Photo: Wikimedia Commons
The rise of cheap imports, technological advancements and the financial crisis have collectively delivered a harsh blow to some U.S. industries.IBISWorld is out with a list of 10 American industries that have seen sharp revenue declines, a fall in industry participants and a declining life cycle stage between 2002 and 2012.
Some of the worst hit industries include newspaper publishing, women’s and girls apparel manufacturing and appliance repair industries.
2012 revenue: $1.51 billion
2017 revenue: $897.1 million
Competition from digital cameras and camera phones has been a blow to the photofinishing industry which has seen revenue shrink 11.4 per cent every year over the last 10 years. The pervasiveness of consumer shift to digital devices and online photo-sharing platforms has seen fewer consumers turn to printing photos.
The photofinishing industry is expected to see revenue fall 9.9 per cent per year over the next five years. Eastman Kodak Company which recently filed for Chapter 11 bankruptcy protection is one of the biggest industry players.
2012 revenue: $3.68 billion
2017 revenue: $3.48 billion
The appliance repair industry has taken a hit since many consumers have opted to buy new household appliances instead of fixing them mostly because the price of household appliances has fallen an annualized rate of 2.4 per cent.
The factor most directly responsible for the industry's downturn however has been the increasing trend among manufacturers to offer warranties on new appliances. Improving appliance technologies have also resulted in lower demand for repair services.
Revenue for the industry has fallen 5.7 per cent per year on average for the last 10 years. Sears Holdings and Best Buy are some of the biggest appliance repair industry players.
2012 revenue: $5.89 billion
2017 revenue: $2.80 billion
The DVD, game and video rental industry has taken a hit because of its struggle to adapt to a competitive marketplace and embrace technological developments. Consumers are increasingly opting for streaming, video on demand (VOD) and downloading media.
The industry has seen revenue fall at an average rate of 6.6 per cent per year and is expected to fall 13.8 per cent per year over the next five years. Coinstar Inc. with its subsidiary Redbox, and DISH Network Corp. are some of the biggest names in the industry.
2012 revenue: $834.4 million
2017 revenue: $799.3 million
The money market and banking industry that is made up of banks owned by non-financial companies and unincorporated banks that are not regulated by the Federal Reserve, took a massive blow during the financial crisis. With no access to TARP many drowned during the recession.
Many banks have been pushed toward commercial banking status and have seen average annual revenue decline 6.9 per cent over the past five years. Moreover consolidation in the banking sector is likely to see revenues decline further, falling 0.9 per cent per year over the next five years.
Merrill Lynch Bank USA, American Express Centurion Bank and UBS Bank USA are some of the biggest players in the industry.
2012 revenue: $29.30 billion
2017 revenue: $23.70 billion
The newspaper and publishing industry has seen revenue decline at an annual rate of 6.4 per cent over the past 10 years, driven by competition from web-based competitors. News consumers also seem to favour real-time reporting which has seen advertising revenues for newspapers decline.
Revenue in the industry is expected to decline at an average rate of 4.2 per cent per year for the next five years. Gannett Co, Tribune Company and the New York Times Company are some of the biggest industry players.
Newspapers can, however, try to drive revenue through the use of paywalls and by charging for applications that allow access to full issues and multimedia content across a range of platforms.
2012 revenue: $4.14 billion
2017 revenue: $3.31 billion
Technological developments have hurt the recordable media manufacturing industry which makes tapes and disks. Consumers first shifted to hard drives, and more recently to online downloading and streaming technologies. This, combined with the access to on-demand digital media, caused industry revenue to fall an average annual rate of 7.4 per cent over the past 10 years.
The recordable media manufacturing industry is expected to see its revenue decline at an average rate of 4.4 per cent per year over the next five years. Cinram manufacturing and Zomax are the Major players in the recordable media manufacturing industry.
This industry does however have room to grow and develop a niche market since bigger files like 3D movies cannot be supported through current streaming technologies.
2012 revenue: $7.48 billion
2017 revenue: $6.63 billion
The rise of low-cost imports is causing a decline in the hardware manufacturing industry. Imports currently account for more than 50 per cent of all metal hinges, handles, keys and locks sold in the U.S. compared with 29.3 per cent in 2002. Most of these imports come from China, Mexico and Canada.
Stanley, Black & Decker, Assa Abloy, and Ingersoll-Rand Company are the biggest players in the hardware manufacturing industry.
2012 revenue: $1.71 billion
2017 revenue: $1.56 billion
Competitive imports have delivered an especially hard blow to the shoe and footwear manufacturing industry, which has to compete with low-cost imports that account for a massive 95 per cent of domestic consumption.
China alone accounts for 75 per cent of the industry's imports. With rising labour costs in China however, Vietnam has also surfaced as a new competitive threat.
2012 revenue: $986.7 million
2017 revenue: $889.6 million
Costume and team manufacturing has seen revenue contract at an average annual pace of 6.7 per cent over the last decade.
The industry's revenue is down from $2 billion in 2002. The relocation of manufacturing to other countries has hurt industry revenues. Berkshire Hathaway through its subsidiary Russell Corporation is a major player in this industry.
2012 revenue: $8.60 billion
2017 revenue: $8.27 billion
The women and girls apparel manufacturing industry has been hit by off-shoring and outsourcing. Revenue is already less that half of what it was in 2012 and has fallen at an average rate of 8.2 per cent over the past decade.
There are now 1,196 manufacturing sites making women's and girl's apparel in the U.S., down from 2,272 10 years ago. But there is a silver lining, high-end goods in the industry can't be cheaply produced abroad and have a niche consumer that could help it grow.
Major players in the industry include VF Corporation, Hanesbrands Inc., and Kellwood Company.