What are the most profitable industries in America? Whenever one thinks about the world’s business and industries, The United States of America is the name always comes first. But, have you ever asked yourself what the most profitable Industries in America are? As we mentioned once in our cover story about the most profitable companies in the world that the revenue and profit are not always proportional to each other. Industries with huge sales can have huge costs and tiny profits. Supermarket chains is a good example of this. Wal-Mart may be the biggest employer in this country but it isn’t the most profitable company.
If you are looking for a new job or decide what to study, you should have acquaintance with the most profitable industries you can apply, as profitable businesses are more likely to be able to afford to add more employees to their rosters. In this article we will provide the list of the 20 most profitable industries in America, obtained from Sageworks, a financial information company. This company analyzed financial statements from thousands of companies to find out which industries have been the most profitable in America.
North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy. This NAICS code may help you to find more information you are looking for about that particular industry. So, let’s take a look at the countdown of 20 most profitable industries in America.
20. Software Publishers
NAICS Code: 5112
Pre-Tax Profit Margin: 9.30%
Software publishers are growing every single day with the increase of using technologies by business sectors. Additionally, the Semiconductor and Circuit Manufacturing industry and the Telecommunication Networking Equipment Manufacturing industry are creating new opportunities for software publishers.
19. Other Information Services
NAICS Code: 5191
Pre-Tax Profit Margin: 9.33%
Other Information Services industries include supplying information, storing and providing access to information, searching and retrieving information, publishing and transmitting content exclusively on the Internet and functioning Web sites that use search engines to allow for searching information on the Internet.
18. Scientific Research & Development Services
NAICS Code: 5417
Pre-Tax Profit Margin: 9.44%
Scientific Research & Development Services conduct several researches and apply their findings to develop new products in a variety of fields, including life sciences, social sciences, engineering and the humanities. The industry is growing everyday making it one of the most profitable industries in America.
17. Death Care Services
NAICS Code: 8122
Pre-Tax Profit Margin: 9.59%
The Death Care Services refer to companies and organizations that provide services related to death like funerals, cremation or burial, and memorials. In the United States alone, there are more than 22,000 funeral homes, approximately 115,000 cemeteries, 1,155 crematories and 300 casket venders.
16. Support Activities for Mining
NAICS Code: 2131
Pre-Tax Profit Margin: 10.11%
Industries in the Support Activities for Mining primarily provide the support services required for the mining and quarrying of minerals and for the extraction of oil and gas. This explains why Halliburton and Schlumberger are some of the most profitable companies.
15. Activities Related to Credit Intermediation
NAICS Code: 5223
Pre-Tax Profit Margin: 10.12%
Industries in the Credit Intermediation and Related Activities conduct the services like lending funds raised from depositors, from credit market borrowing and to facilitate the lending of funds by engaging in such activities as mortgage and loan brokerage, clearinghouse and reserve services. The pre-tax profit margins of these middlemen is above 10%.
14. Other Schools and Instruction
NAICS Code: 6116
Pre-Tax Profit Margin: 10.28%
Other Schools and Instruction group comprises services which are primarily engaged in offering or providing educational instructions. The Education sector is developing everyday. So, definitely this industry should be in the list of 20 most profitable industries in America.
13. Nondepository Credit Intermediation
NAICS Code: 5222
Pre-Tax Profit Margin: 10.44%
This U.S. industry comprises establishments in providing various types of nondepository credits like short-term inventory credit, agricultural lending and consumer cash lending secured by personal property.
12. Outpatient Care Centers
NAICS Code: 6214
Pre-Tax Profit Margin: 10.50%
The Outpatient Care Centers industry has a medium level of capital intensity because of the high labor costs to provide well-trained and skilled physicians, nurses and technicians.
11. Offices of Physicians
NAICS Code: 6211
Pre-Tax Profit Margin: 10.84%
Offices of Physicians provide the services of patient care, appointment scheduling, records management, and insurance processing.
10. Agencies, Brokarages & Other Insurance Related Activities
NAICS Code: 5242
Pre-Tax Profit Margin: 11.26%
Agencies, Brokarages & Other Insurance Related Activities are mostly engaged in underwriting annuities and insurance policies and facilitating such underwriting by selling insurance policies.
9. Office Administrative Services
NAICS Code: 5611
Pre-Tax Profit Margin: 11.85%
The Office of Administrative Services (OAS) provides a number of policies for space management, real property management, energy management and sustainability, personal property management, telecommunications management, mail management, passport issuance and management, printing management, parking and vehicle fleet management.
8. Offices of Other Health Practitioners
NAICS Code: 6213
Pre-Tax Profit Margin: 12.01%
This industry group consists of institutions of health practitioners, except physicians and dentists. Some Clinics and Health Care Centers are included in this group.
7. Technical & Trade Schools
NAICS Code: 6115
Pre-Tax Profit Margin: 12.76%
In the United States of America, the vocational education varies from state to state. There are proprietary (privately owned) career schools, two-year community colleges, four-year universities and other programs available through military technical training or government-operated adult education centers. Certainly, America puts their huge interest in technical development and that makes this industry one of the most profitable industries in America.
6. Legal Services
NAICS Code: 5411
Pre-Tax Profit Margin: 12.98%
U.S. Legal Services offers the most comprehensive legal benefit plans with the best customer service in the industry. It makes legal representation more affordable and accessible to everyone.
5. Other Investment Pools & Funds
NAICS Code: 5259
Pre-Tax Profit Margin: 13.26%
Other Investment Pools and Funds comprise of legal entities organized to pool securities or other assets on behalf of shareholders or beneficiaries.
4. Accounting, Tax Preparation, Bookkeeping & Payroll Services
NAICS Code: 5412
Pre-Tax Profit Margin: 13.61%
This industry group mostly involves in auditing account-records, designing accounting systems, preparing financial statements, developing budgets, preparing tax returns, processing payrolls, bookkeeping and billing.
3. Depository Credit Intermediation
NAICS Code: 5221
Pre-Tax Profit Margin: 13.63%
Depository Credit Intermediation comprises establishments primarily engaged in accepting deposits and lending funds.
2. Offices of Dentists
NAICS Code: 6212
Pre-Tax Profit Margin: 13.84%
There are roughly 190,000 practicing dentists in the United States. And this industry possesses the second position of the top most profitable industries in America.
1. Other Financial Investment Activities
NAICS Code: 5239
Pre-Tax Profit Margin: 16.26%
This industry group is involved in managing portfolios of securities and providing investment advice, trust, fiduciary, custody and other investment services and this is the most profitable industry in America.