Fastest Declining Industries in Australia by Revenue Growth (%) in 2019

1. Oil and Gas Field Services in Australia

2018-2019 Revenue Growth: -40.8%

The Oil and Gas Field Services industry is expected to decline at an annualised 41.8% over the five years through 2019-20, to $1.4 billion. Prior to 2015-16, unprecedented levels of investment in gas extraction and LNG production facilities across northern Australia shaped the industry's landscape. This investment was driven by technological advancements in natural gas extraction, liquefaction and long-distance transport. Furthermore, many companies in the upstream Oil and Gas Extraction industry outsourced site preparation and construction services to firms in the Oil and Gas Field Services industry.

The construction of major LNG projects in Queensland, Western Australia and the Northern Territory... Learn More

2. Rice Growing in Australia

2018-2019 Revenue Growth: -36.9%

The amount of water operators in the Rice Growing industry can access influences production, as rice is a water-intensive crop. Therefore, the level of annual rainfall and water availability are key determinants of industry performance. Rice growers’ reliance on rainfall is reflected in the industry’s projected performance over the two years through 2019-20. Industry output and revenue are expected to be negligible over this period, as severe drought in the Murray-Darling Basin (the Basin), which hosts most industry establishments, has forced farmers out of the industry. This decline follows a sharp revenue increase in 2016-17, when above-average rainfall allowed farmers... Learn More

3. Port Construction in Australia

2018-2019 Revenue Growth: -31.7%

The resources boom generated a surge in demand for new port construction and harbour upgrades to facilitate mineral and energy product exports and expedite the shipping process for bulk commodities. However, the completion of several resource-related port developments has contributed to a steep decline in the Port Construction industry's performance over the past five years. This decline has accompanied a shift in industry activity towards expanding existing general cargo and container cargo capacity close to major metropolitan ports.

The industry has benefited from construction work on wharf facilities, jetties and dredging to service new LNG terminals in Queensland, Western Australia and... Learn More

4. Dredging Services in Australia

2018-2019 Revenue Growth: -30.7%

The Dredging Services industry's performance peaked in 2013-14, due to strong mining activity and high export growth driving demand for dredging services. Due to these trends, port expansions were undertaken to accommodate larger shipping fleets. However, revenue has since declined over the rest of the five-year period due to significant falls in capital expenditure across the mining sector. The industry's expansion was largely due to strong demand from the Western Basin LNG project in Gladstone, QLD, and the Ichthys LNG Project in Darwin, which both required extensive dredging services. Several other major ports in Queensland and Western Australia were also... Learn More

5. Video and DVD Hire Outlets in Australia

2018-2019 Revenue Growth: -27.3%

The days of scouring the shelves of the local movie rental store are over for many Australians, as the Video and DVD Hire Outlets industry succumbs to substitution by other home entertainment delivery systems. Many of the larger industry players are exploring alternative delivery models to maintain market share and make use of their short-term rental business experience. These alternative models include expanding into DVD rental kiosks (vending machines) and using online movie streaming instead of traditional bricks-and-mortar video hire shops.

The industry is succumbing to competition from new technology at an increasing rate. Many last industry stores have been closing... Learn More

6. Oil and Mineral Exploration Drilling in Australia

2018-2019 Revenue Growth: -23.8%

The Oil and Mineral Exploration Drilling industry’s performance has been extremely volatile over the past five years. Industry players provide services to mining companies engaged in greenfield oil and mineral exploration. This segment represents the riskiest area of the Mining division, as companies look for new economically viable resource deposits. Expenditure on greenfield exploration fluctuates significantly from year to year, in line with small miners’ ability to access capital. Demand tends to fall for greenfield exploration services, such as specialist drilling activities, when sentiment in the Mining division declines.Mining companies have transitioned away from expansion over the past five years, instead... Learn More

7. Pipeline Construction in Australia

2018-2019 Revenue Growth: -23.3%

The Pipeline Construction industry builds transport infrastructure to support activities in other industries, such as the Oil and Gas Extraction industry, Pipeline Transport industry and Gas Supply industry. Investment in major construction projects to support export opportunities tends to be volatile, whereas expanding existing infrastructure to meet domestic demand offers a more consistent source of revenue for industry operators. Much of the industry's focus over the past five years has been on constructing pipelines for the CSG fields in Queensland and new LNG processing facilities across northern Australia.

Unprecedented investment in LNG gas export projects contributed to a record peak in... Learn More

8. Building Societies in Australia

2018-2019 Revenue Growth: -18.4%

The Building Societies industry has declined significantly over the past five years on the back of several exits and a falling cash rate. Intense competition from national banks and a low-interest rate environment have placed significant pressure on the industry. Building societies have struggled to fully capitalise on the rising demand for mortgages, as firms have needed to raise more funds from depositors. The lack of access to further capital has led to converting several former operators to banks. These exits have been detrimental for industry revenue, which is expected to decline at an annualised 19.2% over the five years... Learn More

9. Petroleum Exploration in Australia

2018-2019 Revenue Growth: -17.6%

Companies in the Petroleum Exploration industry provide onshore and offshore drilling and exploration services. The downstream Oil and Gas Extraction industry uses these services to establish a portfolio of future projects. Exploration-only companies identify reserves that are attractive to larger players on a contract basis. The industry's high revenue volatility over the past five years has reflected the role of commodity prices determining exploration activities, which are inherently risky and capital-intensive. Rising commodity prices assist industry players, increasing the potential benefit that exploration companies can generate by identifying unproven resources. However, funding shortages or diversified players shifting their attention to... Learn More

10. Motor Vehicle Manufacturing in Australia

2018-2019 Revenue Growth: -16.5%

Import competition from a globalised market has eroded the revenue of the Motor Vehicle Manufacturing industry over the past five years. Local production volumes have fallen due to a range of factors, including the signing of free trade agreements with major car manufacturing countries like South Korea and Japan, and the inability of local manufacturers to adapt to shifting consumer preferences. Over the past five years, consumers have increasingly favoured smaller, fuel-efficient cars and cars that provide a combination of comfort and utility, such as SUVs. The high cost of Australian production contributed to the two remaining domestic passenger vehicle... Learn More