Riskiest Industries in Canada in 2021

1. Shoe & Footwear Manufacturing in Canada

2021 Overall Risk Score: 7.0

Due to high levels of recent economic volatility, the Canadian Shoe and Footwear Manufacturing industry has experienced significant fluctuations in performance over the five years to 2021. Competition from imports and the effect of the COVID-19 (coronavirus) pandemic have contributed to unstable industry revenue growth. The depreciation of the Canadian dollar relative to its trading partners during most of the period has encouraged international demand for increasingly affordable industry exports while also decreasing the price competitiveness of footwear imports domestically. However, consumer demand for footwear has been satisfied predominantly by competitively priced footwear products manufactured in developing countries. Consequently, industry... Learn More

2. Women's, Girls' & Infants' Apparel Manufacturing in Canada

2021 Overall Risk Score: 6.8

Since the removal of apparel import tariffs on less developed nations in 2003, the Women's, Girls' and Infants' Apparel Manufacturing industry in Canada has been challenged by imports. The industry is now characterized by offshoring, import competition and a subsequent shift toward the production of high-end, value-added designer and handcrafted fashions. Since manufacturing remains a relatively labour-intensive industry, more operators have offshored manufacturing operations to take advantage of lower wage costs. However, industry revenue has decreased an annualized 0.5% to $495.1 million over the five years to 2021. Due to the expected economic recovery following the peak of the COVID-19... Learn More

3. Seasoning, Sauce and Condiment Production in Canada

2021 Overall Risk Score: 6.8

The Seasoning, Sauce and Condiment Production industry in Canada has experienced growth over the five years to 2020, despite mixed demand from grocery stores and food service providers for industry products. Rising per capita disposable income has permitted consumers to trade up to premium and more expensive brands, while increasing health consciousness has curbed demand for most industry products high in sodium and calories. At the same time, the depreciation of the Canadian dollar has made industry goods more affordable in foreign markets, increasing exports and buoying revenue. Overall, IBISWorld anticipates industry revenue to grow an annualized 2.8% to $1.6... Learn More

4. Household Furniture Manufacturing in Canada

2021 Overall Risk Score: 6.6

Over the five years to 2021, the Canadian Household Furniture Manufacturing industry has been susceptible to US trade tensions with China. With the United States accounting for the largest export market for operators, the industry has experienced high revenue volatility due to ongoing negotiations on Chinese furniture imports to the United States. As a result of improving economic drivers such as housing starts, disposable income and residential renovation expenditure, IBISWorld projects industry revenue to increase, rising at an annualized rate of 2.2% to $3.9 billion over the five years to 2021, including an increase of 3.2% increase in 2021 alone.... Learn More

5. Candy Production in Canada

2021 Overall Risk Score: 6.6

The Candy Production industry in Canada produces nonchocolate candy, such as marshmallows, toffee, caramel, granola bars and chewing gum. Operators sell products to retailers and wholesalers for redistribution to consumers. As a result, industry performance relies on domestic demand and global demand, since exports are expected to generate 97.0% of industry revenue in 2021. Although some industry products, such as breakfast bars, have grown in popularity, increasing health consciousness has soured demand for candy products. Plus, imports have satisfied a growing share of the domestic market compared with historical performance. Despite this, revenue is expected to rise an annualized 3.2%... Learn More

6. Telecommunications Networking Equipment Manufacturing in Canada

2021 Overall Risk Score: 6.5

The Telecommunications Networking Equipment Manufacturing industry in Canada is a mere fragment of what it was in 2000, but the industry has expanded over the five years to 2021. This historical decay is primarily the result of competition from foreign companies that have more efficient cost structures and lower manufacturing costs alongside technological displacement of many fixed telecom products. Nonetheless, starting from a low point in 2013, the industry has recovered to an extent, though only slightly amid more difficult economic operating conditions such as the COVID-19 (coronavirus) pandemic. This recovery was founded on improving supply chains and a dependence... Learn More

7. Major Household Appliance Manufacturing in Canada

2021 Overall Risk Score: 6.4

Revenue for the Major Household Appliance Manufacturing industry in Canada is expected to decrease at an annualized rate of 2.7% to $432.7 million over the five years to 2021, including a projected decline of 7.8% in 2021 alone. The decline in 2021 can be partly attributed to the adverse economic effects of the COVID-19 (coronavirus) pandemic. Due to weak underlying domestic demand, high cost of labour and increasing input costs, many of the industry's multinational companies chose to relocate production abroad.

Due to the appreciation of the Canadian dollar, the high cost of labour proved disastrous for the industry's manufacturers over... Learn More

8. Paper Product Manufacturing in Canada

2021 Overall Risk Score: 6.3

The Paper Product Manufacturing industry in Canada has struggled to compete in a highly globalized market over the five years to 2021. 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 struggled from an appreciating loonie, which has boosted the value of imports. This exposure to foreign competitors has hurt the industry as a growing share... Learn More

9. Distilleries in Canada

2021 Overall Risk Score: 6.3

The Distilleries industry in Canada has had a weak performance over the five years to 2021, though this is partially due to historically strong revenue growth prior to the period. Government intervention through the control of liquor retail sales and high excise taxes have aided in preventing industry growth and have been a significant impediment to industry expansion. However, solid growth in demand for Canadian products in the United States and a boom in craft spirits consumption have mitigated this decline. As a result, industry revenue is expected to fall an annualized 0.8% to $1.4 billion over the five years... Learn More

10. Canned Fruit & Vegetable Processing in Canada

2021 Overall Risk Score: 6.3

Operators in the Canned Fruit and Vegetable Processing industry in Canada manufacture vegetable-based sauces, soups, canned produce, juices and dehydrated fruits and vegetables. The industry has struggled over the five years to 2021, with health concerns regarding some of its products and rising income levels, prompting consumers to turn to fresher or premium alternative goods. Despite manufacturers' efforts to introduce healthier brand extensions and safer packaging, demand for industry products has waned, lowering industry revenue. During the period, increased production from some operators, such as McCormick & Company Inc., which moved the production of French's ketchup to Ontario, has helped... Learn More