July 24, 2018
New data from Sageworks suggests that mining and oil and gas extraction are the fastest growing industries in the U.S. Sageworks bases its information on its financial data analysis of privately held companies throughout the nation.
Several construction-related industries made Sageworks’ 10 Fastest Growing Industries in the U.S. list, including building finish contractors, architectural and engineering firms, as well as companies in heavy construction and engineering projects (except roads and bridges). These companies all enjoyed double-digit sales growth.
An article in Forbes by Mary Ellen Biery entitled
“These 10 Industries Are Growing The Fastest In The U.S.”
quoted Sageworks analyst Libby Bierman. “For the past few years, we have seen construction-related industries really dominating several spots, but now there is a lot more diversity. That could mean that construction is leveling off after a peak, or it could be that stronger growth in other industries is simply stealing some of the thunder.”
According to Sageworks, the Top 10 Fastest Growing Industries by Sales Growth (categorized by NAICS codes) for 2018 are:
- Support Activities for Mining (44.9%)
- Other Heavy and Civil Engineering Construction (17.1%)
- Beverage Manufacturing (17.1)
- Other Personal Services (16.5%)
- Direct Selling Establishments (16.0%)
- Building Finishing Contractors (15.5%)
- Office of Real Estate Agents and Brokers (15.1%)
- Miscellaneous Durable Goods Merchants Wholesalers (15.0%)
- Specialize Freight Trucking (14.9%)
- Architectural, Engineering, and Related Services (13.7%)
Bierman provided a possible reason for why Support Activities for Mining made the top of the list: “We aren’t really sure what the cause is, but it could be the confluence of demand and limited supply. This industry does not include the actual firms engaged in mining and oil or gas extraction, but all the services that lead up to it.”
Sageworks uses its cooperative data model to collect and aggregate financial statements from private companies from accounting firms, banks and credit unions. Net profit margin is adjusted to exclude taxes and include owner’s compensation in excess of their market-rate salaries. As a result, a more accurate picture of the companies’ operation performance is used in Sageworks’ analysis.
Since most of U.S.-based companies are privately owned, Sageworks’ data gives us a good indication of what industries are in a growth mode. Feel free to call any member of our team at 610-828-1900 to discuss how you can achieve your growth goals. You can also contact either Rich Higgins, CPA, principal at 732-341-3893 ext. 17 or
. We are always happy to help.