Riskiest Industries in Canada in 2020

1. Wired Telecommunications Carriers in Canada

2020 Overall Risk Score: 7.7

Over the past decade, rapid technological advancements have changed the way humans interact, pushing the Wired Telecommunications Carriers industry in Canada to the sidelines of communication. External competition from the domestic Wireless Telecommunications Carriers industry (see IBISWorld report 51721CA) and Voice over Internet Protocol (VoIP) software have eaten away at sales from the industry's traditional sources of revenue, which are local and long-distance telephony services. Overall, revenue is expected to contract an annualized 8.5% to $5.4 billion over the five years to 2019. This includes revenue falling 11.2% in 2019 alone

Although households with high incomes initially purchased both wireless and... Learn More

2. Uranium & Metal Ore Mining

2020 Overall Risk Score: 6.8

Companies in the Uranium and Metal Ore Mining industry in Canada mine molybdenum, platinum, palladium, uranium, cobalt and a variety of metal bearing ores sold to various markets. As a result, industry revenue is closely linked to the underlying prices of the commodities, which themselves are a function of global supply and demand conditions. Over the five years to 2020, the prices of these major commodities experienced significant volatility, driving down industry revenue at an annualized rate of 0.6% to $3.6 billion, while leading to significant growth in industry profit.

The largest source of industry revenue is uranium, which typically accounts... Learn More

3. Aluminum Manufacturing in Canada

2020 Overall Risk Score: 6.7

The Aluminum Manufacturing industry in Canada produces a variety of aluminum products, ranging from alumina to finished aluminum sheet and foil. Aluminum is lightweight, ductile, corrosion-resistant, highly conductive and recyclable, making it useful in an array of applications. For instance, aluminum sheet is a major input into automobiles and airplanes, while aluminum foil and rolled sheet is commonly used in containers and packaging material. The United States accounted for over 90.0% of total exports, making domestic operators highly dependent on international trade. With recent trade tensions with the United States and volatile commodity prices, IBISWorld projects industry revenue to increase... Learn More

4. Soybean Farming in Canada

2020 Overall Risk Score: 6.6

The Soybean Farming industry in Canada has declined over the five years to 2020 as a result of the spillover from trade war between China and the United States. China had traditionally been the largest export market for industry products, consistently accounting for over 50.0% of industry exports. However, geopolitical tension between China and Canada, which developed toward the end of the five-year period, caused a dramatic decline in the trade of industry products between the two countries. This, combined with lower prices and increased competition from US soybeans, are expected to result in the industry declining at an annualized... Learn More

5. Plastic Bottle Manufacturing in Canada

2020 Overall Risk Score: 6.5

The Plastic Bottle Manufacturing industry in Canada converts polyethylene terephthalate (PET), high-density polyethylene (HDPE) and other plastic resin pellets into bottles for use by a variety of downstream markets. The industry's largest customer is beverage and food manufacturers. Industry performance is heavily influenced by consumer demand for these goods. In addition, input costs are generally passed along to buyers through product pricing. This means changes in the price of volatile hydrocarbons commodities can influence industry performance as well. Falling input costs, per capita soft drink consumption and value of exported goods has influenced industry revenue over the five years to... Learn More

6. Soap & Cleaning Compound Manufacturing in Canada

2020 Overall Risk Score: 6.5

The Soap and Cleaning Compound Manufacturing industry in Canada has expanded over the five years to 2019, despite increased import competition from foreign manufacturers and declining crude oil prices, which has forced many operators to reduce their selling prices to remain competitive. However, industry operators have benefited from growth in the Canadian population, which has increased demand for industry products from households. This development has been bolstered by overall growth in the Canadian economy, which has resulted in rising levels of disposable income, among other improving consumer conditions. In turn, these trends have enabled consumers to purchase relatively expensive, high-margin... Learn More

7. Battery Manufacturing in Canada

2020 Overall Risk Score: 6.5

The Battery Manufacturing industry in Canada has been on the decline over the past decade. The industry experienced high revenue volatility over the five years to 2020 due to its large dependence on exports and the vast proliferation of imports. As a small industry, booms and busts in revenue are dramatic, with a 15.8% surge in revenue over 2015 to begin the current period. However, high import competition and plummeting exports despite a weakened Canadian dollar hampered revenue growth, causing revenue to decline at an annualized rate of 6.5% to $129.5 million over the five years to 2020.Imports are a... Learn More

8. Computer Manufacturing in Canada

2020 Overall Risk Score: 6.5

The Computer Manufacturing industry in Canada has declined as fierce international competition continues to flood the domestic market with low-cost imports. This influx of imports has been driven by foreign competitors, primarily from developing economies that have lower labour and production costs. Competition combined with product standardization has exerted strong downward pressure on prices, lowering industry revenue. Consequently, several major operators have exited the industry over the five years to 2019. Revenue is tied to export volume, and since fewer enterprises have exported goods to other countries, primarily the United States, revenue has drastically dropped. As a result, industry revenue... Learn More

9. Auto Parts Manufacturing in Canada

2020 Overall Risk Score: 6.5

The Auto Parts Manufacturing industry in Canada is expected to expand strongly amid high revenue volatility over the five years to 2019. The industry relies heavily on demand from downstream automakers. Therefore, fluctuating demand for automobiles leads to changes in demand for industry products. The greater demand there is for automobiles, the more automakers will need to order from upstream suppliers such as auto parts manufacturers. Strong automotive sales, both domestically and in the United States, boosted demand from automakers. As a result, the industry is expected to grow an annualized 5.2% to $7.4 billion over the five years to... Learn More

10. Coal Mining in Canada

2020 Overall Risk Score: 6.5

Operators in the Coal Mining industry in Canada have experienced wild fluctuations in prices of industry goods over the five years to 2020. Ultimately, industry revenue is forecast to grow an annualized 6.5% to $9.0 billion during the period, growing an estimated 2.9% in 2020 alone. The industry has two primary products, such as metallurgical coal used for steel production and thermal coal used in energy generation. At the start of the current period, global oversupply and falling demand resulted in low prices and revenue. Subsequent price growth between 2016 and 2018 fuelled revenue growth. Domestic production of both metallurgical... Learn More