Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Industries with Least Risky Business Environments in Canada in 2024
The 10 Industries with Least Risky Business Environments in Canada
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1. Auto Mechanics in Canada
Business Environment Risk for 2024: 3.53
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
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2. Auto Parts Stores in Canada
Business Environment Risk for 2024: 3.66
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
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3. Semiconductor & Other Electronic Component Manufacturing in Canada
Business Environment Risk for 2024: 3.71
Canadian semiconductor and other electronic component manufacturers produce various input devices for circuits and memory chips. In recent years, manufacturers experienced mild volatility amid continued offshoring and greater competition from US and East Asian manufacturers. Any expansion has been driven by robust demand for domestically and abroad semiconductor products, and a global shortage for electronic components. COVID-19 has diminished manufacturers' performance by disrupting production plans and creating supply chain challenges. Industry-wide revenue is expected to rise at a CAGR of 0.3% to $5.4 billion over the five years to 2023, when revenue is forecast to jump 6.4% as high prices... Learn More
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4. Oil Change Services in Canada
Business Environment Risk for 2024: 3.77
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
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5. Car Wash & Auto Detailing in Canada
Business Environment Risk for 2024: 3.79
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
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6. New Car Dealers in Canada
Business Environment Risk for 2024: 3.82
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
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7. Eyeglasses & Contact Lens Stores in Canada
Business Environment Risk for 2024: 3.85
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
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8. Street Vendors in Canada
Business Environment Risk for 2024: 3.96
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
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9. Children's & Infants' Clothing Stores in Canada
Business Environment Risk for 2024: 3.97
The Children's and Infants' Clothing Stores industry includes stores specializing in retailing apparel for children under the age of 17 and online sales. While macroeconomic growth has encouraged shoppers to splurge on high-end children's clothing through the end of 2023, many apparel purchases have been captured by industries that directly compete for consumer dollars. For example, online-only shopping retailers have become increasingly acceptable and preferable, siphoning demand away from brick-and-mortar establishments. This digitization push resulted in revenue falling at a CAGR of 2.3% to an estimated $2.1 billion in 2023, despite 2.1% revenue growth in 2023. The average profit margin... Learn More
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10. Motorcycle, Boat & ATV Dealers in Canada
Business Environment Risk for 2024: 4.01
Revenue for the Motorcycle, Boat and ATV Dealers industry in Canada is poised for a modest expansion. The industry sells and repairs motorcycles, ATVs and personal watercraft. Since the industry caters primarily to consumers, it is heavily reliant on discretionary spending and national unemployment levels. While disposable income levels have risen overall, unemployment has contracted, slightly hindering revenue growth. Nonetheless, industry revenue is anticipated to rise 3.2% in 2023 alone, as growing consumer spending and confidence are expected to propel demand for industry products. Overall, industry revenue is projected to grow at a CAGR of 0.5% to $9.4 billion over... Learn More
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Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Most Profitable Industries in Canada in 2024
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