Industries with Least Risky Business Environments in the US in 2024

1. Solar Power in the US

Business Environment Risk for 2024: 2.88

The Solar Power industry owns and operates solar power-generating facilities in the form of either photovoltaic (PV) panels or solar thermal power stations. Solar power companies have gone through significant growth, propelled by improvements in the technologies used for electricity generation and government incentives, like the renewable portfolio standard (RPS) targets. RPS legislation requires local utility companies to diversify their portfolio and generate percentages of their energy production through renewable resources. Increases in public support for green energy led to tax incentives and grants to encourage investment in solar power. This has resulted in more companies powering facilities with solar... Learn More

2. Solar Panel Manufacturing in the US

Business Environment Risk for 2024: 3.19

Solar panel manufacturers, which produce solar modules and cells in the United States, faced strong revenue growth. The industry has long been plagued by import penetration, specifically from Asian products, which flooded the US market with low-cost solar modules and cells. Rising tensions between the United States and China, which subsided once tariffs were imposed, but ultimately led to plummeting imports. Domestic manufacturers benefited tremendously from less competition and were enabled to raise prices. The current period's strong performance is directly linked to a continued public sentiment shift in favor of renewable energy, which will continue to accelerate given the... Learn More

3. Space Vehicle & Missile Manufacturing in the US

Business Environment Risk for 2024: 3.30

The industry, which develops and manufactures missiles, rockets, spacecraft and related equipment and components, has faced heavy volatility through 2023. Since the US government, particularly the Department of Defense (DoD), accounts for the majority of spending on missile and space products and programs, the industry's performance is highly correlated with government spending levels. Historically, when Congress attempts to rein in spending, funding sharply declines. Even so, rising global tensions have led to surging defense spending domestically and internationally. Revenue has increased at a CAGR of 4.6% over past five years, reaching $40.1 billion, including a 3.3% increase in 2023 alone.... Learn More

4. 3D Printer Manufacturing in the US

Business Environment Risk for 2024: 3.31

The 3D printer manufacturing industry has seen significant growth over the past five years, increasing at a CAGR of 14.6% to $7.7 billion, which includes 19.1% growth in 2023 alone. As prices for 3D printers declined, additive manufacturing has become more attractive to both businesses and consumers. The outbreak of COVID-19, which led to massive supply disruptions, has led the public and the government to consider new applications of 3D printing. The Additive Manufacturing (AM) Forward program, launched by the Biden Administration in 2022, focuses on advancing the development and adoption of 3D printing technologies in the US.

Additive manufacturing has... Learn More

5. Pet Insurance in the US

Business Environment Risk for 2024: 3.44

Rapidly increasing consumer awareness and acceptance of industry offerings has benefited the Pet Insurance industry. In the past five years, industry revenue has been growing at an average annualized 16.5% to $3.2 billion, including an estimated 8.9% drop in 2023 alone, when profit margins will grow to an estimated 7.7%.

While demand for pet insurance is typically tied to disposable income levels, industry revenue grew robustly in 2020, even as the COVID-19 pandemic disrupted the economy. The pandemic caused a massive surge in unemployment, disposable income levels remained high due to government support. With more people working remotely, pet adoptions increased... Learn More

6. Demolition & Wrecking in the US

Business Environment Risk for 2024: 3.50

The values of new residential and nonresidential construction directly contribute to demolition and wrecking demand. Demand for demolition and wrecking services has risen because of broad-based economic growth, a strong housing market and more significant construction activity. Still, due to COVID-19, all nonessential construction activity decreased in the first two quarters of 2020, which caused industry revenue to decline. Poor macroeconomic conditions in 2023 will also constrain revenue growth. Still, industry-wide revenue has increased at a CAGR of 1.4% to $8.7 billion through the end of 2023, despite a 1.7% decrease in 2023.

Strong construction activity has led to rising profit.... Learn More

7. Precision Agriculture Systems & Services in the US

Business Environment Risk for 2024: 3.54

Precision agriculture systems and services include software development, testing applications and consulting activities that gather, track, and analyze agricultural data, usually in conjunction with other systems, such as harvesting or field-input machinery. Due to increasing demand from crop farmers who have pushed to maximize production efficiencies to meet growing global demand, industry growth has been strong. Industry enterprises have exhibited depressed sales volumes in 2020, primarily due to the pandemic disrupting industry services. The industry rebounded in unison with improving macroeconomic conditions with revenue growth in 2021, due in part to new technology introductions, recovering agricultural markets and increased, though... Learn More

8. Ship Building in the US

Business Environment Risk for 2024: 3.60

Shipbuilders design, build and repair ships and other vessels for military and commercial clients. Long project lead times, primarily for defense contracts, have led to a consistent flow of revenue, keeping shipyards busy with work. Defense budgets are set in advance and have increased yearly because of rising geopolitical tensions.

Shipbuilders are protected from foreign competition through protectionist policies like the Jones Act, which prohibits using foreign-built vessels on routes between US ports. While some military shipbuilders receive contracts from foreign countries, commercial shipbuilding is mainly domestic. An increase in US oil and gas production throughout the period has provided a... Learn More

9. Mobile Storage Services in the US

Business Environment Risk for 2024: 3.66

The growth of the residential real estate sector has improved the Mobile Storage Services industry's fortunes during the five years. The residential market is the industry's largest revenue source, with demand dependent on existing home sales and housing starts. The industry also benefited from corporate market growth, although COVID-19 and the skyrocket of interest rates have resulted in significant volatility. Nonetheless, industry-wide revenue has been increasing at a CAGR of 1.2% over the past five years, including an estimated 4.4% decrease in 2023, and is expected to total $11.3 billion in 2023. In the same year, profit is projected to... Learn More

10. Tank & Armored Vehicle Manufacturing in the US

Business Environment Risk for 2024: 3.67

The Tank and Armored Vehicle Manufacturing industry have benefited from rising geopolitical tensions after taking a direct hit from plummeting demand before the period. Companies research, develop, manufacture, modify and repair military armored vehicles, self-propelled artillery and tanks. As the United States began to scale down combat operations in the Middle East, the defense budget was reduced, sequestration kicked in, and spending on industry products plunged. Rising geopolitical tensions have caused a surge of US defense contracts with manufacturers for industry-relevant vehicles. Industry revenue has been growing at an annualized 6.3% over the past five years and is expected to... Learn More