Industries with Least Risky Business Environments in Canada in 2023

1. Cannabis Production in Canada

Business Environment Risk for 2023: 2.83

Cannabis producers in Canada have blossomed in recent years as recreational products were legalized in 2018, opening up massive growth. Since Health Canada opened up medicinal cannabis production to more players in 2013, producers have grown continuously as they invest in production capabilities to produce quality products. As consumers shifted from illegal cannabis purchases to the licensed recreational market, cannabis growers have grown significantly, but revenue is expected to expand 17.5% in 2023 alone as the novelty of legal cannabis has worn off and most the black market has shifted to licensed purchases, which has decreased growth. Revenue has ballooned... Learn More

2. Oil Change Services in Canada

Business Environment Risk for 2023: 3.56

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

3. Auto Mechanics in Canada

Business Environment Risk for 2023: 3.69

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

4. Auto Parts Stores in Canada

Business Environment Risk for 2023: 3.77

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. Eyeglasses & Contact Lens Stores in Canada

Business Environment Risk for 2023: 3.78

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

6. Battery Manufacturing in Canada

Business Environment Risk for 2023: 3.84

The Battery Manufacturing industry in Canada has experienced strong growth in recent years; there is growing demand for batteries in various applications, including portable electronics, electric vehicles, and renewable energy storage. This has created opportunities for Canadian battery manufacturers to expand their operations and increase production. The Canadian government has made significant investments in the development and commercialization of battery technology, including funding research and development programs, providing tax incentives and supporting the growth of the electric vehicle industry. This support has helped to attract investment and create opportunities for Canadian battery manufacturers. Consequently, industry revenue is anticipated to grow... Learn More

7. Automobile Electronics Manufacturing in Canada

Business Environment Risk for 2023: 3.95

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.

Industry exports... Learn More

8. Ski & Snowboard Resorts in Canada

Business Environment Risk for 2023: 3.98

The Ski and Snowboard Resorts industry in Canada has experienced meager growth over the five years to 2023 due to steep declines caused by COVID-19. However, rising per capita disposable income during most of the period gave consumers more discretionary income, enabling them to spend more on recreational activities, such as skiing and snowboarding. Overall, industry revenue is expected to increase an annualized 0.2% to $1.5 billion over the five years to 2023.

The COVID-19 pandemic had a remarkable impact on all tourism-related industries as travel restrictions enacted to prevent the spread of the virus ultimately prevented tourism. Provincial lockdowns... Learn More

9. Car Body Shops in Canada

Business Environment Risk for 2023: 4.02

Car body shops offer necessary and discretionary services for a variety of vehicles, ranging from painting and window tinting to bodywork repairs. Body shops have contended with volatile conditions in recent years as the pandemic shook both the world and Canadian economies. Although body shops were deemed essential businesses, demand dropped significantly as lockdowns kept people from driving. The prices of key commodities shot up in the wake of pandemic-related restrictions as supply lagged behind surging demand, pressuring profit. Altogether, Canadian car body shop revenue has been falling at a CAGR of 0.4% to $7.6 billion, despite an anticipated growth... Learn More

10. Auto Parts Wholesaling in Canada

Business Environment Risk for 2023: 4.03

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