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Fastest Declining Industries in the US in 2022


Table of Contents
Health & Welfare Funds in the US
Iron & Steel Manufacturing in the US
Scrap Metal Recycling
Prefabricated Home Manufacturing in the US
Real Estate Appraisal in the US
Tunnel Construction
Activated Carbon Manufacturing
Hog & Pig Farming in the US
For-Profit Universities in the US
Sign & Banner Manufacturing Franchises

1. Health & Welfare Funds in the US

2022-2023 Revenue Growth: -35.0%

The Health and Welfare Funds industry provides healthcare coverage and welfare benefits to employees, unions and other professional associations. Industry operators function similarly to pension funds and employee benefit programs, which aim to provide cost-effective medical and welfare coverage on a nonprofit basis for the benefit of members. The five years to 2022 threw many challenges at industry operators. Even before the COVID-19 (coronavirus) pandemic, declining union membership and increasing healthcare premiums prevented stable growth.

2. Iron & Steel Manufacturing in the US

2022-2023 Revenue Growth: -21.1%

Operators in the Iron and Steel Manufacturing industry manufacture various shapes of steel. Industry operators have endured wide swings in operating difficulty over the five years to 2022 as the world price of steel, a key input for the industry, has fluctuated. Industry revenue and profit follow changes in the world price of steel products, which reflects global supply and demand trends. During the first half of the current period, the price of steel fell, creating an oversupply due to weakened demand for tubular steel from energy-related industries and unfavorable exchange rates for domestic steel producers.

3. Scrap Metal Recycling

2022-2023 Revenue Growth: -15.0%

The Scrap Metal Recycling industry collects and processes both ferrous (iron-based) and nonferrous metals. Recycling typically involves sorting, shearing, shredding and torching the metal before selling it to steel mills, foundries and other industrial consumers, which then use it as an input for their products. Metal recycling has become more popular over the past few decades because it offers energy savings and cost benefits when compared with primary production, which requires extracting metals from mined ores. In addition, scrap metal has become more readily available as businesses and consumers discard cars, electronic appliances and other products.

4. Prefabricated Home Manufacturing in the US

2022-2023 Revenue Growth: -13.7%

The Prefabricated Home Manufacturing industry produces modular and manufactured homes that are low-cost substitutes to conventional, site-built units. The industry caters to first-time homeowners, retirees and low-income consumers. Rising home prices during the period priced more buyers out of the traditional housing market and raised demand for prefabricated homes. Plummeting interest rates amid the COVID-19 (coronavirus) pandemic, as well as the health risks associated with the virus, further boosted demand for industry products as consumers fled congested urban areas and took advantage of the low interest rates.

5. Real Estate Appraisal in the US

2022-2023 Revenue Growth: -13.1%

Companies in the Real Estate Appraisal industry primarily provide valuation services, such as residential property appraisals, commercial property appraisals and real estate portfolio valuations, to those active in real estate markets. The industry is primarily dependent on the residential and non-residential markets, making up an estimated 75.9% of industry revenue. Over the five years to 2022, the value of private non-residential construction is expected to decrease at an annualized rate of 3.7%, preventing the industry from growing at a faster rate.

6. Tunnel Construction

2022-2023 Revenue Growth: -11.0%

Over the five years to 2021, revenue for the Tunnel Construction industry is expected to grow, largely as a result of surging state and local spending in conjunction with sharp increases in federal funding for transportation in response to the COVID-19 (coronavirus) pandemic. Predominantly, the industry has had a beneficial period, with industry revenue rising in each year of the current period, barring 2016 and a slight dip in 2018. Increases in industry revenue have been driven by an annualized 12.4% increase in federal funding for transportation.

7. Activated Carbon Manufacturing

2022-2023 Revenue Growth: -10.7%

The Activated Carbon Manufacturing industry has continued to benefit from an intensified focus on environmental policy. Activated carbon is processed with oxygen to create pores between carbon atoms, increasing their surface area. This, in turn, enables activated carbon to absorb contaminants as liquid or gas passes through it. Activated carbon is used primarily for water treatment and air purification. A range of downstream industrial sectors rely on activated carbon for the removal of impurities. According to Cabot Corporation, the chemicals production sector particularly relies on industry products to achieve precise purity standards.

8. Hog & Pig Farming in the US

2022-2023 Revenue Growth: -10.3%

The Hog and Pig Farming industry, like other livestock industries, has been enduring hard times for many reasons, one of which is the effects of commodity price fluctuations. In particular, industry revenue is determined by the price of feed, which has been highly volatile over the five years to 2022. Feed is the largest input cost for industry operators, so the price of feed is correlated with the price of pork. If the price of pork falls, industry production will likely increase, but total revenue will fall.

9. For-Profit Universities in the US

2022-2023 Revenue Growth: -9.4%

The For-Profit Universities industry includes institutions that offer academic courses at baccalaureate and graduate levels on a for-profit basis. At the beginning of the current five-year period, industry revenue experienced declines as operators experienced negative press for providing less than adequate education to students. However, revenue rebounded after changes to government policy limited student fraud claims. Further, in 2020, the industry is expected to benefit from a surge in the national unemployment rate resulting from the COVID-19 outbreak. The subsequent large decrease in unemployment and higher demand for travel ends the current period on a lower note.

10. Sign & Banner Manufacturing Franchises

2022-2023 Revenue Growth: -8.7%

The Sign and Banner Manufacturing Franchises industry has exhibited a steep decline over the five years to 2022. For most years during the period, the industry’s struggles have had little to do with demand for signage. Growth in advertising spending as well as steady investment in commercial construction have boosted demand for signs. These two trends have pushed up US demand for signage over the past five years. However, franchises have had a greatly diminished role in providing industry products.

Source from lbisworld

The information set forth above is provided by lbisworld independently of Alibaba.com. Alibaba.com makes no representation and warranties as to the quality and reliability of the seller and products.

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