1) Finance & Insurance
The Financial Services (Finance and Insurance) sector engages in or facilitates financial transactions. The Bureau of Labor and Statistics (BLS) shows that 89% of all employees in this industry who are offered retirement benefits contribute to their plan.
Segments within this industry include, but are not limited to:
- Insurance carriers
- Central banks
- Financial vehicles
The largest 50 companies account for approximately 50% of sales within the entire industry. This means that there is a wide gap in revenue between small and large companies.
2) Information & Media
The Information/Media sector assists in or engages in producing and distributing information and cultural products, including processing data. These are generally intangible products. The BLS shows that 86% of all employees in this industry who are offered retirement benefits contribute to their plan.
Segments within this industry include, but are not limited to:
- Telecommunications
- Publishing (including software)
- Broadcasting
- Data processing and hosting
- Libraries
There is a sizable revenue gap between small and large companies in this industry, since the largest 50 companies make up about 60% of the revenues
3) Professional, Scientific, & Technical Services
The professional, scientific, and technical services industry performs activities that require a high degree of expertise and training for others, and these firms are generally highly specialized according to expertise. The BLS shows that 81% of all employees in this industry who are offered retirement benefits contribute to their plan.
Segments within this industry include:
- IT services
- Legal services
- Engineering services
- Consulting
Because the largest 50 companies account for less than 20% of sales, this industry is fragmented. This means that no single company has enough power to move the entire industry in one direction.
4) Manufacturing
The manufacturing industry engages in transforming raw materials or components into new products. The BLS shows that 77% of all employees in this industry who are offered retirement benefits contribute to their plan.
A few of these segments are:
- Food, beverage, and tobacco products
- Chemicals
- Transportation equipment
Like the Finance & Insurance industry, the largest 50 companies in Manufacturing account for less than 50% of revenues.
5) Wholesale Trade
The wholesale industry engages in wholesaling merchandise (usually without any additional changes to the merchandise), as well as services related to selling merchandise. The BLS shows that 77% of all employees in this industry who are offered retirement benefits contribute to their plan.
Segments within this industry include:
- Wholesales of non-durable goods
- Groceries
- Petroleum products
- Drugs
- Wholesalers of durable goods
- Electrical goods or electronics
- Professional/commercial equipment
- Machinery
Once again, this industry is fragmented because the largest 50 companies account for about 25% of revenues
Where these industries are located
Regardless of the size of the firm and sector, the 5 states with the highest number of firms in these industries overall are California, New York, Florida, Texas, and Illinois.
How a Retirement Plan Can Provide Value
- The demand for specialized, experienced hires is rising across firms. These workers are more likely to expect better pay and benefits from their place of employment.
- Companies in some industries that are experiencing aggressive growth are forced to replace wages with benefits.
- Labor trends are shifting and companies must be aware of the benefit status of their employees to ensure they are properly accommodated.
Where to go from here
Now you know what the top industries are to target, but what are the next steps?
- Conduct Primary Research
- This consists of conducting interviews, looking at internal data, etc. Any information you gather by yourself to learn more about the topic is primary research. This is beneficial because it will reveal trends within your current client base that you may have missed.
- Take a look at our extensive list of resources to conduct your research
- Build a prospect list by region and local geography
- Check out the other posts in this series for more information!
For more tips and information regarding retirement plans, contact us.
