Fastest Declining Industries in Australia by Revenue Growth (%) in 2020

1. Cotton Growing in Australia

2019-2020 Revenue Growth: -68.4%

Operators in the Cotton Growing industry have endured extreme revenue volatility and fluctuating profit margins over the past five years, with a range of external factors influencing industry performance. Sufficient rainfall and an increase in the price per bale paid to Australian farmers resulted in the industry growing strongly over the three years through 2017-18. Rising global demand for cotton drove this price growth. However, significantly below-average rainfall has reduced irrigation water availability over the past two years, with some cotton growing regions reporting their lowest annual rainfall on record. These drought conditions, which were reported over most major cotton... Learn More

2. Cotton Ginning in Australia

2019-2020 Revenue Growth: -60.8%

The Cotton Ginning industry is an important part of the agricultural support services sector and the national cotton sector. Raw cotton must be processed into lint and seeds by a cotton gin before either product can be used. The industry's performance is closely linked to the Cotton Growing industry. It is also indirectly affected by factors such as climatic conditions, water supply regulation, fluctuations in global cotton consumption, and cotton stockpiling. 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 industry... Learn More

3. Wind Farm Construction in Australia

2019-2020 Revenue Growth: -47.5%

The Wind Farm Construction industry provides engineering, procurement and construction services for wind power generation projects. The industry has benefited from government intervention to boost use of renewable energy sources and reduce reliance on carbon-emitting fossil fuels. The Renewable Energy Target (RET) compels electricity generators and retailers to increase the share of power generated from renewable sources. Following a review, in June 2015, the Federal Government scaled back the RET, which initially reduced investment in wind projects, although most state and territory governments have independently legislated their own RETs.

The industry's performance has rebounded from a deep cyclical low in 2014-15... Learn More

4. Inbound Tour Operators in Australia

2019-2020 Revenue Growth: -38.6%

Inbound tour operators primarily arrange and assemble travel packages, combining various domestic tourism products such as accommodation, transport, scenic tours and meals. These packages are onsold to overseas travel wholesalers and retailers, and are subsequently purchased by international travellers. Industry revenue is largely tied to the number of inbound tourists visiting Australia. Local inbound tour operators benefited from rising international travel to Australia, driven by the depreciation of the Australian dollar and cheap international airfares, over the four years through 2018-19. However, the current global outbreak of COVID-19 and the Federal Government's subsequent inbound travel restrictions have significantly constrained the... Learn More

5. Performing Arts Venues in Australia

2019-2020 Revenue Growth: -36.6%

The COVID-19 pandemic has significantly constrained the performance of the Performing Arts Venues industry. Prior to the outbreak, industry operators were benefiting from solid growth in demand from music and theatre production companies. However, the Federal Government introduced strict restrictions on the Australian population to contain the spread of COVID-19 in March 2020, including measures to curb large indoor gatherings. Government restrictions forced industry players to close their venues, with most companies in the industry still not open for business at the time of writing, despite most states easing their restrictions. Industry revenue is expected to decline at an annualised... Learn More

6. Ethanol Fuel Production in Australia

2019-2020 Revenue Growth: -33.6%

The Ethanol Fuel Production industry is running on fumes. The industry has struggled to maintain market share over the past five years as the cost competitiveness of ethanol-blended fuel (EBF) has been squeezed by lower world crude oil prices and falling demand from local petroleum refiners. Government subsidies have been the principal factor supporting the industry. The Federal Government ceased the rebate that compensated local EBF producers for fuel excise under the Ethanol Production Grants Program in mid-2015, and the replacement subsidisation under the special excise regime has been steadily wound down over the past five years. In addition to... Learn More

7. Fossil Fuel Electricity Generation in Australia

2019-2020 Revenue Growth: -32.3%

Operators in the Fossil Fuel Electricity Generation industry have grappled with a changing regulatory environment and volatile wholesale prices over the past five years. Fossil fuel-fired power stations supply most of Australia's electricity. These power plants mainly run on black coal, brown coal and natural gas. Black and brown coal-fired power stations are often run continuously to provide baseload power, while natural gas stations can be fired up quickly to provide peaking power during spikes in demand. Industry revenue is expected to rise at an annualised 5.0% over the five years through 2019-20, to $12.0 billion.

Fossil fuel electricity generation is... Learn More

8. Scenic and Sightseeing Transport in Australia

2019-2020 Revenue Growth: -31.8%

The Scenic and Sightseeing Transport industry consists of operators that provide transport services in and around Australian tourism sites through a range of transport modes. The industry's main activities do not involve point-to-point transport. These services are provided by larger passenger transport industries, such as the Domestic Airlines industry, the Rail Passenger Transport industry, and the Interurban and Rural Bus Transport industry. Maritime transport for sightseeing or recreational purposes, such as charter boat operation and same-day cruises, dominates the Scenic and Sightseeing Transport industry. Industry demand depends on the health of the domestic tourism sector. Few industry operators offer services... Learn More

9. Sheep-Beef Cattle Farming in Australia

2019-2020 Revenue Growth: -28.5%

The Sheep-Beef Cattle Farming industry is exposed to a range of factors, including weather patterns, downstream demand and price movements. Consequently, the industry displays high revenue volatility. However, revenue has grown significantly over the past five years as industry livestock and downstream meat product prices have surged. As a result, industry revenue is expected to rise at an annualised 6.1% over the five years through 2019-20, to $6.2 billion. This includes a decline of 29.4% in 2019-20, due to a significant fall in wool prices and herd and flock rebuilding activity.Varying rainfall has played a major role in the industry’s... Learn More

10. Airport Operations in Australia

2019-2020 Revenue Growth: -27.7%

The Airport Operations industry features several dominant players, with most aircraft movements going through Australia's major airports, such as Sydney, Melbourne and Brisbane. Airport operators generate revenue by charging landing and terminal fees to domestic and international airlines. Airports also receive rental income from airlines and retail stores for space leased on their premises. Airservices Australia, the industry authority which controls Australian airspace, earns revenue mostly on a per-aircraft basis. As a result, the volume of aircraft movements and passengers carried strongly correlates with industry growth.

Over the four years through 2018-19, a rising number of visitors from Asia and strong... Learn More