Industry Economics

The Art and Office Supply Manufacturing industry produces a variety of art and office materials, such as markers, pencils, staplers, and marking machines. Overall, the sector has faced difficulties in the five years leading up to 2020. For example, the widespread usage of computers in schools and workplaces has resulted in the use of these machines rather than pens and pencils, stifling business development. Furthermore, companies throughout the United States have shifted to performing activities remotely, necessitating less industry goods. This is particularly true in 2020, when the COVID-19 (coronavirus) pandemic has resulted in work-from-home policies and immersive schooling for students, as well as impacts on the industry’s supply chain. As a result, market income has dropped over the time, falling at an annualized rate of 5.0 percent to $2.7 billion over the five years to 2020, including a 12.8 percent drop in 2020 alone.

Operators in the Apartment Rental sector performed well for the majority of the five years leading up to 2020; however, industry growth has slowed in recent years. The sector has undergone systemic reform since the subprime mortgage crisis. Prior to the recession, most real estate investment was made by institutional owners (those who buy 10 or more properties), while currently, the majority of rental properties are purchased by a single individual and leased by a non-owner. Historic lows in homeownership, declining rental vacancy rates, and increased demand for rental units have enabled landlords to raise rents, boosting income and profit development. As a result, Research forecasts market sales to increase by an annualized 2.5 percent to $180.1 billion over the next five years, with a 0.8 percent decrease in 2020 as rent growth slows due to the COVID-19 (coronavirus) pandemic.

Arcade, Food, and Amusement Complexes operators mainly offer card- and coin-operated entertainment to patrons, such as board sports, skill games, and redemption games. While many of these games were common with previous generations, rapid technological transition and changing tastes have caused a systemic shift in the industry since its peak. Coin-operated games became less popular when the home console gained success. Substitute devices, such as game consoles, have flexibility and long-term cost savings, while streaming and handheld games will also be purchased for free or at a low cost.

The Hardware Repair industry specializes in the repair and servicing of household appliances and garden machinery. For the next five years, business operators will deal with customers who want to upgrade rather than restore equipment, resulting in an increase in do-it-yourself (DIY) repairs. During this time, per capita disposable income has risen, prompting more customers to purchase new appliances rather than hiring industry operators for maintenance, resulting in a decrease in demand for industry services. In general, higher disposable income will lead to less DIY projects; but, due to the increased availability of online DIY services, some users have tended to restore their own goods, reducing demand for the industry even further. As a result, market revenue has declined by 3.8 percent on an annualized basis to $4.0 billion in the five years to 2020. Thanks to the struggling economic environment caused by the COVID-19 (coronavirus) pandemic, market income is projected to fall by 6.3 percent in 2020 alone. Profitability in the sector has suffered as a result of declining sales.

For more than a decade, revenue in the Apparel Knitting Mills sector has been declining as more garment production has been offshored to low-cost countries. This recession has resulted in a steady decrease in demand for industrial goods over the next five years, until 2020. While some foreign shoppers have been more aware of purchasing high-quality goods manufactured in the United States, this minor change has not compensated for a drop in total sales. As a result, market revenue has dropped an annualized 4.2 percent to $225.7 million over the five years to 2020, with a forecast 10.1 percent drop in 2020 as operators grapple with the COVID-19 (coronavirus) pandemic.

When buyers are away from home, operators in the Accommodation and Food Service industry provide them with simple lodging accommodations as well as cook meals or provide other food services. Within the US economy, this industry encompasses 15 separate sectors, encompassing all facets of accommodation suppliers and food service operators. Despite fundamental similarities, the resulting companies have vastly different standards of operation. The Hotels and Motels industry, for example, offers very different facilities from the Fast Food Restaurants industry, despite the fact that they all work within this market.