In this article we take a look at the 10 most profitable industries in America in 2020. Click to skip ahead and jump to the 3 most profitable industries in America in 2020
The 10 most profitable industries in America in 2020 are a glimpse inside what keeps the world’s most powerful economy going. The US has been decimated by the coronavirus in 2020. As of writing this article, over 170,000 people in the country lost their lives. To combat the virus, despite Trump’s insistence, most states went into lockdown, which has cost the economy significantly. Of course, the economical cost does not even come close to measuring up to the lives lost, but many states still decided to open up way too early, which is why the country is caught in an even worse position right now.
While the pandemic has wreaked havoc on the economy, some industries have still performed extremely well, especially the tech industry. Jeff Bezos of Amazon (NASDAQ:AMZN) gained the highest net worth any individual has ever attained, while Facebook’s (NASDAQ:FB) Mark Zuckerberg became a centa-billionaire. Specific industries within the wider tech industry are some of the most profitable industries in the world, and this is also true for America, which is why you’ll see them making an appearance in this list.
Even the most profitable industries in our list will struggle to cope with Covid and the ensuing economic lockdown, which means this list might see some seismic changes in the coming years. However, if there’s any industry which can bounce back fast, its probably in our list. At the same time, spare a thought for other industries such as the airline industry and the hotel industry, where several companies have gone bankrupt and tens of thousands of employees have been let go. With international travel bans coming and going without any certainty, it seems unlikely that these will be recovering any time soon.
To determine our list of the most profitable industries in the US, we relied on statistics from this website, which has every conceivable data you could want regarding industries not just in the US but also the world. We used two metrics for our ranking; return on total capital invested, which was a ratio of net income and capital invested and total gross profit. We used the first metric as the return on capital employed shows what an investor is receiving for every dollar he is investing in a company, while the latter shows the total profit earned by a company, excluding general expenses. If you want to compare this to the most profitable industries on a global level, head on over to the 10 most profitable industries in the World in 2020. So let’s take a look at the industries which might lead America back from a recession starting with number 10:
10. Semiconductor industry
Raise your hands if the PC you’re currently working on has an Intel (NASDAQ:INTC) processor inside. Intel is perhaps the most popular name associated with the industry, without which your computers would just be expensive paperweights. The ETF responsible for tracking this industry is iShares PHLX Semiconductor ETF (NASDAQ:SOXX).