Riskiest Industries in Australia in 2021

1. Tobacco Product Wholesaling in Australia

2020 Overall Risk Score: 6.6

The Tobacco Product Wholesaling industry has faced declining consumer demand and rising prices over the past five years. The entries of Philip Morris Australia and British American Tobacco caused industry revenue to spike over 2015-16. However, industry revenue has stabilised over the past four years, as rising prices and excise taxes have offset declining smoking rates and fluctuating demand from downstream retailing industries. Overall, industry revenue is expected to grow at an annualised 1.0% over the five years through 2020-21, to total $2.9 billion. This growth includes an anticipated 2.0% increase in the current year, largely due to the government... Learn More

2. Synthetic and Natural Textile Manufacturing in Australia

2020 Overall Risk Score: 6.4

The Synthetic and Natural Textile Manufacturing industry consists of three primary segments: wool scouring, synthetic textile manufacturing and natural textile manufacturing. Industry operators have struggled with difficult trading conditions over the past five years, which have caused revenue to decline. Industry operators have been exposed to intense competition from overseas low-cost manufacturers, with imports accounting for a large proportion of domestic demand. Industry operators have also been vulnerable to exchange rate fluctuations, as the industry heavily relies on exports. Ongoing contractions in domestic downstream industries have further constrained revenue, as demand for industry products from textile product manufacturers has fallen.... Learn More

3. Hay and Other Crop Growing in Australia

2020 Overall Risk Score: 6.4

The Hay and Other Crop Growing industry has been highly volatile over the past five years. Varying rainfall has presented some challenges to 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, resulting in 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 in 2017-18 due to a significant decrease in output. Growing international demand for... Learn More

4. Elevator Installation and Maintenance in Australia

2020 Overall Risk Score: 6.3

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. Trends in non-residential and residential construction heavily influence the industry's performance. In particular, the increasing density of residential areas has resulted in significant volumes of high-rise apartment construction. The industry is dominated by four major players that are subsidiaries of global manufacturers, and suppliers of elevators and other building equipment. Smaller industry contractors tend to focus on maintaining and refurbishing existing elevator and escalator systems, and undertaking subcontracting work on emergency repair services.

Industry revenue... Learn More

5. Fruit and Vegetable Processing in Australia

2020 Overall Risk Score: 6.3

Industry operators have faced tough trading conditions due to increasing external competition over the past five years. Rising import penetration and high operating costs have negatively affected the industry's performance, reducing the competitiveness of industry products in overseas markets. Lower prices also made imports preferable over domestic products. Therefore, imports have surged as a share of domestic demand over the past five years, encouraging some domestic processors to relocate manufacturing offshore or invest in automation to reduce labour costs. Moreover, supermarkets have increasingly sourced processed goods from overseas for their private-label brands. Consequently, the rising popularity of private-label products has... Learn More

6. Paint and Coatings Manufacturing in Australia

2020 Overall Risk Score: 6.2

The Paint and Coatings Manufacturing industry is a key component of Australia's broader chemical manufacturing sector. The industry includes major players with strong national and global brand names across different pricepoints and product segments, which are vertically integrated. As a result, competition occurs across the supply chain, rather than just at the manufacturing level. Furthermore, as these operators are global players, consolidation trends currently characterising the global paint and coatings sector are influencing the Australian marketplace. For example, DuluxGroup is now a subsidiary of the Japan-based Nippon Paint, following an unsolicited $3.8 billion offer in April 2019. DuluxGroup was previously... Learn More

7. Fire and Security Alarm Installation Services in Australia

2020 Overall Risk Score: 6.1

The Fire and Security Alarm Installation Services industry is responsible for installing and servicing fire and security alarms, and fire prevention and suppression systems. The industry's larger firms, including Carrier Australia Commercial Holdings (Chubb Security), Wormald Australia and ADT Australia, secure end-to-end contracts involving system design and installation, commissioning and long-term maintenance. Ongoing demand for maintenance and repair on existing equipment helps cushion the industry from fluctuations in spending on new systems installed across construction markets. The long-term shift in residential building preferences towards high-density multi-storey apartments has supported demand for the installation and maintenance of sophisticated fire and security... Learn More

8. Uranium Mining in Australia

2020 Overall Risk Score: 6.1

Australia has an estimated 31% of the world's uranium reserves, but accounts for only 11% of global uranium output. Government reluctance to establish new uranium mines has meant a considerable share of Australia's uranium resources has been left untouched. The Uranium Mining industry has displayed very high revenue volatility over the past five years due to fluctuating prices and export volumes. Industry revenue is expected to fall at an annualised 10.3% over the five years through 2020-21, to $613.2 million. A fall in domestic uranium prices and decline in output due to the closure of the Ranger mine, are expected... Learn More

9. Metal Cladding, Waterproofing and Scaffolding Services in Australia

2020 Overall Risk Score: 6.1

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. Paper Stationery Manufacturing in Australia

2020 Overall Risk Score: 6.0

The Paper Stationery Manufacturing industry has declined over the past five years as subdued demand conditions and rising competition from imports have negatively affected revenue. The increasing popularity of online and digital forms of communication has come at the expense of traditional letter-based mail, reducing demand for industry staples such as envelopes. Alternative materials, such as plastics and fibres, have also replaced paper in many applications. Furthermore, the COVID-19 pandemic is projected to reduce demand over the two years through 2020-21. Educational facilities and businesses have decreased demand for industry products, as people have been forced to learn and work... Learn More