Least Risky Industries in the US in 2020

1. Autonomous Underwater Vehicle Manufacturing

2020 Overall Risk Score: 2.47

The Autonomous Underwater Vehicle (AUV) Manufacturing industry has experienced robust growth over the past five years, with industry revenue estimated to surge at an annualized rate of 26.5% to $885.4 million. First developed in the 1960s, AUVs are underwater vessels programmed to perform a set task; AUVs can travel independently with their own power source. The industry generates the majority of its revenue from military and security markets for surveillance, reconnaissance, mine countermeasures and antisubmarine warfare. Many AUVs are largely still developmental products, and the US military's focus on the product is indicative of future commercial growth potential. In fact,... Learn More

2. Ship Building in the US

2020 Overall Risk Score: 2.89

The Ship Building industry is made up of operators that design, build and repair ships and other vessels for both the defense and commercial sectors. The industry maintains some stability as long project lead times for ships and consistent demand for military ships from the US Navy keep shipyards busy. The US Navy, which accounts for the majority of revenue, only buys ships from domestic shipyards, which guarantees industry players access to the largest military ship market in the world. Changes to the defense budget are the key determinant of industry revenue. An increase in US naval outlays has benefited... Learn More

3. Beer Wholesaling in the US

2020 Overall Risk Score: 2.90

Growth for the Beer Wholesaling industry has been hindered by shifting alcohol consumption trends among consumers, particularly millennials. Americans are consuming less beer and opting for alternative alcoholic beverages. However, the industry continues to benefit from laws that prevent the vertical integration of breweries and retailers. After the Prohibition era, nearly every state enacted a three-tier distribution system, requiring three distinct levels within the alcoholic beverage supply chain: producer, distributor and retailer. As a result, beer wholesalers have a protected role, purchasing beer from producers before storing and transporting it to downstream retailers. This permits revenue to remain stable throughout... Learn More

4. Online Beer, Wine & Liquor Sales

2020 Overall Risk Score: 3.16

Revenue for the Online Beer, Wine and Liquor Sales industry has skyrocketed over the five years to 2019, due in part to the expansion in households with internet connections. The number of broadband connections has increased at an annualized rate of 6.2% over the past five years, creating a robust potential customer base for the industry. Furthermore, according to Nielsen's Global Connected Commerce Study, 8.0% of online consumers in the United States browsed and purchased alcoholic beverages online in 2016 (latest data available), bolstering industry revenue. Moreover, the emergence of more time-strapped amateur wine connoisseurs and individuals interested in mixology... Learn More

5. Water Supply & Irrigation Systems in the US

2020 Overall Risk Score: 3.22

The Water Supply and Irrigation Systems industry has performed well over the past five years. Despite more efficient use of water, population growth, droughts and other adverse weather conditions have increased demand for water supplied by industry operators. Additionally, economic growth has expanded water demand from both downstream commercial and industrial customers. Higher business activity has increased the amount of water demanded from retailers, restaurants and other commercial customers for provision to their customers and employees. Growth in manufacturing and other industrial activities, which often require copious amounts of water, have also increased demand for water.

As a result of heightened... Learn More

6. Residential Senior Care Franchises

2020 Overall Risk Score: 3.38

The Residential Senior Care Franchises industry has experienced strong revenue growth over the five years to 2020. The industry, which provides residential and personal-care services for elderly individuals that are unable to fully care for themselves, has boomed on account of the aging population and the growing need for dementia care. As a result, IBISWorld expects industry revenue to grow at an annualized rate of 9.3% to $4.6 billion over the five years to 2020, including an increase of 6.8% in 2020 alone. However, the COVID-19 (coronavirus) pandemic is expected to challenge revenue growth in 2020. Profit, measured as earnings... Learn More

7. Online Small Electrical Appliance Sales

2020 Overall Risk Score: 3.40

The Online Small Electrical Appliance Sales industry comprises companies that sell electrical appliances online. Industry products include appliances such as vacuums, hair dryers, toasters, blenders and other items that are advertised and purchased online by consumers. Overall, the industry is growing rapidly as more time-strapped and price-sensitive consumers are attracted to the convenience of finding, comparing and purchasing products online. E-commerce as a whole has grown tremendously over the five years to 2019, and this phenomenon has extended to small electronic appliance products. Increased consumer spending and a higher number of internet connections have further contributed to growth. As a... Learn More

8. Forensic Technology Services

2020 Overall Risk Score: 3.40

The Forensic Technology Services industry, which provides a variety of forensic services used in criminal investigations, posted steady growth over the five years to 2019. Publicly funded forensic crime labs primarily receive requests from criminal justice agencies. State, county and municipal governments represent 90.5% of industry revenue. Since government agencies are essentially the primary market for industry services, many publicly funded forensic crime labs rely heavily on tax revenue. Consequently, favorable domestic economic conditions, such as rising per capita disposable income and low unemployment, resulted in increased tax revenue over the five years to 2019. As a result, spending on... Learn More

9. Libraries & Archives

2020 Overall Risk Score: 3.41

The Libraries and Archives industry benefited from rising government funding over the five years to 2020. According to the Institute of Museum and Library Services, state and local governments account for a vast majority of public library revenue. During the period, low unemployment and rising discretionary income boosted tax revenue and resulted in states and local municipalities expanding public library funding. Similarly, federal funding to public libraries has risen during the period. Private libraries, which are funded through membership fees and endowment funds, also experienced growing revenue as strong growth in disposable income made consumers more willing to purchase private... Learn More

10. Dating Services in the US

2020 Overall Risk Score: 3.41

The Dating Services industry has exhibited strong growth over the five years to 2020 as a growing number of consumers use the internet to seek love. The proliferation of broadband internet connections and greater cultural legitimacy surrounding online dating has helped the industry rise. Furthermore, companies that are able to take advantage of rising smartphone adoption in the United States have been highly successful, with many operators offering services exclusively through mobile apps. Consumers are increasingly accessing the internet through their smartphones as functionality and connection speeds improve, increasingly enabling consumers to access online dating services at their convenience. As... Learn More