NO.1 Accounting, tax preparation, bookkeeping, and payroll services
The net profit margin for this industry is 19.8%, up from 16.3% last year. Industries such as accounting are consistently profitable businesses because they are in high demand while overhead and equipment costs are fairly low.
NO.2 Legal services
Law firms and other legal services companies are similar to the accounting industry in that they are in constant demand by both corporate giants and the general public. They also have relatively low operating costs, as most of the spending is simply on retaining knowledgeable, specialized staff rather than investing in equipment or tools. Legal services topped the list last year with a net profit margin of 18.3% and this year's net profit margin is 17.8%.
NO.3 Oil and Gas Extraction
This industry has skyrocketed in the U.S. as the country has increased its production of crude oil and shale gas in order to reduce its dependence on imports. The sector came third on the list, as it did last year, while net profit margins rose from 15.1% to 16.4%.
NO.4 COMMERCIAL AND INDUSTRIAL MACHINERY, AND EQUIPMENT RENTALS
Net profit margins in this sector rose from 13.4% to 16.4% in one year, though it still only tied for third on the 2014 list. Increased housing and industrial construction has boosted demand for machine tools, making this sector profitable.
NO.5 Dentists
Everyone goes to the dentist twice a year, right? Seriously, dentists are in high demand, and the industry, like other healthcare industries, will have increasing demand as the number of patients with health insurance increases with the implementation of the Affordable Care Act. The net profit margin for this industry rose from 12.7% last year to 14.9% this year.
NO.6 Real Estate Leasing
Real estate leasing tied for sixth place with the other two sectors, with a net profit margin of 14.1%, up from 10.4% last year. As the economy improves, the housing market picks up, which means landlords will be busier and will be able to raise rental prices.
NO.7 Doctors
Doctors also moved up to a tie for sixth place this year, with a net profit margin of 14.1%, up from 12.2% last year. Here again, it's important to mention once again that for most people, a visit to the doctor is integral to their daily lives and is a routine purchase, which means the industry can be steadily profitable. And more and more Americans have health insurance, so doctors will see more patients.
NO.8 Real Estate Agents and Brokers
It's not surprising to see another real estate-related field among the three industries that tied for 6th place, all with net profit margins of 14.1%. Real estate agents and brokers, like landlords, have benefited from the recent boom in the real estate market and rising rental prices, which has boosted the segment's net profit margin from last year's 11.6%.
NO.9 Other healthcare professionals
With a net profit margin of 12.6%, this sector proved once again that all aspects of the healthcare industry can be very profitable. Last year's net profit margin for this sector was 12.5%.
NO.10 MANAGEMENT COMPANIES
Privately owned management companies and joint stock companies had a net profit margin of 12.6% this year, despite not making the list last year.
NO.11 OUTPATIENT MEDICAL CENTERS
This was the only healthcare sector on Sageworks' list to see a decline in net margins, falling from No. 4 last year to No. 11 this year. But compared to last year's 13.8% net margin, privately run outpatient medical centers still had a net margin of 11.7% this year, and the data shows that the number of outpatients continues to grow.
NO.12 OTHER SCHOOLS AND TRAINING ORGANIZATIONS
Private schools and other training organizations have clearly been able to capitalize on the growth to become more profitable, despite having to spend more on teaching staff and maintenance. The sector didn't make the top 15 list last year, but this year it gained a net profit margin of 11.3%.
NO.13 Real estate-related activities
Real estate again. The real estate market has recovered from the bursting of the bubble in 2007, and all related industries are starting to make big profits. This subsidiary sector, which didn't make the list last year, posted a net profit margin of 10.8% this year.
NO.14 FUNERAL SERVICES
Apparently, no industry is as eerily consistent and stable as funeral services. The industry makes the list with a net profit margin of 10.7%. Despite the industry's lack of repeat business (sorry about that!) , but the increase in the U.S. population has turned it into a rapidly growing industry.
NO.15 MINERAL SERVICES
The recent slowdown in global mining growth has caused its subsectors to suffer as well, with net profit margins in mineral services falling from 12% last year to 10.5% this year. However, it is clear that mineral services, including core sampling and geological surveys, have not been as badly affected as other subsectors because they have lower operating costs, unlike miners who have to spend a lot of money on equipment and energy.