Riskiest Industries in the US in 2022

1. Wood Flooring Manufacturing

2022 Overall Risk Score: 7.95

The Wood Flooring Manufacturing industry has declined over most of the five years to 2022 due to constrained activity within nonresidential conduction. The COVID-19 (coronavirus) pandemic has hindered and continues to impair activity within the nonresidential construction market, as activity within this sector has historically taken longer to improve post-recession. However, increased performance within the residential construction market due to record low mortgage rates has helped somewhat mitigate the declines in nonresidential construction. Since home building and renovation projects take a relatively short amount of time to complete, the level of activity within the residential building market is highly susceptible... Learn More

2. Sawmills & Wood Production in the US

2022 Overall Risk Score: 7.60

Operators in the Sawmills and Wood Production industry manufacture and treat lumber, boards, beams and other wood products. As the industry's performance relies heavily on overall construction activity, rising housing starts and the value of nonresidential construction caused industry revenue to grow strongly over the five years to 2022, especially during the COVID-19 (coronavirus) pandemic as consumers spent far more time at home due to social distancing measures. Conversely, nonresidential construction declined during the same period, as the pandemic caused demand for commercial office and industrial space to collapse. Overall, IBISWorld estimates that industry revenue will increase at an annualized... Learn More

3. Wood Product Manufacturing in the US

2022 Overall Risk Score: 7.29

The Wood Product Manufacturing industry produces a diverse range of wood products, including wood ladders, cabinets, toothpicks, wood flour and kiln-dried lumber, among others. The construction sector is the industry's largest source of demand and as a result, operators have benefited over the five years to 2022 from strong growth in housing starts and consumer spending, boosting demand from households for other wood products. Additionally, exports have surged due to European Union biofuel regulations, which have boosted demand for North American wood pellets. Over the five years to 2022, total revenue is expected to increase at an annualized rate of... Learn More

4. House Painting & Decorating Contractors

2022 Overall Risk Score: 7.25

Strong demand from the residential housing sector has supported growth in the House Painting and Decorating Contractors industry. Over the five years to 2022, the value of residential construction and the number of new housing starts are expected to rise an annualized 2.2% and 6.4%, respectively. Furthermore, rising per capita disposable income has facilitated an increase in private spending on home improvements, which is expected to rise an annualized 2.5% during the five-year period. Over the five years to 2022, industry revenue is anticipated to increase at an annualized rate of 3.8% to $18.6 billion, facilitated by the low interest... Learn More

5. Cabinet & Vanity Manufacturing in the US

2022 Overall Risk Score: 7.14

The Cabinet and Vanity Manufacturing industry produces wooden kitchen and bathroom fixtures primarily for retailers, construction contractors and independent wholesalers. Thus, industry revenue is largely driven by the value of residential construction and private spending on home improvements. Over the five years to 2022, the industry has expanded as low interest rates and substantial fiscal stimulus boosted consumer confidence, and thus, demand for housing and home improvements. The outbreak of COVID-19 (coronavirus) in early 2020, while initially negative for the industry, provided further boosts to industry performance as consumer incomes rose due to stimulus checks and unemployment benefits. Overall, industry... Learn More

6. Carpenters in the US

2022 Overall Risk Score: 7.11

The Carpenters industry consists of contractors that provide specialist framing carpentry services, including the construction of wooden framing and permanent foundations, wall installations and wooden beam and truss installations. Carpenters also perform finish carpentry services, such as on-site construction and the installation of doors, windows, stairs, shelving, cupboards, cabinets and decks. Most revenue generated by carpentry contractors is derived from subcontracting services to a prime building contractor, while other smaller scale projects involve contracting directly with the client, typically the building owner, occupier or property manager. Carpenters experience some competition from do-it-yourself (DIY) homeowners in the housing alterations and additions... Learn More

7. Hand Tool Manufacturing

2022 Overall Risk Score: 7.05

The Hand Tool Manufacturing industry has performed sluggishly over the five years to 2021, though sharp price growth in 2021 amid surging steel prices is expected to uplift industry revenue and display a much stronger annualized increase. Revenue growth for the industry has been bolstered by an expected increase in the value of residential construction and increased private spending on home improvements. Industry revenue has been held back by strong import competition and a due to the COVID-19 (coronavirus) outbreak in 2020, which limited export revenue growth amid an overall pullback in trade. Overall, industry revenue growth has been mostly... Learn More

8. Cotton Farming in the US

2022 Overall Risk Score: 7.05

The Cotton Farming industry has experienced extremely volatile operating conditions over the five years to 2022. While revenue grew 35.2% in 2017 due to shortages in the international market, it fell 3.5% and 10.5% 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. This has resulted in declines in exports from the US over the five years to 2022, which has contributed to declines in industry revenue. As a result, industry revenue is anticipated to decline... Learn More

9. Truck-Mounted Crane Manufacturing

2022 Overall Risk Score: 7.04

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

10. Iron Ore Mining in the US

2022 Overall Risk Score: 6.98

The Iron Ore Mining industry has benefited tremendously as the world price of iron ore is estimated to increase at an annualized rate of 12.2% over the five years to 2022. However, the industry has recently come under pressure as aggregate steel production and consumption fell sharply in response to the poor economic environment which stemmed from the COVID-19 (coronavirus) pandemic in 2020. Domestic ore output decline 21.1% in 2020 alone as operators idled mines and processing facilities due to coronavirus concerns and lower demand for iron and steel. IBISWorld estimates industry revenue will increase at an annualized rate of... Learn More