Least Risky Industries in Australia in 2020

1. Facilities Management and Other Office Administrative Services in Australia

2020 Overall Risk Score: 3.11

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

2. Private Schools in Australia

2020 Overall Risk Score: 3.13

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

3. Diagnostic Imaging Services in Australia

2020 Overall Risk Score: 3.13

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

4. Government Schools in Australia

2020 Overall Risk Score: 3.23

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

5. Waste Remediation and Materials Recovery Services in Australia

2020 Overall Risk Score: 3.28

The Waste Remediation and Materials Recovery Services industry has been operating in an increasingly favourable environment over the past five years. Waste recovery targets have encouraged waste diversion away from landfill towards industry-operated materials recovery facilities. Meanwhile, landfill levies have reduced the processing costs gap between landfill disposal and recovery, and reduced external competition for industry operators. However, diminishing manufacturing activity and weakening prices for scrap steel overseas have constrained industry revenue growth. Overall, industry revenue is expected to grow at an annualised 0.9% over the five years through 2018-19, to $5.0 billion. However, a fall in the price of... Learn More

6. Solid Waste Collection Services in Australia

2020 Overall Risk Score: 3.32

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

7. Pipeline Transport in Australia

2020 Overall Risk Score: 3.39

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

8. Gold Ore Mining in Australia

2020 Overall Risk Score: 3.39

Global economic conditions and higher domestic gold prices have boosted revenue for the Gold Ore Mining industry over the five years through 2019-20. Gold ore mining is a well-established industry in Australia and has grown considerably over much of the past decade. Growth has stemmed from price increases in Australian dollar terms, and gold's status as a counter-cyclical commodity, which means that gold is widely viewed as a safe-haven asset during national and global economic uncertainty. Global expectations of higher inflation have kept global gold prices high by historical standards over the period. Gold's status as a safe monetary asset... Learn More

9. Child Care Services in Australia

2020 Overall Risk Score: 3.49

Approximately 1.6 million children aged 12 and under are expected to attend some form of government-approved or government-funded child care service in 2019-20. Over the past five years, the Federal Government has increased assistance for parents who want to put their children in formal care as they return to the workforce, which has aided industry revenue. Rising maternal workforce participation has supported the demand for child care services over the period. Furthermore, the government has relaxed regulations to allow childcare centres to register as kindergartens. This regulatory change has allowed long day care centres to compete directly with the Preschool... Learn More

10. Liquor Retailing in Australia

2020 Overall Risk Score: 3.49

Operators in the Liquor Retailing industry have faced several challenges over the past five years, including declining per capita alcohol consumption, rising health consciousness and mounting competitive pressures. Despite these trends, the industry is expected to grow over the period, largely on the back of increasing consumer demand for higher value, premium beverages. Industry revenue is expected to increase at an annualised 3.3% over the five years through 2018-19, to $12.5 billion. Rising discretionary income is expected to contribute to industry revenue growth of 2.5% in the current year.

The biggest influence on the industry over the past five years has... Learn More