Riskiest Industries in Canada in 2022

1. Shoe & Footwear Manufacturing in Canada

2022 Overall Risk Score: 7.4

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

2022 Overall Risk Score: 7.0

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. Major Household Appliance Manufacturing in Canada

2022 Overall Risk Score: 6.8

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

4. Ceramics Manufacturing in Canada

2022 Overall Risk Score: 6.8

The Ceramics Manufacturing industry in Canada is composed of producers of three distinct categories of products, which include pottery, kitchenware and artwork; porcelain plumbing fixtures; and advanced ceramic components. The industry's plumbing fixtures and advanced ceramics subdivisions have been in a state of long-term decline as high production costs have made domestic operators uncompetitive with foreign manufacturers. In fact, imports accounted for 91.2% of domestic demand in 2021. However, the increased dominance of small-scale pottery makers has benefited from increasing export demand. As a result, IBISWorld projects industry revenue to increase an annualized 6.4% to $125.4 million over the five... Learn More

5. Seasoning, Sauce and Condiment Production in Canada

2022 Overall Risk Score: 6.7

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

6. Household Furniture Manufacturing in Canada

2022 Overall Risk Score: 6.7

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

7. Bottled Water Production in Canada

2022 Overall Risk Score: 6.5

The Bottled Water Production industry in Canada has expanded along with consumer demand for bottled water over the five years in 2021, despite the COVID-19 (coronavirus) pandemic negatively affecting the industry in 2020. Operators in this industry purify and bottle water for sale to wholesalers or directly to retailers. During the five-year period, the industry has benefited from increases in disposable income and trends away from sugary, high-calorie beverages. Nonetheless, a steady threat to domestically produced bottled water has been the increasing import penetration of luxury bottled water brands. IBISWorld expects industry revenue to increase an annualized 1.0% to $634.0... Learn More

8. Athletic & Sporting Goods Manufacturing in Canada

2022 Overall Risk Score: 6.5

The abundance of low-cost sporting goods from global manufacturers has hampered growth for the Athletic and Sporting Goods Manufacturing industry in Canada over the five years to 2021. More retailers have stocked low-cost sporting goods from overseas manufacturers to appeal to budget-conscious consumers. In addition, the industry is highly fragmented, with many manufacturers specializing in a particular sporting activity. However, a favourable shift in consumer attitudes toward health and fitness has increased demand for industry products among a variety of age groups over the past five years. Overall, IBISWorld projects industry revenue to grow an annualized 1.3% to $1.6 billion... Learn More

9. Metal Stamping & Forging in Canada

2022 Overall Risk Score: 6.4

The Metal Stamping and Forging industry in Canada manufactures metal products using a variety of pressing machines and localized compressive forces. Industry products may be made of steel or nonferrous metals, such as aluminum, which are typically used as components in downstream manufacturing processes. Buyers of forged and stamped metal products include the commercial aerospace, defence and agricultural machinery manufacturing markets, among others. However, trade tensions with the United States have hindered industry performance, coupled with the effects of the COVID-19 (coronavirus) pandemic. Despite Canada imposing surtaxes as a countermeasure, industry revenue is expected to fall at an annualized rate... Learn More

10. Paper Product Manufacturing in Canada

2022 Overall Risk Score: 6.4

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