Kevin Boyland and Anna Son at IBISWorld released a report highlighting ten U.S. industries with limited growth prospects.
Even as the economic recovery continues, these industries aren't likely to be losers.
Click Here To See The Industries >
U.S. GDP growth is projected to be 1.8% per annum from 2012 through 2017, which is higher than forecasted revenue growth for any of the at-risk industries over the same period.
Threats faced by these industries include:
- High competition from substitutes and low-cost imports;
- Decreasing demand;
- Market saturation;
- Technological stagnation; and
- Declining life cycles.
Though a majority of these industries will recover in the long term, for some the death knell has surely been rung.
The two analysts developed a risk score for each industry composed of a weighted combination of structural risk, growth risk, and sensitivity risk.
#10 Business Service Centers
Risk Score: 6.07
2012-17 Annualized
Revenue Growth: +0.4%
Description: Digitization reduces the need for mailbox rentals and other services provided by this industry, and its relevance is on a seemingly irreversible decline.
Source: IBISWorld
#9 Shoe and Footwear Manufacturing
Risk Score: 6.14
2012-17 Annualized
Revenue Growth: -1.8%
Description: Vertical integration and low-cost imports have shifted footwear manufacturing overseas. The number of industry participants is expected to decrease nearly 2% annually while imports are projected to meet over 96% of domestic demand in the next five years.
Source: IBISWorld
#8 Homeowners' Associations
Risk Score: 6.17
2012-17 Annualized
Revenue Growth: +2.6%
Description: Homeownership rates, which declined when the housing bubble burst, go hand-in-hand with homeowners' associations. As a result of the recession, fewer homeowners will have the means and desire to pay fees to these organizations.
Source: IBISWorld
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