Riskiest Industries in Australia in 2020

1. Glazing Services in Australia

2020 Overall Risk Score: 7.1

The Glazing Services industry generates the bulk of its revenue from installing, repairing and maintaining glass window and door systems, along with internal glass features such as shopfronts and partitions. External glass panels and curtain walls installed on non-residential buildings and apartment developments represent an important source of demand for some larger scale glazing contractors. Maintenance and repair work on existing buildings and structures is also an important source of demand for many large and small industry operators.

industry revenue is expected to grow at an annualised 2.8% over the five years through 2019-20, to reach $2.54 billion. This growth has... Learn More

2. Plastering and Ceiling Services in Australia

2020 Overall Risk Score: 7.1

The Plastering and Ceiling Services industry generates the bulk of its revenue from installing plasterboard and cornice products on new housing. However, the greater focus on the construction of higher density apartment and townhouse developments rather than traditional single-unit houses has constrained the industry's long term performance in the new residential building construction market. Apartments typically have a much lower plaster content of construction than traditional housing due to the lower wall and ceiling area per dwelling unit. Over the past five years, some of the larger-scale plastering contractors have generated strong growth from the expansion in non-residential building construction,... Learn More

3. Insulation Services in Australia

2020 Overall Risk Score: 7.1

The Insulation Services industry derives most of its revenue from installing materials in new residential and non-residential buildings. Stricter regulations governing the energy efficiency of new buildings have also supported the industry's performance over the long term. The industry strongly benefited from the Commonwealth's Home Insulation Program (HIP) in the late 2000s. The scheme ended in early 2010, which has influenced the industry's performance in the renovation and repair market over the past five years.

Strong demand for installation services from the multi-unit apartment and non-residential building markets has supported the industry's performance over the past five years. However, many of... Learn More

4. Household Appliance Wholesaling in Australia

2020 Overall Risk Score: 7.1

The Household Appliance Wholesaling industry has faced a difficult trading environment over the past five years. Fluctuating consumer sentiment, a depreciating Australian dollar and rising competition have contributed to a decline in industry revenue over the period. However, increased demand stemming from greater residential construction activity has provided opportunities for some industry operators to grow. Industry revenue is expected to decline at an annualised 0.5% over the five years through 2018-19, to $9.5 billion. This includes an anticipated decline of 2.5% in the current year, attributable to a downturn in demand from residential building construction.Changes in the way consumers shop... Learn More

5. Electric Lighting Equipment Manufacturing in Australia

2020 Overall Risk Score: 7.0

The Electric Lighting Equipment Manufacturing industry has grown its revenue slightly over the past five years. Revenue rose significantly in 2017-18, as larger players increased production of equipment that targeted niche markets. However, growing import penetration has placed a strain on the industry over the past five years. The lower wages and operating costs of some overseas manufacturers have enabled them to sell competing products at much lower prices. These factors have constrained industry revenue growth over the period. Revenue is expected to increase at an annualised 1.3% over the five years through 2019-20, to $968.2 million. As a result... Learn More

6. Tiling and Carpeting Services in Australia

2020 Overall Risk Score: 7.0

The Tiling and Carpeting Services industry generates revenue from installation work on most types of building projects. The industry's performance has fluctuated over the past five years alongside trends in new building construction markets, particularly residential construction. The industry's performance is also influenced by demand for the renovation and repair of existing buildings. This trend is in turn heavily affected by trends in household discretionary incomes, the outsourcing of household services, and DIY home owners' substitution of industry services.

Revenue is expected to grow at an annualised 2.2% over the five years through 2019-20, to reach $4.9 billion. This growth broadly... Learn More

7. Carpentry Services in Australia

2020 Overall Risk Score: 7.0

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

8. Timber Wholesaling in Australia

2020 Overall Risk Score: 7.0

The Timber Wholesaling industry has endured difficult trading conditions over the past five years. Increasing wholesale bypass trends and substitution for non-wooden manufacturing and building materials have contributed to industry revenue declining over the period. Industry operators supply a range of products, including structural timbers, dressed wood panels, plywood products and veneers. The industry's markets include builders, manufacturers, retail hardware chains, independent hardware stores and garden supply centres. Industry revenue is expected to fall by 2.4% in 2018-19, largely due to weaker demand from residential building construction.

Timber wholesalers have lost market share to alternative building materials such as steel. Wholesale... Learn More

9. Metal Cladding, Waterproofing and Scaffolding Services in Australia

2020 Overall Risk Score: 6.9

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 2.6%... Learn More

10. Manchester Retailing in Australia

2020 Overall Risk Score: 6.9

Operators in the Manchester Retailing industry have faced a difficult trading environment over the past five years. Favourable trends in house construction activity; interest rates; consumer preferences; and seasonal trends in fabric colour, design and texture have all supported industry revenue over the period. However, increasing competition from external players, such as department stores and online manchester retailers, has contributed to an overall decline in both industry revenue and profit margins. Industry revenue is expected to fall at an annualised 2.2% over the five years through 2019-20, to $2.1 billion. Industry revenue is anticipated to rise by 2.0% in the... Learn More