While the current economic client has been tough on many Florida residents and businesses, it turns out that there are some industries that are seeing huge decreases in revenue due to importing and technological changes. For some, this may end up leading to eventual bankruptcy.
A recent article looked at 10 of these specific industries, claiming that small business owners should take warning as these industries will end up obsolete one day.
The first one mentioned in the list is women and girl's apparel manufacturing. Due to overseas competitors, there has been an 8.2 percent annual decrease in revenue. According to one source, in the past 10 years, roughly half of all U.S. apparel manufacturers have also shut down.
Importing has also seriously hurt the hardware manufacturing industry. According to sources, it used to be that only 30 percent of things like hinges, locks and keys were imported from Canada, China and Mexico. However, now imports account for more than 50 percent of what is used in the U.S.
Technology has also played a role in the drastic decline in some industries. For example, with most people now using digital cameras and camera phones, the photofinishing industry has decreased by 11.4 percent every year for the past 10 years. Even recently the Eastman Kodak Company filed for bankruptcy.
Along those same lines in terms of technological changes, the trend now is to use the Internet for games and DVDs. Because of this, rental stores have taken a serious hit. In fact, IBISWorld predicts that the DVD, game and video rental industry will decline 13.8 percent on an annual basis over the next five years.
New technologies can also be to blame for a decrease in the newspaper publishing and recordable media manufacturing industries. Now, more people get their news and music online, with not as many people buying newspapers or actual CDs.
Of course for those working in these industries, the statistics can be quite troubling. However, if you are a struggling business owner, know that you are not alone and that there are often options to either discharge debts or reorganize into a more profitable business plan.
Source: The Huffington Post, "10 Dying Industries Small Businesses Should Avoid (PHOTOS)," Alicia Ciccone, April 23, 2012