As the U.S. enters its third “summer of recovery,” everyone’s still wondering where the jobs are. Â While the economy does show signs of improvement in some sectors, it is still stagnant in others.
Let’s face it: Â Some industries will never come back, even after the economy revives.
If you want to build your career in an industry that is poised for growth, here are ten industries you may want to avoid according to Toon Van Beeck, Senior Analyst at IBISWorld.
10 Dying Industries
These ten industries are in the decline phase of their life cycle, are experiencing sizeable contraction in revenue, and are expected to see further deterioration over the next five years:
- Manufactured home dealers
- Record stores
- Photofinishing
- Wired telecommunications carriers
- Apparel manufacturing
- Newspaper publishing
- DVD, game and video rental
- Mills
- Formal wear and costume rental
- Video post-production services
So, what sounds the death knell for these industries? Â Van Beeck explains that they face three similar challenges:
1. Â Damaging external competition -Â Particularly relevant to the manufacturing sector, major competition for items produced in the United States comes from imported products, especially low-cost items. Since labor costs and regulations are high domestically, many manufacturers send their production to foreign countries. Downward price pressure from domestic wholesalers, retailers and consumers forces U.S. producers to cut costs in order to offer a competitive price. American firms that cannot send their production activities out of the country face strong competition from imports; therefore, these businesses often fail.
2. Â Advancements in technology -Â While technological developments make life easier and more efficient, they often come at the demise of industries that rely on the old ways of life. Technology change occurs rapidly within many industries across the United States; as a result, it has spawned new industries and business opportunities. However, many traditional industries struggle to keep up and ultimately lose out in this new wave.
3. Â Industry stagnation -Â As competition becomes fiercer, due to the factors just mentioned, and other internal and external reasons, businesses often need to cut costs in all production areas to reduce prices and garner sales. However, it comes at the cost of implementing industry and product R&D. As a result, businesses often put off capital and technology investments, making it more difficult to improve production efficiencies, which ultimately cost them time and money. As a result of this vicious cycle, many industries end up stagnating and dying a slow death as others catch up, overtake and prosper.
How Does Your Industry Rate?
How does your industry, job, or career field rate when you consider the three aforementioned challenges faced by the dying industries? Is yours on the list, or could it be next? Â What can you do to innovate and take advantage of changes that are coming to your industry?
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