Industries with the Highest Profit Margin in the US in 2021

1. Retirement & Pension Plans in the US

Profit Margin 2021: 50.1%

The Retirement and Pension Plans industry, comprising only private and public defined benefit (DB) pension plans, is estimated to grow at an annualized rate of 2.1% to $688.2 billion over the five years to 2021. Strong investment gains and steady growth in contributions have propelled the industry forward during the period. In 2017, revenue growth was particularly strong, increasing 115.6% due to substantial equity gains. This has helped ensure revenue growth on an annualized basis, including an expected growth of 19.1% in 2021 following the fall in revenue in 2020 due to the COVID-19 (coronavirus) pandemic and ensuing economic downturn.... Learn More

2. Trusts & Estates in the US

Profit Margin 2021: 49.5%

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 an increase over the five years to 2021. The industry benefited from substantial yields in equity markets in addition to appreciation in house prices, leading up to the spread of COVID-19 (coronavirus). Overall, revenue is expected to increase at an annualized rate of 2.9% to $174.6 billion over the five years to 2021. Revenue is expected to increase 11.5% in... Learn More

3. Land Leasing in the US

Profit Margin 2021: 47.1%

Operators in the Land Leasing industry rent out land for residential or commercial purposes, generating the majority of their revenue by leasing land to owners of manufactured homes. Participants range from individuals who rent out small plots of land to large companies that manage entire land lease communities. Manufactured homes are relatively inexpensive, and therefore, leasing arrangements offer a more affordable alternative to traditional on-site housing. With an increase in price for single-family conventional homes and apartment rental rates over the past five years, manufactured home properties provide substantial value for low-income families, retirees and first-time homeowners.

Over the five years... Learn More

4. Residential RV & Trailer Park Operators

Profit Margin 2021: 47.1%

The Residential RV and Trailer Park Operators industry is made up of companies that act as lessors of residential RV and trailer park sites, performing on-site community operating and management functions. Over the five years to 2021, the industry has grown in line with per capita disposable income, with the exception to a decline in 2020 due to the negative economic impact of the COVID-19 (coronavirus) pandemic. The industry primarily caters to older individuals, which has benefited industry operators over the five years to 2021 as the number of adults aged 65 and older increased an annualized 2.9%. Overall, industry... Learn More

5. Industrial Banks in the US

Profit Margin 2021: 47.0%

Over the five years to 2021, the Industrial Banks industry has advanced further into the public spotlight. Industrial banks, also known as industrial loan companies (ILCs), are FDIC-insured banking institutions that can be owned and operated by nonfinancial institutions. They are often established by nonfinancial enterprises to provide consumer financing, make intracompany transactions or simply enter the credit market. The FDIC's high liquidity requirements as well as competition in this highly concentrated industry have spurred the exit of the least competitive industrial banks.

The industry's core business of issuing credit cards and originating loans has grown for much of the period.... Learn More

6. Stock & Commodity Exchanges in the US

Profit Margin 2021: 46.0%

The Stock and Commodity Exchanges industry has remained a vital part of the Finance and Insurance sector (IBISWorld report 52), especially as trade volumes have increased over the five years to 2021. Industry operators act as intermediaries and provide physical trading floors or electronic marketplaces where buyers and sellers arrange trades in securities, commodities and related contracts. Exchanges facilitate the transfer of assets between market participants in different locations and with various timeframes.

Total trade volumes have increased over the five years to 2021, which has helped industry revenue grow during the period. For example, the daily trade volume processed by... Learn More

7. Cigarette & Tobacco Manufacturing in the US

Profit Margin 2021: 42.0%

Operators in the Cigarette and Tobacco Manufacturing industry produce a variety of tobacco products, including cigarettes, cigars and smokeless tobacco, but excluding electronic cigarettes. The industry performs countercyclical with the business cycle. In periods of economic downturn, increased unemployment and decreased consumer confidence, smoking and tobacco usage increases as people find ways to self-medicate and ease the feelings of stress. The COVID-19 (coronavirus) pandemic in 2020 is estimated to have greatly influenced the volume of tobacco consumption. Establishments were forced to close down to curtail the spread of the virus, resulting in heightened levels of unemployment as people were laid... Learn More

8. Portfolio Management in the US

Profit Margin 2021: 36.9%

Portfolio Management industry operators manage asset portfolios for a fee or commission. Over the five years to 2021, the industry has experienced countervailing trends. For the majority of the period, rising assets under management (AUM) as a result of rising asset prices and growing disposable income have 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

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

Profit Margin 2021: 36.5%

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 over the five years to 2021. 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 current period.

Over the... Learn More

10. Real Estate Asset Management & Consulting in the US

Profit Margin 2021: 36.4%

The Real Estate Asset Management and Consulting industry consists of various services for businesses and individuals involved in real estate investment, transactions and development. Industry activities include consulting and advisory, real estate asset management, escrow, relocation, tenant representation, listing and fiduciary activities. Most companies in the industry are nonemployers, and the average industry establishment employs fewer than two workers. Accordingly, market share concentration is relatively low, with operators mainly serving regional markets and relatively high level of fragmentation. Industry revenue is expected to expand at an annualized rate of 6.4% to $85.1 billion over the five years to 2021, including... Learn More