Based on the expert analysis and our database of 1,300+ US industries, IBISWorld presents a list of the Industries with Most Risky Business Environments in the US in 2024
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View a list of the Top 25 industries with most risky business environmentsBusiness Environment Risk for 2024: 7.21
Metal wholesalers purchase primary metal products in bulk from manufacturers and distribute them to markets on a customized basis. The primary metals they deal with are iron, steel and nonferrous metals including copper or aluminum. Success in this industry hinges on downstream production and the prices of metals. Shifts in the prices of metals have a mixed impact on the industry, as higher prices increase purchase costs, but make up for it by having a higher resale value. Low prices reduce the cost of stocking up but come with the chance of not providing a sufficient return to turn a... Learn More
Business Environment Risk for 2024: 7.16
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 years to 2023 despite an increasing number of broadband connections and a rising number of consumers that have acquired computers. Domestic demand for telecommunication network equipment products has greatly declined in the period, with a significant amount of demand satisfied by imports. The industry also experienced significant declines in revenue in 2020 because of volatility in the global economic environment brought on by the COVID-19 (coronavirus) pandemic. Revenue has plummeted, declining at a... Learn More
Business Environment Risk for 2024: 7.13
The Copper, Nickel, Lead and Zinc Mining industry consists of companies that mine metal-bearing ores and sell them in raw form or as concentrates. Since the United States only contains one nickel mine, industry performance mainly depends on copper, lead and zinc production and prices. These minerals are key inputs in construction, electronics, and automobiles. Accordingly, demand fluctuates in unison with growth in global activity. China's vast appetite for copper and other metals creates a robust and direct relationship between Chinese demand and global market conditions. Industry performance has been stymied by waning global growth, particularly due to the ongoing... Learn More
Business Environment Risk for 2024: 7.08
Real estate asset managers and consultants sell a variety of real estate services, like consulting and advisory, real estate asset management, escrow, relocation, tenant representation, listing and fiduciary activities. Most companies in the industry are nonemployers, with many firms employing just a few workers. Market share concentration is also relatively low, with real estate consulting companies mainly serving regional markets.
During the current period, revenue increased significantly because of massive growth in residential construction. Despite the cratering economy caused by COVID-19 in 2020, low-interest rates and massive government aid spurred more housing starts and home buying. This kept sales for real... Learn More
Business Environment Risk for 2024: 7.02
The industry provides support services on a fee or contract basis to companies involved in oil extraction, mining and quarrying. Since the extraction of hydrocarbons dwarves that of any other mineral or energy source in the United States, most oil field drilling service companies are concerned with providing support services strictly to oil companies. Due to this relationship, the industry is exposed to numerous endogenous and exogenous factors that factor into the success of the Oil Drilling and Gas Extraction industry (IBISWorld report 21111). For example, rising hydrocarbon prices often yield an increase in demand for oil field drilling services... Learn More
Business Environment Risk for 2024: 7.00
Real estate salespeople and brokers sell, buy or rent real estate for others. The industry is closely aligned with the health of the residential and commercial real estate markets in the United States. Revenue is directly correlated with property prices and real estate transaction volumes, and agents are paid completely on a commission basis, receiving a fee only when they close a deal. Also, the residential market accounts for most of revenue, making the real estate sales sensitive to fluctuations in housing prices and existing home sales.
Through the end of 2023, real estate sales have seen growth in line with... Learn More
Business Environment Risk for 2024: 6.97
The Oil and Gas Drilling Equipment Manufacturing industry provides machinery and equipment to oil and gas extractors. Major global events, such as the pandemic and the Ukraine war, have negatively impacted machinery manufacturers by creating significant volatility in commodity prices. Major production and travel slowdowns harmed demand for oil and gas, resulting in fewer extraction projects and lowering the need for machinery. Although prices bounced back as the economy re-opened, many oil and gas companies turned to imported machinery, which is more affordable. The Ukraine war, however, disrupted the global oil and gas supply chain, boosting demand for domestic production.... Learn More
Business Environment Risk for 2024: 6.93
Operators in the Sawmills and Wood Production industry cut and treat lumber, boards, beams and other wood products. As the national desire for wood relies heavily on overall construction activity, rising housing starts and the value of nonresidential construction caused industry revenue to grow strongly until 2022, especially during the COVID-19 (coronavirus) pandemic. Consumers spending more time at home and switching to single-use paperware both supported wood processing companies. Still, nonresidential construction declined during the same period; wood is used less frequently in industrial and office structures, but slowing economic activity still cut deep. Despite swaying in the gales of... Learn More
Business Environment Risk for 2024: 6.93
Developers in the industry are responsible for preparing sites prior to construction. Industry-specific activities vary between projects, but common activities include purchasing land, obtaining regulatory approval for subdivision, preparing sites and installing basic amenities like roads and sidewalks. Only companies that earn a majority of their revenue from these prebuilding activities are considered to be part of the industry. Consequently, site preparation services offered by developers in other construction-related industries are not included in the industry. Decreases in nonresidential construction activity and increases in office rental vacancies in 2020 and 2021 have negatively affected revenue growth because of the COVID-19... Learn More
Business Environment Risk for 2024: 6.92
Drywall and insulation installers are companies that install drywall panels, apply plaster to interior walls of homes and buildings and install other forms of insulation. Demand for these services is closely tied to downstream nonresidential and residential building activity, both of which have experienced volatility in recent years. Demand for drywall and insulation installers has increased, moving mostly in line with the broader Construction sector (IBISWorld report 23) Overall, drywall and insulation installing revenue has stagnated to $58.3 billion through the end of 2023, including an anticipated decrease of 2.4% in 2023 alone as residential construction activity falls.
Commercial building construction... Learn More
Based on the expert analysis and our database of 1,300+ US industries, IBISWorld presents a list of the Fastest Declining Industries in the US by Revenue Growth (%) in 2024
VIEW ARTICLEBased on the expert analysis and our database of 1,300+ US industries, IBISWorld presents a list of the Least Risky Industries in the US in 2024
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