Industries with Most Risky Business Environments in the US in 2023

1. Sawmills & Wood Production in the US

Business Environment Risk for 2023: 7.59

Operators in the Sawmills and Wood Production industry cut and treat lumber, boards, beams and other wood products. As the national desire for wood relies heavily on overall construction activity, rising housing starts and the value of nonresidential construction caused industry revenue to grow strongly until 2022, especially during the COVID-19 (coronavirus) pandemic. Consumers spending more time at home and switching to single-use paperware both supported wood processing companies. Still, nonresidential construction declined during the same period; wood is used less frequently in industrial and office structures, but slowing economic activity still cut deep. Despite swaying in the gales of... Learn More

2. Wood Flooring Manufacturing in the US

Business Environment Risk for 2023: 7.42

The Wood Flooring Manufacturing industry has declined over most of the five years to 2022 due to constrained activity within nonresidential conduction. The COVID-19 (coronavirus) pandemic has hindered and continues to impair activity within the nonresidential construction market, as activity within this sector has historically taken longer to improve post-recession. However, increased performance within the residential construction market due to record low mortgage rates has helped somewhat mitigate the declines in nonresidential construction. Since home building and renovation projects take a relatively short amount of time to complete, the level of activity within the residential building market is highly susceptible... Learn More

3. Wood Framing in the US

Business Environment Risk for 2023: 7.37

The health of residential construction markets primarily impacts wood framing contractor performance. Through the end of 2023, wood framing contractors faced considerable volatility in the residential construction market. The outbreak of COVID-19 induced low-interest rates, spurring housing starts and spending on additions and alterations as consumers looked to push up the value of their homes to take advantage of the favorable pricing environment. On the other hand, nonresidential construction activity plummeted as work-from-home orders and social distancing measures sunk commercial construction spending. As the economy reopened and interest rates rose, the housing market slowed, greatly hindering wood framing contractors. Overall,... Learn More

4. Tile Installers in the US

Business Environment Risk for 2023: 7.20

Contractors in the Tile Installers industry primarily set and install ceramic, interior stone, mosaic tiles and terrazzo-based flooring. Demand for tile installing is closely tied to the level of activity in downstream residential and nonresidential building markets, both of which have exhibited volatile behavior. Demand for tile installers has been erratic, in line with broader economic disruptions including the COVID-19 pandemic and high interest rates. Overall, industry revenue has been declining at a CAGR of 2.2% over the past five years, reaching an estimated $12.9 billion in 2023. This includes a fall of 4.1% in 2023 alone as industry profit... Learn More

5. Concrete Pipe & Block Manufacturing in the US

Business Environment Risk for 2023: 7.18

The Concrete Pipe and Block Manufacturing industry produces concrete blocks, bricks, and pipes. These products are primarily used in residential and nonresidential construction, along with infrastructure projects. While concrete blocks are used across the board, concrete pipes mostly rely on demand from infrastructure markets, like natural gas distribution and sewage treatment. IBISWorld estimates that the industry's performance has relied on these critical markets over the five years to 2023; moreover, the economic downturn at the end of the period has harmed the industry. As a result, industry revenue is expected to fall at an annualized rate of 2.3% to $7.3... Learn More

6. Manufactured Home Wholesaling in the US

Business Environment Risk for 2023: 7.17

The industry supplies prefabricated homes and construction materials to downstream markets, such as dealers, retailers, and land developers. Industry performance follows demand from the downstream construction sector; the housing market had also grown steadily even during the pandemic, enabling manufactured home wholesalers to tap into a consistent stream of demand. Construction activity has primarily benefited from low interest rates throughout the pandemic, high disposable income levels, and elevated demand for housing. This trend essentially reversed itself in 2022, as the Federal Reserve has remained committed to raising interest rates to combat high inflation. Despite rising rates, industry revenue is still... Learn More

7. Carpenters in the US

Business Environment Risk for 2023: 7.16

The Carpenters industry consists of contractors that provide specialist framing carpentry services, including the construction of wooden framing and permanent foundations, wall installations and wooden beam and truss installations. Carpenters also perform finish carpentry services, such as on-site construction and the installation of doors, windows, stairs, shelving, cupboards, cabinets and decks. Most revenue generated by carpentry contractors is derived from subcontracting services to a prime building contractor, while other smaller scale projects involve contracting directly with the client, typically the building owner, occupier or property manager. Carpenters experience some competition from do-it-yourself (DIY) homeowners in the housing alterations and additions... Learn More

8. Wood Product Manufacturing in the US

Business Environment Risk for 2023: 7.08

The Wood Product Manufacturing industry produces a diverse range of wood products, including wood ladders, cabinets, toothpicks, wood flour and kiln-dried lumber, among others. The construction sector is the industry's largest source of demand and as a result, operators have benefited going into 2022 from strong growth in housing starts and consumer spending, boosting demand from households for other wood products. However the current performance of the Wood Product Manufacturing industry is strong, but is projected to experience a slight decline in 2023. This is due to the former economic effects of the COVID-19 pandemic and the rising potential of... Learn More

9. Iron Ore Mining in the US

Business Environment Risk for 2023: 7.06

Iron ore miners are highly susceptible to changes in industrial production, which is why COVID-19 wreaked havoc on this industry. Severe iron ore and steel price volatility has significantly impacted iron ore miners. Overall, industry-wide revenue has been falling at a CAGR of 1.6% over the past five years and is expected to total $5.1 billion in 2023, when revenue will plummet by an estimated 13.3%.

Iron ore miners' output has remained stable in recent years, excluding 2020, when mines and steelmakers halted production. Iron ore miners have faced severe price-based volatility over the past five years. Following mine closures in... Learn More

10. Cabinet & Vanity Manufacturing in the US

Business Environment Risk for 2023: 7.02

Cabinet and vanity manufacturers are highly susceptible to changes in residential construction and private spending on home improvements. Volatility in the housing market induced a turbulent five-year period for cabinet and vanity manufacturers. The outbreak of COVID-19 initially negatively impacted cabinet and vanity manufacturers, but low-interest rates and substantial fiscal stimulus bolstered demand for them as the housing market boomed in 2020 and 2021. As these interest rates rose and disposable income fell amid heightened inflation, cabinet and vanity manufacturers suffered through the end of 2023. Overall, industry-wide revenue fell at a CAGR of 1.6% to $17.1 billion over the... Learn More