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
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.
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.
http://www.ewednews.com/post.cfm/the-tuxedo-rental-business-continues-to-die-a-slow-death
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.
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 2000.8. 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.
7. Newspaper Publishing
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.
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.
4. Photofinishing
Percentage decrease: 69.1 percentDigital 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.
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.
2. Record Stores
Percentage decrease: 76.3 percentAlmost 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
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.
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