Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Industries with Most Risky Business Environments in Australia in 2024
Want to see more industries with most risky business environments?
View a list of the Top 25 industries with most risky business environmentsBusiness Environment Risk for 2024: 7.6
Coal is a key input in steelmaking and energy generation. Although coal deposits are found all over the world, Australia is one of the world's lowest cost producers and a major coal exporter. Domestic reserves exceed domestic demand, are high grade and economical to access. As a result, exports account for a large share of coal mining revenue. Imports are negligible, as local production is higher than domestic demand for coal. Black coal mining accounts for most activity, with some brown coal used domestically for electricity generation in Victoria.
Coal mining revenue is expected to grow at an annualised 14.6% over... Learn More
Business Environment Risk for 2024: 7.6
The Basic Inorganic Chemical Manufacturing industry's performance has been highly volatile in recent years. With the industry focused on international markets, volatility in export markets has weighed on the industry's performance. Marked fluctuations in global chemical commodity prices have added to the industry's volatility.
The industry is expected to expand by an annualised 8.4% over the five years through 2022-23, to total $3.4 billion. Estimated growth of 37.9% in 2022-23, in view of record-high prices, has somewhat distorted this rate. This apparent strong performance also hides the effects of ongoing structural changes in Australia's wider industrial economy and the impact of... Learn More
Business Environment Risk for 2024: 7.1
Gold ore mining revenue has soared, as central bank purchases and investor demand for safe-haven assets have driven gold prices higher. A weaker Australian dollar also lifted returns for domestic producers, with gold priced in US dollars in global markets.
Gold mining is a well-established industry in Australia, and production volumes have grown over much of the past decade, contributing to an annualised 4.0% increase in gold ore mining revenue through the end of 2022-23, to $22.7 billion. Gold is considered a counter-cyclical commodity and safe-haven asset during national and global economic uncertainty, with rocky US-China trade negotiations, the COVID-19 pandemic... Learn More
Business Environment Risk for 2024: 7.0
Iron ore miners have benefited from major increases in iron ore prices, and modest growth in production volumes over the past five years. Iron ore revenue is expected to increase at an annualised 8.1% over the five years through 2022-23, to total an estimated $124.1 billion. Strong demand from China and disruptions to iron ore producers in Brazil prior to, and during the COVID-19 pandemic, sent iron ore prices soaring. Iron ore prices are projected to fall in 2022-23, prompting iron ore revenue to drop an estimated 16.2% over the year.
Over the past decade, strong economic growth in China has... Learn More
Business Environment Risk for 2024: 6.9
Lubricants and other petroleum product manufacturers further refine heavy and light oil components into various petroleum-based products using oil and grease base stocks with key products such as lubricating oils and greases, bitumen and aromatic hydrocarbons. Some players also distil coal to produce coke and coal tar. Industry products are used to construct roads; run vehicles, machinery and equipment; and in general manufacturing. Therefore, various external factors influence the industry's performance, including developments in the upstream petroleum refining and coal mining sectors and in key downstream user industries such as mining, construction and various manufacturing industries. The industry has been... Learn More
Business Environment Risk for 2024: 6.9
Cotton growing farms have endured extreme revenue volatility and fluctuating profit margins, with various external factors influencing industry performance. Substantially below-average rainfall reduced irrigation water availability over the two years through 2019-20, with some cotton growing regions reporting their lowest annual rainfall on record. Drought conditions, reported over most major cotton growing areas, caused industry revenue to plummet over those two years. However, significant increases in rainfall and water availability boosted revenue in the falling two years. Lower rain in 2023-24 has again weighed on industry revenue. Overall, industry revenue has skyrocketed by an annualised 12.1% over the past five... Learn More
Business Environment Risk for 2024: 6.9
The Fertiliser Manufacturing industry ensures that Australia's agricultural production systems are economically efficient in the short term and sustainable in the long term. Fertiliser manufacturers supply phosphorus, nitrogen, potassium and sulphur fertilisers, and mix of high-analysis blends and trace elements. Between six and seven million tonnes of fertiliser are sold each year. However, only half of this is manufactured locally with the remainder imported. This means that the industry is susceptible to global supply side shocks, with little control over fertiliser prices. Recently, the COVID-19 pandemic, the European natural gas crisis and the Russia-Ukraine conflict have played havoc with global... Learn More
Business Environment Risk for 2024: 6.8
The Natural Rubber Product Manufacturing industry has faced considerable volatility in recent years, and has been contracting as many manufacturers exited thanks to stiff economic pressure. These manufacturers grappled with intense competition from low-cost overseas producers while battling the rise in substitute goods made from synthetic rubbers. Despite these challenges, the industry minimised profit losses by focusing on niche product offerings. Enhanced product quality from imported goods and intense price wars have only intensified the struggle for manufacturers. Revenue has declined at an annualised 0.6% over the five years through 2023-24 to $1.3 billion. This slowing includes a 6.8% drop... Learn More
Business Environment Risk for 2024: 6.7
Refined gold volumes are anticipated to total 283.5 tonnes in 2023-24, down from 293.0 tonnes in 2018-19. Despite strong gold demand, refining volumes dropped off as production was hamstrung by border closures and restrictions.
Surging gold prices and lithium hydroxide production have outweighed reduced refined gold volumes, leading to strong revenue growth. Industry revenue is anticipated to increase at an annualised 18.1% over the five years through 2023-24, to total $52.9 billion. Much of this surge was in 2022-23, due to the rapid expansion of lithium hydroxide processing. Growth is expected to drop to 2.7% in 2023-24, as gold prices ease... Learn More
Business Environment Risk for 2024: 6.7
The Cotton Ginning industry is an important part of the agricultural support services and national cotton sectors, and is closely linked to the Cotton Growing industry. Various factors also indirectly affect cotton ginners, like climatic conditions, water supply regulation, cotton stockpiling, and global cotton consumption and production fluctuations. Typically, cotton is harvested and ginned towards the end of the financial year, with any surplus production carried into the following year. Higher cotton production correlates with higher revenue, often with a one-year delay due to the timing of harvest season. The variability of these factors has caused significant revenue volatility in... Learn More
Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Fastest Declining Industries in Australia by Revenue Growth (%) in 2024
VIEW ARTICLEBased on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Least Risky Industries in Australia in 2024
VIEW ARTICLEDownload a free sample report today to discover the breadth and depth of information available at your fingertips!
GET SAMPLE REPORT