Riskiest Industries in the UK in 2022

1. Healthcare Construction in the UK

2022 Overall Risk Score: 7.5

Operators in the Healthcare Construction industry are contracted to construct, repair, maintain and alter health and social care buildings and facilities on behalf of private and public-sector entities. While private finance plays an important role in the funding of healthcare real estate and infrastructure development, the capital departmental expenditure limit (DEL) of the Department of Health and Social Care (DHSC) underpins healthcare construction procurement in the National Health Service (NHS) and among NHS trusts. Healthcare estate provides the foundations for good health and social care delivery. As a result, capital investment funding for healthcare construction projects has remained at the... Learn More

2. Fruit & Vegetable Retailers in the UK

2022 Overall Risk Score: 6.9

Firms in the industry sell fresh and preserved fruits and vegetables in specialised stores. Rising health consciousness has boosted consumption of fruit and vegetables over the past decade. Further, demand for organic and local produce has risen, supporting industry revenue. However, the industry has been exposed to intense competition, primarily from supermarkets, which are able to undercut the prices offered by specialised retailers, using strong bargaining power and wide access to economies of scale. Over the five years through 2022-23, industry revenue is forecast to increase at a compound annual rate of 4.7% to reach £1.3 billion.

In 2020-21, as a... Learn More

3. Hard Coal Mining in the UK

2022 Overall Risk Score: 6.8

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 accounted for less than 1.6% of the UK's electricity generation during 2020, according to the Department for Business, Energy and Industrial Strategy. The industry has been in decline over the past five years, with only four mines currently operating in the United Kingdom. Revenue is forecast to fall at a compound annual rate of... Learn More

4. Clothing Manufacturing in the UK

2022 Overall Risk Score: 6.6

Over the five years through 2022-23, industry revenue is expected to decrease at a compound annual rate of 9.2%. Historically, industry operators have relied on the strength of the Made in Britain label and the boom in emerging economies, creating a new wave of consumers with spending power, desiring British-made goods and brands such as Mulberry and Burberry. Moreover, production in the Far East is not as cost-efficient as it once was, causing several businesses to relocate production facilities closer to home. The boom in popularity of fast fashion has also afforded the industry an opportunity for expansion as consumers... Learn More

5. Direct Selling & Marketing in the UK

2022 Overall Risk Score: 6.6

The Direct Selling and Marketing industry provides services to consumers away from a fixed retailing location and exclusively through personal contact. The industry markets and retails a wide variety of products, such as cosmetics, wellness products and clothing. The sale of fuel and food for immediate consumption does not fall under this industry. The industry markets itself through two methods: single-level marketing (SLM), where representatives earn money solely from commission; and multi-level marketing (MLM), where representatives earn commission from both their sales and those that they have recruited. MLM is expected to account for over three-quarters of industry revenue in... Learn More

6. Online Women's Clothing Retailing in the UK

2022 Overall Risk Score: 6.5

Over the five years through 2022-23, the Online Women's Clothing Retailing industry has thrived, with revenue anticipated to increase at a compound annual rate of 6.6% over the period. The industry has boomed largely due to demand for fast, affordable fashion, social media and the introduction of credit and financing services such as buy-now-pay-later platforms that have allowed consumers to better manage household budgets, encouraging consumption.

Despite the overall positive outlook, however, operators continue to contend with sustainability concerns and labour exploitation allegations. Over 2022-23, revenue is expected to increase at a slower rate of 3.2% reaching £11.6 billion. Demand is... Learn More

7. Convenience Stores in the UK

2022 Overall Risk Score: 6.5

The Convenience Stores industry sells an extensive selection of products, including tobacco, chilled food, frozen products, toiletries and other household goods. Industry establishments typically fall into three categories: non-affiliated independent retailers, convenience multiples and symbol group-affiliated franchises. Over the five years through 2022-23, industry revenue is anticipated to increase at a compound annual rate of 3.1% to reach £47.3 billion, owing to trends in local top-up shopping. The COVID-19 (coronavirus) pandemic further encouraged customers to shop closer to home and increase their purchase volumes, to the benefit of convenience stores. However, increasing competitive pressure from discount chains and supermarkets has... Learn More

8. Florists in the UK

2022 Overall Risk Score: 6.4

The Florists industry is made up of enterprises that specialise in the retailing of flower products and the provision of floristry services, providing products and services both in store and online. The industry excludes non-specialist online retailers, supermarkets and department stores. Competition from these large external players and online florists has been a significant challenge for industry operators over the past five years. Competition has intensified during the COVID-19 pandemic, pushing bricks-and-mortar florists to the fringes of the market. Supermarkets are increasingly viewed as cheap, convenient and quality places to purchase flowers, at the expense of specialist retailers.

Industry revenue is... Learn More

9. Market Research & Public Opinion Polling in the UK

2022 Overall Risk Score: 6.4

The industry conducts data analysis and market research on behalf of corporate clients and public bodies. Facing a highly competitive environment, industry firms have had to gain an edge over their competitors over the past five years, seeking new ways to expand operations while maintaining profit margins. Investing heavily in technology, players have endeavoured to develop more sophisticated methods for data collection and analysis. Industry revenue is expected to decline at a compound annual rate of 2.3% over the five years through 2022-23 to reach £4.9 billion. This is mainly due to falling business confidence caused by a combination of... Learn More

10. Building Project Development in the UK

2022 Overall Risk Score: 6.4

The financial and operational performance of development markets rests on a number of economic and socio-economic factors, ranging from property valuations and price movements to market sentiment and credit conditions. Over the five years through 2022-23, industry revenue is forecast to increase at a compound annual rate of 0.5%, reaching £36.4 billion. While the EU referendum dampened investor sentiment and cooled property markets, the collective performance of UK property developers remained resilient before the COVID-19 (coronavirus) pandemic. Against a backdrop of policy support, high levels of housebuilding investment translated into strong demand for development solutions. Moreover, select growth markets in... Learn More