Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Industries with Most Risky Business Environments in Australia in 2024
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View a list of the Top 25 industries with most risky business environmentsBusiness Environment Risk for 2024: 7.6
Coal is a key input in steelmaking and energy generation. Although coal deposits are found all over the world, Australia is one of the world's lowest cost producers and a major coal exporter. Domestic reserves exceed domestic demand, are high grade and economical to access. As a result, exports account for a large share of coal mining revenue. Imports are negligible, as local production is higher than domestic demand for coal. Black coal mining accounts for most activity, with some brown coal used domestically for electricity generation in Victoria.
Coal mining revenue is expected to grow at an annualised 14.6% over... Learn More
Business Environment Risk for 2024: 7.1
The Cotton Ginning industry is an important part of the agricultural support services and national cotton sectors, and is closely linked to the Cotton Growing industry. Various factors also indirectly affect cotton ginners, like climatic conditions, water supply regulation, cotton stockpiling, and global cotton consumption and production fluctuations. Typically, cotton is harvested and ginned towards the end of the financial year, with any surplus production carried into the following year. Higher cotton production correlates with higher revenue, often with a one-year delay due to the timing of harvest season. The variability of these factors has caused significant revenue volatility in... Learn More
Business Environment Risk for 2024: 7.0
The Non-Depository Financing industry has grown on the back of increased loan volumes. The low interest rate environment that characterised the Australian lending landscape for most of the past five years lowered profit margins for non-bank lenders, but also spurred on higher volumes of activity with many businesses and households feeling empowered to take out loans, even without deposits. Tighter lending standards placed upon conventional banks in the wake of the Banking Royal Commission have indirectly benefited non-bank lenders, with many borrowers looking to them for easier and less restricted access to loans. Strong housing market growth and capital expenditure... Learn More
Business Environment Risk for 2024: 6.9
Iron ore miners have benefited from major increases in iron ore prices, and modest growth in production volumes over the past five years. Iron ore revenue is expected to increase at an annualised 8.1% over the five years through 2022-23, to total an estimated $124.1 billion. Strong demand from China and disruptions to iron ore producers in Brazil prior to, and during the COVID-19 pandemic, sent iron ore prices soaring. Iron ore prices are projected to fall in 2022-23, prompting iron ore revenue to drop an estimated 16.2% over the year.
Over the past decade, strong economic growth in China has... Learn More
Business Environment Risk for 2024: 6.9
Oil and gas producers have experienced significant revenue volatility. Changes in oil and gas prices, exchange rate movements, annual production volumes, and domestic and export demand for oil and gas all influence performance. Output has expanded over the past decade, while world oil and natural gas prices have displayed significant volatility.
Australia's natural gas production, which makes up most of the industry has soared over the past decade as new gas fields have been developed to feed Australia's liquefied natural gas (LNG) facilities. Global trade in LNG has expanded with growing demand for LNG in Asian markets and weakness in the... Learn More
Business Environment Risk for 2024: 6.9
The injection of public funding and progress on landmark public-private partnership (PPP) developments has underpinned record levels of activity in the Road and Bridge Construction industry and supported an improved profit performance. Many of the industry's smaller contractors also benefitted from growth in roadwork on residential subdivisions in response to the surge in house construction under the Commonwealth's HomeBuilder stimulus. Industry revenue is expected to climb at an annualised 0.6% through 2023-24 to reach a record $34.9 billion, with the pace of expansion moderated by the commencement and completion of large-scale motorway, bridge and tunnel developments.
Public sector funding by each... Learn More
Business Environment Risk for 2024: 6.9
The Federal Government's investment in the NBN rollout has underpinned the Fibre Optic Cable Installation industry's performance over the past five years. The NBN's objective is to provide all Australian households, businesses and government agencies with an advanced communications platform to access internet-based data and entertainment. NBN Co oversees this project and is responsible for supplying Australia's broadband network, including wholesaling network access to retail communication companies. NBN Co contracts industry operators to design and construct the network, with the prime contractors assigned the responsibility of the rollout in specific states and regions. This process involves the engineering design, procurement... Learn More
Business Environment Risk for 2024: 6.8
The Petroleum Refining and Petroleum Fuel Manufacturing industry has faced highly volatile conditions over recent years, as the COVID-19 pandemic wreaked turmoil on global energy supply chains. The global situation filtered down to Australia's petroleum market, contributing to the closure of two of Australia's last four remaining oil refineries. BP closed its refinery in Kwinana, while ExxonMobil shut down the Altona refinery. The closures resulted in these two energy giants leaving the industry altogether. Both the closed refineries were converted into import terminals, which meant that they directly intensified import competition in the industry. Overall, industry revenue is expected fall... Learn More
Business Environment Risk for 2024: 6.7
Lubricants and other petroleum product manufacturers further refine heavy and light oil components into various petroleum-based products using oil and grease base stocks with key products such as lubricating oils and greases, bitumen and aromatic hydrocarbons. Some players also distil coal to produce coke and coal tar. Industry products are used to construct roads; run vehicles, machinery and equipment; and in general manufacturing. Therefore, various external factors influence the industry's performance, including developments in the upstream petroleum refining and coal mining sectors and in key downstream user industries such as mining, construction and various manufacturing industries. The industry has been... Learn More
Business Environment Risk for 2024: 6.7
The Olive Growing industry has displayed significant volatility over the past five years. Weather conditions directly affect industry output as olives are water-intensive. As a result, annual rainfall and water availability influence production. As rainfall and water extraction levels are typically volatile, industry revenue often fluctuates from year to year. Olive growing often runs on fluctuating cycles, with a year of high production typically followed by a year of lower production volumes. This is also partially attributable to the biennial nature of olive tree fruiting. Olive production has been volatile over the past five years, but has declined overall. Agricultural... Learn More
Based on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Fastest Declining Industries in Australia by Revenue Growth (%) in 2024
VIEW ARTICLEBased on the expert analysis and our database of 750+ AU industries, IBISWorld presents a list of the Least Risky Industries in Australia in 2024
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