Riskiest Industries in the UK in 2019

1. Paper Stationery Manufacturing in the UK

2019 Overall Risk Score: 7.0

Operators in the Paper Stationery Manufacturing industry have endured tough conditions during the past five years due to the continued proliferation of electronic communication, data transfer and storage at the expense of traditional paper stationery products. At the start of the past five-year period, weak economic conditions provided further complications for the industry as businesses and households reduced spending on stationery products. Additionally, rising import penetration and dwindling exports prior to the post-referendum depreciation of the pound also negatively influenced the industry's performance. Industry revenue is projected to decline at a compound annual rate of 8.6% over the five years... Learn More

2. Tyre Manufacturing in the UK

2019 Overall Risk Score: 6.7

The Tyre Manufacturing industry has been in steady decline over the past five years, despite a rise in vehicle manufacturing activity at the start of the period and an increase in the number of motor vehicles registered in the United Kingdom throughout the five years. Although the pound has been weakened following the EU referendum, strong import competition, dwindling export sales and reductions in manufacturing capacity have all challenged industry performance over the past five years. A fall in global rubber prices at the start of the five-year period also had a dampening effect on revenue, as it forced operators to... Learn More

3. Newspaper Publishing in the UK

2019 Overall Risk Score: 6.7

In the past decade, the traditional revenue model of UK newspaper publishers has been eradicated by falling demand for print media and considerable declines in advertising revenue. The transformation from print to digital has proved difficult, with publishers still attempting to adapt to the online market. Over the five years through 2018-19, industry revenue is anticipated to decline at a compound annual rate of 4.7% to £4.2 billion. In 2018-19, revenue is estimated to fall by 2.9%.UK newspaper publishers have traditionally had two revenue channels consisting of print advertising and newspaper sales, both of which have contracted consistently over the past five... Learn More

4. Paper & Paperboard Manufacturing in the UK

2019 Overall Risk Score: 6.6

The Paper and Paperboard Manufacturing industry is crumpling under the pressure of the ongoing adoption of computers and other communication technology, which is reducing paper usage. This downward trend in demand has been compounded by strong competition from low-cost imports, as imports satisfy approximately 71.6% of domestic demand. Industry revenue has fallen for the majority of the past decade and is expected to decline at a compound annual rate of 2.9% over the five years through 2019-20. Over the past 10 years, many leading manufacturers have exited the industry, which has also contributed to its decline. The industry is consolidating, with major players... Learn More

5. Newsagents & Stationery Stores in the UK

2019 Overall Risk Score: 6.4

In the five years through 2019-20, operating conditions have been difficult, largely due to increasing levels of IT and telecommunications adoption which have occurred globally, mostly in the form of smartphone technology. Online retailing of stationery has grown dramatically in this time, while the circulation of newspapers has plummeted. Other external players have increased the variety of produce on offer and reduced their prices. As the Newsagent and Stationery Stores industry has been unable to compete with such prices, it has been left in a state of decline. Industry revenue is forecast to decline at a compound annual rate of 3.7% over the five years through 2019-20. In the current year, revenue is expected to... Learn More

6. Open-Ended Investment Company Activities in the UK

2019 Overall Risk Score: 6.4

Open-ended investment companies (OEICs) and unit trusts are both types of collective investment schemes that can constantly adjust their portfolios to maximise returns, given a specific investment remit. The size of the fund depends on demand for fund shares, which are created and cancelled upon purchase and redemption. Therefore, the fund size is proportional to its investment performance. OEICs are priced to reflect the net asset value (assets less liabilities) of their investments and may have multiple share classes. Funds invest in a range of assets, including domestic and global equities, government and corporate fixed-income securities, and a range of derivatives. While fund... Learn More

7. Precious Metals Production in the UK

2019 Overall Risk Score: 6.4

Industry operators recycle gold, silver and platinum group metals from a range of materials. Sales of platinum group metals are heavily influenced by the performance of the automotive industry as the commodity is used to manufacture catalytic converters. In general, platinum is more prevalent for diesel vehicles and palladium for petrol vehicles, although all catalysts contain a proportion of platinum, palladium and rhodium. Gold and silver are both used to make jewellery and have a variety of industrial uses, but they are also popular with investors, who consider them a safe haven for their wealth when returns elsewhere are uncertain. This investment... Learn More

8. Second-Hand Goods Stores in the UK

2019 Overall Risk Score: 6.3

The industry sells used items such as clothing, furniture, electrical equipment, books and homeware in stores and online. Operators include both charity retailers and for-profit organisations. Charity retailers typically collect items donated by members of the public and sell them on, using any profit to finance their charitable activities. For-profit stores buy used items and antiques and sell them on for a small profit. The industry excludes online-only enterprises. Second-hand goods tend to be considered inferior goods. As a result, demand generally decreases as incomes rise.

Over the five years through 2018-19, industry revenue is expected to grow at a compound... Learn More

9. Hard Coal Mining in the UK

2019 Overall Risk Score: 6.3

In both European and global terms, the United Kingdom is a minor producer of coal. Production has fallen sharply since the early 1970s, plunging as mines were closed in the mid-1980s. Coal was responsible for over two-thirds of electricity generation in the 1990s, but it is now expected to only generate less than 5% of the United Kingdom's electricity. Government efforts to phase out the use of coal combined with the relatively low world price of steaming coal is expected to result in industry revenue falling at a compound annual rate of 19.6% over the five years through 2018-19. During... Learn More

10. Crude Petroleum & Natural Gas Extraction in the UK

2019 Overall Risk Score: 6.3

Oil and gas production in the United Kingdom has declined since its peak in the late 1990s as existing fields have matured and it has become increasingly challenging to develop new commercially viable sources. Operators have been able to endure this instability by forming partnerships to pool their resources and make extraction more efficient. The industry ramped up investment prior to the start of the current five-year period, with efforts aimed at softening the blow of declining output. Some operators are expected to reap the benefits of this early investment with a number of new fields coming on stream in... Learn More