A report released this week by business analyst IBISWorld points to what it predicts will be the top 10 best and five worst growth industries for the coming year.
According to “The Best and Worst Growth Industries for 2009/10”, the top 10 growth industries include nursing homes, waste disposal services and passenger rail transport. At the head of the table is Online Education with a forecast growth of 24.3 percent. The industry increased revenue from $827.3 million in 2004 to $2.74 billion in 2009. While slowing slightly, the sector is predicted to show strong double digit growth into the foreseeable future. Among the key driving factors are the strong uptake of broadband internet services, more effective marketing and government support.
Of particular interest in the top 10 is funds management, which fell a staggering 54 percent between November 2007 and March 2009. It is believed that rising equity prices will drive a reverse in the decline of the value of funds management leading to a boost in management fees. The result will see a return in investor confidence with new funds available to investment managers.
With the economic downturn caused principally by injudicious lending, it comes as no surprise that foreign banks sit among the bottom five ‘worst’ growth industries. House construction, listed as number four in the list, is a bit of a surprise considering the recent gains in real estate and reasonably strong markets in the major cities.
The complete list is as follows:
Top 10 growth industries for 2009/10
- Online education (24.3%)
- Video games (11.4%)
- Funds management (10.7%)
- Grain storage (10.1%)
- Electricity generation (8.5%)
- Passenger rail transport (7.2%)
- Waste disposal services (7.0%)
- Welfare services and fundraising (5.6%)
- Language and other education (5.5%)
- Nursing homes (5.5%)
Bottom 5 growth industries for 2009/10
- Tyre manufacturing (-36.6%)
- Foreign banks (-21.5%)
- Automotive electrical/instrument manufacturing (-7.9%)
- House construction (-7.8%)
- Employment placement services (-7.4%)