Top 10 Growth Industries
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The following 10 growth industries are those picked by IBIS World as poised for the highest growth among the 711 US-based industries they looked at. They based their rankings on ability to increase revenue, gross production, employment, productivity improvements, and profitability.
Here is the full article from Daily Finance:
#1: Iron Ore Mining
One of the top Growing Industries
Infrastructure projects are expected to pick up, which will fuel an increasing demand for iron and iron ore. Prices for these products are also expected to rise, which makes it more profitable and feasible for companies in this industry to expand their operations. And with worldwide growth, prices are not likely to go down in the future.
2 picks are BHP and Vale, which are big, diversified companies that also do a lot of other things besides iron ore.
Investing in 2014
#2: Investment Banking
A huge Growth Industry
Companies are in the best financial shape they've been in, in decades. They are sitting on a ton of cash right now, waiting to see what new government regulations bring before they make any big decisions. This means that we'll see a huge increase in merger and acquisition activity, which will profit the big investment banks.
A good pick for this industry is Goldman Sachs, acknowledged as having the smartest people on Wall Street working for them.
Where are you putting your money?
#3: Multifamily Homebuildilng
One of the highest growth industries
With the real estate bubble of 2010, home-building slowed to almost nothing. However, with the credit crisis past us now, and interest rates at historical lows, home-building should once again pick up.
A good pick for this one is SPDR's Homebuilder ETF (XHB). It covers the total US Market and is far less risky than picking a single stock.
#4: Molybdenum and Other Metal Ore Mining
Molybdenum is used in specialty high-strength steels. There is a rising demand for metals of all kinds as the world become more industrialized. Prices for the raw materials is likely to never go down in price as supplies diminish.
A play on this would be the big mining company Rio Tinto (Rio), which owns a big mine in Utah
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#5: Environmental Consulting
One of the rising industries for the future
Obama's plan for sustainable energy makes this field a sure-growth industry. With energy prices so high these days, it only makes sense to explore renewable energy. Also, companies and governments around the world are looking to reduce their carbon footprint.
A good play on this is Navigant Consulting (NCI)
#6: Aluminum Manufacturing
Increased economic activity will lead to increased demand for aluminum. After significant shut-downs in the sector in 2008/2009, this will be a welcome change.
Alcoa is one of the biggest and most promising companies of the bunch
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#7/8 Car Manufacturers and retailers
For the past couple years during the recent downturn, consumers have been putting off buying a new vehicle. However, consumer spending is increasing to pre-recession levels and this will include new car purchases. All 4 of the major US manufactures have recorded promising results recently.
The best of the bunch is Ford. They have excellent management and never received any of the government bail-outs.
#9 Domestic Airlines
Improving consumer and business confidence will lead to higher sales for domestic airlines. A weak US dollar is also encouraging tourism from Canada, and overseas.
The ETF FAA is a good play on this, as well as Boeing Airlines (BA).
#10: Financial Planning and Advice
Many people took their money out of the financial markets during the recent recession but with the upturn in the economy, they should be heading back. Financial planners will increase their profits as more people begin investing again.
Merrill Lynch (MER) is one of the biggest and most reputable companies in this sector.