10 Fastest Growing Industries in America in 2018

What are the 10 Fastest Growing Industries in America in 2018? Let’s find out.

There are many different types of industries. Some industries, like railroads, are mature and have been around for a long time. Those types of industries are often consolidated, meaning there are only a few major companies, each of which have considerable market share. Growth in those mature industries is typically slow or even non-existent when factoring out GDP increases. Many investors who own companies in mature industries do so for their steady cash flows and dividend payouts.

Other industries are relatively new and growth in those industries can be very fast. If an industry’s sizzling growth continues for a long time and management that runs those companies execute, the rewards for investors can be rather large. Software development was once one of the fastest growing industries in the world, and the companies that led it, like Microsoft, have handily paid investors for their investment. Shares of Microsoft have arguably been one of the best investments one can make if one started right when Microsoft was growing very quickly. 

That being the case, growth can also produce less than fantastic results. Due to the fact that they are in growth mode, many companies are not profitable. Those companies often will need to raise capital either from banks or from equity markets to sustain their growth. Due to the fact that many of those companies are relatively small, many will not be able to compete against corporations with more resources. As with any investment, it’s important to consider both the pros and the cons.

Given the rewards of investing in fast growing industries, we cover the fastest 10 growing industries in America. In terms of the methodology, we use data released last year (and researched for 2016) from Sageworks, a leading financial information company, and assume things won’t change all that much in 2018. 

#10 Other Heavy and Civil Engineering Construction

Number ten on our list of 10 Fastest Growing Industries in America in 2018 is Other Heavy and Civil Engineering Construction, which according to SageWorks grew 13% year-over-year in terms of sales change for 2016. Given the strong economy, Other Heavy and Civil Engineering Construction might continue to benefit as local/state governments have more money to spend given higher tax receipts. One thing that could potentially slow profitability in the Other Heavy and Civil Engineering Construction industry might be wage inflation if it accelerates substantially, however.