Based on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Riskiest Industries in the UK in 2019
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View a list of the Top 25 riskiest industries2019 Overall Risk Score: 7.2
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. Weak economic conditions have provided further complications for the industry, as businesses and households have reduced their spending on stationery products. Additionally, rising import penetration has negatively influenced the industry's performance. Industry revenue is projected to decline at a compound annual rate of 8.2% over the five years through 2019-20. Industry profitability is also expected to decline due to falling demand, strong pricing pressure... Learn More
2019 Overall Risk Score: 6.9
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
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
2019 Overall Risk Score: 6.6
In global terms, the United Kingdom is a minor producer of coal. Production has fallen sharply since the early 1970s, plunging when a large number of 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 UK’s electricity. Over the five years through 2019-20, industry revenue is anticipated to fall at a compound annual rate of 27.7%, as a result of government efforts to phase out the use of coal and volatile coal prices. In the current year, revenue is expected to decline by 20.9% to £140.9 million.Coal releases... Learn More
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 70.6% 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 2.4% 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,... Learn More
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
2019 Overall Risk Score: 6.4
The Pesticide and Other Agrochemical Manufacturing industry’s revenue has been volatile and is expected to contract at a compound annual rate of 0.7% over the five years through 2019-20. The performance of the industry relies on a range of factors, the most important of which have historically been oil prices and downstream demand from agriculture. Chemical pesticides are an integral part of Britain’s agriculture sector and play an important role in boosting output and productivity. The industry’s product portfolio has evolved in line with technological advances, changing land use and use of pesticides overall. Manufacturers have improved their product ranges by... Learn More
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
2019 Overall Risk Score: 6.3
Firms in the Basic Steel Processing industry produce a variety of intermediate steel products including steel bars, strip, wire and sections. Typically, these would be sold as inputs to business in other industries. Over the past five years, industry revenue has been highly volatile, echoing conditions in the wider economy. A significant fall in global steel prices in 2015 caused industry revenue to contract over 2015-16. However, a resurgence in steel prices the following year helped to boost industry revenue by 11.2% in 2016-17. Overall, IBISWorld expects the industry's revenue to grow at a compound annual rate of 0.6% over... Learn More
2019 Overall Risk Score: 6.2
Industry operators have encountered challenging conditions during the past five years. Revenue grew in 2015-16, as improving economic conditions enticed businesses to increase spending on furniture. However, revenue fell from 2016-17 as the uncertainties caused by the EU referendum encouraged businesses to cautiously manage spending budgets. Meanwhile, the strong growth in online sales caused severe challenges to bricks-and-mortar retailers and forced thousands of high-street stores to close. This reduced demand for furniture and contributed to the fall in revenue. Similarly, the downsizing of government departments had a negative influence on demand. In addition, import competition intensified and resulted in the... Learn More
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