Five Innovative Industries that Boost Small Business
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1 January Follow on head on Master page A Five Innovative Industries that Boost Small Business By IBISWorld Industry Analyst Lucas Isakowitz, exclusively for the ASBDC conference Several industries will introduce innovative products and services, benefiting small businesses across the United States. As the economic landscape improves, small businesses are expected to increase in number, size and scope The improving US economy is big news for small businesses, which account for more than 99.0% of US companies and more than 50.0% of US sales. Defined by the Small Business Administration (SBA) as independent enterprises with less than 500 employees, small businesses are estimated to reach 30.0 million in 2014, marking an increase of almost 50.0% since 1982, according to the SBA. Economic conditions are anticipated to continue improving in 2014: US GDP is forecast to grow 2.8%, unemployment is expected to decline 8.1 percentage points and corporate profit is projected to increase 5.0%. As the economic landscape further improves, small businesses are expected to increase in number, size and scope. The housing crisis, which froze loans critical to small businesses success, is also in the rearview mirror; according to an SBA report, year-todate loan volume increased 15.0% from 2012 to Furthermore, total lending approval rates at big banks jumped more than 20.0% in 2014, according to a report from Biz2credit, an online marketplace for small business funding. Using its database of more than 700 US industries, IBISWorld has a compiled a list of five industries that have promoted small business growth in the United States. While these industries span across all sectors of the economy, they are characterized by one common trait: innovation. The introduction of new products or services into the marketplace will boost economic growth, and small businesses are poised to reap the benefits. Here comes the sun The Solar Panel Installation industry, which is composed of companies that install solar panels as part of general residential and commercial contracting services, posted brilliant growth over the past five years and is expected to continue thriving in the years to come. High energy prices and favorable government incentives have spurred demand for solar power in the five years to As individuals, communities and companies alike rushed to gain access to solar power, revenue for solar panel installers grew an annualized 8.1% to $6.6 billion over the five-year period. Strong demand for industry services has also boosted the number of companies operating in the industry an annualized 3.0%, from 1,904 companies in 2009 to more than 2,000 in As sure as the sun will rise tomorrow, demand for solar power will continue growing over the five years to Ongoing government aid in the form of tax credits and rebates, along with info@ibisworld.com
2 September Business segmentation in the United States (2014) 0.3% 3.4% 100 to 499 employees 5 to 9 employees 12.2% 1 to 4 employees 0.1% 500+ employees 1.7% 20 to 99 employees 2.1% 10 to 19 employees Total 28.4bn 80.0% no employees SOURCE: technological advances in solar panels and the rising popularity of solar power purchase agreements, are expected to help revenue grow radiantly over the next five years. Additionally, technological changes will likely continue to create more efficient panels at more affordable prices, thereby encouraging solar power adoption. IBISWorld projects that revenue for the Solar Panel Installation industry will increase 12.4% in 2015 alone. The number of solar panel installers operating in the industry is expected to reach an estimated 3,000 in Living in a 3D world The 3D Printer Manufacturing industry has leaped ahead in recent years, driven by rapid technological developments, falling costs and new applications for 3D printing technology. Over the five years to 2014, revenue for the industry grew at an average annual rate of 22.8% to total $1.4 billion. Similarly, the number of 3D printer manufacturers increased an annualized 4.6% over the five-year period. 3D printer manufacturing will continue growing as printing technology reshapes industries across all sectors of the economy, including medical devices, architecture, design, engineering and construction. 3D printers have been increasingly used to create customized medical devices, such as hearing aids, orthopedic implants and dental implants, with possible future 3D printer applications including printed organs and blood vessels. Historically, companies in the architecture, design, engineering and construction sectors have had to create models by hand or use older subtractive manufacturing techniques, but 3D printers are capable of converting designs into 3D models almost instantaneously. As a result of these advances, 3D printers have grown in popularity during the past five years and are expected to continue doing so in the years to come. As demand for 3D printers grows, IBISWorld projects that revenue for 3D printer manufacturers will increase 20.0% in In the five years to 2019, the number of companies operating in the industry is expected to increase by an annualized 6.0% to about 70 firms. CSI in cyberspace Businesses in the Digital Forensic Services industry focus on recovering and investigating material found in digital devices, often performing services aimed at increasing cyber security and preventing hacking. Over the past decade, as consumers and businesses
3 September have increasingly used the internet to store valuable information, demand for digital security and investigation services has grown, enabling a large number of companies to enter the industry. The number of industry operators nearly doubled in the five years to 2014, reaching 1,932 companies in From 2013 to 2014 alone, industry revenue increased an estimated 23.1%, and 226 companies entered the industry. The industry is expected to continue growing over the next five years, as industry operators increasingly focus on serving mobile and cloud computing systems. Additionally, US businesses are expected to generate a stronger level of demand for antihacking services as repeated incidents of cybercrime impact a company s reputation and profitability. As demand continues growing for these cyber detectives, revenue for the industry is projected to increase 9.5% in In the five years to 2019, the number of firms operating in the industry is anticipated to grow by an annualized 7.7%, to 2,800 companies. Digital doctors The Telehealth Services industry has experienced substantial growth during the past five years, with the number of telehealth service operators more than doubling to an estimated 420 in Companies in this industry deliver healthrelated services and information via telecommunications technologies; services include transmission of diagnoses, exchanging health services or education, monitoring patients and providing health advice. Advances in communication technology and medical technology, such as wearable self-monitoring devices and digitized medical scans, have propelled the industry forward. Industry growth has been further supported by a healthcare system suffering from skyrocketing costs, a looming doctor shortage and an aging population susceptible to chronic disease. As a result, industry revenue increased an annualized 30.7% in the five years to 2014, including a 23.1% jump in In the years to come, the industry will continue benefiting from the demographic and structural factors affecting the healthcare industry. Additionally, smartphones and tablets are increasingly replacing conventional record-keeping systems, offering healthcare providers greater ease in accessing, storing and sending information. Advancements in store-and-forward technology have enabled X-rays, MRIs, CT scans, CAT scans and audio and visual observations to be digitally stored and instantaneously shared. These factors will facilitate the use of telehealth services across the entire healthcare sector. As a result, the number of companies operating in the telehealth services industry is anticipated to quadruple in the five years to 2019 to more than 1,600 companies. Industry revenue is anticipated to grow at an annualized 49.7% to $2.4 billion in the five years to Beer s new frontier Crafter brewers are defined as microbreweries and brewpubs that produce up to 6.0 million barrels (186.0 million gallons) of beer per year. Most of the industry s brewers are small local or regional brewers, with the average craft beer producer employing less than six workers. During the past five years, the Craft Beer Production industry has developed into one of the most popular and fastest-growing alcoholic beverage segments in the United States. Consumers have increasingly demanded a greater variety of beers like pale ales, lagers, seasonal beers, wheat beers, stouts and porters; consequently, craft brewers have captured a significant portion of drinkers who had previously purchased traditional light and premium brand beers. As demand for craft beer has increased in the past five years, the
4 September About IBISWorld Inc. Recognized as the nation s most trusted independent source of industry and market research, IBISWorld 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 serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call number breweries has increased by nearly 1,000, to reach an estimated 2,600 breweries in Industry revenue has increased by an annualized 19.0% in the five years to 2014, to $16.7 billion. The industry is anticipated to continue growing over the next five years; overwhelming consumer support for craft beer as well as various legislative changes for interstate beer distribution are expected to continue driving industry growth. IBISWorld projects that in the five years to 2019, the number of craft beer producers will increase by 800 to total 3,500. From 2014 to 2015 alone, industry revenue is anticipated to increase 13.5%, and 180 new brewers are expected to enter the industry. Contact: Media Relations media@ibisworld.com IBISWorld Sales & Subscriptions Phone:
5 At IBISWorld we know that industry intelligence is more than assembling facts. It is combining data with analysis to answer the questions that successful businesses ask. Identify high growth, emerging and shrinking markets Arm yourself with the latest industry intelligence Assess competitive threats from existing and new entrants Benchmark your performance against the competition Make speedy market-ready, profit-maximizing decisions Who is IBISWorld? We are strategists, analysts, researchers and marketers. We provide answers to information-hungry, time-poor businesses. Our goal is to give you the real-world answers that matter to your business in our 700 US industry reports. When tough strategic, budget, sales and marketing decisions need to be made, our suite of Industry and Risk intelligence products give you deeply researched answers quickly. IBISWorld Membership IBISWorld offers tailored membership packages to meet your needs. Join and become an industry expert! Disclaimer This product has been supplied by IBISWorld Inc. ( IBISWorld ) solely for use by its authorized licensees strictly in accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any other person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or incurred by any other person resulting from the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Inc. The publication is sold on the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication in papers, reports, or opinions prepared for any other person it is agreed that it will be sourced to: IBISWorld Inc. Copyright IBISWorld Inc.
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