Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Industries with Most Risky Business Environments in Canada in 2024
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View a list of the Top 25 industries with most risky business environmentsBusiness Environment Risk for 2024: 7.1
Iron and steel manufacturers melt and refine iron ore into pig iron, which is processed into steel and shaped in various shapes for downstream construction- and manufacturing-related industries. Manufacturers are directly affected by changing prices for steel. Volatility in steel prices has increased since the COVID-19 pandemic. A limited global supply of steel has caused a sharp uptick in the price of steel alongside growing demand. Revenue is expected to grow at a CAGR of 3.0% to $18.9 billion through the end of 2023, despite a decline of 6.9% in 2023 alone.
Revenue for manufacturers follows a variety of factors, including... Learn More
Business Environment Risk for 2024: 7.0
Operators in the Coal Mining industry in Canada have experienced considerable fluctuations in prices of industry goods. Canadian coal mining revenue has been increasing at an annualized 11.3% over the past five years, including an estimated 32.3% decrease in 2023, and is expected to total $19.0 billion. In 2023, profit is set to increase to 32.1%. The industry has two primary products, metallurgical coal used for steel production and thermal coal used in energy generation. At the start of the current period, global oversupply and falling demand resulted in low prices and revenue. Subsequent price growth between 2016 and 2018... Learn More
Business Environment Risk for 2024: 7.0
Sawmill and wood producers in Canada have experienced revenue growth throughout 2023. The industry has experienced complicated operating conditions due to the lingering effects of several wildfires in the area and the spread of COVID-19. The industry has experienced strong demand from key downstream consumers during most of the period, such as the US housing market, which is the largest buyer of industry goods. But increased operating costs related to a fibre shortage and volatile exports are expected to reduce industry profit. Profit, measured as earnings before interest and taxes, is expected to decrease, accounting for 7.2% in 2023. While... Learn More
Business Environment Risk for 2024: 7.0
Oil Drilling and Gas Extraction in Canada have grown tremendously, resulting from rising prices and additional investment in production. Oil and gas companies suffered significantly in 2020 amid the pandemic as prices drastically fell amid lockdowns. As the economy reopened, the need for oil and gas became apparent and prices skyrocketed, bolstering revenue. Overall, revenue is expected to grow at a CAGR of 7.4% to $173.5 billion over the five years to 2023, despite a decline of 22.2% in 2023 alone. Profit has also fluctuated. Many companies endured below zero profits before it rose after the pandemic.
Despite operating volatility, Canada... Learn More
Business Environment Risk for 2024: 6.9
Canada's Recyclable Material Wholesaling industry has exhibited roller coaster growth over the five years to 2022. Companies collect, sort and bundle any recyclable material and then sell it to different entities for recycling when commodities such as wood pulp increase in price, scrap paper can be sold for more since these will go through the recycling process and become new steel or form ready to be used. As a consequence, the volatility of these commodities transfers to industry revenue. Industry revenue is expected to increase an annualized 1.9% to $16.7 billion over the five years to 2023, despite a forecast... Learn More
Business Environment Risk for 2024: 6.9
Canada is one of the world's largest producers of crude oil and natural gas, as well as a range of other metal and mineral commodities. This has traditionally benefited the Mining, Oil and Gas Machinery Manufacturing industry, which produces goods used by extraction industries. Revenue is closely tied to commodity prices, as these can dictate levels of investment and activity by extraction companies. Commodity prices have been hugely volatile over the five years to 2023, with the prices of many goods tanking, causing exploration activity and demand for industry products to fall in certain years. Overall, IBISWorld estimates that industry... Learn More
Business Environment Risk for 2024: 6.9
Direct mail advertising in Canada has contended with fierce competition from alternative advertising formats over the past five years. Still, advertisers have benefited from technological advancements, which have given way to integrated marketing campaigns. Lacklustre response rates to digital marketing campaigns have also highlighted the effectiveness of direct mail advertising, which garners much more frequent responses from young adults. As digital marketing grows more saturated, revenue for Canada's Direct Mail Advertising industry has inflated at a CAGR of 1.2% over the past five years, reaching an estimated $1.5 billion in 2023. Inflationary pressures will mitigate revenue growth in 2023, leading... Learn More
Business Environment Risk for 2024: 6.8
The Canadian Household Furniture Manufacturing industry has been susceptible to US trade tensions with China through 2023. With the United States accounting for the largest export market for operators, the industry has experienced high revenue volatility due to ongoing negotiations on Chinese furniture imports to the United States. Deteriorating economic drivers, such as housing starts, disposable income and residential renovation expenditure, revenue is expected to plummet at a CAGR of 3.0% to $4.0 billion over the five years to 2023, including a 6.6% drop in 2023 alone as the Canadian housing crisis continues.
An appreciating Canadian dollar during most of the... Learn More
Business Environment Risk for 2024: 6.8
Over the past five years, clay product manufacturers have faced considerable declines. While the housing market has improved over most of the period, import penetration and the popularity of substitute products have limited industry growth. While the outbreak of COVID-19 led to considerable declines from metal manufacturers and energy producers, manufacturers enjoyed growth as the economy reopened and commodity prices surged, leading various downstream markets to expand their output and require manufacturers' products. Industry-wide revenue has been falling at a CAGR of 10.2% over the past five years and is expected to total $477.4 million in 2023, when revenue will... Learn More
Business Environment Risk for 2024: 6.8
The transition from printed databases and directories to online formats has left the Canadian Database and Directory Publishing industry reeling, with revenue decreasing over the five years to 2023 because of this transition and COVID-19. From the advertisers' perspective, marketing costs are allocated to the media channels that most accurately reflect consumer behaviour. As more consumers shift to digital directory and database substitutes, demand for print advertisements, previously the industry's largest revenue source and profit indicator, has declined. Over the five years to 2023, the number of consumers with smartphones, which come with online directory capabilities via their ability to... Learn More
Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Fastest Declining Industries in Canada by Revenue Growth (%) in 2024
VIEW ARTICLEBased on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Least Risky Industries in Canada in 2024
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