Entrepreneur Magazine recently compiled a list of The 10 Fastest-Growing Industries for Small Businesses.
Residential building construction topped the list with 14.77 percent growth, followed by building custom software and servers for businesses with 14.29 percent growth and machinery, equipment, and supplies merchant wholesalers with 13.75 percent.
Many of the top ten industries are service based – like software development, consulting, or architecture firms. A good thing, according to Libby Bierman, an analyst at Sageworks, since these types of businesses can be started without a lot of money spent on inventory or equipment.
The surge in residential construction, though not serviced based, makes sense, Bierman explained.
“A lot of construction projects were abandoned during the recession and so part of the bounce in construction is businesses and individuals picking back up old half-finished projects.”
This is good news. New construction is one of the best signs of a robust economy, as it means more consumers are confident enough to buy homes and new construction projects herald new or expanding businesses. This, coupled with the increased lending demand we’ve been seeing over the last couple of years, indicates that a full-blown recovery may just be on the way.
What do you think will be the fastest growing industries of 2013?