Industries with Most Risky Business Environments in the US in 2024

1. Telecommunication Networking Equipment Manufacturing in the US

Business Environment Risk for 2024: 7.25

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: 7.01

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. Fruit & Vegetable Wholesaling in the US

Business Environment Risk for 2024: 6.94

The Fruit and Vegetable Wholesaling industry has experienced moderate revenue growth over the past five years. Wholesalers engaged in the distribution of fresh fruits and vegetables. Revenue is dependent on the market prices of fruits and vegetables in addition to the ability of consumers to spend their incomes at grocery stores and restaurants. Increased per capita disposable income has permitted consumers to increase purchases of fresh produce from grocery stores and visit restaurants more frequently. Consequentially, demand from downstream industries has grown for much of the period, driving revenue growth for wholesalers. As the economy has reopened, this industry has... Learn More

5. 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

6. Canned Fruit & Vegetable Processing in the US

Business Environment Risk for 2024: 6.87

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

7. Fruit & Vegetable Markets in the US

Business Environment Risk for 2024: 6.84

Operators in the Fruit and Vegetable Markets industry tend to be small, local vendors that sell fruit, vegetables, meat, dairy and various frozen products predominately to households and individuals. Industry revenue has rose at a CAGR of 2.2% to reach an estimated $6.5 billion in 2023, when revenue is expected to fall 1.0%. While per capita consumption of fruits and vegetables has declined during the same period, the prices of key industry products have increased, facilitating industry growth. The COVID-19 pandemic led to a decline in sales as many industry operators closed while others imposed significant shopping restrictions. Likewise, many... Learn More

8. Metal Wholesaling in the US

Business Environment Risk for 2024: 6.82

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

9. Chicken Egg Production in the US

Business Environment Risk for 2024: 6.80

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

10. Corn, Wheat & Soybean Wholesaling in the US

Business Environment Risk for 2024: 6.78

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