Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Riskiest Industries in Australia in 2020
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View a list of the Top 25 riskiest industries2020 Overall Risk Score: 7.0
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
2020 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
2020 Overall Risk Score: 6.8
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
2020 Overall Risk Score: 6.8
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
2020 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
2020 Overall Risk Score: 6.7
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
2020 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
2020 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
2020 Overall Risk Score: 6.6
The Land Development and Subdivision industry's performance primarily depends on trends in housing investment and preparation of land for new dwelling commencements. 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 bulk of industry activity involves developing greenfield land (not previously developed), although the industry is also involved in developing brownfield projects (modifying or upgrading existing lots) and arranging changes in zoning.
The trend towards the construction of higher density apartment and townhouse developments has constrained the industry's performance. This trend has stemmed from the rising... Learn More
2020 Overall Risk Score: 6.6
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
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