These Industries Can Benefit From Funding in 2022
A new year offers opportunities for a fresh outlook and updated plans — for businesses as well as individuals. It’s a good time for business owners to think about new means to achieve their goals.
A changing economy, advancing technology and pandemic-related shifts will likely drive many businesses to seek capital in 2022. Here are six industries that are poised to lead the way.
While many accounting firms were able to adapt successfully to new work formats during the pandemic, firms of all sizes still experience obstacles as they navigate post-pandemic life today. Educating clients on weathering financial storms, working through complex tax seasons, and retaining staff are just some of the hurdles accounting firms are facing.
Focusing on growth will be critical to the stability of the accounting industry in the long-term.
Retailers and other businesses embraced e-commerce and virtual options as the pandemic limited in-person engagement. This is one of numerous shifts likely to remain long-term, signaling opportunities for companies that provide supporting technology and potential outlays for stores.
Vehicle and parts dealers, furniture companies, and food and beverage stores are just some retail trade businesses that have had to adopt online models in response to the pandemic and continue to evolve these platforms in a post-pandemic world. For example, while major retailers dominated grocery e-commerce before COVID, an increase in virtual lifestyles has driven smaller stores and chains to turn to third-party delivery apps and automated fulfillment services, market research firm CB Insights noted.
Restaurants, bars and hotels — among the businesses hardest hit by pandemic lockdowns and travel restrictions — received billions in relief under the U.S. Small Business Administration’s Paycheck Protection Program (PPP) and Restaurant Revitalization Fund Program.
During the pandemic, many restaurants pivoted to delivery services and apps, although these options were popular beforehand, too. The hospitality industry may continue to experience further disruption as it rebounds from the aftermath of 2020.
Both the Paycheck Protection Program (PPP) and Restaurant Revitalization Fund Program (RRFP) closed to new participants last year, so businesses seeking relief now may need to tap other sources.
After a record year for the U.S. housing market and passage of a $1 trillion government infrastructure package, the construction industry is on track for a strong year. Construction firms, however, face significant expenses, such as technology, recruiting and training, as well as high material costs, the chief economist for Associated Builders and Contractors said recently.
Funds from the new infrastructure package may not arrive until the second half of the year, the economist, Anirban Basu, said, cautioning builders and contractors to show caution in entering into contracts and build in adequate margins, according to Engineering News-Record.
Manufacturers this year plan to boost spending overall, and some may be looking to invest in digital technologies to improve agility.
Manufacturers are expected to increase capital spending by nearly eight percent and anticipate strong growth overall this year, according to the 2021 ISM Semiannual Economic Forecast. Manufacturing hiring is forecast to increase slightly.
Deloitte recently noted that the industry is “building back fast, undeterred by significant labor and supply chain challenges.” Gains in new orders portend strong growth this year, but the industry faces various risks as well, according to the consulting firm.
“Manufacturers looking to capture growth and protect long-term profitability should embrace digital capabilities from corporate functions to the factory floor. Smart factories, including greenfield and brownfield investments for many manufacturers, are viewed as one of the keys to driving competitiveness,” Deloitte said.
Investments in robots, cobots (collaborative robots) and artificial intelligence can further transform operations.
“More organizations are making progress and seeing results from more connected, reliable, efficient and predictive processes at the plant. Emerging and evolving use cases can continue to scale up from isolated in-house technology projects to full production lines or factories,” the firm said.
Explore Kabbage Funding™ from American Express
Whether your business is recovering from the pandemic or not, it’s important to have flexibility when it comes to accessing capital. Extra capital can help you stock up on inventory, buy equipment, and keep up with expenses. Kabbage Funding offers lines of credit for small businesses. If approved, you can use funds when you need them. Learn more. These Industries Can Benefit from Funding in 2022