Industries with Least Risky Business Environments in the US in 2023

1. Medical & Recreational Marijuana Growing in the US

Business Environment Risk for 2023: 2.55

The industry, which includes establishments that grow marijuana for medical and recreational use, flourished over the five years to 2023. Legislative victories over recent years, proved that the cannabis industry is one of the fastest growing industries in the US. Consumer attitudes are also accelerating legalization efforts at the state level. Gallup reports that an estimated 80.0% of US citizens approve of legal access to medical marijuana, while 60.0% approve of full adult use legalization. The growing acceptance of medical marijuana is providing growers and investors with unprecedented opportunities. As a result, industry revenue increased at a CAGR of 30.5%... Learn More

2. Solar Power in the US

Business Environment Risk for 2023: 2.94

The Solar Power industry owns and operates solar power-generating facilities in the form of either photovoltaic (PV) panels or solar thermal power stations. Solar power companies have gone through significant growth, propelled by improvements in the technologies used for electricity generation and government incentives, like the renewable portfolio standard (RPS) targets. RPS legislation requires local utility companies to diversify their portfolio and generate percentages of their energy production through renewable resources. Increases in public support for green energy led to tax incentives and grants to encourage investment in solar power. This has resulted in more companies powering facilities with solar... Learn More

3. Medical & Recreational Marijuana Stores in the US

Business Environment Risk for 2023: 2.95

The Medical and Recreational Marijuana Stores industry, which includes stores that retail medical marijuana (by prescription only) and recreational marijuana, has expanded dramatically over the past five years. The legalization of marijuana for medical and/or recreational purposes and the growing acceptance of legal marijuana use provided operators and investors with unprecedented opportunities. There has been no shortage of demand over recent years, and the cannabis industry has become one of the fastest-growing in the United States.

The legalization of recreational marijuana sales in several states has fueled revenue growth. Furthermore, the licensing of commercial recreational marijuana retailers has caused new entrants... Learn More

4. Wind Power in the US

Business Environment Risk for 2023: 2.98

The Wind Power industry generates revenue from owning and operating wind farms and selling the energy they produce to downstream customers. Government tax credit assistance and state renewable portfolio standards (RPS) have supported the growth of renewable energy. Turbine technology has continued to advance, lowering the cost of equipment and allowing producers to generate high profit. Overall, industry revenue is set to grow at a CAGR of 11.8% to $136.2 billion through 2023, including a 9.6% increase in 2023 alone.

Production tax credits (PTC) offer renewable power generation a tax credit based on the kilowatt-hour of energy produced and have been... Learn More

5. Nondestructive Testing Services in the US

Business Environment Risk for 2023: 3.01

Nondestructive testing (NDT) is used for numerous applications across a wide range of markets, from manufacturing plants and construction sites to nuclear power plants, oil refineries and shipyards. NDT services are used to detect flaws, cracks, variations and minute changes in structures and surface finish without damaging the products being tested. Overall, the industry has benefited from rapidly changing technology and the increasing complexity of products and processes that need testing have boosted demand for industry services. Although, industry performance was undermined by the COVID-19 pandemic and the economic volatility in oil prices. Companies experienced severe losses during 2020, with... Learn More

6. Foreign Currency Exchange Services in the US

Business Environment Risk for 2023: 3.16

The Foreign Currency Exchange Services industry was aided over the five years to 2021 by continued growth in international trade and travel. Downstream corporate clients rely on industry operators for business-to-business payment services, while downstream individuals generally use credit and debit card processing services and currency exchange offerings. The anticipated 2.7% annualized increase in the total value of world trade has boosted demand from these major markets during the five-year period. Moreover, technological change in the form of improved debit card offerings and mobile apps has made industry services more convenient. As a result of these trends, industry revenue is... Learn More

7. International Airlines in the US

Business Environment Risk for 2023: 3.45

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

8. Merchant Banking Services in the US

Business Environment Risk for 2023: 3.52

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

9. Industrial Spraying Equipment Manufacturing in the US

Business Environment Risk for 2023: 3.57

The Industrial Spraying Equipment Manufacturing industry produces machinery that applies coatings, finishes and paints to industrial products, such as aerospace products, and consumer products, such as toilet paper. This industry is largely related to the Manufacturing sector (IBISWorld report 31-33), which experienced growth before declining significantly in 2020. Industry operators benefited from improved industrial production, particularly with aerospace products. As demand for downstream products rose, manufacturers increasingly needed to upgrade spraying equipment and expand capacity. However, these trends were reversed by the drop in downstream demand created by the COVID-19 (coronavirus) pandemic, which limited the market for industry exports and... Learn More

10. Cryogenic Biobanking Services in the US

Business Environment Risk for 2023: 3.58

The Cryogenic Biobanking Services industry is a critical resource for modern scientific research, particularly with respect to disease researchers, pharmaceutical companies and biotechnology researchers. Using cryogenic storage facilities to house samples, operators in this industry catalog biospecimens by genetic or environmental characteristics for use by researchers who require specimens with these traits. Biobanks have become an increasingly vital tool in medical research by producing studies and innovation that have improved public health outcomes. As a result, funding allocated toward biobanks has expanded over the five years to 2022. Of note, industry services spiked in demand in response to the COVID-19... Learn More