Riskiest Industries in Australia in 2022

1. Plumbing Goods Wholesaling in Australia

2022 Overall Risk Score: 7.2

Companies in the Plumbing Goods Wholesaling industry sell bathroom fixtures and fittings, hot water systems, gas pipes and fittings, downpipes, guttering and plumbing tools. Trends in downstream building markets and growing wholesale bypass heavily influence the industry's performance. For most of the past five years, operators derived solid demand from the downstream non-residential building market through sales to plumbing contractors, building firms and downstream retail outlets.

Over the five years through 2021-22, revenue is expected to decline at an annualised 2.5% to $6.1 billion. Demand for commercial-grade plumbing fixtures and fittings peaked in 2019-20 on the back of accelerated growth of... Learn More

2. Fertiliser Manufacturing in Australia

2022 Overall Risk Score: 7.2

The Fertiliser Manufacturing industry plays an essential role in ensuring that the nation's agricultural production systems are economically efficient in the short term and sustainable in the long term. Approximately five to six million tonnes of fertiliser are sold each year in Australia, about half of which is manufactured locally. The industry supplies a range of phosphorus, nitrogen, potassium and sulphur fertilisers, and an increasing mix of high-analysis blends and trace elements. Industry performance is variable, reflecting its reliance on the local farm economy, imported products and global fertiliser prices. The COVID-19 pandemic and the European natural gas crisis disrupted... Learn More

3. Land Development and Subdivision in Australia

2022 Overall Risk Score: 7.2

The Land Development and Subdivision industry's performance primarily depends on trends in the preparation of land for new dwelling commencements and the development of land for non-residential buildings and other non-building applications. Most industry activity involves developing greenfield land (not previously developed), although industry players also develop brownfield projects. The industry's long-term performance has been constrained by the trend in residential building construction towards higher density apartment developments rather than traditional single-unit housing. This reflects the growing preference for inner-city living and the rising price of land.

The industry's performance has fluctuated widely on an annual basis over the past five... Learn More

4. Electric Cable and Wire Manufacturing in Australia

2022 Overall Risk Score: 7.0

Operators in the Electric Cable and Wire Manufacturing industry have struggled with high import penetration and weaker downstream demand over the past five years. Industry revenue is expected to decrease at an annualised 1.2% over the five years through 2021-22, to total $1.65 billion. This trend includes an expected revenue decline of 6.3% in the current year, due to falls in demand from the wired telecommunications and construction markets. Profit margins have also declined over the past five years, due to falling industry revenue, fierce price competition from imports and upward pressure on material inputs such as copper. The depreciation... Learn More

5. Pesticide Manufacturing in Australia

2022 Overall Risk Score: 7.0

The Australian Pesticide Manufacturing industry has faced a challenging operating environment over the past five years. As consumers have become increasingly concerned about pesticides in the food chain, industry regulations have increased, particularly as residual detection methods have improved. Several active ingredients have been withdrawn due to human health concerns, which has reduced the industry's product portfolio. Industry players have therefore incurred the escalating costs associated with bringing new active ingredients to market. In addition, activist pressure regarding the industry's use of neonicotinoids and glyphosate has been publicised in the media over the past five years. The industry has also... Learn More

6. Roofing Services in Australia

2022 Overall Risk Score: 7.0

Roofing Services industry contractors specialise in all types of roof installation, repair and maintenance. The industry derives most of its revenue from installing and restoring roof tiles in the residential building market. Revenue is also generated from installing low-gradient metal or concrete roofing on apartments and non-residential buildings. Over the five years through 2021-22, industry revenue is expected to contract at an annualised 2.8%, falling to $3.3 billion. This trend includes an anticipated decline of 6.5% in the current year, stemming from a slump in demand conditions in the key building markets following the COVID-19 pandemic and the Australian economy's... Learn More

7. Clay Brick Manufacturing in Australia

2022 Overall Risk Score: 7.0

The number of dwelling commencements heavily influences the Clay Brick Manufacturing industry's performance. Dwelling commencements have fallen over the past five years, exacerbated by the COVID-19 pandemic, causing industry revenue to decline over the period. Increasing production costs and weakening demand from downstream markets have led to a significant number of industry exits over the period. Operators have also contended with building construction trends that have weakened demand for industry products. These trends have included rising competition from substitute materials and the increasing popularity of high-density housing, which requires fewer bricks for construction.

Demand from the industry's major market, residential construction,... Learn More

8. Bricklaying Services in Australia

2022 Overall Risk Score: 7.0

The Bricklaying Services industry is heavily influenced by trends in new residential building construction and demand for construction of smaller non-residential buildings such as suburban shops, schools and community centres. Bricks and mortar are the traditionally preferred materials for building Australian homes, due to the availability of clay deposits and brick's thermal insulation properties. The industry's long-term performance has been adversely affected by the ongoing shift in housing preferences towards higher density apartment construction, which typically have a much lower brick content per unit constructed than single-unit housing.

The industry's performance has been influenced by divergent trends in key building markets... Learn More

9. Coal Mining in Australia

2022 Overall Risk Score: 6.9

Coal is a key input in steelmaking and energy generation. Although coal deposits are found all over the world, Australia is one of the world's lowest cost producers and a major coal exporter. Domestic reserves exceed domestic demand, are high grade and economical to access. As a result, exports account for a large share of industry revenue. Industry imports are negligible, as total local production has been higher than domestic demand for black coal. Black coal mining makes up the vast majority of industry activity. Brown coal is used domestically for electricity generation in Victoria.

Industry revenue is expected to grow... Learn More

10. Tiling and Carpeting Services in Australia

2022 Overall Risk Score: 6.9

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 in response to trends in new building construction and in demand for renovation and repair work on existing buildings. Trends in household discretionary income, outsourcing household services, and the capacity of DIY home owners to undertake their own tiling and carpeting work also influence the demand for industry services.

Industry operators have faced variable trends in the key building markets over the past five years. Demand from the multi-unit apartment construction market surged to... Learn More