Least Risky Industries in the UK in 2022

1. Renewable Electricity Generation in the UK

2022 Overall Risk Score: 3.21

The composition of UK energy production has undergone substantial change in recent years, guided by a radical shift in focus among the public, policymakers and industry participants towards renewable energy. Increased awareness about the effects of climate change has driven an aggressive decarbonising strategy, spearheaded by the Renewable Electricity Generation industry. Under the National Renewable Energy Action Plan, the United Kingdom aimed to ensure that 30% of electricity generation is satisfied by renewable sources in 2020. Significant expansion of renewable generating capacity has enabled the achievement of this target, with renewables accounting for 43.1% of UK electricity generation in 2020,... Learn More

2. Shipbuilding in the UK

2022 Overall Risk Score: 3.33

Industry operators build military vessels for the Royal Navy and foreign governments. Industry revenue is anticipated to expand at a compound annual rate of 2.4% over the five years through 2021-22 to reach £6.1 billion. This includes revenue growth of 3.1% in the current year. Import competition in the passenger ship segment has remained intense over the past five years due to lower production costs in Europe and Asia. Nevertheless, exports are expected to account for a large share of revenue, at 14.4% in the current year.

Revenue growth at the start of the period was supported by the construction of... Learn More

3. Chemical & Fertiliser Mineral Mining in the UK

2022 Overall Risk Score: 3.41

The Chemical and Fertiliser Mineral Mining industry has been subject to volatile conditions over the past five years. The industry transitioned to the production of polyhalite, which led to a substantial reduction in potash prices and significant revenue decline for much of the past five years. However, production of polyhalite in 2018 has given the industry a new lease of life. Cleveland Potash Ltd, the largest firm in the industry, has transitioned into a polyhalite-only mining business. Industry players were able to continue production despite the COVID-19 (coronavirus) outbreak, with firms implementing social distancing measures and other safety measures to... Learn More

4. Intercity Passenger Rail Transport in the UK

2022 Overall Risk Score: 3.51

The Intercity Passenger Rail Transport industry includes large multinational rail companies that operate mainline rail services, in addition to a number of smaller operators that run and maintain heritage and tourist railways. Performance as a whole is affected by many different factors, including the total number of passenger rail journeys made each year, government subsidies, regulatory changes, the rate of unemployment, and the relative cost of travelling by rail as opposed to by alternative modes of transport. The latter is principally influenced by fuel costs; when these are high, people tend to opt for public transport over car usage.

Over the... Learn More

5. Airports in the UK

2022 Overall Risk Score: 3.56

Demand for the Airports industry is primarily influenced by trends in domestic and international air travel, as operators provide support activities to both passenger and freight transport operators. Airports have increasingly diversified their sources of revenue, expanding into other commercial markets such as retail concessions, other property and car parking facilities. Industry revenue is expected to be very highly volatile over the five years through 2021-22, as growing demand for airlines over the first half of the period boosted demand for support services provided by airports. However, disruption from the COVID-19 (coronavirus) pandemic offset this growth, causing revenue to contract... Learn More

6. Risk & Damage Evaluation in the UK

2022 Overall Risk Score: 3.71

The industry acts as an outsourced claim adjusting and processing service for insurers. The industry also provides services to policyholders in the form of independent third-party validation, or the contesting of evaluations made by assessors employed by the insurers underwriting the policy. Demand for the industry's services is closely aligned with the level of outsourcing insurers opt to undertake, insurance coverage and the occurrence of insured risks that give rise to the need for assessing damage caused and the level of pay-outs. Over the five years through 2021-22, industry revenue is expected to increase at a compound annual rate of... Learn More

7. Satellite Telecommunications Activities in the UK

2022 Overall Risk Score: 3.74

Satellite information technology and telecommunications (IT&T) companies are either proprietors of satellite infrastructure, or otherwise lease network capacity from owner-operators, to then resell and or repackage capacity further downstream. However, all operators in the Satellite Telecommunications Activities industry provide satellite-enabled connectivity related to broadcasting, communications, Earth observation and ancillary aerospace-related services to customers in the downstream business-to-business (B2B), business-to-consumer (B2C) and public markets. Over the five years through 2021-22, industry revenue is expected to rise at a compound annual rate of 5.8%, driven by the growing need for global connectivity in modern society. Lead generation for satellite IT&T services has... Learn More

8. Agricultural Insurance in the UK

2022 Overall Risk Score: 3.79

Over the past five years, operators in the Agricultural Insurance industry have struggled with poor investment returns, volatility in underwriting returns and dampened demand induced by the COVID-19 (coronavirus) outbreak. Additionally, significant damage was caused by natural disasters, particularly flooding, which raised the value of claim pay-outs. Operators have also contended with increasingly stringent regulatory requirements, such as the Solvency II directive. Due to these operating difficulties, smaller companies in the industry have chosen to phase out or end agricultural insurance to focus on higher-margin insurance markets. Industry revenue is expected to decrease at a compound annual rate of 0.1%... Learn More

9. Flat Glass Shaping & Processing in the UK

2022 Overall Risk Score: 3.80

Industry operators shape, bend, etch, bond and otherwise process flat glass for use in downstream construction and automotive markets. Performance is therefore intrinsically tied to activity levels in these downstream industries, which tend to run procyclical to the wider economy. Industry revenue is expected to decline at a compound annual rate of 0.1% over the five years through 2021-22 to £1.8 billion. Modest industry expansion during 2017-18 was supported by robust demand from residential construction markets against a backdrop of policy support for the housing market. However, uncertainty surrounding near-term economic prospects has weighed on activity in downstream commercial construction... Learn More

10. Ready-Mixed Concrete Manufacturing in the UK

2022 Overall Risk Score: 3.82

Ready-mixed concrete (RMC) is the principal material input for infrastructure, building foundations and panels cast on-site. RMC manufacturers batch, mix and deliver concrete to contractors in downstream construction markets. Industry performance is therefore contingent on levels of activity in commercial residential and civil infrastructure construction industries, which are sensitive to fluctuations in the wider economy. The industry offers a variety of products to cater to the diverse needs of downstream clients, from standard RMC to high-performance and rapid-setting ranges.

Over the five years through 2021-22, industry revenue is expected to decrease at a compound annual rate of 5% to £3.1 billion,... Learn More