The 10 Fastest-Growing Small-Business Sectors Right Now

Over the past year, the strengthening housing market has been helping small businesses grow – and fast.

Sageworks, Inc.’s most recent analysis of companies with less than $5 million in annual revenues finds that four of the ten fastest-growing sectors of 2013 are related to housing.

Building finish contractors and real estate agents’ offices saw sales grow by nearly 15% over the past year. Architectural and engineering services, meanwhile, grew sales by 14.2%, and foundation, structure and building exterior contractors’ sales increased by 10.6%.

Sageworks analyst Libby Bierman says the partial government shutdown had a “notable impact” on the number of mortgages being processed, which may slow the growth spurt.

But since the shutdown lasted only a couple of weeks, Bierman says it is unlikely to cripple these expanding businesses.

“It will show a slight blip, but not all revenue is tied to home mortgages. It will have some impact, but not something that in the long-term will put businesses out of business, most likely,” says Bierman.

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Perhaps surprisingly, grain farming showed the strongest growth of all sectors analyzed by Sageworks, posting a nearly 20% increase in sales.

“There was a drought in 2012, so they increased prices dramatically because the supply was cut so much,” says Bierman, who says the sector was new to the list. Bierman predicts that grain farming is unlikely to make a second appearance on the list of fastest-growing small-business sectors, but says there’s room for another surprise.

“I imagine we’ll be seeing similar externalities that will change [the list],” says Bierman.

The full list of the fastest-growing sectors:

1. Oilseed and Grain Farming:

This industry group comprises establishments primarily engaged in 

(1) growing oilseed and/or grain crops 

(2) producing oilseed and grain seeds. 

These crops have an annual life cycle and are typically grown in open fields.

Business

Information on the number and size of businesses for 2019.

Establishments

62,361

0-99 Employees

100%

Financial performance

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              Average revenue                                      profitability    

$862.7

thousand

32.4%

Trade

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Exports

$18.8

billion

Imports

$1.7

billion

2. Building Finishing Contractors:

This industry group comprises establishments primarily engaged in the specialty trades needed to finish buildings. The work performed may include new work, additions, alterations, or maintenance and repairs.

Business

Information on the number and size of businesses for 2019.

Establishments

78,161

0-99 Employees

99.8%

Financial performance

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Average revenue

$269.0

thousand

Profitable

89.1%

3. Offices of Real Estate Agents and Brokers:

This industry comprises establishments primarily engaged in acting as agents and/or brokers in one or more of the following:
(1) selling real estate for others.(2) buying real estate for others(3) renting real estate for others.

Business

Information on the number and size of businesses for 2019.

Establishments

733,361

0-99 Employees

99.4%

Financial performance

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Average revenue

$180.7

thousand

Profitable

83.4%

Gross Domestic Profit

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  1.8%

Productivity 

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0.5%

Salary & Wages

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$23.29

4. Architectural, Engineering, and Related Services:

This industry group comprises establishments primarily engaged in:

providing architectural engineering and related services, such as structure design, drafting, building inspection, landscape design, surveying and mapping, laboratory and on-site testing, and interior, industrial, graphic and other specialized design services.

Business

Information on the number and size of businesses for 2019.

Establishments

51,860

0-99 Employees

98.2%

Financial performance

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Average revenue

$354.9

thousand

Profitable

86.9%

Salary & Wages

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Wages

$36.77

5. Management, Scientific, and Technical Consulting Services:

This industry group comprises establishments primarily engaged in:

providing expert advice and assistance other organizations on management, environmental, scientific and technical issues.

Business

Information on the number and size of businesses for 2019.

Establishments

116,628

0-99 Employees

99.6%

Financial performance

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Average revenue

$210.3

thousand

Profitable

90.2%

6. Computer Systems Design and Related Services:

This industry comprises establishments primarily engaged in providing expertise in the field of information technologies through one or more activities, such as writing, modifying, testing and supporting software to meet the needs of a particular customer, including the creation of Internet home pages; planning and designing computer systems that integrate hardware, software and communication technologies; on-site management and operation of clients' computer and data processing facilities; providing advice in the field of information technologies; and other professional and technical computer-related services.

Business

Information on the number and size of businesses for 2019.

Establishments

89,499

0-99 Employees

98.8%

Financial performance

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Average revenue

$276.2

thousand

Profitable

85.2%

7. Other Fabricated Metal Product Manufacturing:

This industry group comprises establishments, not classified to any other industry group, primarily engaged in fabricating metal products.

Business

Information on the number and size of businesses for 2019.

Establishments

2,804

0-99 Employees

97%

Financial performance

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Average revenue

$664.1

thousand

Profitable

82.3%

Salary & Wages

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Salaries

$1.4

billion

Wages

$25.59

Manufacturing

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Net revenue

$548.6

million

Shipments

$5.4

billion

Value added

$2.9 

billion

Trade

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Exports

$4.1

billion

Imports

$9.3

billion

8. Utility System Construction:

This industry group comprises establishments primarily engaged in:

the construction of distribution lines and related buildings and structures for utilities (i.e., water, sewer, petroleum, gas, power, and communication). All structures (including buildings) that are integral parts of utility systems (e.g., storage tanks, pumping stations, power plants, and refineries) are included in this industry group.

Business

Information on the number and size of businesses for 2019.

Establishments

6,326

0-99 Employees

94%

Financial performance

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Average revenue

$596.1

thousand

Profitable

77.4%

Salary & Wages

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Wages

                $38.31

9. Specialty Food Stores:

This industry group comprises establishments primarily engaged in retailing specialized lines of food products.

Business

Information on the number and size of businesses for 2019.

Establishments

11,275

0-99 Employees

99.3%

Financial performance

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Average revenue

$609.3

thousand

Profitable

71.5%

10. Foundation, Structure and Building Exterior Contractors:

This industry group comprises establishments primarily engaged in the specialty trades needed to complete the basic structure (i.e., foundation, frame and shell) of buildings. The work performed may include new work, additions, alteration, maintenance, and repairs.

Business

Information on the number and size of businesses for 2019.

Establishments

38,547

0-99 Employees

99.3%

Financial performance

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Average revenue

$461.3

thousand

Profitable

82.8%