Riskiest Industries in the US in 2021

1. VoIP in the US

2021 Overall Risk Score: 6.92

The VoIP industry has struggled over the five years to 2021, 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 0.1% to $15.2 billion over the five years to 2021. In 2020, however, the COVID-19 (coronavirus) pandemic and associated... Learn More

2. Telecommunication Networking Equipment Manufacturing in the US

2021 Overall Risk Score: 6.66

The Telecommunications Networking Equipment Manufacturing industry produces wired telecommunication equipment including network switches, routers, modems and gateways. This industry has experienced consistent declines in revenue over the five years to 2021 despite an increasing number of broadband connections and declining prices in raw material costs. Domestic demand for industry products has greatly declined during the period, with a significant amount of demand satisfied by imports. The industry also experienced significant declines in revenue in 2020 due to volatility in the global economic environment brought on by the COVID-19 (coronavirus) pandemic. Consequently, revenue has plummeted during the period, declining at an... Learn More

3. Credit Repair Services

2021 Overall Risk Score: 6.60

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

4. Bare Printed Circuit Board Manufacturing

2021 Overall Risk Score: 6.57

The Bare Printed Circuit Board Manufacturing industry, which comprises companies that manufacture bare printed circuit boards (PCBs), is anticipated to decline over the five years to 2020. The industry is no longer competitive on a global scale due in part to a strong US dollar and a declining US manufacturing base. Since PCBs are inputs into other finished products, PCB manufacturers need to be in close proximity to other manufacturers, particularly in East Asia. Additionally, the effects of COVID-19 have greatly deteriorated the US manufacturing base and thus this industry's prospects. Taking these factors into account, IBISWorld expects industry revenue... Learn More

5. High Frequency Trading

2021 Overall Risk Score: 6.56

The High Frequency Trading industry consists of firms that trade large numbers of orders of financial securities in fractions of a second, using quantitative trading algorithms. High-frequency trading is a subset of quantitative investing, which employs algorithms that analyze financial data to conduct trades. The industry has experienced significant volatility over the five years to 2020. The industry relies on high levels of market volatility to generate revenue by taking advantage of price swings. As the current period began, volatility in financial securities markets, along with trading volumes, was very low, depressing revenue for this industry somewhat. Furthermore, the Federal... Learn More

6. Online Photo Printing

2021 Overall Risk Score: 6.50

The Online Photo Printing industry has benefited from the growing popularity of photo sharing. Over the five years to 2021, social networks and other photo sharing sites encouraged an expanding number of consumers to store and print pictures through online channels. The number of broadband and mobile internet connections increased significantly during the period, contributing to industry growth. Furthermore, increasing consumer disposable income has boosted industry growth by prompting higher levels of discretionary spending. Moreover, the onset of Covid-19 has spurred an increase in demand for photo keepsakes and made people nostalgic for past travels and special events, benefiting the... Learn More

7. E-Book Publishing

2021 Overall Risk Score: 6.39

The E-Book Publishing industry has declined sharply over the five years to 2020. Prior to the current period, e-book sales surged with the introduction of new mobile devices. However, industry-relevant revenue has dropped over the past five years as e-book sales have matured as a product category. Additionally, there are signs that consumers may be tiring of digital media texts and they may continue to consume printed material either alone or in tandem with e-books when seeking longer-form book content. Over the five years to 2020, industry revenue is expected to fall at an annualized rate of 7.1% to $3.3... Learn More

8. Telephone Wholesaling

2021 Overall Risk Score: 6.38

The proliferation of cell phones, in particular smartphones, has fueled demand for the Telephone Wholesaling industry for much of the five years to 2021. Improvements to wireless networks have spurred the rapid introduction of new mobile devices, increasing demand from manufacturers. However, the offshore movement of electronics manufacturing, coupled with remaining domestic manufacturers' increased preference for circumventing wholesalers altogether, has somewhat diminished this industry's role in the telephone supply chain. Growth in e-commerce sales in particular has reduced the prevalence of industry operators in the telephone supply chain. Additionally, industry revenue declined slightly in 2020 amid the economic disruption of... Learn More

9. Furniture Repair & Reupholstery in the US

2021 Overall Risk Score: 6.30

The Furniture Repair and Reupholstery industry is composed of businesses that reupholster, refinish, repair and restore furniture. This industry has experienced decline over the five years to 2021. Prior to 2020, the industry was threatened by falling furniture prices, which frequently made furniture more expensive to repair than to replace. In 2020, the COVID-19 (coronavirus) pandemic caused a recession, leading industry revenue to fall sharply. As a result of these factors, industry revenue has fallen during the current period, declining an annualized 4.7% to $1.5 billion, including an increase of 5.7% in 2021 alone.

During the current period, demand for the... Learn More

10. Cell Phone Repair

2021 Overall Risk Score: 6.29

The Cell Phone Repair industry benefited as smartphone and tablet usage has increased over the past five years, although the COVID-19 (coronavirus) pandemic has dampened the performance of the industry. The rising popularity of expensive but fragile smartphones has given the industry a significant boost since 2016. However, phones are becoming stronger and more durable, making them more difficult to break and presenting a potential threat to the industry. Moreover, the pandemic has placed downward pressure on industry demand, as consumers have largely been homebound since 2020. Consequently, industry revenue is expected to contract an annualized 0.2% to $4.0 billion... Learn More