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VIDEO  •  TRENDWATCH

Where to Start a Business in 2012

Sageworks CEO Brian Hamilton discusses which industries are hot and which are not in 2012.

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The year 2011 has seen a surprising amount of growth and recovery among private companies in the United States, reports Brian Hamilton, co-founder and CEO of Sageworks, which tracks the financial performance of privately-held companies.

Sageworks, which also ranked No. 704 on the 2008 Inc. 5000 list, found that the health care, information technology, and business services industries were the bright spots in an overall dim economy. These three sectors experienced significant sales growth in the last 12 months, with sales beginning to recover--approaching the highs of 2006. 

The chart below shows the year-over-year sales percent change for the three top-performing industries, dating back to 2006, as well as sub-segments of those industries.

In this week's TrendWatch, Inc.com's Nicole Marie Richardson interviews Sageworks's Hamilton about what's driving this growth. Are these stand-out industries start-up opportunities in 2012? Hamilton says, although he can't predict the continued performance, that the trend certainly suggests year-over-year growth will continue. Those with already-established businesses should also look to align with these growth sectors by tapping them for potential clients, partners, or suppliers. Watch the video to learn more. 

Strong Performing Industries
           
Industry: Health Care
2006 2007 2008 2009 2010 Last 12 Mo
Health Care and Social Assistance 
7.39% 7.18% 6.49% 4.62% 3.70% 4.12%          
Home Health Care Services
13.86% 15.24% 8.93% 13.25% 10.19% 11.00%
Offices of Other Health Practitioners 
7.67% 6.97% 8.75% 5.61% 4.83% 5.27%
Outpatient Care Centers
10.81% 14.67% 6.16% 9.08% 7.56% 7.50%
Community Care Facilities for the Elderly 6.13% 5.54% 5.45% 5.43% 5.06% 6.04%
             
Industry: Information Technology

     

Information 
11.19% 13.55% 8.43% 2.90% 6.08% 7.60%          
Computer Systems Design and Related Services
18.52% 14.87% 14.62% 4.54% 11.07% 11.65%
Data Processing, Hosting, and Related Services 14.60% 19.65% 13.76% 7.42% 9.15% 11.20%
             
Industry: Business Services
           
Professional, Scientific, and Technical Services
12.84% 11.21% 9.10% 2.58% 8.74% 9.46%          
Management, Scientific, and Technical Consulting Services 12.89% 15.35% 14.68% -0.03% 9.95% 10.26%
Advertising and Related Services
11.49% 12.65% 3.75% -6.85% 9.54% 11.11%         
Employment Services
15.70% 14.51% 4.35% -1.08% 15.80% 18.46%         

 

Source: Sageworks, A Financial Information Company

           
Last updated: Nov 21, 2011

NICOLE MARIE RICHARDSON | Staff Writer | Executive Editor, Special Projects, Inc.com

Nicole Marie Richardson is the executive editor for special projects at Inc.com. She manages the website's largest projects, including the Inc. 5000, an annual list of the fastest-growing, privately-held companies in America.




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