Searching for business ideas ? You might consider President Barack Obama’s policy agenda as a jumping off point. Seriously.
According to a recent report by research firm IBIS World, President Obama’s policy goals are expected to be key drivers of potential revenue growth, innovation and available federal subsidies in a handful of industries.
In particular, President Obama has laid out a second-term agenda which is expected to make significant changes to the healthcare industry, alternative energy, construction and education. The Obama Administration’s ability to fully act on its goals will be determined by forthcoming budget discussions, notes Lauren Setar, analyst for Los Angeles-based IBIS World, which recently released a report on the sectors likely to be affected by Obama’s second-term policies. Here is a rundown:
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Health care: The implementation of the Affordable Care Act is expected to mean that more people will eventually be covered by insurance. As a result, more people will be able to afford more prescription drugs, too. Obama said in the State of the Union address that he wants to reduce subsidies to pharmaceutical companies. What’s more, health-care reform aims to make generic drugs more affordable, giving a boost to the manufacturers, says Setar.
Industry: Generic pharmaceuticals manufacturing
Revenue in 2013: $44.7 billion
Average expected revenue growth per year through 2015: 5 percent
Average expected employment growth per year through 2015: 5.3 percent
Related: Businesses Have Additional Year Before Facing Obamacare Penalty Fees
Alternative energy: President Obama’s “all-of-the-above” energy policy includes government subsidies for the wind and solar-power industries in the form of tax credits. Growth in these alternative energy sectors will depend on whether government subsidies are extended.
Industry: Wind Power
Revenue in 2013: $6.9 billion
Average expected revenue growth per year through 2015: 9.5 percent
Average expected employment growth per year through 2015: 8.7 percent
Industry: Solar Power
Revenue in 2013: $165.2 billion
Average expected revenue growth per year through 2015: 7.9 percent
Average expected employment growth per year through 2015: 7.9 percent
Related: Illinois Sparks an Electricity Efficiency Cluster
Construction: You have probably noticed a pothole or two on a recent summer drive. The bridge-and-tunnel infrastructure in the U.S. is aging and troubled. President Obama has outlined a “Fix-It-First” proposal which would give many construction workers a job and would work to revitalize the nearly 70,000 bridges in the U.S. which Obama has called “structurally deficient.” Federal funding for the industry has already been secured through fiscal year 2014.
Industry: Bridge and tunnel construction
Revenue in 2013: $25.1 billion
Average expected revenue growth per year through 2015: 5.2 percent
Average expected employment growth per year through 2015: 4.7 percent
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Education: Obama aims to make preschool available to every child in America and wants to make colleges and universities more affordable. Lower-cost higher education is expected to get additional government subsidy, while higher-cost universities and colleges will likely get less government subsidy, says Setar. Preschools will likely not get additional support from Uncle Sam, says Setar. Approximately 70,000 3 to 5 year olds lost access to a young education program Head Start in the wake of the sequester.
Industry: Colleges and universities
Revenue in 2013: $445.2 billion
Average expected revenue growth per year through 2015: 2.6 percent
Average expected employment growth per year through 2015: 2.6 percent
Industry: Public schools
Revenue in 2013: $616 billion
Average expected revenue growth per year through 2015: 1 percent
Average expected employment growth per year through 2015: 1.2 percent
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Manufacturing: Obama has repeatedly underscored the need for the U.S. to re-establish its manufacturing prowess. While the Big Three automakers in Detroit nearly collapsed during the Great Recession, they have rebounded, says Setar. Also, demand for hybrid and fuel-efficient cars is supporting the auto-manufacturing industry. Increased demand for customized products will grow 3D printing and the manufacturing of related parts.
Industry: Cars and automobile manufacturing
Revenue in 2013: $96.9 billion
Average expected revenue growth per year through 2015: 6.3 percent
Average expected employment growth per year through 2015: 3.3 percent
Industry: 3D Printer manufacturing
Revenue in 2013: $2 billion
Average expected revenue growth per year through 2015: 15.4 percent
Average expected employment growth per year through 2015: 4 percent
Industry: 3D Printing and rapid- prototype services
Revenue in 2013: $799.5 million
Average expected revenue growth per year through 2015: 15.6 percent
Average expected employment growth per year through 2015: 4 percent
Related: Youngstown, Ohio, a Leader in 3-D Printing and Manufacturing Innovation, Says Obama