LOS ANGELES--(BUSINESS WIRE)--Although the US economy is headed further into recovery, not every industry is performing well, according to market research firm IBISWorld.com. The company analyzed its database of more than 700 industries and identified 10 that may be on the verge of extinction in the United States.
|
Industry |
2010 |
Total Revenue |
Total Forecast |
||||||||||||||||||
| $ | 154,095 | -55 | % | -37 | % | ||||||||||||||||
| $ | 54,645 | -50 | % | -10 | % | ||||||||||||||||
| $ | 40,726 | -36 | % | -19 | % | ||||||||||||||||
| $ | 12,800 | -77 | % | -9 | % | ||||||||||||||||
| $ | 7,839 | -36 | % | -19 | % | ||||||||||||||||
| $ | 4,537 | -74 | % | -62 | % | ||||||||||||||||
| $ | 4,276 | -25 | % | -11 | % | ||||||||||||||||
| $ | 1,803 | -76 | % | -40 | % | ||||||||||||||||
| $ | 1,602 | -69 | % | -39 | % | ||||||||||||||||
| $ | 736 | -35 | % | -15 | % | ||||||||||||||||
All of the 10 industries listed are in the decline stage of their life cycle, have observed a sizable contraction in both revenue and establishments from 2000 to 2010 and are expected to continue experience revenue and establishment declines through 2016. All these industries also exhibit at least one of the following detrimental factors: damaging external competition, supplanting advancements in technology and industry stagnation. Industries and companies that experience these conditions may be vulnerable to their own demise in the future.
Manufacturing - These sectors include: Men’s and Boys’ Apparel Manufacturing; Women’s and Girls’ Apparel Manufacturing; Costume, Uniform, Infant and Other Apparel Manufacturing; Hosiery and Sock Mills; Textile Mills; Apparel Knitting Mills; and Carpet and Rug Mills. Berkshire Hathaway (BRK.A) is a key player in all of the mill industries, while Hanesbrands (HBI) is a strong player in mill and apparel manufacturing industries.
Retail - Record Stores and Manufactured Home Dealers industries are highlighted in IBISWorld’s 10 dying industries. Industry exits have already occurred for many major players within the Record Stores industry, including Virgin Media (VMED) and MTS Incorporated. In the Manufactured Home Dealers industry, Berkshire Hathaway also has a presence through its subsidiary Clayton Homes (CMH), the biggest player in the industry.
Information - The Wired Telecommunication Carriers, Newspaper Publishing and Video Postproduction Services industries are suffering the most due to the rapid change in technology. While major players like AT&T (T) and Verizon (VZ) continue to dominate the Wired Telecommunication Carriers industry, they are generating lower returns each year as consumers switch to VoIP and wireless products.
Other - This final category includes the industries of DVD, Game and Video Rental; Formal Wear and Costume Rental; and Photofinishing. In 2000, Blockbuster (BBI) was a thriving business and the most dominant player in the DVD, Game and Video Rental industry, but the company has since gone bankrupt. And while Eastman Kodak (EK) and Fujifilm (FUJIY) were once major and prominent companies within the Photofinishing industry, they now represent only a fragment of their presence in their heydays.
“Although these industries are all facing negative numbers, the operators in them aren’t necessarily on the brink of death,” explains IBISWorld senior analyst Toon van Beeck. “Firms that protect their strength in certain market segments, focus on niche opportunities and capitalize on the dwindling number of competitors can often reap the greatest rewards as sole operators, obtaining market survival and profitability.”
Click here to view IBISWorld’s full report on the top 10 dying industries.
Follow IBISWorld on Twitter: @ibisworld
About IBISWorld.com, Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld.com offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld.com serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit www.ibisworld.com or call 1-800-330-3772.