Industries with Most Risky Business Environments in Canada in 2024

1. Coal Mining in Canada

Business Environment Risk for 2024: 7.3

Operators in the Coal Mining industry in Canada have experienced considerable fluctuations in prices of industry goods. Canadian coal mining revenue has been increasing at an annualized 11.3% over the past five years, including an estimated 32.3% decrease in 2023, and is expected to total $19.0 billion. In 2023, profit is set to increase to 32.1%. The industry has two primary products, metallurgical coal used for steel production and thermal coal used in energy generation. At the start of the current period, global oversupply and falling demand resulted in low prices and revenue. Subsequent price growth between 2016 and 2018... Learn More

2. Oil Drilling & Gas Extraction in Canada

Business Environment Risk for 2024: 7.1

Oil Drilling and Gas Extraction in Canada have grown tremendously, resulting from rising prices and additional investment in production. Oil and gas companies suffered significantly in 2020 amid the pandemic as prices drastically fell amid lockdowns. As the economy reopened, the need for oil and gas became apparent and prices skyrocketed, bolstering revenue. Overall, revenue is expected to grow at a CAGR of 7.4% to $173.5 billion over the five years to 2023, despite a decline of 22.2% in 2023 alone. Profit has also fluctuated. Many companies endured below zero profits before it rose after the pandemic.

Despite operating volatility, Canada... Learn More

3. Iron & Steel Manufacturing in Canada

Business Environment Risk for 2024: 7.1

Iron and steel manufacturers melt and refine iron ore into pig iron, which is processed into steel and shaped in various shapes for downstream construction- and manufacturing-related industries. Manufacturers are directly affected by changing prices for steel. Volatility in steel prices has increased since the COVID-19 pandemic. A limited global supply of steel has caused a sharp uptick in the price of steel alongside growing demand. Revenue is expected to grow at a CAGR of 3.0% to $18.9 billion through the end of 2023, despite a decline of 6.9% in 2023 alone.

Revenue for manufacturers follows a variety of factors, including... Learn More

4. Steel Rolling & Drawing in Canada

Business Environment Risk for 2024: 7.0

Steel rollers and drawers have faced declines over the current period. Plummeting growth from automobile manufacturers and climbing import penetration have hindered performance. Falling steel prices over the current period have also led to price-based losses and profit loss as clients pressured steel rollers and drawers to pass on cost decreases. Exports to the US were a boon to steel rollers and drawers amid declines in the domestic market. Overall, industry-wide revenue has been falling at a CAGR of 3.1% over the past five years and is expected to total $1.9 billion in 2023, when revenue will dip by an... Learn More

5. Metal Stamping & Forging in Canada

Business Environment Risk for 2024: 6.9

Metal stampers and forgers in Canada manufacture metal products using a variety of pressing machines and localized compressive forces. Industry products may be made of steel or nonferrous metals, such as aluminum, which are typically used as components in downstream manufacturing processes. Buyers of forged and stamped metal products include the commercial aerospace, defence and agricultural machinery manufacturing markets, among others. However, trade tensions with the United States, geopolitical uncertainty and the COVID-19 pandemic have hindered industry performance. Industry revenue has decreased at a CAGR of 8.9% throughout 2023, including a decline of 6.0% to total an estimated $1.4 billion... Learn More

6. Oil & Gas Field Services in Canada

Business Environment Risk for 2024: 6.9

Oil and gas field service operators in Canada have experienced volatile market conditions throughout 2023. World commodity prices performed well throughout the reporting period. However, a fall in natural gas and crude oil prices adversely affected revenue in 2020 and 2032. This decrease in revenue can be mainly attributed to the COVID-19 pandemic and other geopolitical tensions that caused the collapse in oil and gas demand and prices. As economic conditions improved from the peak of the pandemic, demand for oil and gas returned to pre-pandemic levels and even reached new highs. As a result, IBISWorld forecasts revenue has been... Learn More

7. Iron Ore Mining in Canada

Business Environment Risk for 2024: 6.9

Iron is a primary input in steel production, and therefore, performance in the Canadian Iron Ore Mining industry is closely tied to the strength of the global economy due to the widespread use of steel globally. Trade is a significant part of the industry and global economic performance helps drive demand for the industry. Heightened demand from China alongside expansions from other major trading partners has caused considerable growth in the world price of iron ore. This has been exacerbated by soaring iron ore prices, inflating the value of industry goods. Overall, industry revenue has been rising an annualized 11.5%... Learn More

8. Recyclable Material Wholesaling in Canada

Business Environment Risk for 2024: 6.9

Canada's Recyclable Material Wholesaling industry has exhibited roller coaster growth over the five years to 2022. Companies collect, sort and bundle any recyclable material and then sell it to different entities for recycling when commodities such as wood pulp increase in price, scrap paper can be sold for more since these will go through the recycling process and become new steel or form ready to be used. As a consequence, the volatility of these commodities transfers to industry revenue. Industry revenue is expected to increase an annualized 1.9% to $16.7 billion over the five years to 2023, despite a forecast... Learn More

9. Mining, Oil & Gas Machinery Manufacturing in Canada

Business Environment Risk for 2024: 6.6

Canada is one of the world's largest producers of crude oil and natural gas, as well as a range of other metal and mineral commodities. This has traditionally benefited the Mining, Oil and Gas Machinery Manufacturing industry, which produces goods used by extraction industries. Revenue is closely tied to commodity prices, as these can dictate levels of investment and activity by extraction companies. Commodity prices have been hugely volatile over the five years to 2023, with the prices of many goods tanking, causing exploration activity and demand for industry products to fall in certain years. Overall, IBISWorld estimates that industry... Learn More

10. Copper, Nickel, Lead & Zinc Mining in Canada

Business Environment Risk for 2024: 6.6

Copper, nickel, lead and zinc mine operators rely heavily on the market prices of the metals they produce. According to a 2018 British Geological Survey report (latest data available), Canada is one of the 10 largest global producers of nickel, copper and zinc. The most valuable metals are nickel and copper, key inputs for many products. Product prices can shift significantly in response to changing global market conditions, prompting significant revenue and profit volatility. Although nickel and zinc prices have grown during the period, declining domestic production has damaged industry performance. COVID-19 presented a considerable challenge to mine operators in... Learn More