Company Data Shows Business Formations in These Once Struggling Industries on the Upswing
MADISON, WI - June 10, 2009
BizFilings, an online incorporator serving the entrepreneurial marketplace, today announced that in the first five months of 2009, growth in new business formations in the construction, manufacturing and service industries point to early signs of an economic recovery.
BizFilings tracks the industries where its entrepreneur clients form new businesses - and the numbers are encouraging, especially in sectors that had been hit hard by the recession. For example, the manufacturing industry is up to 6.7 percent of all new businesses formed by BizFilings in 2009, nearly doubling from 3.7 percent in 2008. The service industry increased to 25.6 percent compared with 18.7 percent last year. Even the construction industry has rebounded, representing 6.5 percent of BizFilings’ formations as compared to 5.8 percent in 2008.
"We saw erosion in these segments in 2007 to 2008, which proved to be a leading indicator of the recession," said Karen Kobelski, general manager, BizFilings. "Our clients are making big bets about the future, so we are pleased to see a renewed confidence in the construction, manufacturing and service industries."
During the early days of the recession, people were choosing to incorporate in the health care and environmental sectors, which were considered "recession proof." While businesses are still being formed in these segments, they are no longer dominating new business formation like they were in 2008.
In the United States, small businesses provide approximately 75 percent of the net new jobs added to the economy each year and represent more than 99 percent of the country’s employers. Any entrepreneur who is thinking about incorporating a new business in the construction, manufacturing or service industries should be greatly encouraged by these statistics.
"The time is now," says Kobelski. "If you were unsure about forming a new company in these industries because of the recession, you can feel reassured that others in your same situation felt confident enough to move forward."
BizFilings is a full-service online incorporation service provider, offering small business owners a fast, easy and economical way to form a corporation, limited liability company (LLC) or other business structure online or by phone. BizFilings also offers a full range of business filing and compliance products, including nationwide Registered Agent service, helping keep businesses in compliance with state regulations. BizFilings can be found online at www.BizFilings.com. BizFilings is a part of Wolters Kluwer, a leading global information services and publishing company. Wolters Kluwer had 2008 annual revenues of €3.4 billion, employs approximately 20,000 people worldwide and maintains operations in over 35 countries across Europe, North America, Asia Pacific and Latin America.