Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Industries with Most Risky Business Environments in Canada in 2023
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View a list of the Top 25 industries with most risky business environmentsBusiness Environment Risk for 2023: 7.1
Oil Drilling and Gas Extraction in Canada have grown tremendously, resulting from rising prices and additional investment in production. Oil and gas companies suffered significantly in 2020 amid the pandemic as prices drastically fell amid lockdowns. As the economy reopened, the need for oil and gas became apparent and prices skyrocketed, bolstering revenue. Overall, revenue is expected to grow at a CAGR of 7.4% to $173.5 billion over the five years to 2023, despite a decline of 22.2% in 2023 alone. Profit has also fluctuated. Many companies endured below zero profits before it rose after the pandemic.
Despite operating volatility, Canada... Learn More
Business Environment Risk for 2023: 7.0
Canada's Recyclable Material Wholesaling industry has exhibited roller coaster growth over the five years to 2022. Companies collect, sort and bundle any recyclable material and then sell it to different entities for recycling when commodities such as wood pulp increase in price, scrap paper can be sold for more since these will go through the recycling process and become new steel or form ready to be used. As a consequence, the volatility of these commodities transfers to industry revenue. Industry revenue is expected to increase an annualized 1.9% to $16.7 billion over the five years to 2023, despite a forecast... Learn More
Business Environment Risk for 2023: 6.7
Canada is one of the world's largest producers of crude oil and natural gas, as well as a range of other metal and mineral commodities. This has traditionally benefited the Mining, Oil and Gas Machinery Manufacturing industry, which produces goods used by extraction industries. Revenue is closely tied to commodity prices, as these can dictate levels of investment and activity by extraction companies. Commodity prices have been hugely volatile over the five years to 2023, with the prices of many goods tanking, causing exploration activity and demand for industry products to fall in certain years. Overall, IBISWorld estimates that industry... Learn More
Business Environment Risk for 2023: 6.7
Oil and gas field service operators in Canada have experienced volatile market conditions throughout 2023. World commodity prices performed well throughout the reporting period. However, a fall in natural gas and crude oil prices adversely affected revenue in 2020 and 2032. This decrease in revenue can be mainly attributed to the COVID-19 pandemic and other geopolitical tensions that caused the collapse in oil and gas demand and prices. As economic conditions improved from the peak of the pandemic, demand for oil and gas returned to pre-pandemic levels and even reached new highs. As a result, IBISWorld forecasts revenue has been... Learn More
Business Environment Risk for 2023: 6.7
Direct mail advertising in Canada has contended with fierce competition from alternative advertising formats over the past five years. Still, advertisers have benefited from technological advancements, which have given way to integrated marketing campaigns. Lacklustre response rates to digital marketing campaigns have also highlighted the effectiveness of direct mail advertising, which garners much more frequent responses from young adults. As digital marketing grows more saturated, revenue for Canada's Direct Mail Advertising industry has inflated at a CAGR of 1.2% over the past five years, reaching an estimated $1.5 billion in 2023. Inflationary pressures will mitigate revenue growth in 2023, leading... Learn More
Business Environment Risk for 2023: 6.7
The Canadian Household Furniture Manufacturing industry has been susceptible to US trade tensions with China through 2023. 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. Deteriorating economic drivers, such as housing starts, disposable income and residential renovation expenditure, revenue is expected to plummet at a CAGR of 3.0% to $4.0 billion over the five years to 2023, including a 6.6% drop in 2023 alone as the Canadian housing crisis continues.
An appreciating Canadian dollar during most of the... Learn More
Business Environment Risk for 2023: 6.6
Copper, nickel, lead and zinc mine operators rely heavily on the market prices of the metals they produce. According to a 2018 British Geological Survey report (latest data available), Canada is one of the 10 largest global producers of nickel, copper and zinc. The most valuable metals are nickel and copper, key inputs for many products. Product prices can shift significantly in response to changing global market conditions, prompting significant revenue and profit volatility. Although nickel and zinc prices have grown during the period, declining domestic production has damaged industry performance. COVID-19 presented a considerable challenge to mine operators in... Learn More
Business Environment Risk for 2023: 6.6
Steel rollers and drawers have faced declines over the current period. Plummeting growth from automobile manufacturers and climbing import penetration have hindered performance. Falling steel prices over the current period have also led to price-based losses and profit loss as clients pressured steel rollers and drawers to pass on cost decreases. Exports to the US were a boon to steel rollers and drawers amid declines in the domestic market. Overall, industry-wide revenue has been falling at a CAGR of 3.1% over the past five years and is expected to total $1.9 billion in 2023, when revenue will dip by an... Learn More
Business Environment Risk for 2023: 6.6
Over the past five years, clay product manufacturers have faced considerable declines. While the housing market has improved over most of the period, import penetration and the popularity of substitute products have limited industry growth. While the outbreak of COVID-19 led to considerable declines from metal manufacturers and energy producers, manufacturers enjoyed growth as the economy reopened and commodity prices surged, leading various downstream markets to expand their output and require manufacturers' products. Industry-wide revenue has been falling at a CAGR of 10.2% over the past five years and is expected to total $477.4 million in 2023, when revenue will... Learn More
Business Environment Risk for 2023: 6.5
Operators in the Coal Mining industry in Canada have experienced considerable fluctuations in prices of industry goods over the five years to 2021. Ultimately, industry revenue is forecast to grow an annualized 4.0% to $8.2 billion during the period, growing an estimated 28.5% in 2021 alone following declines the previous year due to disruptions caused by the COVID-19 (coronavirus) pandemic. The industry has two primary products, 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... 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 2023
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 2023
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