America’s Fastest Growing Industries: 3D Systems Corporation (DDD), Lululemon Athletica inc. (LULU)

Page 1 of 2

As investors, it pays to keep an eye on industries that are growing quickly.  Amazon.com, Inc. (NASDAQ:AMZN)’s ascent to grace as the king of e-commerce was nicely complemented by a nascent dot-com boom and consumers that were newly connecting to the internet.  Netflix, Inc. (NASDAQ:NFLX)’s ability to take down Blockbuster was largely due to the aggressive expansion of the DVD industry.

3D Systems Corporation (NYSE:DDD)Luckily for us, IBIS World released a special report last April that listed the 10 fastest-growing industries in the United States.  The metric they based the rankings on was overall industry revenue growth during the next five years.

Here is that list of industries, shown with the fastest-growing on top.

There are a few important things to take note of before we start digging into the industries.  First, the list is based off of compound annual growth rate, not absolute industry growth.  For instance, social network game development is ranked #2 on the list and is predicted to rise at 22% per year through 2017.  But even after all of that growth, it will still be less than 1/4 of the absolute size that the generic pharmaceutical manufacturing industry is today.  So keep in mind that we’re dealing with relative change rather than absolute change.

The other thing that stands out is that Green & Sustainable Building Construction was not only the fastest growing industry on the list, but it was also the largest market.  The report anticipates a whopping $180 billion of growth will be seen in just the next five years, which will nearly triple its total size today.  If you start to notice a lot more Energy Star rated appliances and energy-efficient air conditioners, now you know why.

How to play these trends

A strong macroeconomic tailwind can often be a best friend to investors.  A rising tide can raise many ships, meaning that multiple companies can simultaneously benefit from a growth in demand for the products in their industry.  This is especially true if the companies target different types of customers.

As an example, Stratasys, Ltd. (NASDAQ:SSYS) and 3D Systems Corporation (NYSE:DDD) are competitors in the 3D Printer Manufacturing industry.  Stratasys has targeted larger, industrial customers that have needs for more complex machines using fused deposition modeling.  Conversely, 3D Systems is making strides to push into the consumer market, now selling their Cube 3D personal printer for only $1,299.  So who’s going to be the ultimate winner in this race?  The answer is most likely “both.”  With top line industry growth of 14% per year, there’s enough room for both of these companies to ink up some new business.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!