Riskiest Industries in the UK in 2021

1. Demolition in the UK

2020 Overall Risk Score: 7.2

Services provided by contractors in the Demolition industry are required by general building firms and property developers that plan redevelopments on land where obsolete structures still exist. Demolition firms are contracted to either completely demolish or selectively dismantle structures during the pre-construction development phase. Consequently, the industry's performance is procyclical, characteristically running in tandem with downstream investment in new construction. Specialist operators may offer decommissioning services which relate to the decontamination and deconstruction of nuclear power and pharmaceutical facilities.

Over the five-year period through 2020-21, industry revenue is anticipated to increase at a compound annual rate of 0.9% to reach £886.7... Learn More

2. Site Preparation in the UK

2020 Overall Risk Score: 7.1

Operators in the Site Preparation industry remediate land, complete enabling works, and clear would-be construction sites of debris, in order to make land plots safe and ready so prospective developments can seamlessly begin on site. Unlike most construction trades, site preparation contractors are seldom able to supplement turnover with projects on existing developments; without the demolition of an existing structure, or the need to remediate prospective development land, the need for site preparation is limited. Tender opportunities for site preparation contractors tend to only arise when sites must be cleared prior to construction activity taking place.

Site preparation contractors have endured... Learn More

3. Executive Search Recruiters in the UK

2020 Overall Risk Score: 6.9

Executive search recruiters, known informally as headhunters, specialise in the recruitment of senior or executive personnel on behalf of clients. Demand for the industry's services is largely influenced by the health of the wider economy; weak business confidence weighs on demand for industry services to fill high-level positions. Revenue growth was recorded year-on-year over the three years through 2018-19, though the COVID-19 (coronavirus) pandemic is anticipated to reverse this trend over the two years through 2020-21. Over the five years through 2020-21, industry revenue is expected to fall at a compound annual rate of 4.3%, including a contraction of 17.8%... Learn More

4. Paper Stationery Manufacturing in the UK

2020 Overall Risk Score: 6.8

Industry revenue is expected to decline at a compound annual rate of 13.8% over the five years through 2020-21 to £227.3 million. 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. Rising import penetration has negatively influenced the industry's revenue performance. Many retailers have reported rising demand for luxury notebooks and planners,... Learn More

5. Abrasive Product Manufacturing in the UK

2020 Overall Risk Score: 6.8

The Abrasive Product Manufacturing industry produces different abrasives, such as coated, bonded, grain and superabrasives, for a range of applications. The industry is dominated by four large companies, collectively accounting for approximately 55.2% of industry revenue, alongside a number of small and medium-size businesses. Industry demand is determined by downstream manufacturing and construction operations.

Over the five years through 2020-21, industry revenue is expected to decline at a compound annual rate of 2.6%. With the industry's main downstream clients, both in the manufacturing and construction sectors, enduring tough operating conditions over the period, demand for abrasive products has fallen significantly. Fluctuating... Learn More

6. Newsagents & Stationery Stores in the UK

2020 Overall Risk Score: 6.7

In the five years through 2020-21, operating conditions in the Newsagents and Stationary Stores industry have proven difficult, largely due to increasing IT and telecommunications adoption, which has occurred globally, largely in the form of smartphone technology. Online retailing of stationery has grown dramatically, while the circulation of newspapers has plummeted. Struggling to compete, the industry has been left in a state of decline. These trends have been accentuated in 2020-21, as the outbreak of COVID-19 (coronavirus) led to the temporary closure of non-essential stores and industry operators have fallen behind in the competition against online shopping, digitalisation and supermarkets.... Learn More

7. Light Metal Casting in the UK

2020 Overall Risk Score: 6.6

Light metals, such as aluminium, titanium and magnesium, have a low atomic weight compared to other metals. They are cast into components for many engineered products, including automotive and aerospace parts. As a result, the industry's largest downstream markets are motor vehicle manufacturers and aerospace manufacturers. The industry has a moderate level of concentration, with just three firms having market shares greater than 10%, together combining to represent 50.8%.

Declining car registrations, aircraft orders and aluminium prices have weighed on industry revenue growth over the five years through 2020-21. Prior to the COVID-19 (coronavirus) outbreak, car registrations were declining steeply for... Learn More

8. Workwear Manufacturing in the UK

2020 Overall Risk Score: 6.6

The Workwear Manufacturing industry produces specially made workwear for use in a variety of downstream markets. Industry operators primarily manufacture work shirts, overalls and high visibility garments. Demand for the industry's products and services is influenced by the level of activity in downstream industries. The industry contends with a high level of import penetration, which weighs on prices and profit margins. Over the five years through 2020-21, industry revenue is forecast to decrease at a compound annual rate of 5.8% to £261.4 million. Economic uncertainty over the past five years has constrained business confidence which affected expansion decisions and demand... Learn More

9. Book Retailers in the UK

2020 Overall Risk Score: 6.6

Over the five years through 2020-21, industry revenue is anticipated to decrease at a compound annual rate of 7.3%, although this mask a considerable degree of revenue volatility. The Book Retailers industry faced difficult operating conditions at the start of the past five-year period, as strong online sales limited demand for bricks-and-mortar stores. Increased online competition has also weighed on the industry over the period. However, industry operators have increasingly adopted strategies aimed at improving their ability to compete with external threats, such as renovating stores.

In 2020-21, industry revenue is anticipated to decline by 19.7% to £823.3 million, largely due... Learn More

10. Residential Building Construction in the UK

2020 Overall Risk Score: 6.6

The Residential Building Construction industry's performance is contingent on cyclical economic fluctuations, and the propensity of property developers to invest in new ventures; movements in property prices, which are conditional on the housing stock demand-and-supply ratio and dictate equity levels; government schemes intended to boost the housing supply; and underlying sentiment in the housing market, which influences property investment and mortgage market activity.

While EU-referendum-related market uncertainties persisted and house price inflation somewhat stalled, industry revenue expanded for five consecutive years through 2018-19 with the support of government programmes and new funding to induce land development and housebuilding activity. However, lower... Learn More