Industries with Least Risky Business Environments in Canada in 2024

1. Auto Mechanics in Canada

Business Environment Risk for 2024: 3.65

Auto mechanics in Canada have been providing widely accepted and increasingly diverse automotive repair services to individual and business customers. Revenue growth is determined by demand from consumers, businesses and government agencies, most of which have increasingly sought out industry services due to rising total vehicle-kilometres and motor vehicle registrations. But industry revenue declined at a CAGR of 0.2% to $11.5 billion through the end of 2023, including a 4.5% increase in 2023, when profit reached 7.8%. This increase in 2023 can be mainly attributed to improving economic conditions after the pandemic. As more people get back on the road,... Learn More

2. Eyeglasses & Contact Lens Stores in Canada

Business Environment Risk for 2024: 3.75

The Eyeglasses and Contact Lens Stores industry in Canada sells eyeglasses, contact lenses, sunglasses, safety eyewear and optical accessories. Over the five years to 2023, the industry has benefited from favourable population demographics. The burgeoning elderly population has boosted the number of optometrist visits to address age-related eyesight issues. Meanwhile, changing fashion trends have hastened many consumers' replacement cycles and have caused a shift toward high margin, designer eyewear. Further, the industry has been relatively insulated from external competitors, such as online retailers that lack brick-and-mortar establishments and deliver directly to the customers via mail. Dispensing prescription glasses is highly... Learn More

3. New Car Dealers in Canada

Business Environment Risk for 2024: 3.77

Revenue for the Canadian New Car Dealers industry in Canada has declined in recent years. While demand for automobiles had been driven by healthy economic conditions, such as rising consumer confidence and low unemployment, the COVID-19 pandemic caused the reversal of many of these trends. Due to the government's Economic Response Plan regarding the pandemic, disposable income in Canada rose in 2020 following various programs and support payments made to individuals and families, protecting operators from experiencing a more profound revenue decline. Rising disposable income encourages consumers to make big-ticket discretionary purchases, such as new vehicles, although elevated interest rates... Learn More

4. Auto Parts Stores in Canada

Business Environment Risk for 2024: 3.78

Despite broader economic volatility in recent years, auto parts stores have had success growing revenue, which is determined by demand from both household and commercial clients. The COVID-19 pandemic severely eroded revenue in the retail sector over 2020, but due to the essential nature of auto parts stores, they remained open and experienced expansion. This contributed to solid growth for auto parts stores in recent years, as revenue has grown an annualized 2.4% to reach $7.5 billion over the five years to 2023, including 1.1% over 2023 alone. Profit has fallen over the past five years as price-based competition has... Learn More

5. Oil Change Services in Canada

Business Environment Risk for 2024: 3.80

The Oil Change Services industry in Canada has experienced growth over the five years to 2023. Industry establishments provide motor oil change services for cars, in addition to lubricating car chassis and providing other repair and maintenance services. Typically, demand for oil changes and other vehicle maintenance services is determined by the total number of vehicles on the road. Over the past five years, industry demand has grown with an increasing number of motor vehicle registrations; however, the COVID-19 pandemic and high fuel prices have posed a challenge to many businesses. Overall, industry revenue is forecast to increase at CAGR... Learn More

6. Home Furnishings Stores in Canada

Business Environment Risk for 2024: 3.83

Throughout 2023, Canadian home furnishing stores, for the most part, performed poorly. The combination of economic uncertainty and an extremely volatile housing market decreased demand for home furnishings. Uncertainty in the housing market in 2018; however, caused by new mortgage regulations and concerns of a potential bubble hurt the industry. As more stringent mortgage regulations went into force in 2018 and 2020, the industry continued to struggle. Overall, revenue is expected to decline during the current period, but has been aided by an increase in consumer spending. Revenue is still expected to decrease at a CAGR of 1.9% to $4.9... Learn More

7. Optometrists in Canada

Business Environment Risk for 2024: 3.86

Despite experiencing intensifying competition from online ophthalmological goods retailers, Canadian optometrists have grown in recent years. Demand has been driven by a burgeoning elderly population and increased awareness of the importance of eye health. Increased advertising has benefited optometry practices as several provincial organizations implemented advertising campaigns to raise public awareness of the potential hazards of purchasing online eyewear products. One potential hazard is the product's incorrect prescription, which could negatively affect eyesight.

In addition to a changing competitive landscape, optometrists have had to adapt to a new regulatory environment. For example, in British Columbia, the deregulation of prescription eyewear permitted... Learn More

8. Street Vendors in Canada

Business Environment Risk for 2024: 3.88

Over the past five years, the Street Vendors industry found an opportunity in the pandemic, which prompted welcomed advancements and innovations in mobile food sales. Street vendors have benefited from serving high-quality food at budget prices amid a ballooning interest in healthy and diverse food choices. Product innovation has also been a staple of the street vending landscape as food trucks and stalls have incorporated more audacious recipes to attract new customers. These trends have propelled revenue at a CAGR of 5.9% over the past five years, reaching an estimated $374.9 million in 2023, including an 0.5% increase in 2023... Learn More

9. Car Wash & Auto Detailing in Canada

Business Environment Risk for 2024: 3.89

An expanding economy has moderated revenue declines in the car wash industry over the five years to 2023. Businesses have benefited from higher disposable income and increased vehicle registration, which has supported demand for industry services. However, the COVID-19 (coronavirus) pandemic led to a considerable drop in industry performance in 2020 as less travel translated to lower need for industry-relevant services. Recovery following these disruptions has been bogged down by rising consumer prices, which has decreased inflation-adjusted industry revenue. Car wash and auto detailing revenue has been decreasing at a CAGR of 2.1% over the past five years, and is... Learn More

10. Hardware Stores in Canada

Business Environment Risk for 2024: 3.98

Canadian hardware stores retail a variety of building and home renovation supplies to professional contractors and consumers, characterized by their homogeneous products, leading to a high level of price-based competition among the many small hardware stores. The industry has floundered over much of the five years to 2023 because of a mediocre housing market and boosting interest rates, a trend that was exacerbated by the closure of many retail outlets for several months in 2020 due to the COVID-19 pandemic. However, the housing market exploded in 2020 and 2021, a trend from which hardware stores in Canada benefited, resulting in... Learn More