This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Industries On Life Support

E-Mail This Article to a Friend >>

BOSTON ( TheStreet) -- If you read the print edition of a newspaper, still make calls over a landline or plan to rent a tuxedo for an upcoming wedding, you are doing what many of your friends and neighbors gave up long ago.

Analysts at IBISWorld, a market research firm, recently compiled a list of 10 industries that may be on the "verge of extinction in the United States." Within its database of close to 700 industries, about 200 are in decline, with the ones selected having seen large and steady drops in revenue and number of establishments. From the beginning of 2011 to the end of 2016, these industries are likely to deteriorate further.

The Borders books chain is bankrupt, but bookstores in general are doing better than many industries, thanks to changes in their business model that answer how consumers are finding and buying books now.

"People might think that we are coming out of recession and these industries have hit bottom, so therefore everyone should be going up," IBISWorld Senior Analyst Toon van Beeck says. "But that is definitely not the case. A lot of these revenues peaked in about 2000 and since then they have declined year over year."

He explains that while economic cycles, the ups and downs of bull and bear markets, often swing every eight to 10 years, "industry life cycles can be three to 50 years where they go from maturity into decline." The industries singled out by the firm "are really at the end of their decline phase or they are in rapid decline."

Most of the industries share common reasons for their bleak prospects, including damage from advances in technology, industry stagnation and external competition, he says.

Because labor costs and regulations are high domestically, many manufacturers send their production to foreign countries. Downward price pressure from domestic wholesalers, retailers and consumers forces U.S. producers to cut costs to offer a competitive price. Many firms that cannot outsource have a difficult time competing.

1 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs