Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Riskiest Industries in Canada in 2021
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View a list of the Top 25 riskiest industries2021 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
2021 Overall Risk Score: 7.0
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
2021 Overall Risk Score: 6.9
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. Consequently, IBISWorld expects industry revenue to decrease at an annualized rate of 0.2% to $225.5 million over the five years to 2020, including a decrease of... Learn More
2021 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
2021 Overall Risk Score: 6.7
The Canadian Metalworking Machinery Manufacturing industry produces industrial moulds, metal-cutting machine tools and metal-forming machine tools. Metalworking machinery represents a key capital investment for many downstream manufacturing industries. With several of these industries experiencing a period of weakened demand, particularly aerospace and truck manufacturing, as demand for industry products has decreased over the five years to 2021. Consequently, IBISWorld expects industry revenue to decrease at an annualized rate of 1.6% to reach $4.6 billion over the five years to 2021, with an expected increase of 1.5% in 2021 alone. The decrease in industry revenue can be partially attributed to the... Learn More
2021 Overall Risk Score: 6.5
The Office Furniture Manufacturing industry in Canada is expected to decline over the five years to 2021. The industry produces business-oriented furniture as well as office and retail fixtures. The market for office furniture is highly dependent on cyclical macroeconomic conditions, such as unemployment rate, corporate profit levels and nonresidential construction activity. Domestic demand for office furniture has been volatile due to recovering commodity prices affecting total exports to the United States. With purchasing costs increasing, operators are pressured to increase product prices, leaving buyers to seek inexpensive alternatives. Furthermore, the COVID-19 (coronavirus) pandemic introduced unprecedented challenges for operators and... Learn More
2021 Overall Risk Score: 6.5
The Office Stationery Manufacturing industry in Canada is anticipated to continue its long-term decline, as companies and consumers increasingly use electronic substitutes in place of industry products. From electronic bill pay to cloud-based document storage, virtually all forms of paper transactions and documents are transitioning to electronic mediums, therefore reducing demand for industry products. Electronic files are attractive alternatives, as they can be shared instantly through the internet and seamlessly assimilated across several software programs, boosting their appeal relative to products produced by this industry. Increased smartphone ownership has also accelerated the movement toward electronics by letting users easily access... Learn More
2021 Overall Risk Score: 6.5
Over the five years to 2020, the Car and Automobile Manufacturing industry in Canada has struggled to recover as many automakers have moved operations abroad. Dissuaded by high labour costs in Canada, many automakers have shifted investments toward Mexico and the United States. As a result, output has fallen from Canada's biggest car producers while remaining operations have increasingly focused on vehicle production that falls outside of the industry, such as sport utility vehicles (SUVs). Also, exports, which account for more than 85.0% of industry revenue in 2020, have decreased in recent years due to less production capacity. Import penetration... Learn More
2021 Overall Risk Score: 6.5
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
2021 Overall Risk Score: 6.5
Revenue for the Major Household Appliance Manufacturing industry in Canada is expected to decrease at an annualized rate of 4.6% to $444.8 million over the five years to 2019, including a projected decline of 3.1% in 2019 alone. The past five years brought the rapid decline of the domestic industry. Due to weak underlying domestic demand and high cost of labour, many of the industry’s multinational companies chose to relocate production abroad.Despite the depreciation of the Canadian dollar, the high cost of labour proved disastrous for the industry’s manufacturers over the five years to 2019. The Canadian effective exchange rate, a... Learn More
Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Fastest Declining Industries in Canada by Revenue Growth (%) in 2021
VIEW ARTICLEBased on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Least Risky Industries in Canada in 2021
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