10 Dying U.S. Industries: IBISWorld

[Athena Goldsmith]

10 Dying U.S. Industries: IBISWorld

Harry Bradford First Posted: 04- 2-11 11:08 AM   |   Updated: 04- 2-11 11:26 AM

The recession has caused the failure of some formidable companies, Lehman Brothers and Circuit City among them. Not only individual businesses have suffered, however. The economic woes of the last decade have preyed upon entire industries.

In a new report entitled "Dying Industries," by Toon Von Beeck, research firm IBISWorld identifies 10 U.S. industries that have experienced severe, possibly irreversible drop-offs over the past decade, today remaining stuck in the decline phase of their business cycle.

All mentioned industries -- having already experienced significant decreases in revenue over the last decade -- can be expected to experience further declines through 2016. The reasons for the suffering vary by industry, but IBISWorld attributes a significant amount of industry strife to three primary factors: new technology, foreign competition and industry stagnation.

With the country still reeling from a housing crisis, manufactured home dealers may be in the most trouble, the report finds. Over 50 percent of manufactured home dealers closed their doors over the past decade, and revenue numbers for those still open are terrible: down 73.7 percent with a further 62 percent decline expected by 2016.

And while the decline of some high-profile industries, like the newspaper and record businesses, have been well-documented for years, who knew that rental formal wear could soon be passé? The apparel industry has suffered tremendously from foreign competition, with revenues down 77.1 percent since 2000. Photofinishers have largely been supplanted by digital camera as well. But maybe some can take solace in the fact that there likely won't be a sequel forthcoming to 2002's One Hour Photo.

The slidshow below uses data compiled in the report "10 Dying Industries" by IBISWorld. Ranking is based on percentage decrease in revenue from 2000 to 2010:

1 of 10
10. Video Postproduction Services





Percentage decrease: 24.9 percent


With digital technology now the industry standard, video postproduction services have struggled over the last few years. The new technology has made jobs like editing, cutting and animating much less labor intensive. 43.2 percent of postproduction companies have closed since 2000.

Credit: IBISWorld

[Athena Goldsmith]

9. Formal Wear and Costume Rental



Percentage decrease: 35 percent


Over the last decade, the formal wear and costume rental business has seen significant decline. Most prom dates and groomsmen now prefer to buy instead of rent their tuxedos since cheaper imported garments are available. But those within the industry say the explanation could be simpler: people just don't get spruced up as often as they used to.

Credit: IBISWorld

[Athena Goldsmith]

8. DVD, Game & Video Rental



Percentage decrease: 35.7 percent


Competitors like Netflix and new technology such as online streaming, digital cable and satellite TV have hit the movie rental business hard. Its major player Blockbuster Video, which was recently bought at auction after filing for Chapter 11, continues to shutter stores by the hundreds. Revenue is expected to decline an additional 19.3 percent over the next six years.

Credit: IBISWorld

[Athena Goldsmith]

7. Newspaper Publishing



Percentage decrease: 35.9 percent


The plight of the Newspaper business is still largely without a solution. A shift to online news has benefited some but devastated others as media outlets struggle to find a balance. The New York Times' recent adoption of a pay wall is the latest attempt to sustain a failing business model. Across the country 28.6 percent of newspapers have closed since 2000.

Credit: IBISWorld

[Athena Goldsmith]

6. Mills



Percentage decrease: 50.2 percent


American manufacturing has suffered over the last decade, mostly due to competition from abroad. Cheaper production costs in foreign countries have led companies to abandon mills across America. 23.6 percent of them have been shutdown since 2000.

Credit: IBISWorld

[Athena Goldsmith]

5. Wired Telecommunications Carriers



Percentage decrease: 54.9 percent


The proliferation of cell phones and AT&T's recent high-profile acquisition of T-Mobile might indicate the wired telecommunications industry is thriving but in fact it's declined in revenue yearly since 2000. The increasing popularity of wireless products and VoIP services like Skype may mean they are the future of the telecommunications business.

Credit: IBISWorld

[Athena Goldsmith]

4. Photofinishing



Percentage decrease: 69.1 percent


Digital photography has all but decimated the friendly neighborhood photo developer in recent years. Digital cameras continue to drop in price with more and more consumers opting to upload their photos on Facebook or Flickr rather than print them for album collections. Over the last ten years almost 60 percent of Photofinishers have closed spelling tough times for previous industry leaders Kodak and Fuji Film.

Credit: IBISWorld

[Athena Goldsmith]

3. Manufactured Home Dealers



Percentage decrease: 73.7 percent


Manufactured home dealers aren't the only ones in the Real Estate game that are struggling due to the housing crisis but they may have been hit the hardest. In a current market where new home sales are low and foreclosures widespread, manufactured home dealers' revenue has decreased by nearly three quarters since 2000.

Credit: IBISWorld

[Athena Goldsmith]

2. Record Stores



Percentage decrease: 76.3 percent


Almost 80 percent of record stores across the country have shut up shop over the last decade. Internet file sharing and online music stores like iTunes have fundamentally changed the way people consume music. Many, including an angry Jon Bon Jovi, have been left to lament the loss of their local record shop.

[Athena Goldsmith]

1. Apparel Manufacturing



Percentage decrease: 77.1 percent


While U.S companies still have the edge when it comes to branding, design and technology, competition from abroad is draining the life force out of the apparel manufacturing industry. Things are likely to get worse as overseas competitors catch up on other aspects of the business and a further 60.5 percent decrease is expected by 2016.

Credit: IBISWorld

[Athena Goldsmith]

Manufactur­ing in this country is dying because there is no way to compete with slave labor, especially when you have a government that encourages its use.

Germany on the other hand has the highest labor costs in the world, a thriving economy and a high standard of living, primarily because their government works for the good of their people.  even China has a trade deficit with Germany.

[Out of Sight, Out of Mind]

Globalizat­ion brings joy for the few, misery for the many.

[Volitzer]

What America needs to do is gain onwership of its banks again rather than having all our banking laws and policies dictated to us by the 13 European Banking Families that own the FEDERAL-RESERVE.

When America takes ownership of its banks and issues debt free money like Guernsey and Poland then the US economy will come back.

Right now America is a republic living under a fractional-reserve tyranny.

People like Thomas Jefferson, Andrew Jackson, John F Kennedy and Ron Paul know just how devastating banks can be to a nation.  Remeber an out of control bank is more dangerous to the liberties of the people than a standing army.

I don't care what your party affiliation, the point being is the banks have bought your party off you need to support the anti-bank candidate and party or America will lose its freedoms.

[Jennifer Murdoch]

What each state needs is it's own state run bank.  That's what they have in North Dakota and they have no budget deficit and a thriving economy. The big investment banks would have to lower their rates to stay competitive and everybody wins.

[Volitzer]

This economy gets much worse you'll see states issue their own currencies too.  Which might not be a bad thing.