Verticals To Grow By--And To Avoid

CRN surveyed solution providers to identify the vertical markets that have above-average and below-average expectations for sales growth over the next 13 months, verticals that have above- and below-average profitability, and verticals in which solution providers have an above- and below-average likelihood of entering over the next 12 months. A total of 19 verticals were covered in the survey.

The data reveals seven vertical markets that have both above-average sales expectations and above-average profitability: medical/dental, finance/banking, manufacturing, retail, legal, telecommunications and entertainment/ media/publishing.

Comparing the two data sets reveals that while finance/banking, legal and telecommunications have above-average sales expectations, they are not on the list of verticals with the above-average likelihood of entry. Solution providers currently not operating in these verticals are missing out on the sales opportunities they offer.

The same methodology was applied to discover verticals that have below-average sales expectations and below-average likelihood of entry. These include accounting, utilities, transportation, hospitality, construction, engineering, state/local government and real estate. The verticals that also have a below-average likelihood of entry by solution providers were also identified.

Comparing these data sets shows that construction, hospitality, engineering and state/local government have below-average sales expectations, but do not appear on the list of verticals with below-average likelihood of entry. Solution providers currently operating in these verticals--or thinking about entering into them--should direct their efforts elsewhere to maximize the potential for revenue and profits.