Risky Sectors
October 26, 2011 1:33 PM
Recordable Media
Shrinking demand for compact discs, DVDs and other types of magnetic media spell trouble for this consolidating industry. Increasing broadband usage makes the situation worse. IBISWorld expects revenue to shrink 3% annually over the next five years. (Image: ThinkStock)
Wired Telecommunications Carriers
High barriers of industry alone cannot protect an industry. New technology such as voice over Internet protocol (VoIP) and rapidly declining prices for cell phone are a cause for concern. Projections are for annual revenue to shrink by 7.3%, on average, through 2016. (Image: ThinkStock)
Soda Production
The problem stems from weak revenue growth tied to declines in consumption of carbonated beverages. Energy drinks are also a formidable new competitor. Revenue is expected to fizzle by an average of 2% over the next five years. (Image: ThinkStock)
Laundromats
Highly competitive landscape forces companies to more expenses and lower prices, leading to super-thin margins. More colleges are providing washing machines, depriving laundromats of a once-reliable customer. IBISWorld is forecasting revenue shrinking of 1% annually through 2016. (Image: ThinkStock)
Movie/Game Rental
Movies on-demand, web streaming and high unemployment are doing a number on rental businesses. Revenue is expected to decline by an average of 13% annually in the next five years. (Image: ThinkStock)
Gift Shops/Card Stores
Discount and online retailers are fiercely competitive, contributing to a project 1.5% annual decline in revenue over the next five years. Social networking also makes it less necessary to mail cards, letting you simply post a birthday note on your friend’s wall. (Image: ThinkStock)
