With the economy showing signs of recovery, industry research firm IBISWorld
analyzed more than 700 industries to identify the winning sectors in the
coming year. Many of the biggest industry losers during the recession
are expecting a massive rebound in revenue growth and are on their way
up in 2010:
Finance
The financial system, which was brought to its knees over the past two
years, is showing signs of life. The biggest winners in the upcoming
year will be:
-
Venture
Capital & Principal Trading - 63.4% rise in revenue, up from
-28.9% in 2009
-
Portfolio
Management - 33.4% rise in revenue, up from -18.7% in 2009
-
Real
Estate Loans & Credit Lines - 27.4% rise in revenue, up from
-3.1% in 2009
-
Private
Equity, Hedge Funds & Investment Vehicles - 21.4% rise in
revenue, up from 10% in 2009
However, these industries have a long way to go before they return to
pre-recession conditions.
Oil & Gas
Much like the finance sector, oil-related industries are expected to
rebound strongly in 2010:
-
Natural
Gas - 24.3% rise in revenue, up from -35.5% in 2009
-
Oil
Drilling & Gas Extraction – 49.3% rise in revenue, up from
-44% in 2009
-
Petroleum
Refining – 47.2% rise in revenue, up from -40% in 2009
-
Gasoline
& Petroleum Stations – 37.0% rise in revenue, up from -35% in
2009
Demand for crude oil and gas will rise substantially in 2010. With the
recovery in the world economy and increasing revenue prospects for fuel
distributors and retailers, operating conditions will be more favorable.
Automotive
Virtually the entire automotive supply chain in 2010 will be in far
better shape than the disasters of the past two years:
-
Motor
Vehicle Body Manufacturing – 12.5% rise in revenue, up from -26.8%
in 2009
-
Car
& Automobile Manufacturing – 19.1% rise in revenue, up from
-30.5% in 2009
In fact, these industries and New Car Dealers are the top three growth
industries in terms of employment for 2010 - all of which will grow
their employee size by more than 16 percent.
Telecommunications
The telecommunications sector has remained resilient in the face of the
recession, and is set to thrive during the recovery:
-
Voice
Over Internet Protocol Provider (VoIP) – 17.9% rise in revenue,
compared to 30.8% in 2009
This sector is poised to prosper from a recovery with the government’s
allocation of $7.2 billion in stimulus funds. Throughout the recovery,
M&A activity is expected to continue as telecoms attempt to position
themselves to make the most of the converged communications world that
will emerge over the next decade.
Retail
Following a dismal year of retail demand over 2008 and much of 2009, the
coming year is set to be far more positive for retailers:
-
eCommerce
& Online Auctions – 13.4% rise in revenue, up from -10.8% in
2009
Although spending in 2010 will not mirror the highs experienced
throughout the economic boom, it will be significantly better than that
of the past two years. eCommerce-related businesses will outperform the
broader retail market, while women's and children's clothing sales will
also experience favorable gains. However, men's clothing will take
longer to recover.
Health
Operators that provide elective treatments had some trouble during the
first half of 2009, as the labor market has deteriorated and consumer
sentiments remained weak. But, demand should intensify for these
industries from mid-2010 onwards:
-
Dentists
– 1.6% rise in revenue, up from 0.7% in 2009
-
Chiropractors
– 0.5% rise in revenue, up from -2.0% in 2009
-
Physical
Therapists – 2.0% rise in revenue, up from -1.0% in 2009
Other Winners
Other industries expected to experience solid growth during the recovery
period include Donations, Grants and Endowments, Water Well Drilling,
Mining Support, and Biotechnology.