Riskiest Industries in Canada in 2020

1. Wired Telecommunications Carriers in Canada

2020 Overall Risk Score: 7.5

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. Paper Product Manufacturing in Canada

2020 Overall Risk Score: 7.3

The Paper Product Manufacturing industry in Canada has struggled to compete in a highly globalized market over the five years to 2020. The industry produces numerous paper products, including crepe paper, cigarette wrappers, food trays and paper novelties. While long-term trends have been toward diminished paper consumption in developed economies, consumption of such products is still high relative to office paper and many other paper products that have lost ground to digitalization. The industry has benefited from a depreciating loonie, which has boosted exports. However, this exposure to foreign competitors has also hurt the industry as a growing share of... Learn More

3. Long-Distance Freight Trucking in Canada

2020 Overall Risk Score: 7.0

The Long-Distance Freight Trucking industry in Canada is expected to experience marginal growth at an annualized rate of 0.4% to reach $26.4 billion over the five years to 2020. As economic conditions began to recover after a decline in global commodity prices in late 2014, industrial, retail and trade activity have climbed for a majority of the current period. The need to move goods between manufacturers and retailers has increased, boosting demand for industry services. However, the economic ramifications stemming from the COVID-19 (coronavirus) pandemic is expected to cause a decline of 16.0% in industry revenue in 2020. This can... Learn More

4. Aluminum Manufacturing in Canada

2020 Overall Risk Score: 6.8

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

5. DVD, Game & Video Rental in Canada

2020 Overall Risk Score: 6.8

The DVD, Game and Video Rental industry in Canada experienced a massive contraction over the five years to 2019 due to increased pressure from non-industry competitors, including video streaming websites, on-demand services and rental kiosks. The affordability and flexibility associated with these substitutes compelled consumers to rent DVDs, games and videos from these competitors, diminishing demand for the industry’s services. The inherent cost advantages of streaming and non-industry rental services have also forced industry operators to lower their prices, contributing to the anticipated 2.2% decline in industry revenue in 2019 alone. Overall, IBISWorld estimates that industry revenue will contract an... Learn More

6. Book Stores in Canada

2020 Overall Risk Score: 6.8

The Book Stores industry in Canada has grown over the five years to 2019 despite high levels of external competition from online retailers and e-books, which offer alternative and more affordable channels through which consumers are able to purchase industry goods. Moreover, an increase in per capita disposable income has boosted total retail sales in recent years, permitting the industry to expand instead of contract over the past five years. Particularly threatening to industry revenue, however, has been the rise of online retailers, which often offer a wider variety of items at competitive prices. Industry revenue is estimated to rise... Learn More

7. 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

8. Ocean & Coastal Transportation in Canada

2020 Overall Risk Score: 6.7

The Ocean and Coastal Transportation industry in Canada has experienced moderate growth over the five years to 2019. Industry operators transport freight, bulk cargo and passengers along international and coastal shipping routes. Furthermore, economic growth in emerging markets and the growing need for Canadian natural resources have enabled industry shipping companies to benefit from Canada’s substantial dry and liquid-bulk exports. Moreover, as income levels gradually increased over the past five years, demand for cruises have continued to climb. As a result, consumers have increased spending on discretionary vacations. Stable economic growth in the United States also has increased demand for... Learn More

9. Recyclable Material Wholesaling in Canada

2020 Overall Risk Score: 6.7

The Recyclable Material Wholesaling industry in Canada has maintained its roller coaster growth dynamic, and revenue is expected to decline slightly in 2020 after two consecutive years of strong growth in 2017 and 2018. Industry operators collect, sort and bundle any recyclable material and then sell it off to different entities for recycling. When commodities such as steel and wood pulp increase in price, scrap metal and paper can be sold for more since these will go through the recycling process and become new steel or paper ready to be used. As a consequence, the volatility of these commodities transfers... Learn More

10. Truck Rental in Canada

2020 Overall Risk Score: 6.7

The Truck Rental industry in Canada performed well over the five years to 2019 as demand for industry services has grown steadily from both businesses and households. Businesses rent and lease trucks from industry operators for both the shipment of freight to downstream customers and the transport of goods and materials within and between work sites. As the economy improved, both freight shipping and general business activity have increased, in turn bolstering demand from business customers. Household demand has also expanded significantly over the past five years, with housing starts and the value of residential construction both expected to grow... Learn More