Economic Headlines Today in 9 Industries
Are you interested in knowing about what’s happening in the different industries today? Maybe you are looking to establish a business in a particular sector, or you just want to furnish yourself with knowledge of economic headlines today; going through economic headlines is a great way to get a clearer picture of what’s happening economically. Here are some economic headlines today for nine industries.
Assisted Living Communities
According to the American Health Care Association, there is an economic crisis affecting nursing homes across the country. The report that contained these findings was prepared by CliftonLarsonAllen LLP, which is an accounting firm. There are several key findings that you may be interested in if you are in the nursing industry or curious about the economic headlines today.
One of the key findings is that there are a lot of residents staying in at-risk nursing homes. The percentage of these residents has increased from 16 percent in 2019 to 47 percent in 2022. Should these nursing homes be forced to close, there is a high chance that no fewer than 417,000 residents will be displaced.
One of the factors that are increasing the risk of closure of nursing homes is increased fixed costs. General inflation for goods and services required by nursing homes increased to 8.5 percent between March 2021 and March 2022. Economic experts expect that inflation will continue to increase, and this will likely put more nursing homes at financial risk considering that they mainly depend on government payers with fixed rates. These are some of the challenges that are being faced in assisted living communities. This adds to the strain caused by higher wages for nurses and other workers in the active senior living community.
Damage Restoration Companies
There is a growing demand for damage restoration services in the United States. Operators in this industry provide homeowners and commercial customers with things like fire damage service and water damage restoration. The demand for these services has grown significantly over the past five years. This demand is probably due to climate change and a favorable macroeconomic environment. In particular, customer spending increased by about 1.8% per year over the past five years. As a result, according to equity reports, industry revenue has increased by about 0.5% per year to $4.0 billion in the past half-decade.
Economic revitalization demand is expected to increase for the tasks carried out by the damage restoration industry over the next five years. According to IBISWorld, the industry revenue is expected to increase from an annualized 0.5% to $5.0. billion over the next half-decade. This is due to the increasing consumer spending and industrial production. The economic headlines today encourage consumers to spend more money on services that would otherwise be thrown out of the window to cut expenses during times of recession. Continued climate change keeps being a good thing for industry operators.
Oil Drilling Products
The rising prices of oil and gas have significantly altered the power dynamic between oil companies and contractors that supply drilling products and drilling services for the industry. The oil services industry was seriously hit by the pandemic-induced crash that happened in 2020. This forced a lot of companies into bankruptcy. However, the steady increase in oil prices, driven by the invasion of Ukraine by Russia, has prompted a massive reversal of luck.
At the moment, oil prices are trading over $100 a barrel, and there is a general supply crunch in the market. This is leading to a robust, multi-year upcycle as demand increases for oil drilling products. This makes a lot of sense, considering that the demand for oil also means there will be high demand for equipment like precision piping products that are needed to drill new wells. For the first time in about ten years, service providers can comfortably raise prices for their oil company customers, and it seems like this power dynamic will stick around for a while.
Cleaning Companies
The cleaning industry is one sector that is experiencing some serious growth. Packed with opportunities, the industry is expected to earn no less than $46 billion dollars in 2022 and grow at least 10% by 2026. About 1.7 million individuals are currently employed by cleaning companies, yet it is still expected to spur a 6% year-on-year growth in new employment opportunities due to the increasing demand.
This is also one of the most recession-proof sectors out there. Most of the workers in the cleaning industry are seen as community heroes because of the vital role they play. Even when everything is upside down, and even more so during times of crisis, cleaning companies are still needed. In recent years, there has been a general move to an increased focus on the importance of cleaning home and working spaces. It has been shown that clean environments have a positive impact on people’s mental health – helping workers’ and homeowners’ minds to be at ease, which increases productivity. While this industry may have had its challenges, it keeps growing bigger and better, according to the Bureau of Labor Statistics’ prediction back in 2014.
Pet Food Companies
Due to the pandemic, there has been an increase in pet spending. This is partly due to increased ownership rates, with pet retailers forecasting record sales and profits. Most companies report having a ‘record Christmas’ with some serious growth in sales across the industry. Most pet retailers and pet food companies report that their sales were up by an average of 8.7% in 2020 and 28.1% in 2019. Despite the increased cost of living, it’s highly unlikely that people will cut back their spending any time soon.
According to historical data and economic headlines today, one of the very last things that people will do is cut back on their animal companions. People might cut back on holiday spending and things like discretionary expenses but keep looking for new grain-free dog food recipes. Pets are a significant part of the family, and the given fact that there are more pets now than ever means this industry will likely experience a stronger revenue this year and in the following years.
While the industry is also experiencing inflationary pressures like any other industry, there are plans in place to mitigate them. This is being done through rent reductions and ‘operational efficiencies’ across the different pet food companies.
Manufacturers
U.S. manufacturers are currently having a great 2022, but concerns continue to accompany these positive trends. In economic headlines today, the first concern is output. The value added by companies that manufacture rose 7 percent in 2021 to nearly $2.4 billion. This accounts for 11 percent of the American economy. Yet when viewed as a fraction of the GDP, the manufacturing industry stats keep declining, just like what has been happening for the past 70 years.
The 2021 tariffs benefitted several producers, but trade suffered. While the U.S. exports just a small percentage of what it manufactures, those shipments significantly dropped last year as several nations retaliated against tariffs imposed by the United States. Equally concerning, players that sourced Chinese parts for their manufacturing processes ended up having to scramble for replacements to keep their productions running.
When it comes to employment, the manufacturing industry keeps taking up a lot of workers, adding 1.4 million workers since the pandemic. Today manufacturers employ almost 13 million workers. This represents at least 8.5 percent of the non-farming workforce. This statistic doesn’t take into account a lot of jobs since it does not include the 760,000 contract manufacturer workers who work on a temporary basis. Nor does it take into account outsourced services that range from warehouse managers to equipment maintenance contractors.
Staffing Agencies
Staffing agencies are also making economic headlines today. The demand for a contract workforce keeps rising in all parts of the United States. The industries that have emerged as major employers of contractural staff include engineering, manufacturing, I.T., fintech, e-commerce, and pharma. The majority of tier 1 city candidates are looking for skill-based/aspirational opportunities when it comes to new jobs as compared to compensation-driven candidates. The growth registered in contractural staffing is expected to increase. Though led by the I.T./ITeS sector, this upward trend can also be seen in other areas like engineer staffing agencies.
There are lots of advantages to contractural staffing that may be driving these trends. Most companies have realized that contractural staff enables companies to enjoy a faster hiring process. This is because there is less processing time than in full-time positions. There is also the ability to convert any contractural job into a full-time position with time. Companies can use the time a worker spends as a contract worker to evaluate their skills and competencies to see if they would be a good fit for a more permanent position.
The Health Industry
The medical industry is also part of the economic headlines today. The industry took a major blow as a result of the pandemic. About a million deaths were recorded, and some experts blamed underinvestment in long-term care, primary care, and public health as reasons for these deaths. The difficult times being faced by this industry are compounded by the fact that America witnessed one of the highest death rates among wealthy countries. The deaths that resulted from Covid were more than just a failure of the health system; they were an attack on American ideology as well.
In 2018, the United States spent about $10,637 on healthcare per person. This is about twice as much as other nations. And yet, compared to most countries, the U.S. faced much higher losses and had the worst healthcare quality and access. Almost $4,000 of the excess spending went towards higher payments to healthcare providers for inpatient and outpatient hospital care. One area that may be responsible for the significantly higher death rate due to Covid is long-term care. This includes sectors like nursing homes. In 2021 alone, the United States spent about $516 a person on long-term care. This is significantly lower than what other countries spent, and this disparity was exposed by the Covid pandemic. The majority of deaths were in the age group 65 and above.
The Roofing Industry
In economic headlines today, the roofing industry in the United States reached a value of USD 15.47 billion in 2021. The industry is expected to witness more growth at about 3.50% per year in the forecast period of 2022-2027. This means it may reach a value of about USD 18.96 billion by 2027.
There are several factors that may be driving the growth of the roofing industry. For instance, there is a rise in construction activity, and this is one of the factors positively influencing the market. The building of modern structures has a huge impact on the roofing sector. People now want roofs that are modern, stylish, and efficient. You will also find that the majority are looking for roofs that can improve the building’s overall appearance. This demand for new roofing systems and materials will keep rising as the development of infrastructure accelerates.
Another factor that may be responsible for the upward trend in the growth of the roofing industry is rapid urbanization. There have been a lot of technological advancements made to meet the demands of customers. These include things like green roofing, eco-friendly roofing materials, longer-lasting roofs, better air quality, and reduced cost of air-conditioning. A lot of homeowners are now interested in green roofs. There is also an increase in the number of non-residential projects that are being completed. This includes hotels, hospitals, schools, and industrial buildings. The construction of these projects directly translates to an increase in roofing demand in the next few years.
These are some of the economic headlines today you may be interested in. It’s important to stay updated on what’s happening in different industries especially if you are running a business.
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