Declining Industry

DEFINITION of 'Declining Industry'

An industry where growth is either negative or is not growing at the broader rate of economic growth. There are many reasons for a declining industry: consumer demand may be steadily evaporating, the depletion of a natural resource may be occurring, or there may be the emergent substitutes because of technological innovation.

Declining Industry

BREAKING DOWN 'Declining Industry'

An example of a declining industry is the railroad industry, which has experienced decreased demand - largely due to newer and faster means of transporting goods (primarily air transport and trucking) - and has failed to remain competitive in pricing, at least in relation to the benefits of faster and more efficient transport provided by airlines and trucking services.

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RELATED FAQS
  1. Why should I invest in the railroads sector?

    Reap the benefits of the railroad sector's advantages over its competitors by adding companies in this industry to your investment ... Read Answer >>
  2. How does the risk of investing in the industrial sector compare to the broader market?

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  3. What are the most popular mutual funds that give exposure to the railroads sector?

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  4. What are the most popular mutual funds that invest in the automotive sector?

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  5. Should a small business test the substitution effect on its products before launch?

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  6. What is the railroads sector?

    The railroads sector is a major component of the transportation sector. It is comprised of companies that operate railroad ... Read Answer >>
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