Industries with Least Risky Business Environments in Canada in 2025

1. Eyeglasses & Contact Lens Stores in Canada

Business Environment Risk for 2025: 3.52

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

2. Auto Mechanics in Canada

Business Environment Risk for 2025: 3.57

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

3. Auto Parts Wholesaling in Canada

Business Environment Risk for 2025: 3.61

Auto parts wholesalers in Canada has contracted over the five years to 2023, stemming from COVID-19, which substantially impacted demand from downstream markets in 2020 and 2021. These wholesalers struggled with cementing its place within the automotive supply chain with auto parts manufacturers expansively solidifying their ties with automakers directly. In 2020, a steep reduction in the production and sales of new vehicles, as well as less driving by consumers, reduced demand for auto parts. Overall, auto parts wholesalers are expected to drop at a CAGR of 1.2% to $18.9 billion through the end of 2023, despite higher downstream demand... Learn More

4. Auto Parts Stores in Canada

Business Environment Risk for 2025: 3.67

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. Semiconductor & Other Electronic Component Manufacturing in Canada

Business Environment Risk for 2025: 3.77

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

6. Car Wash & Auto Detailing in Canada

Business Environment Risk for 2025: 3.78

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

7. Oil Change Services in Canada

Business Environment Risk for 2025: 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

8. New Car Dealers in Canada

Business Environment Risk for 2025: 3.88

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

9. Dairy Wholesaling in Canada

Business Environment Risk for 2025: 3.91

Companies in the Dairy Wholesaling industry in Canada wholesale various dairy products, including raw milk, processed milk, butter, cheese, cream, ice cream and yogourt, to downstream customers, such as grocery stores and food service establishments. Over the past five years, the industry has experienced solid growth as consumers have increased consumption of various dairy products, resulting in increased demand from downstream customers and rising production of many industry goods. While the industry has consolidated to compete more effectively with vertically integrated dairy processors, it has performed well overall. Overall, revenue has risen an annualized 1.5% to $11.5 billion over the... Learn More

10. Automobile Electronics Manufacturing in Canada

Business Environment Risk for 2025: 3.94

Over the five years to 2023, slight growth in the Automobile Electronics Manufacturing industry in Canada is expected to be fueled by temporary factors, chiefly strong trade prospects. Despite a decline in vehicle production, the growing popularity of industry products have supported company performance. Disruptions due to the pandemic caused a large drop in revenue, though partial recovery is expected to have occurred. Reflecting these developments, industry revenue has been declining at a CAGR of 2.6% over the past five years, and is expected to total $2.2 billion in 2023. Growth of 1.6% is expected over the current year.

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