Industries with Most Risky Business Environments in the US in 2024

1. Telecommunication Networking Equipment Manufacturing in the US

Business Environment Risk for 2024: 7.23

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

2. Casting Agencies in the US

Business Environment Risk for 2024: 7.15

Casting agencies play an intermediary role between producers and talent agencies. When the producer of a film, TV series, advertisement or other media project requires an actor with specific physical characteristics or acting skills, they reach out to a casting agency to provide candidates. Casting directors then send out requests to talent agencies for actors with matching traits. Talent agents submit available matching candidates to casting directors for an audition, in which the director evaluates the skills of the actor. Casting directors' expertise lies in their ability to spot strong candidates that also match the specific requests of the project's... Learn More

3. Coal Mining in the US

Business Environment Risk for 2024: 6.99

Coal miners faced a highly volatile operating environment over the past five years. Wildly fluctuating commodity prices, declining mine output and the gradual transition toward cleaner and less-expensive energy alternatives have constrained domestic coal demand. Also, coal mining companies suffered from severe economic and supply chain disruptions that emerged following the outbreak of COVID-19 in 2020. Despite lower output, surging coal prices enabled coal miners to rebound in the latter half of the period. Industry-wide revenue has been growing at a CAGR of 1.5% over the past five years and is expected to total $35.4 billion in 2023, when revenue... Learn More

4. Computer Peripheral Manufacturing in the US

Business Environment Risk for 2024: 6.88

The industry relies heavily on its performance in the international markets, since an overwhelming amount of downstream demand comes from exports. An appreciation of the US dollar during the current period has certainly depressed growth. As COVID loomed and US businesses closed, consumers were forced inside for the better part of a year. Further decreases in revenue were offset by consumers purchasing from the industry for personal entertainment purposes. Revenue ultimately increased at a CAGR of 0.6% to $14.3 billion over the five years to 2023, with an increase of 1.8% in 2023 alone as profit reached 4.3%.

Demand for computer... Learn More

5. Corn, Wheat & Soybean Wholesaling in the US

Business Environment Risk for 2024: 6.85

Corn, wheat and soybean wholesalers distribute grains, such as corn, rice, wheat, dry beans and soybeans, which are essentials in most Americans' diets. Due to their necessary nature and the fact that households are typically unable to dramatically change their food preferences in the short run, the COVID-19 recession didn't drastically reduce revenue for wholesalers. Many companies endured some decline in sales because of falling demand from retail and manufacturing markets, so they still decided to reduce their capacity. As spending surged during the pandemic recovery, wholesalers, farmers and other industry operators couldn't increase their supply to match demand. Prices... Learn More

6. Commercial Banking in the US

Business Environment Risk for 2024: 6.84

The Commercial Banking industry is composed of banks regulated by the Office of the Comptroller of the Currency, the Federal Reserve Board of Governors (Fed) and the Federal Deposit Insurance Corporation (FDIC). Banks generate most of their revenue through loans they originate to customers and businesses. Loans are made at various interest rates that are influenced by different factors, including the federal funds rate (FFR), the prime rate, debtors' creditworthiness and macroeconomic performance.

The industry experienced mixed performance. Industry operators benefited between 2017 and 2019 due to interest rate hikes by the Fed and increasing economic activity. In 2020, the COVID-19... Learn More

7. Shoe Repair in the US

Business Environment Risk for 2024: 6.71

The shoe repair industry comprises operators that repair footwear made of leather or rubber soles and other leather or leather-like goods. For decades, low-cost imported shoes combined with highly personalized marketing from fast-fashion retailers have encouraged consumers to purchase new shoes in place of repairing old ones, thus reducing demand for industry services. As a result, this movement toward online outlets to minimize costs has encouraged many operators to close up shop altogether, with the remaining players adapting to changing demand conditions. In addition, formal workplace attire has continued to lose popularity. It has shifted towards more casual styles, placing... Learn More

8. Chicken Egg Production in the US

Business Environment Risk for 2024: 6.70

Over the past five years, chicken egg producers have had to contend with severe revenue volatility. While per capita egg consumption has remained stable, a severe drought across most of the United States pushed the price of feed upward. This, combined with lingering challenges from supply chain bottlenecks and highly pathogenic avian influenza (HPAI), have pushed the price of eggs upward. Widespread inflation in 2022 also contributed to surging egg prices, and while the industry benefited from an upswing in revenue that year, price spikes set the stage for plummeting prices in 2023. As a result, industry-wide revenue has dropped... Learn More

9. Corn Farming in the US

Business Environment Risk for 2024: 6.69

Revenue for the corn farming industry has been volatile over the past five years as corn prices and demand have fluctuated dramatically. The outbreak of the COVID-19 pandemic caused a downturn in revenue as the supply chain backed up products were left unsold, but massive increases in exports and boosted oil production caused revenue to skyrocket in 2021 and 2022. As a result of these outliers, revenue has risen an annualized 10.1% to $94.7 billion over the five years to 2023, including an increase of 0.3% in 2023 alone.

Domestic supply remained consistent through COVID-19 as a reduction in production from... Learn More

10. Canned Fruit & Vegetable Processing in the US

Business Environment Risk for 2024: 6.68

The Canned Fruit and Vegetable Processing industry often performs countercyclically to the US economy, benefiting it in times of economic uncertainty. During periods of growth, consumers shy away from canned fruit and vegetable products as higher levels of disposable income enable them to trade up to pricier and fresher products. The perception that canned and processed food is less nutritious than fresh and unprocessed food has been a substantial inhibitor of industry expansion in recent years, especially as health consciousness rises. Producers have responded by diversifying product lines to include canned goods with zero added sugars, low-sodium or organic ingredients.... Learn More