Riskiest Industries in the US in 2021

1. News Syndicates in the US

2021 Overall Risk Score: 6.89

The News Syndicates industry includes businesses that produce or distribute news reports, photography, columns, editorial cartoons and other informational products. News syndicates in general do not publish their own material, Rather, news syndicates primarily license their content to downstream print publishers in addition to TV and radio broadcasters, who use the syndicated content to supplement their own news coverage. Over the five years to 2020, the industry has declined due to falling spending on print advertising, which has in turn limited downstream publishers' investment in supplemental content. However, the industry has also received boosts from the US presidential elections and... Learn More

2. Credit Repair Services

2021 Overall Risk Score: 6.82

The Credit Repair Services industry largely performs countercyclical to the overall economy. However, record levels of government stimulus amid the current economic downturn have benefited consumers, lessening demand for industry services. Additionally, many debt-ridden consumers have chosen not to seek out industry services and have instead file for bankruptcy or take advantage of free online services. Consequently, industry revenue has declined at an annualized rate of 4.6% to $3.6 billion over the five years to 2020. Despite a severe economic downturn in 2020 following the spread of COVID-19 (coronavirus), extensive government stimulus has benefited consumers. Furthermore, the closure of large... Learn More

3. Communication Equipment Manufacturing in the US

2021 Overall Risk Score: 6.78

The Communication Equipment Manufacturing industry produces radio and TV broadcasting equipment, satellites, antennas, global positioning system (GPS) equipment, pagers, mobile communications equipment and cell phones. Since the industry is diverse, certain product segments may perform better than others. However, due to stiff internal and import competition, and volatility due to COVID-19 (coronavirus) industry revenue is anticipated to decline at an annualized rate of 3.3% to $24.1 billion over the five years to 2020, including estimated decline of 6.9% in 2020 alone.

While domestic companies are often at the forefront of progress in this industry, many have offshored less-profitable manufacturing activities to... Learn More

4. Paper Wholesaling in the US

2021 Overall Risk Score: 6.72

The Paper Wholesaling industry in the United States has experienced intense competition from digital mediums and declining demand from traditional downstream markets. Operators in this industry distribute paper and paper products. Demand for paper products has fallen over the five years to 2020 due to declining purchases by individuals, retailers, other wholesalers and corporate clients. Additionally, an increasing number of sales conducted online has reduced demand for wholesalers as many customers purchase directly from superstores or manufacturers. Over the past five years, industry revenue is expected to decrease an annualized 10.7% to $15.2 billion, including a decline of 21.3% in... Learn More

5. Cigarette & Tobacco Products Wholesaling in the US

2021 Overall Risk Score: 6.57

The Cigarette and Tobacco Products Wholesaling industry has experienced steady growth over the five years to 2020, despite contending with growing regulatory, economic and operational challenges. During the current period, the rapidly growing popularity of e-cigarettes has caused major players to rush into this product segment, fueling the growth behind the industry. For example, in 2018, Altria Group Inc. purchased a 35.0% stake in Juul Labs Inc., a leading e-cigarette company, worth an estimated $12.8 billion. However, the COVID-19 (coronavirus) pandemic in 2020 has caused a relative reversal in operating conditions as stay-at-home measures and travel restrictions have been enacted,... Learn More

6. VoIP in the US

2021 Overall Risk Score: 6.55

The VoIP industry has struggled over the five years to 2020, despite growing demand for the service provided by industry operators. Voice over Internet Protocol (VoIP) technology converts voice communications into digital data transmitted using a high-speed connection. The industry declined during the period as competition from standard cell phone services and from free video chat services, such as FaceTime and Facebook Messenger, caused demand for industry services to decrease. IBISWorld expects industry revenue to decline at an annualized rate of 1.9% to $14.1 billion over the period. In 2020, however, the COVID-19 (coronavirus) pandemic and associated stay-at-home orders have... Learn More

7. Formal Wear & Costume Rental in the US

2021 Overall Risk Score: 6.50

The Formal Wear and Costume Rental industry comprises establishments that engage in rental activities of formal garments including tuxedos, suits and gowns. Industry revenue has decreased over the five years to 2021 despite growth in the industry's customer base, which is adults aged 20 to 64. Moreover, rising external competition and falling marriage rates have contributed to the industry decline. To the detriment of the industry, rising household income levels during the five-year period have enabled consumers to purchase formalwear outright instead of renting. Furthermore, the COVID-19 (coronavirus) outbreak has diminished demand for formalwear renting as special events of large... Learn More

8. Blow Molding Machinery Manufacturing

2021 Overall Risk Score: 6.45

The Blow Molding Machinery Manufacturing industry produces equipment used to make hollow plastic products, including plastic bottles and automotive parts. Private investment in industrial equipment and machinery and downstream demand are key drivers of industry performance, both of which have performed well over the five years to 2020 due to improving economic conditions. Industry growth has stemmed from a rise in investment in industrial equipment and machinery, as downstream users are expanding capacity. However, volatile steel prices led to operators slashing top-line selling prices toward the end of the period. Over the five years to 2020, revenue for the Blow... Learn More

9. Print Advertising Distribution in the US

2021 Overall Risk Score: 6.44

Over the five years to 2021, the Print Advertising Distribution industry has contracted due to declining print advertising expenditure. Print advertising has lost significant market share to digital advertising over the past decade. In 2020, the COVID-19 (coronavirus) pandemic exacerbated this trend, further pushing consumers to shop, work and socialize online. A drop-off in consumer spending and high unemployment have driven a decline in all forms of advertising spending. As a result, demand for print advertisements and their distribution have fallen even further. Overall, IBISWorld estimates industry revenue has decreased an annualized 6.7% to $3.0 billion over the five years... Learn More

10. Home Furniture Rental

2021 Overall Risk Score: 6.43

The Home Furniture Rental industry serves various customers who lease or rent furniture products, including bed frames, couches, dining room tables and a range of other home products. The industry largely caters to individuals with an immediate short-term need, such as college students, or those who lack the necessary income or credit to purchase these big-ticket items. This industry is countercyclical to the economy, performing well in difficult economic times, when consumer confidence is low and consumer spending is minimal. Conversely, during favorable economic times when disposable income levels are high, credit is more accessible and consumer spending is rising,... Learn More