Legal

a wide range of sectors that provide legal services, including law firms, in-house legal departments, and legal aid organizations. These industries can be categorized by the types of law they practice, such as corporate, family, and environmental law, and are influenced by technology, globalization, and evolving client expectations. Key g The types of law can categorize these industries: employment, technology, and privacy litigation.

Automotive

The automotive industry involves the manufacturing of vehicles and vehicle parts for commercial and personal use. As the economy rebounded after 2010, consumer sentiment rose, and interest rates were at historically low levels, combined with extra incentives, which increased demand. Prospects ahead are encouraging for the industry, and profits are expected to trend upward over the next five years, as industry operators benefit from rising vehicle sales and cost-cutting measures enacted during the downturn.

Generally, automakers are focusing on producing smaller, lighter, and more fuel-efficient vehicles to become more competitive in the wake of rising regulations and volatile fuel prices. Shifting consumer preferences, along with a broader recovery in vehicle demand, are expected to lift industry revenue over the next five years. Additionally, re-shoring activity is anticipated to become prominent as more flexible labor agreements encourage industry operators to expand their operations domestically.

Construction

The construction industry has strongly rebounded over the past few years. Tight credit markets, lower consumer spending, and high unemployment slowed growth until recently, as demand for new commercial and residential space has been low.

Commercial construction typically lags the overall economy by 1 to 2 years due to the length of contracts. As economic activity has increased, contractors' backlogs have filled, and demand for new construction has picked up. As a result, many construction outfits are now able to raise prices slowly, leading to increasing profit margins.

Road and highway construction is also expected to increase due to the need to repair, expand, and rebuild existing infrastructure. Together with growing congestion caused by urban sprawl, these factors will force authorities to spend. Demand is expected to remain strong over the coming years across all areas as a result of the declining office vacancy rates, increased infrastructure spending, and greater new home starts.

Oil & Gas

The oil and gas industry has been challenged by recent declines in oil prices, which are now expected to be sustained for some time. New technologies and extraction techniques, however, are enabling a quick recovery from the negative shock of low prices. Domestic oil and gas production has steadily increased, and industry operators have positioned themselves to perform strongly in the future.

The industry includes a few huge globalized companies that typically engage in all steps of the production process, everything from exploration to refining. These large companies received the majority of the benefits from the emergence of hydraulic fracturing and horizontal drilling techniques. As operators deplete their reserves, it becomes increasingly necessary to improve efficiency and minimize waste. Nonetheless, the number of industry operators is expected to increase, as previously uneconomical resources have become accessible.

Finance and Banking

The finance and banking industries serve to facilitate personal and corporate investment and financing activities.

Commercial banks are experiencing low revenues due to historically low interest rates. Further, non-interest income remains volatile due to weakness in private business start-ups and expansions, as well as a sluggish residential real estate economy. One bright aspect has been mortgage refinancing, which has seen robust activity as people move out of higher-interest mortgages. The industry is experiencing significant consolidation recently, and the strong performance of capital markets over the past several years has also boosted profit margins. Further, the number of credit-worthy borrows has increased.

Looking to the future, government regulation and technology-driven competition are expected to change the business model that commercial banks use dramatically. Revenue will become less borrowers and big banks will grow deposits at a faster rate than smaller savings institutions, since their reputations were severely damaged thanks to the significant number of bank failures that occurred during the economic downturn.

Grocery Stores

The supermarket and grocery store industry has grown recently due to a strengthening of the domestic economy. Average disposable incomes have grown over the past few years, and as a result, some consumers have traded up to premium brands focused on organic and all-natural products. On the downside, food costs have been generally inflationary, which has led many consumers to continue purchasing private-label and generic brands.

Despite growth, grocery stores face intense competition from alternative retailers, especially warehouse clubs and supercenters, due to the savings and convenience they offer. In response to this competition, many supermarkets are offering substantial discounts and promotions to drive foot traffic and strengthen consumer loyalty.

Steady commodity prices and flattening input costs should benefit all food sellers, but overall, the increased competition will continue to place downward pressure on traditional supermarkets and grocery stores.

Restaurants

The restaurant industry has grown over the past several years, thanks to lower unemployment and improved consumer confidence, resulting in greater spending on sit-down meals. While profit margins remain slim, costs have been kept under control, resulting in growth through volume.

Full-service chain restaurants compete with independent restaurants, fast food chains, and other establishments offering meals to eat in or take away. The trend over recent years has been greater convenience at lower cost, which has hurt sit-down restaurant meals the most. In response, full-service restaurants have invested in technology to cut costs and redesigned layouts. Fast-casual restaurants that serve high-quality food at reasonable prices will keep increasing competitive pressure and force profit margins to remain slim into the foreseeable future.

Healthcare

The healthcare industry comprises many players; however, it is driven by primary care doctors and hospitals. The aging population has increased demand for healthcare services in recent years, with no expectation that this trend will ease.

Chronic illnesses are disproportionately prevalent in older adults and rising significantly due to demographic shifts. Additionally, the Patient Protection and Affordable Care Act now requires all individuals to obtain health insurance. As coverage has increased, demand for primary care has grown substantially, yet the number of primary care doctors has not kept pace.

The Hospital segment is consolidating and organizations are seeking the most skilled and specialized healthcare professionals. Consequently, labor costs in this industry are high, and hospitals are increasingly facing shortages of nurses and physicians. Home healthcare and remote diagnosis of routine minor illnesses are becoming more common.

Technology

The Technology industry has grown dynamically over recent years as businesses and consumers increase their purchases of software, computers, and mobile devices. Additionally, a side effect of web-based solutions and mobile devices has been an explosion of sensitive, private data, requiring complex security software products.

The near term is expected to center on software increasingly entering day-to-day activities, as well as the rise of big data, predictive analytics, and artificial intelligence. Phones and mobile computing devices are providing new platforms on which software publishers can compete. Additionally, the rapid move toward cloud computing is opening a wider array of software possibilities as phones and tablets are no longer limited by low storage capacity. Finally, demand for security software to protect data is expected to rise considerably as technology continues to enter everyday life. 

Manufacturing

The manufacturing industry is comprised of a wide variety of participants - everything from large multinational corporations to locally family-owned businesses. Further, these companies make everything from small specialty parts, such as precision springs, to household appliances to large construction equipment. As a result, the manufacturing industry is highly dependent on the health of other industries, especially construction and housing.

In recent years, the Manufacturing industry has been forced to contend with increased international competition and the lingering effects of the recession. International competition primarily comes from low-wage countries with little employment or environmental regulation. This enables these competitors to manufacture products at significantly lower costs. In response, many domestic companies have offshored production. The future trend, however, is expected to include substantial repatriation of manufacturing due to consumer frustration with the low quality of foreign products. On the domestic side, infrastructure upgrades and a continued housing recovery are expected to drive greater demand.

Retail

The retail market comprises two primary segments: small specialty retailers and large big-box stores. The retail industry is highly fragmented as it includes a wide array of products. As a result, it the industry is driven primarily by macroeconomic trends.

Over the past several years, warehouse clubs and online retailers have gained market share by offering one-stop shopping and lower prices. This competition has forced out underperformers; however, it has not reduced the overall number of small shops. This is because there is significant freedom of entry and exit due to the industry's low capital and other entry requirements.

In the future, the biggest threat to brick-and-mortar stores will come from online retailers. To survive, smaller shops will have to get into the online game themselves and improve their efficiency and value proposition. As a result, surviving retailers are expected to achieve higher profit margins and a bright future.

Real Estate

The Real Estate industry is closely aligned with fluctuations in the residential and commercial real estate markets. Industry revenue is directly correlated with property prices and real estate transaction volumes because pay is commission-based. The residential market represents more than two-thirds of industry revenue, making the industry especially sensitive to housing prices and existing home sales.

Increasing disposable income and low interest rates have helped increase home affordability and bolstered demand. Additionally, rising house prices lead the way for steady gains in industry revenue. However, anticipated gains in employment will force the Federal Reserve to raise interest rates over the next few months. Higher interest rates will increase borrowing costs and reduce demand for homeownership. Both factors have the potential to limit industry growth in the coming years.

Travel

Travel agencies are growing once again. Traditional operations are reinventing themselves to remain relevant in an industry now dominated by online travel websites, such as Expedia and Priceline. Consumers can now research locations, compare prices, book travel, and manage reservations without expert assistance, thereby negating the role of traditional travel agencies. Consequently, many traditional travel agencies have been forced to find new markets and niches, such as serving the corporate sector or luxury travelers.

International trips, especially those to exotic locations, generally involve more complicated arrangements that require the services of professional travel agents. The traditional industry has also benefited from increased travel to emerging economies, as consumers are more inclined to have their plans organized by a professional when there is uncertainty about their destination. Consumers who remain price-conscious and are comfortable making their own travel arrangements online will continue to pose a significant challenge to the industry's thousands of traditional travel agencies.