Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Riskiest Industries in Australia in 2019
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View a list of the Top 25 riskiest industries2019 Overall Risk Score: 6.8
The Diamond and Gemstone Mining industry primarily produces and exports diamonds from Rio Tinto's Argyle mine in Western Australia. Industry players export cheaper unsorted diamonds and a limited number of rare coloured diamonds. Yellow and pink diamonds from the Kimberley region in Western Australia are Australia's most notable coloured diamonds, and sales of these high-end stones contribute disproportionately to industry revenue. In addition to diamonds, the industry includes companies that mine opals, sapphires and other gemstones.
Industry revenue is expected to decline at an annualised 15.1% over the five years through 2019-20 to $387.7 million due to the gradual decommissioning of... Learn More
2019 Overall Risk Score: 6.8
The Elevator Installation and Maintenance industry installs, maintains and repairs elevators, escalators and moving walkway systems (travelators) on buildings and other structures, particularly in multistorey developments. The industry's performance is heavily influenced by trends in commercial building construction and the industry's long-term growth has been supported by the shift in residential building construction towards high-rise apartment developments. Over the five years through 2018-19, industry revenue is anticipated to grow at an annualised 3.5% to reach $1.5 billion. However, the industry's revenue performance is expected to decline by 5.1% during the current year, due to the scaling back of investment in... Learn More
2019 Overall Risk Score: 6.7
The Carpentry Services industry represents a significant segment of the Construction division. The residential building market accounts for the bulk of carpentry work, which includes installing structural components, such as framework, roof trusses and cladding, and internal fit-outs, such as installing flooring and cabinet joinery. On new housing and non-residential building projects, carpenters typically subcontract to prime builders such as Mirvac, Metricon and Lendlease. Carpenters often work directly for homeowners on smaller home renovation and repair projects.
Solid demand conditions in the new residential and non-residential building markets have supported revenue over the past five years. Industry revenue is expected to... Learn More
2019 Overall Risk Score: 6.7
Operators in the Pharmaceuticals Wholesaling industry procure, distribute and sell a range of pharmaceutical and medicinal products. Pharmaceutical wholesalers are also an important link between local and international pharmaceutical manufacturers and Australia's community pharmacies. Products sold by the industry include prescription medicines, pharmacy-only medicines, over-the-counter (OTC) medicines, other healthcare products and veterinary pharmaceuticals.
Changes to the industry's operating environment and ongoing reforms to the Pharmaceutical Benefits Scheme (PBS) have limited the industry's performance over the past five years. Recent changes to the PBS, including compulsory price cuts to many generic and off-patent drugs, represent the most significant industry reform since the... Learn More
2019 Overall Risk Score: 6.7
The Metal Cladding, Waterproofing and Scaffolding Services industry provides a diverse range of services that meet demand from many segments of the building, infrastructure and industrial markets. The industry derives most of its revenue from fixing metal cladding and waterproofing services for buildings. The industry also has several specialist service segments, including providing scaffolding services for high-rise and wide-span buildings; providing scaffolding services for mining and infrastructure applications, such as telecommunications towers and oil rigs; sand blasting building exteriors; waterproofing infrastructure, such as tunnels; and installing, maintaining and removing petrol bowsers.
Industry revenue is expected to increase at an annualised 1.2%,... Learn More
2019 Overall Risk Score: 6.7
Revenue for the Glazing Services industry has grown weakly over the past five years, reflecting divergent trends in building markets and variable demand for emergency glass repair and replacement services. Demand from single-unit housing and institutional building markets has been limited for many small-scale contractors over the period. However, the industry has derived substantial stimulus from increased glass cladding installation on multi-unit apartment developments and solid demand from commercial building construction.
Industry revenue is expected to grow at an annualised 1.0% over the five years through 2018-19, to $2.1 billion. Industry employment and profit margins have increased marginally over the period.... Learn More
2019 Overall Risk Score: 6.6
The Aluminium Door and Window Manufacturing industry produces architectural aluminium products used in both residential and non-residential properties. As the industry's products are designed to be installed in buildings, manufacturers rely on downstream demand from building construction developers. Declining demand from residential building construction from a peak in 2016-17 has been a key contributor to the fall in industry revenue over the past five years. Overall, industry revenue is expected to decline at an annualised 2.2% over the five years through 2018-19, to $4.1 billion.
The industry benefited from stronger than expected growth in residential property construction over the four years... Learn More
2019 Overall Risk Score: 6.6
The Land Development and Subdivision industry's performance primarily depends on trends in housing investment and land preparation for new dwelling commencements. However, the industry also generates approximately one-quarter of its revenue from developing land for non-residential buildings and other non-building applications, such as transport infrastructure. The supply of serviced land coming on the market for housing development has steadily declined while the median lot price has trended strongly upwards. These trends have constrained industry performance over the past five years.
The industry has displayed high revenue volatility since the late 2000s. The industry's performance has deteriorated over the past five years,... Learn More
2019 Overall Risk Score: 6.6
The Plumbing Services industry plays an integral role in the economy, supplying licensed services to install, repair and maintain fixtures and fittings to catch, distribute and treat liquids, gases and waste products. The industry is highly regulated to ensure compliance with product and installation standards and building guidelines. Most industry participants are small-scale contracting firms that employ fewer than 20 people and contest narrow geographic areas or niche markets. However, the industry includes several large-scale facilities management companies, along with some franchise groups.
The industry's performance over the past five years has been underpinned by generally favourable demand for plumbing installation... Learn More
2019 Overall Risk Score: 6.6
The Metal Furniture Manufacturing industry sells metal furniture used for storage in offices and other business premises, and specialist applications in hospitals, schools and the general household market. The industry has continued to lose market share to low-cost imports since the late 2000s and product substitution by non-metal furnishings. The industry has also been affected by the growing popularity of electronic information storage rather than storing paper records in metal filing cabinets.
Industry revenue is expected to increase at an annualised 0.7% over the five years through 2019-20, to total $723.0 million. Revenue is projected to fall short of the projected... Learn More
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