Least Risky Industries in Australia in 2020

1. Diagnostic Imaging Services in Australia

2020 Overall Risk Score: 3.10

The Diagnostic Imaging Services industry is expected to perform strongly over the five years through 2018-19. Diagnostic imaging provides healthcare practitioners with crucial information about patients’ health. Industry services, such as X-rays, ultrasounds and MRI, are integral to delivering high-quality health care. Demand for these services is stronger among older people, and has surged as Australia’s population has aged over the past five years. Price competition and government policies have increased bulk-billing over the period, making diagnostic imaging more affordable and boosting service volumes. Industry revenue is expected to rise at an annualised 3.9% over the five years through 2018-19, to $3.9 billion. This includes anticipated growth... Learn More

2. Facilities Management and Other Office Administrative Services in Australia

2020 Overall Risk Score: 3.12

The Facilities Management and Other Office Administrative Services industry has benefited from rising demand for outsourced services over the past five years, as downstream markets have increasingly accepted cost reduction benefits of outsourcing non-core functions. The industry comprises small businesses that service narrow regional markets. However, larger industry players have become increasingly prominent as many companies have increased their scale in line with rising customer acceptance. A rise in the number of office towers and other business hubs has increased the market for facilities management and other industry services over the period.

Industry revenue is expected to grow at an annualised... Learn More

3. Government Schools in Australia

2020 Overall Risk Score: 3.16

The Government Schools industry has grown over the past five years due to rising student numbers and government funding. The industry receives most of its income from the federal, state and territory governments, with state and territory funding providing approximately 80% of revenue. Political debate surrounding school funding has introduced volatility to industry revenue over the past five years. However, student enrolment numbers have increased over the period, lifting revenue. Growth in discretionary incomes has allowed parents and guardians to contribute more to school fees, despite also increasing the affordability of competing private schools. Overall, industry revenue is expected to... Learn More

4. Grain Storage in Australia

2020 Overall Risk Score: 3.17

Operators in the Grain Storage industry have faced grain production volatility over the past five years. Due to falling grain production, industry revenue is expected to decline at an annualised 0.8% over the five years through 2018-19, to total $2.7 billion. However, this result does not reflect the volatility that many industry operators have experienced over the period. Shifting wheat prices, movements in the Australian dollar and fluctuating grain production due to changing rainfall levels have influenced industry demand and therefore earnings. Additionally, a record national grain harvest during 2016-17 significantly increased demand for grain storage. However, expected production declines... Learn More

5. Nature Reserves and Conservation Parks in Australia

2020 Overall Risk Score: 3.19

The role of the Nature Reserves and Conservation Parks industry is to protect Australia's flora, fauna and natural ecosystems. Industry operators, such as government agencies, Indigenous groups and private landholders, manage Australia's network of protected land areas, known as the National Reserve System. State government agencies manage most national and state parks, while the Federal Government manages only six national parks. Alongside terrestrial protected areas, the industry also manages marine parks and reserves.

Industry operators generate the majority of their revenue through funding from federal, state and local governments. Consequently, the industry is highly sensitive to changes in government funding. Despite... Learn More

6. Airport Operations in Australia

2020 Overall Risk Score: 3.20

The Airport Operations industry has expanded over the past five years. The industry features 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. As a result, the volume of aircraft movements and passengers carried strongly correlates with industry growth.

The depreciating Australian dollar and Australia's position as a prime tourist location have helped drive inbound tourist numbers over the past five years.... Learn More

7. Solid Waste Collection Services in Australia

2020 Overall Risk Score: 3.31

Increased demand from downstream markets has continued to support growth in the Solid Waste Collection Services industry over the past five years. Despite declines in construction activity over the period, greater demand from population growth and rising urbanisation have all contributed to greater solid waste volumes. Industry revenue is expected to increase at an annualised 4.6% over the five years through 2019-20, to $5.8 billion.

Organic waste volumes have grown strongly over the past five years, due to rising activity in agricultural, forestry and fishing industries. Furthermore, increased regulation of waste management has heightened demand for specialised services. For example, downstream... Learn More

8. Electricity Distribution in Australia

2020 Overall Risk Score: 3.34

Operators in the Electricity Distribution industry use networks to transport electricity from high-voltage transmission networks to households and businesses. These distribution networks are built and regulated to ensure a safe and reliable supply of electricity, even during peak demand periods in summer. Network operators have extended their networks substantially over the past decade, to account for potential rises in peak electricity demand. Regulators allow industry operators to generate a return on their capital so they can pay debt and equity holders. Historically, the amount of revenue that regulators have permitted the industry to capture from users has been proportional to... Learn More

9. Private Schools in Australia

2020 Overall Risk Score: 3.39

The Private Schools industry delivers primary and secondary education to approximately 1.3 million students in Australia. Private schools are primarily funded by the federal and state governments but industry revenue is also generated through tuition fees and donations. Solid demand for private education and rising tuition fees have boosted industry revenue over the past five years. The perception that private schools deliver higher quality education, combined with the significant importance placed on education in Australia, has boosted enrolment numbers over the period. Industry revenue is expected to grow at an annualised 4.5% over the five years through 2018-19, to $28.7... Learn More

10. Pipeline Transport in Australia

2020 Overall Risk Score: 3.48

The Pipeline Transport industry operates large pipelines, most of which are high-pressure gas transmission pipelines. Gas transmission accounts for the vast majority of industry activity. The industry provides a vital connection between gas producers and gas retailers, which distribute gas via low-pressure distribution pipelines. Industry operators also supply gas to major industrial firms.

Demand for industry services is driven by final demand for energy in the Australian economy, and demand from the export markets served by oil and gas fields in the Northern Territory, Queensland and Western Australia. Industry operators have benefited from increasing domestic gas consumption over the past five... Learn More