Least Risky Industries in Canada in 2021

1. Cannabis Production in Canada

2021 Overall Risk Score: 2.61

The Cannabis Production industry in Canada has blossomed over the five years to 2021 as a massive market was introduced into the industry, driving up revenue late during the period. Since Health Canada opened up medicinal cannabis production to more players in 2013, the industry has grown continuously as operators invest in production capabilities to produce quality products. However, the legalization of recreational cannabis in 2018 has been the primary driver of the industry boom during the period. As consumers shifted from illegal cannabis purchases to the licensed recreational market, the industry has grown significantly, with revenue growing 52.8% in... Learn More

2. Freight Forwarding Brokerages & Agencies in Canada

2021 Overall Risk Score: 3.20

The Freight Forwarding Brokerages and Agencies industry in Canada arranges the transportation of cargo, helping manufacturers, importers and wholesalers ship cargo in the most timely and cost-effective manner. Industry operators advise clients on shipment rates and trade routes and subcontract transportation services to truck, rail, marine and air freight carriers. Additionally, industry participants provide customs brokering services, helping importers determine commodity classifications and calculate the value of shipments. Consequently, demand for industry services is largely determined by domestic and international trade volumes, as well as the propensity of businesses to outsource freight forwarding and customs brokering operations.

Industry revenue is expected... Learn More

3. Couriers & Local Delivery Services in Canada

2021 Overall Risk Score: 3.23

The Couriers and Local Delivery Services industry in Canada comprises two distinct segments, which include large couriers and small-scale delivery companies. These segments cater to a wide variety of consumers, with demand for each segment differing based on the services offered. For instance, while downstream demand for courier services primarily stems from manufacturers and retailers that require couriers to transport commercial goods over relatively long distances, demand for local delivery services is typically derived from local businesses and individual consumers. Demand for these services is generally cyclical and industry revenue has experienced a decline over the five years to 2020... Learn More

4. Warehouse Clubs & Supercentres in Canada

2021 Overall Risk Score: 3.28

The Warehouse Clubs and Supercentres industry in Canada comprises stores that retail discount groceries, along with other basic goods, such as appliances, and achieve cost savings by leveraging economies of scale, offering products in bulk or charging membership fees. Due to the low-cost, high-value products offered by warehouse clubs and supercentres, the industry typically performs well regardless of the macroeconomic climate. However, when businesses and consumers have deeper pockets, they are likely to spend more at industry establishments. As a result of rising per capita disposable income, industry revenue has increased at an annualized rate of 4.2% to $46.5 billion... Learn More

5. Freight Packing & Logistics Services in Canada

2021 Overall Risk Score: 3.29

The Freight Packing and Logistics Services industry in Canada, which provides logistics services such as packing, crating, logistics consulting and trade documentation, has grown over the five years to 2021. During the period, overall growth in global economic activity spurred increases in retail sales and activity in most downstream manufacturing industries, bolstering demand for industry services. Industry revenue is estimated to grow an annualized 0.7% to $1.6 billion over the five years to 2021, including forecast growth of 4.8% in 2021 alone.

While growth in consumer spending has stimulated demand for industry services in recent years, relatively slow economic growth in... Learn More

6. Waste Treatment & Disposal Services in Canada

2021 Overall Risk Score: 3.30

The Waste Treatment and Disposal Services industry in Canada consists of enterprises engaged in operating a variety of waste treatment and disposal sites, including landfills, incinerators or other types of disposal facilities. While demand for recycling has been a long-term trend, waste production has continued to grow. However, the industry has been hampered by a decline in crude oil prices that reduced investment in the energy sector and cut demand from related activities, which prompted a strong decline in industry revenue, thus cutting into profit. Moreover, the COVID-19 (coronavirus) pandemic is expected to further hinder the energy market and industry... Learn More

7. Billboard & Outdoor Advertising in Canada

2021 Overall Risk Score: 3.32

Over the five years to 2020, IBISWorld anticipates revenue for the Billboard and Outdoor Advertising industry in Canada to fall due to recent lower levels of consumer spending and consumer confidence, among heightened volatility in corporate profit. Oscillations in corporate profit have forced many companies to reduce costs in some years, including marketing expenditures that are typically included in the first budget cuts. Nonetheless, industry revenue is expected to decrease at an annualized rate of 0.8% to reach $1.1 billion over the five years to 2020. Crucially, industry revenue is forecast to fall 11.5% in 2020. The decrease in 2020... Learn More

8. Industrial Machinery & Equipment Wholesaling in Canada

2021 Overall Risk Score: 3.37

The Industrial Machinery and Equipment Wholesaling industry in Canada distributes a variety of products for multiple industries. These products include hoists, forklifts, diesel engines, pipes and valves. Despite the variety of product offerings, success in the industry is ultimately dependent on industrial and manufacturing activity in Canada. Industry revenue has decreased at an annualized rate of 0.8% to $21.9 billion over the five years to 2020. This forecast decline is primarily the result of the COVID-19 (coronavirus) pandemic, which is expected to cause a dramatic decline in industrial capacity utilization, aggregate private investment and corporate profit. As a result of... Learn More

9. Semiconductor Machinery Manufacturing in Canada

2021 Overall Risk Score: 3.39

The Semiconductor Machinery Manufacturing industry in Canada supplies capital equipment and machinery to semiconductor manufacturers that produce the necessary inputs for a range of electronic products. As with much of the domestic manufacturing sector, industry operators compete with foreign players that often have lower labour and production costs and higher productivity and manufacturing capabilities. This translates to lower-cost imports, which have continuously threatened the industry. The COVID-19 (coronavirus) pandemic is expected to support industry growth due to a global chip shortage. As a result, IBISWorld projects industry revenue will increase at an annualized rate of 26.6% to $69.4 million over... Learn More

10. Sewage Treatment Facilities in Canada

2021 Overall Risk Score: 3.41

The Sewage Treatment Facilities industry in Canada includes facilities that collect, treat and dispose of wastewater generated by homes, businesses and stormwater runoff. The majority of its funding emanates from municipalities, which serves to minimize revenue volatility. These municipal services are funded through water rates, property taxes, development charges and government contributions. Over the five years to 2021, the industry has remained stable despite a growing population, stimulating demand for industry services. Further, continued investment into facilities to meet new regulatory requirements helped keep demand for industry services stable during the COVID-19 (coronavirus) pandemic. IBISWorld estimates revenue to remain stagnant... Learn More