Chances are that your small business is doing better this year than last if it’s tied to the construction trade or operates a specialty food store.
Those are just two of the top 10 industries for private companies in the U.S. with annual sales less than $5 million that have shown double-digit growth in the last 12 months, according to a new report about the fastest-growing industries for small businesses.
The report by Sageworks, a financial analysis company, shows not only construction companies doing well, but also architecture firms, contractors, manufacturers and real estate agents that supply those companies. They all fit into the supply chain or process of building that has profited from progress in the housing market, said Sageworks analyst Libby Bierman.
“When hammers started swinging again,” Bierman said, “these industries benefited, and their top lines show that positive impact.”
Specialty food stores, ranging from organic grocers to sweet-tooth storefronts, have grown 11 percent. A future challenge in this industry may be staying ahead of customer caprice in ever-changing niche food-item trends.
And here’s here one that you probably didn’t see coming: Growers of oilseeds and grains achieved nearly 20 percent sales growth in the last 12 months. Why?
“It might be attributed to price inflation that resulted from the 2012 drought or just increased demand across the board for their goods,” Bierman said. “Corn and wheat prices both hit multi-year highs in the July-August 2012 timeframe as the U.S. faced its second year of drought, but prices have since fallen.”
Another winning small-business industry: Management consulting services and computer systems design companies, which was not surprising to Bierman.
“Since they’re in the service business, these types of small companies don’t have to invest in a lot of equipment or hire lots of employees before they can start bringing in revenue,” she said.
According to Sageworks, here are the 10 fastest-growing small-business industries (private companies with annual sales less than $5 million) and their percentage of sales growth in the last 12 months:
- Oilseed and grain framing (19.5 percent sales growth) – wheat, corn, soybeans
- Building finishing contractors (15 percent) – drywall, painting, flooring
- Real estate agents and brokers offices (14.6 percent)
- Architectural, engineering and related services (14.2 percent)
- Management, scientific and technical consulting services (13.9 percent)
- Computer systems design and related services (13.4 percent)
- Other fabricated metal product manufacturing – metal valves, ball bearings (11.9 percent)
- Utility system construction – water, sewer, oil, gas, electricity (11.3 percent)
- Specialty food store stores (11 percent)
- Foundation, structure and building exterior contractors –concrete, roofing, siding (10.6 percent)
