Industries with the Biggest Increase in Profit Margin in the US in 2023

1. International Airlines in the US

Percentage Point Increase for 2023: 17.3pp

Demand for the International Airlines industry has experienced significant volatility over the past five years. During the beginning of the current period, mounting competition from foreign competitors and chronic overcapacity within the industry's cargo transportation segment forced industry operators to slash ticket prices and reduce freight shipping rates, causing industry revenue to decline. Unprecedented disruption from the COVID-19 (coronavirus) pandemic generated the most substantial revenue decline in industry history. As global economies and health recover, pent-up consumer demand is anticipated to drive industry recovery toward the end of the period. Overall, industry revenue has decreased at a CAGR of 0.5%... Learn More

2. Ocean & Coastal Transportation in the US

Percentage Point Increase for 2023: 11.2pp

Ocean and coastal transportation includes cruise lines and freight carriers transporting people and cargo to and from US ports. The industry has experienced varied conditions in recent years. Rising US trade activity between 2017 and 2019 bolstered industry revenue, but overcapacity in the deep-sea freight shipping market limited growth. Still, revenue has been buoyed by the cruise segment, which has grown as demand and rising disposable income enabled consumers to spend more on discretionary items and services. Record-high revenue growth was achieved soon after the CDC lifted pandemic-related restrictions. Overall, industry revenue has been positive in four of the last... Learn More

3. Commercial Leasing in the US

Percentage Point Increase for 2023: 7.4pp

Operators in the Commercial Leasing industry serve as lessors of buildings for nonresidential purposes. Industry participants include owner-lessors of nonresidential buildings, establishments that rent real estate and then act as lessors in subleasing it, and establishments that provide full-service office space. Over the five years to 2023, rising per capita disposable income encouraged more businesses to enter the market. Moreover, incumbent businesses are inclined to increase their production and inventory levels to tap into the growing consumer demand, thus demanding more space. However, declining corporate profit in 2020 partially dampened demand for commercial leasing due to lower confidence in their... Learn More

4. Zoos & Aquariums in the US

Percentage Point Increase for 2023: 7.3pp

Zoos and aquariums in the US primarily preserve and exhibit land and aquatic animal life exhibits for conservation, academic purposes and public display. This industry does not include companies whose primary operations include arboreta, arboretums, aviaries or botanical gardens. Over the years to 2023, industry performance was susceptive to macroeconomic conditions, like declining unemployment and increasing per capita disposable income. The industry experienced volatility as the COVID-19 pandemic created unfavorable economic conditions, causing many establishments to temporarily close and limit their visitors. In 2021, macroeconomic conditions recovered strongly, and revenue continued growing significantly through 2022. Revenue grew at a CAGR... Learn More

5. Coal Mining in the US

Percentage Point Increase for 2023: 6.7pp

Coal miners faced a highly volatile operating environment over the past five years. Wildly fluctuating commodity prices, declining mine output and the gradual transition toward cleaner and less-expensive energy alternatives have constrained domestic coal demand. Also, coal mining companies suffered from severe economic and supply chain disruptions that emerged following the outbreak of COVID-19 in 2020. Despite lower output, surging coal prices enabled coal miners to rebound in the latter half of the period. Canadian coal mining revenue has been increasing at an annualized 11.3% over the past five years, including an estimated 32.3% decrease in 2023, and is expected... Learn More

6. Merchant Banking Services in the US

Percentage Point Increase for 2023: 6.4pp

The Merchant Banking Services industry has grown moderately through the end of 2023. Merchant banks provide equity, debt and trade financing to middle-market private companies. Merchant banks often invest in the debt of private companies in the form of mezzanine financing and senior loans. Regarding trade financing, merchant banks provide foreign corporate investment and international transaction facilitation services; they also offer lines of credit and issue letters of credit between importers and exporters. While large financial holding companies, like The Goldman Sachs Group Inc. (Goldman Sachs), have merchant banking segments or subsidiaries, most merchant banks are relatively small and specialized,... Learn More

7. Concert & Event Promotion in the US

Percentage Point Increase for 2023: 5.9pp

Concert and event promoters produce, advertise and manage a variety of live events and performances, including concerts, sporting events and public appearances. During the last few years, industry revenue has experienced significant growth. Positive economic expansion fueled consumer discretionary purchases on live events and related performances. But in 2020, the COVID-19 pandemic generated an estimated 47.9% revenue decline, creating an unprecedented disruption for the industry. However, since the latter half of 2021, the easing of COVID-19 restrictions has boosted demand for live events, leading to a record-level recovery throughout the industry. Overall, revenue grew at a CAGR of 9.1% over... Learn More

8. Oil Drilling & Gas Extraction in the US

Percentage Point Increase for 2023: 5.9pp

The Oil Drilling and Gas Extraction Industry includes companies that profit from extracting and selling fossil fuels. Producers have experienced a high degree of volatility in recent years. Steady growth was ripped away when COVID-19 halted the economy, as restrictions limited the need for oil and gas. The conflict in Ukraine added to the uncertainty, as the reliance on Russian oil and gas was distributed between domestic producers and other sources. Although, as the economy recovered demand shot up quicker than supply could match, causing prices to surge and generate substantial returns. Revenue has grown at a CAGR of 10.6%... Learn More

9. Amusement Parks in the US

Percentage Point Increase for 2023: 5.7pp

Over the past five years, more visitors and rising consumer spending drove industry revenue. Amusement and theme park companies operate mechanical rides, water rides, games, shows, exhibits and refreshment stands, among many other attractions for consumer entertainment. Five major companies dominate the industry: Walt Disney, Universal Parks & Resorts, SeaWorld, Six Flags and Cedar Fair. The industry is highly competitive and major amusement park operators have used intellectual property rights to use film franchises and entertainment to attract consumers. Despite the COVID-induced decline, industry revenue grew at a CAGR of 2.4% to $25.7 billion through 2023.

Despite solid revenue growth, this... Learn More

10. Wood Pulp Mills in the US

Percentage Point Increase for 2023: 5.0pp

Wood pulp mills are highly susceptible to global paper production as wood pulp producers primarily export their products. Challenging international trade conditions, significant volatility in wood pulp prices and extreme turbulence in downstream markets because of the outbreak of COVID-19 hindered growth. Industry-wide revenue has been falling at a CAGR of 0.8% over the past five years and is expected to total $7.9 billion in 2023, when revenue will drop by an estimated 5.3%.

Wood pulp mills were hit hard by the outbreak of COVID-19 because of plummeting international trade in 2020 and limitations in domestic pulping capacity. Since wood... Learn More