Industries with the Highest Profit Margin in the US in 2020

1. Trusts & Estates in the US

Profit Margin 2020: 65.5%

The Trusts and Estates industry is composed of trusts, estates and agency accounts administered on behalf of beneficiaries under the terms established in a fiduciary contract. Industry revenue, composed primarily of capital gains on trusted assets and ordinary dividends, exhibited substantial growth over the five years to 2020. The industry benefited from substantial yields in equity and fixed income markets in addition to appreciation in house prices. Overall, revenue is expected to rise at an annualized rate of 3.9% to $193.9 billion over the five years to 2020. Revenue is expected to decline 1.0% in 2020, however, due to the... Learn More

2. Commercial Leasing in the US

Profit Margin 2020: 50.3%

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 2020, increased 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 on the growing consumer demand, thus demanding more space. However, declining corporate profit has partially dampened demand for commercial leasing, as a result of lower confidence in... Learn More

3. Operating Systems & Productivity Software Publishing in the US

Profit Margin 2020: 42.1%

Operators in the Operating Systems and Productivity Systems Software Publishing industry develop and publish operating systems and productivity software products that are necessary for computer usability. Industry software often comes preinstalled on new computers, which means industry revenue is correlated with new computer sales. As computer products have become more intertwined with daily life over the five years to 2020, industry demand has grown. As a result, total industry revenue has expanded as sales to both consumers and businesses increased, driven by rising disposable income levels and extensive private investment in computers and software. Overall, industry revenue has grown at... Learn More

4. Private Equity, Hedge Funds & Investment Vehicles in the US

Profit Margin 2020: 41.2%

The Private Equity, Hedge Funds and Investment Vehicles industry consists of funds that raise capital to invest in various asset classes. Industry assets have become increasingly integral to institutional investors' portfolios and the larger asset-management market. Institutional investors are individuals or organizations that trade securities in such substantial volumes that they qualify for lower commissions and fewer protective regulations since they are assumed to be knowledgeable enough to protect themselves. Increasing demand from institutional investors has contributed to the surge in the industry's assets under management (AUM) and revenue during the early portion of the period. To a lesser extent,... Learn More

5. Cigarette & Tobacco Manufacturing in the US

Profit Margin 2020: 40.3%

Operators in the Cigarette and Tobacco Manufacturing industry produce a variety of tobacco products, including cigarettes, cigars and smokeless tobacco (excluding electronic cigarettes). Since the 1980s, the percentage of smokers in the United States has steadily declined, while excise tax on tobacco has increased; however, the industry continues to adapt to these increasingly challenging conditions. Operators experience significant brand loyalty and are, thus, able to pass on higher excise taxes and compliance costs to consumers in the form of higher selling prices. In turn, price markups often offset declining unit sales of cigarettes, which generate more than 80.0% of industry... Learn More

6. Portfolio Management in the US

Profit Margin 2020: 35.7%

The Portfolio Management industry has experienced countervailing trends over the five years to 2020. Industry operators manage asset portfolios for a fee or commission. For the majority of the period, rising assets under management (AUM) as a result of rising asset prices and growing disposable income has increased the base of assets industry operators charge fees on. However, increased investor preference for passive asset management, including through exchange-traded funds (ETFs), has driven expenses charged for the management of assets down during the period.

Financial markets play an integral role in AUM growth and, consequently, base and performance fees earned by managers.... Learn More

7. Venture Capital & Principal Trading in the US

Profit Margin 2020: 34.9%

The Venture Capital and Principal Trading industry comprises companies and individuals that invest in various financial contracts to earn a profit. Participants include venture capitalists, day traders, investment clubs and dealers of mineral royalties or leases, oil royalties and tax liens. The industry also includes viatical settlement companies that purchase life insurance policies at discounted prices to later collect the benefits. Collectively, the industry has benefited from rising security prices and increasing merger and acquisition activity over the majority of the five years to 2020. As a result, industry revenue is expected to grow over the five years to 2020... Learn More

8. Organic Chemical Pipeline Transportation in the US

Profit Margin 2020: 33.2%

The Organic Chemical Pipeline Transportation industry remained moderately unchanged over the five years to 2020, despite rising domestic crude oil and natural gas production. Industry operators primarily transport carbon dioxide (CO2), which is commonly used to enhance oil well production rates; in fact, the use of natural gases, most often CO2, accounts for 60.6% of enhanced oil recovery production in the United States. According to the Energy Information Administration (EIA), the US oil and gas production increased over the five years to 2020, despite volatility in pricing for end products. Demand for CO2 pipeline transportation increased on par with oil... Learn More

9. Real Estate Investment Trusts in the US

Profit Margin 2020: 32.7%

Real estate investment trusts (REITs) are companies that invest in both commercial and residential income-generating real estate and distribute at least 90.0% of their taxable income to shareholders. Over the five years to 2020, the Real Estate Investment Trusts industry has expanded as a result of rising property values and increasing investment by institutional investors. Moreover, low interest rates and rising demand for housing have spurred growth in real estate values during the current period. In light of a burgeoning property market and historically low interest rates, investors ranging from hedge funds to university endowments have invested in REITs due... Learn More

10. Apartment Rental in the US

Profit Margin 2020: 31.0%

Operators in the Apartment Rental industry have performed strongly over the five years to 2020; however, industry performance has decelerated in more recent years. Since the subprime mortgage crisis, the industry has undergone structural change. Leading up to the crisis, most investment in real estate was carried out by institutional investors (those that own 10 properties or more); whereas today, most properties for rent are single-investor owned and nonowner occupied. Historic lows in homeownership, decreasing rental vacancy rates and surging demand for rental units have enabled landlords to increase rents, aiding revenue and profit growth. Therefore, IBISWorld estimates industry revenue... Learn More