Industries with Riskiest Business Environments in Canada in 2025

• 1. Iron Ore Mining in Canada

  Business Environment Risk for 2025: 7

  Iron ore miners have experienced massive shifts in revenue for most of the period since iron is used to produce steel, linking performance directly to the strength of the global economy and construction markets. Exports are a significant market for miners, and heightened demand from China, alongside expansions from other major trading partners, has been beneficial, as iron ore prices have spiked amid supply shortages. Nonetheless, prices came tumbling down starting in 2022 through 2025. This ...

  Learn More

• 2. Foreign Currency Exchange Services in Canada

  Business Environment Risk for 2025: 7

  Pressures from external competition from banks offering foreign exchange services have limited growth. More foreign currency exchange houses provide services to financial institutions by participating in the supply chain of foreign exchange, supplying banks with banknotes wholesale, or providing the service directly as an outsourced agent. Alongside favorable economic trends during the majority of the five years and the proliferation of online services, operators have expanded demand by exten...

  Learn More

• 3. Database & Directory Publishing in Canada

  Business Environment Risk for 2025: 7

  The transition from printed databases and directories to online formats has left the Canadian Database and Directory Publishing industry reeling, with revenue decreasing over the five years to 2023 because of this transition and COVID-19. From the advertisers' perspective, marketing costs are allocated to the media channels that most accurately reflect consumer behaviour. As more consumers shift to digital directory and database substitutes, demand for print advertisements, previously the ind...

  Learn More

• 4. Loan Administration, Cheque Cashing & Other Services in Canada

  Business Environment Risk for 2025: 7

  Loan administration and cheque cashing services endured mixed results amid economic volatility during the pandemic and the continued effects of high interest rates on Canadian businesses and consumers alike. Canadian consumers' appetite for debt has boosted the industry by sustaining demand for consumer financing, mortgages and cash services for businesses. However, sharp economic volatility in 2020 forced consumers and businesses to shift their borrowing preferences away from traditional ban...

  Learn More

• 5. Iron & Steel Manufacturing in Canada

  Business Environment Risk for 2025: 7

  The Canadian steel industry is currently facing a challenging period marked by a projected 12.4% contraction in 2025, with total revenues falling to $15.2 billion. Although the industry posted a 2.5% CAGR over the current period, this figure is largely due to strong gains in 2021, followed by subsequent declines. This downturn is primarily driven by the imposition of a 25% US tariff on Canadian steel imports, which has sharply reduced export volumes and reduced the profit margin, leading to l...

  Learn More

• 6. Coal Mining in Canada

  Business Environment Risk for 2025: 7

  Coal mining in Canada has been navigating a transformative period, driven by a combination of environmental policies and shifting market dynamics. Recent government regulations demanding carbon capture technologies by 2030 and a transition to a net-zero electricity grid by 2035 have significantly reduced domestic thermal coal consumption. In 2021, coal contributed just 5.0% to Canada’s electricity generation, a stark decline from the 58.0% share in 2010. The conversion of Alberta's last coal-...

  Learn More

• 7. Tour Operators in Canada

  Business Environment Risk for 2025: 7

  Canada's tour operator industry has been riding a wave of recovery fueled by elevated travel demands post-pandemic. The industry has proven its resilience, with current-year revenue hitting $10.5 billion with modest growth of 2.1%. This growth aligns with revitalized consumer interest, particularly from younger Canadians prioritizing travel, often opting for budget-friendly travel packages. Operators meet this demand by offering cost-effective solutions. However, compet...

  Learn More

• 8. Mining, Oil & Gas Machinery Manufacturing in Canada

  Business Environment Risk for 2025: 7

  Despite Canada being one of the world's largest producers of crude oil, natural gas and a range of other metals and mineral commodities, price fluctuations and volatility throughout the period ultimately pushed revenue down for mining, oil & gas machinery manufacturers. Revenue is closely tied to commodity prices and dictates the level of investment and activity by extraction companies. These prices have fluctuated greatly over time, especially with many goods seeing a sharp dip in price ...

  Learn More

• 9. Pet Grooming & Boarding in Canada

  Business Environment Risk for 2025: 7

  Canadian pet groomers and boarders provide pet care services such as boarding, grooming and training. Demand for pet care services has expanded as pet ownership has grown in recent years. Higher per capita disposable income and favourable consumer preferences have also boosted spending on pet care services. In 2020, the pandemic disrupted this trend as restrictions led to less demand for pet care services; revenue has since resumed growing, though. Pet grooming and boarding revenue has grown ...

  Learn More

• 10. Wired Telecommunications Carriers in Canada

  Business Environment Risk for 2025: 7

  Numerous technological advancements have changed how humans interact, pushing wired telecommunication services to the sidelines of communication. External competition from wireless telecommunication services and Voice over Internet Protocol (VoIP) software have lessened the need for local and long-distance telephony services. Many households have reduced expenses over the last several years by cutting landline phone service. Industry revenue has been freefalling at a CAGR of 6.6% to 2024 to r...

  Learn More