Industries with Riskiest Business Environments in United Kingdom in 2026

• 1. Hard Coal Mining in the UK

  Business Environment Risk for 2026: 8

  Over the five years through 2024-25, hard coal mining revenue is forecast to sink at a compound annual rate of 39.7% to £11.9 million, including an 83% fall in revenue in 2024-25 due to Merthyr (South Wales) stopping trading as it finished selling its coal reserves in 2023-24. Leaving Energybuild as the only large-scale coal mine in the UK. This follows the long term decline of the industry, caused by falling sales and weak profitability, which slashed the number of UK coal mines in the UK fr...

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• 2. Steel Tube, Pipe & Related Fitting Manufacturing in the UK

  Business Environment Risk for 2026: 7

  The Steel Tube, Pipe and Related Fitting Manufacturing industry has been affected by high volatility in global upstream and downstream markets. British oil and gas stocks are sinking, with only hard-to-reach reserves remaining untapped. Even during times of successful exploration, volatile global oil prices have reduced the incentive for production. Ballooning energy prices caused by the Russia-Ukraine conflict have eaten away at industry profitability as the manufacture of steel products is ...

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• 3. Sugar Production in the UK

  Business Environment Risk for 2026: 7

  The UK Sugar Production industry is dominated by just three major companies: British Sugar, T&L Sugars and Ragus. This concentration allows them to exert significant control over production but also requires strategic navigation of challenges to maintain market stability and competitiveness. The industry's close ties to farming significantly influence its performance, prompting substantial investments in sustainability to ensure long-term viability. Producers are also grappling with risin...

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• 4. Petroleum Refining in the UK

  Business Environment Risk for 2026: 7

  Petroleum refining companies in the UK produce a wide variety of products. Fuels for transport and heating are the most common, with petroleum products for transport consistently accounting for almost three-quarters of product demand, according to DESNZ. Industry revenue is expected to swell at a compound annual rate of 8.8% over the five years through 2025-26 to £44.8 billion, including a forecast dip of 2.2% in 2025-26, owing to staggering volatility in crude petroleum and fuel prices in re...

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• 5. Clothing Manufacturing in the UK

  Business Environment Risk for 2026: 7

  The UK Clothing Manufacturing industry is in decline owing to severe labour shortages, surging input prices and intense import competition. Over the five years through 2024-25, revenue is expected to contract at a compound annual rate of 6% to £2.2 billion. This is partly due to a sharp revenue decline in 2020-21 caused by disruption created by COVID-19, followed by the cost-of-living crisis slashing disposable incomes in 2022-23. Over 2024-25, revenue is expected to tumble by 1.8% as inflati...

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• 6. Healthcare Construction in the UK

  Business Environment Risk for 2026: 7

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• 7. Iron & Steel Manufacturing in the UK

  Business Environment Risk for 2026: 7

  Over the five years through 2025-26, iron and steel manufacturing revenue is expected to climb at a compound annual rate of 1.9% to £7.7 billion. Heaps of cheap steel on the global market have undercut British prices and caused big trade partners like the EU to institute import quotas. Unable to lower prices because of high labour costs and environmental charges, industry giants like British Steel and Tata Steel have stated a need for government intervention to continue operating. Both compan...

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• 8. Gin Production in the UK

  Business Environment Risk for 2026: 7

  UK gin producers face a mixed picture. The waning interest in gin reflects a natural tapering off after the explosive growth of the 2010s, driven by regulatory changes that sparked the “gin renaissance.” This boom, capitalised on by a flood of new distilleries and product innovation, made gin a staple in both bars and homes. But as the initial excitement fades and consumers’ tastes change, producers are grappling with declining consumption volumes that weigh on revenue. The downturn has been ...

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• 9. Consumer Electronics Manufacturing in the UK

  Business Environment Risk for 2026: 6

  The Consumer Electronics Manufacturing industry has struggled over the years because of plummeting consumer confidence and fierce international competition. This industry operates globally, fulfilling most domestic demands through imports. Manufacturers outside the UK often operate from low-cost countries, gaining the upper hand in economies of scale and selling their products at competitive prices. The UK industry has focused heavily on research and development and automation to keep pace wi...

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• 10. Solar Panel Installation in the UK

  Business Environment Risk for 2026: 6

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