Riskiest Industries in the US in 2020

1. Business Service Centers in the US

2020 Overall Risk Score: 7.47

The Business Service Centers industry provides a variety of business outsourcing services such as printing, photocopying, mailbox rentals and parcel and mail delivery. Over the past five years, client businesses and households have increasingly engaged in digital communication, lowering demand for a breadth of document and mailing services. Additionally, competition from other, more-specialized industries is on the rise. The threat of e-commerce and similar industries has created greater price-based competition, translating to marginal revenue growth and declining profit. Nonetheless, over the past five years, the business environment has improved, enabling businesses to outsource more nonessential functions to industry operators. As... Learn More

2. Lighting & Bulb Manufacturing in the US

2020 Overall Risk Score: 7.46

The Lighting and Bulb Manufacturing industry produces a range of products including electric light bulbs, tubes, parts and components. However, this industry excludes light-emitting diode (LED) and lighting fixture manufacturers. Over the five years to 2019, the industry has struggled with import penetration and increasing input costs. Additionally, the increasing substitution of LEDs for traditional lighting systems has dramatically reduced demand for industry products. As a result, industry revenue is expected to decrease at an annualized rate of 9.9% over the five years to 2019 to reach $1.0 billion, including a decrease of 5.8% in 2019 alone amid shifting consumer preferences.Although the... Learn More

3. Document Preparation Services in the US

2020 Overall Risk Score: 7.38

The Document Preparation Services industry experienced remarkable growth less than a decade ago; however, the industry's growth rate has since slowed considerably with the introduction of automated systems, decreasing the need for industry services. Confronted with decelerating demand from small businesses and other key markets, with increased pressure to lower prices due to intense competition, the industry has failed to sustain its previous levels of growth and is entering a declining life cycle phase. Moreover, recent developments in automated technology solutions have increased competition from other industries, such as voice recognition technology (VRT) and other artificial intelligence (AI) systems, present... Learn More

4. Art & Office Supply Manufacturing in the US

2020 Overall Risk Score: 7.31

Companies in the Art and Office Supply Manufacturing industry manufacture a range of art and office supplies, including pens, pencils, staplers and marking devices. Overall, the industry has contended with challenges over the five years to 2019. For example, text messages and e-mail are extremely popular communication tools that do not require pens, pencils or other writing and drawing supplies, hampering industry growth. Moreover, businesses throughout the country have moved toward conducting operations online and are demanding fewer industry products. However, if implemented properly, increased traffic through online retail channels has the potential to mitigate the impact of declines in... Learn More

5. Credit Repair Services

2020 Overall Risk Score: 7.27

The Credit Repair Services industry largely performs countercyclical to the overarching business cycle; therefore, the currently favorable economic environment, characterized by rising disposable income and low unemployment, has proved unfavorable for the industry. Additionally, many debt-ridden consumers have chosen not to seek out industry services and instead file for bankruptcy or take advantage of free online services. Consequently, industry revenue is expected to decline at an annualized rate of 7.1% to $3.0 billion over the five years to 2019, including a 10.1% decrease in 2019 alone.

Factors influencing demand for credit repair services include rising incomes in the United States, increasing... Learn More

6. Print Advertising Distribution in the US

2020 Overall Risk Score: 7.17

Over the five years to 2019, the Print Advertising Distribution industry has expanded due to rising advertising expenditure. Robust advertising expenditure is largely attributable to an overall prosperous consumer base as exemplified by rising per capita disposable income and declining unemployment. Coinciding with a strong consumer base, the private sector has ramped up advertising activities requiring the industry's distribution and promotional services. Over the past five years, the distribution of print advertisements has largely given way to the distribution of samples and branded promotional materials. As a result, IBISWorld expects industry revenue to increase at an annualized rate of 2.9%... Learn More

7. Coal Mining in the US

2020 Overall Risk Score: 7.08

The Coal Mining industry has been volatile in recent years, and revenue is expected to decline at an annualized rate of 6.1% to $22.8 billion over the five years to 2020. The prices of thermal, or steaming, and metallurgical, or coking, coal surged prior to the current period. Several factors, including Australian coal re-entering the global market after severe flooding disrupted operations, the emergence of natural gas as a substitute for coal in electricity generation, a slowing Chinese economy and relatively mild winters in the United States have reduced demand for coal and contributed to price volatility over the past... Learn More

8. Quick Printing in the US

2020 Overall Risk Score: 7.07

Rapid advances in computer technology have enabled consumers and small businesses to complete tasks previously performed by the Quick Printing industry from the convenience of their homes and offices. The availability of this technology, combined with swift declines in the price of computer software and peripheral equipment, has posed a significant challenge to the industry over the past decade and especially over the five years to 2019. Moreover, consumers are increasingly favoring alternative mediums, such as online media and digital communications, over printed materials, leeching away industry demand. Due to these trends, industry revenue has declined, despite a modest increase... Learn More

9. Database & Directory Publishing in the US

2020 Overall Risk Score: 7.05

The decline of the Database and Directory Publishing industry over the five years to 2019 has been driven by the sustained migration from print to digital advertising, as the industry historically generated the majority of its revenue from the sale of advertisement space in printed publications. Print advertising expenditure, which drives demand for advertising space in directories, is expected to decline at an annualized rate of 6.2% over the five years to 2019. Forced to increase its digital presence, the industry has experienced intense competition from online substitutes, limiting the industry's digital advertisement sales. In particular, industry operators are enduring... Learn More

10. Magazine & Periodical Publishing in the US

2020 Overall Risk Score: 7.02

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