Riskiest Industries in Australia in 2022

1. 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

2. Land Development and Subdivision in Australia

2022 Overall Risk Score: 7.1

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, although industry players also develop brownfield projects. A shift in residential building construction towards higher density apartment developments, rather than traditional single-unit housing, has constrained the industry's long-term performance. This trend reflects a growing preference for inner-city living and the rising price of land.

The industry's performance has fluctuated on an annual basis over the past five years, principally reflecting changes... Learn More

3. Coal Mining in Australia

2022 Overall Risk Score: 7.1

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

4. Electric Lighting Equipment Manufacturing in Australia

2022 Overall Risk Score: 7.0

The Electric Lighting Equipment Manufacturing industry primarily makes a range of lighting equipment such as fixtures, luminaires, fittings and electric signs. This lighting equipment is designed for installation in residential and commercial buildings, industrial applications such as mines and on infrastructure such as roads, pathways, sporting venues and airports. Specialising in manufacturing niche products has presented growth opportunities for industry operators. However, the industry faces intense competition from imports from low-cost manufacturers. Industry revenue is expected to increase at an annualised 1.8% over the five years through 2021-22, to reach $1.0 billion. This trend includes an anticipated minor contraction of... Learn More

5. Hay and Other Crop Growing in Australia

2022 Overall Risk Score: 7.0

Conditions for the Hay and Other Crop Growing industry have been highly volatile over the past five years. Varying rainfall has presented challenges for industry operators. Severe drought in New South Wales and parts of Queensland and South Australia created a surge in demand for hay as pasture conditions in these regions deteriorated. Many producers could not keep pace with rapidly increasing demand, which led to hay shortages that increased prices. Hay prices in many regions reached 50-year highs over the three years through 2018-19. However, industry revenue declined sharply in 2017-18 due to a significant decrease in output. Growing... Learn More

6. Cotton Ginning in Australia

2022 Overall Risk Score: 6.9

The Cotton Ginning industry is an important part of the agricultural support services sector and the national cotton sector. Raw cotton must be processed into lint and seeds by a cotton gin before either product can be used. The industry's performance is closely linked to the Cotton Growing industry. A range of factors also indirectly affect the industry, such as climatic conditions, water supply regulation, cotton stockpiling, and fluctuations in global cotton consumption and production. Typically, cotton is harvested and ginned towards the end of the financial year, with any surplus production carried into the following year. Higher cotton production... Learn More

7. Bricklaying Services in Australia

2022 Overall Risk Score: 6.9

Trends in new residential building construction and demand for construction of smaller non-residential buildings, such as suburban shops, schools and community centres, heavily influence the Bricklaying Services industry. 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. An ongoing shift in housing preferences towards higher density apartments, which typically have a much lower brick content per unit constructed than single-unit housing, has adversely affected the industry's long-term performance.

The industry has faced divergent trends in key building markets over the past five years, including a current... Learn More

8. Clay Brick Manufacturing in Australia

2022 Overall Risk Score: 6.7

The number of dwelling commencements heavily influences the Clay Brick Manufacturing industry's performance. Dwelling commencements have fallen over the past five years, which has been exacerbated by the COVID-19 pandemic and caused industry revenue to decline over the period. Increasing production costs and weakening demand from downstream markets have led to a significant number of operators exiting the industry 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... Learn More

9. Wicker and Fibreglass Furniture Manufacturing in Australia

2022 Overall Risk Score: 6.7

Operators in the Wicker and Fibreglass Furniture Manufacturing industry have faced challenging conditions over the past five years. Revenue is expected to decline at an annualised 4.4% over the five years through 2022-23, to $308.7 million. Over the period, industry operators have contended with substantial price competition from lower cost wicker and fibreglass products made overseas. Strong competition from furniture made from wood, plastic and steel has also slowed revenue growth. Rising interest rates and muted building construction during the COVID-19 pandemic have further weakened demand for industry products, as consumers usually purchase furniture for newly built homes. As a... Learn More

10. Olive Growing in Australia

2022 Overall Risk Score: 6.7

The Olive Growing industry has displayed significant volatility over the past five years. Weather conditions directly affect industry output as olives are water-intensive. As a result, annual rainfall and water availability influence production. As rainfall and water extraction levels are typically volatile, industry revenue often fluctuates from year to year. Olive growing often runs on fluctuating cycles, with a year of high production typically followed by a year of lower production volumes. This is also partially attributable to the biennial nature of olive tree fruiting. Olive production has been volatile over the past five years, but has declined overall. Agricultural... Learn More