Riskiest Industries in Australia in 2021

1. Land Development and Subdivision in Australia

2021 Overall Risk Score: 7.3

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 annually over the past five years, principally reflecting the... Learn More

2. Clay Brick Manufacturing in Australia

2021 Overall Risk Score: 7.1

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

3. Fossil Fuel Electricity Generation in Australia

2021 Overall Risk Score: 6.8

Operators in the Fossil Fuel Electricity Generation industry have grappled with a changing regulatory environment and volatile wholesale prices over the past five years. Fossil fuel-fired power stations supply most of Australia's electricity. These power plants mainly run on black coal, brown coal and natural gas. Black and brown coal-fired power stations are often run continuously to provide baseload power, while natural gas stations can be fired up quickly to provide peaking power during spikes in demand. Industry revenue is expected to decline at an annualised 4.8% over the five years through 2020-21, to $10.0 billion.

Fossil fuel electricity generation is... Learn More

4. Roofing Services in Australia

2021 Overall Risk Score: 6.8

Contractors in the Roofing Services industry 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.

Roofing Services industry revenue is expected to contract at an annualised 4.1% over the five years through 2020-21, falling to $2.9 billion. This trend includes an anticipated decline by 16.0% in the current year stemming from the slump in demand conditions in the key building markets following the COVID-19 pandemic and... Learn More

5. Plaster Product Manufacturing in Australia

2021 Overall Risk Score: 6.8

Operators in the Plaster Product Manufacturing industry produce a range of gypsum-based products that are mainly used for internal cladding of building walls and ceilings. The industry's performance depends heavily on trends in downstream building markets. Heavy fluctuations in these markets have influenced the industry over the past five years. Industry revenue is expected to decrease at an annualised 2.8% over the five years through 2021-22, to total $882.5 million. This trend includes an anticipated revenue fall of 6.1% in the current year, mainly related to falling investment and activity in the construction sector during the latest COVID-19 lockdowns in... Learn More

6. Carpentry Services in Australia

2021 Overall Risk Score: 6.8

The Carpentry Services industry represents a significant segment of the Construction division. The residential building market provides the majority 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.

Industry revenue is expected to decrease at an annualised 3.8% over the five years through 2020-21, falling to $10.9 billion. This includes a decline by... Learn More

7. Glazing Services in Australia

2021 Overall Risk Score: 6.8

Operators in the Glazing Services industry generate the bulk of their revenue from installing, repairing and maintaining glass window and door systems, and 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 glazing contractors. Maintenance and repair work on existing buildings and structures is also an important source of demand for many industry operators.

Glazing contractors have contended with divergent trends in key building markets over the past five years. For much of this period, the industry's larger players derived... Learn More

8. Electric Cable and Wire Manufacturing in Australia

2021 Overall Risk Score: 6.7

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

9. Tiling and Carpeting Services in Australia

2021 Overall Risk Score: 6.7

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. Furthermore, demand is also heavily affected by trends in household discretionary income, the outsourcing of household services, and DIY home owners' substitution of industry services.

Industry operators have faced variable trends in the key building markets over the past five years, with demand conditions in the residential building... Learn More

10. Insulation Services in Australia

2021 Overall Risk Score: 6.7

The industry derives most of its revenue from the installation of insulation 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. During the late 2000s, the industry derived stimulus from the Commonwealth's Home Insulation Program (HIP). However, the unprecedented subsidisation scheme is likely to have adversely affected demand for insulation installation on existing dwellings over the past five years.

For much of the past five-year period, the industry benefited from demand for commercial-level insulation material installation from multi-unit apartment and non-residential building markets. However,... Learn More