries at markup. Many thrived as community hubs when big chains faltered, boosting revenue 25% on average as drivers sought alternatives amid lines lasting 4+ hours.

 

Midwest small manufacturers traded bloated stockpiles for nimbler "just-in-time" sourcing, hiring local welders to make necessary parts on demand and bartering excess capacity with neighbors, turning fragile supply chains into flexible networks that stabilized cash flow and outlasted the recession.

 

The Lessons for Today

 

Those small business adaptations (co-ops, pivots to urgent needs, nimble sourcing) offer blueprints founders can use today to dodge single points of failure.

 

Collaborate regularly with customers, teams, and stakeholders to spot economic or industry shifts and preempt their needs. For new challenges or opportunities, start with fractional leaders to clarify priorities before full-time hires. Then, layer in automation to boost efficiency. Blending people and tech optimizes flexibility and productivity, striking the right balance between risk and velocity.

 

With Middle East tensions flaring again, tomorrow could echo 1973's shocks. Founders listening, adapting, and building redundancy early might seize a real edge.


---------------------------------


This format, called Go Wide: A Life Less Curated, serves as an antidote to algorithms and echo chambers by revealing how major historical events impacted the world and might shape what comes next.

 

Do you agree with this prediction? Are there other topics we should explore? Let us know at info@webuildscalegrow.com.


---------------------------------

 

"How the 1973 Oil Crisis Reveals Secrets to Today’s Founders" image by skarletmotion



What if the quietest person in the room is the one who changes the world?


Build Scale Grow solves problems for fast-growing startups, specializing in Social Impact, EdTech, and Health Tech, and focusing on Introverted Founders.


OUR RESOURCES




  • Scale: Reach Your Peak helps leaders learn and understand proven and practical scaling methods in just five minutes. Browse over 130 practical topics.




  • The New York Tech CFO Group is a free, informal forum where over 200 finance leaders share insights on strategic planning, benchmarking, and financial solutions.



 
 
LinkedIn.webp

© Build Scale Grow, LLC

bottom of page