Forecast: How will the franchise industry grow in 2013?
Every quarter, IHS Global forecasts the franchise industry for the year to highlight the state of the industry and its impact on the economy. The reports have consistently shown that the franchise industry has emerged from the recession stronger than others, creating jobs at a faster rate than the economy as a whole. In fact, the Third Quarter Franchise Business Outlook shows an industry that is expanding faster than the rest of the economy, but growth is still modest compared to pre-recession averages when the rate of employment growth was nearly double its current projected level.
Key findings from the report are:
– We expect the number of franchise establishments in the United States to increase by 1.4 percent in 2013, near the pace of 2012.
– We expect employment in franchise establishments to increase 1.9 percent in 2013, following a gain of 2.2 percent in 2012.
– The output of franchise establishments in nominal dollars in 2013 will increase 4.1 percent. Output growth was 4.7 percent in 2012. The slightly slower growth this year is due largely to lower price increases.
– The gross domestic product (GDP) of the franchise sector is projected to increase to $471 billion in 2013. This is approximately 3.4 percent of U.S. GDP in nominal dollars.
View the full report here.