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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!