Riskiest Industries in the US in 2020

1. Geophysical Services in the US

2020 Overall Risk Score: 7.26

Operators in the Geophysical Services industry survey and map subsurface terrains to find mineral and energy deposits in addition to other physical features such as fault lines. While the industry primarily serves mining and energy companies, it also contracts services to government agencies and professional services providers, such as consultant engineers. The industry's heavy reliance on energy companies has resulted in extreme revenue fluctuations, with revenue rising substantially prior to the five-year period to 2020 due to volatile crude oil prices following the economic downturn. However, the tempering and ultimate collapse of oil prices have led to declining revenue for... Learn More

2. Cotton Farming in the US

2020 Overall Risk Score: 7.25

The Cotton Farming industry has experienced extremely volatile operating conditions over the five years to 2020. While revenue grew 71.0% in 2017 due to shortages in the international market, it fell 20.2% and 12.6% in 2018 and 2019, respectively due to Chinese tariffs on US cotton. Meanwhile volatility in the price of cotton and US subsidies for cotton farmers has contributed to massive swings in industry revenue. Over the five years to 2020, industry revenue is anticipated to rise at an annualized rate of 6.4% to $7.1 billion. Industry revenue has been boosted by shortages in supply and sensitive to... Learn More

3. Apparel Knitting Mills in the US

2020 Overall Risk Score: 7.21

Revenue for the Apparel Knitting Mills industry has contracted for over a decade as more clothing manufacturing has been off-shored to low-cost countries abroad. This contraction has led demand for industry products to decline steadily over the five years to 2020. While consumers have benefited from an increase in disposable income levels over the past five years, it has not stimulated industry performance due to the continued outsourcing trend and import penetration. Although international consumers have become more conscious of buying products that are made in the United States with high quality or specialized functions, the marginal shift has not... Learn More

4. Truck-Mounted Crane Manufacturing

2020 Overall Risk Score: 7.20

The Truck-Mounted Cranes Manufacturing industry produces two major products: boom trucks and mobile telescopic cranes. A boom truck is a straight telescopic boom crane outfitted with a hook that is mounted on a standard flatbed commercial truck chassis. A mobile telescopic crane consists of a telescopic boom mounted on a wheeled carrier. Relative to other lifting equipment, industry products provide increased versatility and are capable of transporting relatively large payloads from site to site at high speeds.

Due to the nature of industry products, industry growth is influenced strongly by the health of the construction sector. Over the five years to... Learn More

5. Automobile Interior Manufacturing in the US

2020 Overall Risk Score: 7.16

The Automobile Interior Manufacturing industry manufactures automobile seats and interiors, including upholstery, trimming, seat covers, seat frames and seat belts. The industry also includes the production of seats for aircrafts. Historically, automakers have been the main drivers of demand for the industry. Over the five years to 2020, demand for total automobiles has increased in line with the improving economy, prompting automakers to increase production. Primarily, a surge in demand in light-trucks has helped spear auto production during the current period. As a result, upstream suppliers, such as automobile interior manufacturers, experienced heightened demand. Overall, industry revenue has increased at... Learn More

6. Book, Magazine & Newspaper Wholesaling in the US

2020 Overall Risk Score: 7.10

The Book, Magazine and Newspaper Wholesaling industry has remained in a state of rapid decline over the five years to 2019. Demand for print media has declined in line with increased consumption of digital news and entertainment, fueled by the continued proliferation of mobile devices. Simultaneously, wholesalers have become less involved in distributing print media. Retail stores have decreased their magazine offerings, declining to dedicate shelf space to a product category whose sales are dwindling. Publishers have also increasingly boosted their circulation by offering discounted subscriptions, which are mailed directly to consumers without the aid of a wholesale distributor. Meanwhile,... Learn More

7. Camera Stores in the US

2020 Overall Risk Score: 7.08

The Camera Stores industry encompasses photographic equipment retailers that operate a physical location. Over the past decade, the industry has contracted substantially due to the proliferation of e-commerce sites and the strong competition posed by large consumer electronic stores. These primary competitors have captured a significant portion of industry product demand, limiting the pool of consumers who elect to purchase items from dedicated camera retailers and even forcing companies to exit the industry. Furthermore, total camera sales have waned as consumers have grown accustomed to using integrated smartphone cameras for picture taking. Overall, industry revenue is projected to decline an... Learn More

8. Office Staffing & Temp Agencies in the US

2020 Overall Risk Score: 7.03

Over the five years to 2020, the Office Staffing and Temp Agencies industry has recorded growth due to a growing US labor market and overall economic improvements. However, the COVID-19 (coronavirus) pandemic has created unfavorable economic conditions in 2020. This has caused the industry and labor market to significantly decline over the year. Industry operators supply businesses with workers for predetermined periods of time to supplement their existing staff. Operators in the industry are considered legal employers of temp workers since they are responsible for payroll, although they do not directly supervise the employees at work sites.

During the current five-year... Learn More

9. Magazine & Periodical Publishing in the US

2020 Overall Risk Score: 7.01

Persistent declines in print advertising expenditure have driven a steep drop in revenue for the Magazine and Periodical Publishing industry. Operators in this industry produce regular editions of printed media, excluding newspapers. Publishers in the industry may also distribute supplemental online editions of their content, but the industry does not include exclusively digital products. As advertisers have diverted more dollars to online channels, print magazine advertising revenue has dried up, and digital readers have been unable to make up the difference. This has been particularly challenging for certain segments, such as home and living titles, that have historically heavily discounted... Learn More

10. Department Stores in the US

2020 Overall Risk Score: 7.01

The Department Stores industry has continued its long-term decline over the five years to 2020, with revenue expected to fall at an annualized rate of 11.0% to $100.0 billion. The industry's continued decline has been accentuated by a 27.4% fall in 2020 alone as operators shut facilities amid the COVID-19 (coronavirus) pandemic. Additionally, while rising competition from e-commerce has accelerated declines, revenue contraction is primarily attributable to the increasing number of major players that have expanded their product ranges to include groceries, which transitions their revenue to the Warehouse Clubs and Supercenters industry (IBISWorld report 45291), a trend that is... Learn More