Riskiest Industries in Canada in 2020

1. Wired Telecommunications Carriers in Canada

2020 Overall Risk Score: 7.3

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 (refer to 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, industry revenue is expected to contract an annualized 10.9% to $4.3 billion over the five years to 2020. This includes revenue falling 15.0% in 2020 alone as the COVID-19 (coronavirus) pandemic accelerates the... Learn More

2. Coal Mining in Canada

2020 Overall Risk Score: 6.8

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

3. Soybean Farming in Canada

2020 Overall Risk Score: 6.8

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

4. Uranium & Metal Ore Mining

2020 Overall Risk Score: 6.7

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

5. Syrup & Flavouring Production in Canada

2020 Overall Risk Score: 6.7

The Syrup and Flavouring Production industry in Canada manufactures beverage bases, such as concentrates and fountain syrups, and other flavouring syrups. Most industry products are used in the downstream manufacturing of finished beverages. Consequently, the Soda Production industry in Canada (IBISWorld report 31211aCA) is a major buyer of industry products. Demand from downstream manufacturers has declined in recent years, as many food and beverage producers have consolidated and begun producing syrups and flavourings in-house. Nevertheless, the depreciation of the Canadian dollar against the US dollar has made domestic products relatively inexpensive, expanding the industry’s export market. As a result, IBISWorld... Learn More

6. Aluminum Manufacturing in Canada

2020 Overall Risk Score: 6.5

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

7. Plastic Bottle Manufacturing in Canada

2020 Overall Risk Score: 6.4

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

8. Motorcycle, Bike & Parts Manufacturing in Canada

2020 Overall Risk Score: 6.4

Revenue for the Motorcycle, Bike and Parts Manufacturing industry in Canada has contracted over the five years to 2020. Operators are almost exclusively small independent custom fabricators that rely on specific demand trends. Similarly, almost all bicycle and bicycle parts manufacturing activity are done in low volume, using mostly foreign components and typically only adding value through customization. The industry, being primarily focused on custom and high-end products, is closely tied to consumer income levels and confidence. Moreover, with Bombardier Recreational Products Inc.'s (BRP) Can-Am Spyder Roadster (Spyder) being the only mass-produced motorcycle in Canada, industry revenue is reliant on... Learn More

9. Oxygen & Hydrogen Gas Manufacturing in Canada

2020 Overall Risk Score: 6.4

The Oxygen and Hydrogen Gas Manufacturing industry in Canada produces industrial gases that are key inputs for a variety of markets, ranging from chemical manufacturing and oil refining to beverage production and medical research. Although the industry manufactures hundreds of unique gases, these products can be categorized into three well-defined product segments, which include air-separated, process and specialty gases. Industrial gases are used by a broad range of markets and customers, and therefore, demand for industry goods is dependent on Canada's overall economic performance, industrial output levels and consumer spending.

The industry has experienced steady growth over the five years to... Learn More

10. Battery Manufacturing in Canada

2020 Overall Risk Score: 6.4

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