Which industry is most profitable? We’ll show you how to make money in any industry.
Which Industry is Most Profitable: There are so many factors to consider when deciding which industry to work in, and one of the most important ones is how much money you can make. Most industries have relatively high earning potential, with some industries being more lucrative than others.
Which Industry is Most Profitable
So, if you’re thinking about starting your own business or changing careers in order to increase your earnings, it’s worth knowing which industries pay the best in the United States and elsewhere. We ranked 10 industry sectors from highest to lowest average salary per industry. Take a look!
The most profitable industries
In its report, Payscale noted that workers in certain occupations may see higher or lower median pay due to changes in the cost of living, differences in benefits, and compensation for working longer hours or weekends. Specifically, sales managers saw a 22 percent increase in median pay from 2013 to 2017; life scientists, a 19 percent increase; and lawyers and paralegals experienced a 12 percent boost.
Industries with significant declines include computer programmers (down 17 percent) and healthcare practitioners (down 10 percent). These declines are likely attributable to increased automation. For example, technology is now allowing radiologists to interpret more MRI images without needing an assistant.
Finance
Many people are making a killing in finance. The average salary for a financial planner exceeds $100,000 per year, and top performers can earn more than $300,000. According to Forbes’ list of highest-paid professionals in 2012, managers earned an average income of $106,000; analysts made over $92,000, and financial advisers averaged nearly $123,000.
And according to American Banker’s 2013 Compensation Survey report on 25 major U.S. cities and metropolitan areas, banking professionals make an average salary of $89,772 with no bonus or commission adjustments factored into their salaries. So if you want to be financially successful, consider a career in finance.
Mining, oil and gas extraction
The mining and oil and gas extraction sector of our economy has grown by 45 percent in the last five years. Mining equipment operators, a part of that sector, make an average of $96,730 per year in salary. The median income for mining machine operators was $82,170 in 2013.
This doesn’t include bonuses or benefits. There are many sub-sections within the mining, including oil and gas extraction and mineral mines and quarries; both pay well compared to other fields of work. In fact, all occupations across all industries reported salaries below $56,000 per year (except chief executives).
Utilities
The Electric Utility Industry is comprised of companies that provide and/or distribute electricity to customers. These companies produce, transmit, or distribute electricity through power plants and/or distribution systems. Sub-industries include transmission (electricity sent along power lines), subtransmission (electrical infrastructure between regional substations), and distribution (electricity sent via wires directly to businesses and consumers).
And local utilities. Electric utilities’ revenues have dropped from $10 billion in 2007 to $9 billion in 2011 as a result of mild winters which caused a 2 percent decrease in demand for power annually. The next two years saw slight increases in demand as well as an increase in natural gas prices that caused industrial customers to opt for alternate energy sources.
Professional, scientific and technical services
Globally, manufacturing has been identified as one of only three industries with a positive impact on gross domestic product (GDP). Manufacturing ranks behind only retail and mining in terms of economic importance. In many emerging markets, it is recognized as one of the few sectors with the potential to kickstart sustainable growth. Additionally, manufacturing jobs are typically some of the highest-paying jobs in a country.
For example, in China average monthly salaries at private enterprises can range from $400 – $1000 USD while salaries at public entities are even higher ranging from $1200-$1600 USD per month. Not only do these positions pay well but they come to with perks such as low stress, insurance benefits, and paid holidays. Compared to other sectors, however, employment opportunities for newly trained employees tend to be limited.
As a result, those looking to enter into manufacturing should expect competition for entry-level positions. To improve your chances of landing an entry-level job in manufacturing you should consider gaining experience through internships or volunteering within your field of interest.
A 2015 report by Deloitte found that by 2020, India will have more than 400 million people entering its workforce – making it the world’s largest pool of skilled talent. This trend is not unique to India – according to McKinsey & Company.
There will be around 600 million new entrants into their workforce over the next decade across the Asia Pacific alone! As a result, companies are looking toward developing countries like India and China where there is an abundance of skilled labor available at lower costs than developed nations like Canada or Germany.
Manufacturing
Overwhelmingly, manufacturing has an enormous impact on any economy. Every single nation that’s industrialized started as a manufacturing-based country. The United States became a superpower because of its industrial dominance. The world’s current largest manufacturers are China, Japan, and Germany—the former two have maintained their dominance for decades.
While some countries may be known for their technological advancements or natural resources, all of them rely on an established network of factories to keep their economies afloat. As for who’s profiting from all of these goods being manufactured…you guessed it: we’re going with China. In 2015, China manufactured over 70% of the world’s air conditioners, 68% of its cell phones, 63% of its televisions, and 60% of its shoes.
In fact, if you’ve purchased anything in your lifetime (and you probably have), you’ve likely touched something made in China at some point along your journey. It doesn’t matter if it was made there directly or not; most companies will manufacture components elsewhere before assembling them into finished products at Chinese facilities before shipping them out across continents.
Even if you never plan on starting a business in China yourself (though why wouldn’t you?), knowing how they operate will help you understand what makes Chinese manufacturing so successful.
Wholesale trade
This diverse industry includes a wide range of products. For example, clothing wholesalers buy large quantities of clothing from manufacturers to sell in smaller quantities to retailers. Grocery wholesalers sell food in bulk to grocery stores and restaurants. Petroleum wholesale dealers buy oil, natural gas, and other petroleum products from crude oil producers and then resell them for consumption by end-users such as refineries, airlines, power plants, and households.
The Bureau of Labor Statistics (BLS) calculates that about one out of every 10 workers in the U.S.—or 4.6 million people—works at a wholesale business or retail establishment that sells goods on behalf of another company. Another 2 million work directly at manufacturing wholesalers that produce goods rather than act as intermediaries between companies.
They make goods and companies that sell them (often referred to as manufacturers’ sales agents). The number represents 15 percent of all jobs, according to BLS estimates, ranking it third among all industries after retail trade and professional services but ahead of construction.
Information, media, and telecommunications
47.4% of companies with more than 200 employees are in the I, M, and T sectors. They also have an average revenue per employee of $102901 and an average net profit margin of 16%. I, M, and T have a revenue/employee level 13% higher than that of all industries taken together, which makes it easily one of the most profitable industries out there today.
The public administration sector also boasts a 16% net profit margin on average, which isn’t too far off either – though companies in that area tend to be much smaller in size, making it difficult to compare them effectively with bigger firms. And while other industries such as retail trade or construction have a lower net profit margin (11%).
They make up for it by having larger numbers of employees. This means that their overall revenue-per-employee ratio is still quite high (at around $79000). In short: no matter what kind of business you’re running, chances are good you’ll find yourself doing well if you’re working in any of these three areas.
Construction
Yes, construction. While it’s true that a lot of people tend to write off working in construction as a dead-end job, there are actually tons of opportunities for advancement and good pay if you know where to look and have some experience under your belt. Construction workers do the heavy lifting and physical labor, so if you need to lose weight fast or get back into shape after an injury or hospital stay, it might be just what you need. But keep in mind that, while it pays more than food service work—the median salary is $37K annually—it can also be very hard on your body! Exercise caution when choosing construction as a profession.
Transportation and warehousing
BLS statistics show that these industries are among some of the most profitable and pay on average $63,430 in wages annually. According to BLS, these industries alone contributed more than $3 trillion to America’s gross domestic product (GDP) in 2012. However, each industry has its own pros and cons as well as certain risks involved. Understanding what they are can help you narrow down which career path might be right for you.
Arts, entertainment and recreation, accommodation, and food services
The arts, entertainment, and recreation sector include creative businesses involved in producing or providing content like media, journalism, visual art, performing arts, and film. The accommodation and food services sector covers businesses that provide rental housing units to tenants as well as food preparation and service operations. Revenues for these industries are highly dependent on tourism.
Despite relatively low average wages for workers in these sectors—$22 an hour for arts, entertainment, and recreation workers; $17 an hour for accommodation and food services workers—these industries generate high profits because revenue per employee is so high. With large numbers of employees working part-time hours at small firms with little capital investment per worker, these industries have high rates of profit relative to other sectors.
Also Read: Which Industry Will Boom in Future?
Conclusion
The data clearly shows that there are many different types of industries that will net you more profit, which is why it’s so important to know your options before diving into business. This can help you figure out how to pick up a new job or build on an existing career and make sure you get as much money back as possible.
No matter what industry you’re interested in, now that you know how to research salaries, it should be easy for you to find work and maybe even end up on top of your field. Best of luck with your search!
