Industries with Most Risky Business Environments in the UK in 2024

1. Hard Coal Mining in the UK

Business Environment Risk for 2024: 7.5

Over the five years through 2022-23, hard coal mining revenue is forecast to fall at a compound annual rate of 26.2%. Before COVID-19 hit, coal prices were inching downwards as demand for coal from electricity generators fell. The drop in sales and revenue has contributed to a sharp drop in the number of UK coal mines in the UK, with numerous mining licences expiring.

The COVID-19 outbreak accelerated the closure of coal mines in the UK; however, as the pandemic started to wind down, coal prices rose in response to supply chain disruptions. Russia's invasion of Ukraine has also played a... Learn More

2. Steel Drum & Similar Container Manufacturing in the UK

Business Environment Risk for 2024: 7.1

The Steel Drum and Similar Container Manufacturing industry's revenue is expected to contract at a compound annual rate of 1.7% over the five years through 2023-24. The pandemic caused significant damage to downstream manufacturers, limiting the need for steel drums and containers. However, the industry benefitted from the swift recovery of downstream buyers like those in the food and drink sectors. Domestic steel drum and container manufacturers have struggled with steep competition from imports, with manufacturers in China benefitting from cheaper steel, labour and energy costs.

The Steel Drum and Similar Container Manufacturing industry's revenue is estimated to shrink by 0.2%... Learn More

3. Healthcare Construction in the UK

Business Environment Risk for 2024: 7.0

Companies in the Healthcare Construction industry construct, repair, maintain and alter health and social care buildings and facilities on behalf of private and public-sector entities. While private finance plays a vital role in the funding of healthcare real estate and infrastructure development, the capital departmental expenditure limit (DEL) of the Department of Health and Social Care (DHSC) underpins healthcare construction procurement in the National Health Service (NHS) and among NHS trusts. Healthcare estate provides the foundations for good health and social care delivery. As such, capital investment funding for healthcare construction projects has remained at the forefront of government policy,... Learn More

4. Iron & Steel Manufacturing in the UK

Business Environment Risk for 2024: 6.9

Over the five years through 2022-23, revenue is expected to fall at a compound annual rate of 4.1%. Large amounts of cheap steel on the global market have undercut British prices and caused major 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. The industry is also wracked by volatility as overproduction followed by strict pandemic restrictions in China have caused global steel prices to fluctuate.

The Russian invasion of Ukraine... Learn More

5. Chemical & Fertiliser Mineral Mining in the UK

Business Environment Risk for 2024: 6.7

The Chemical and Fertiliser Mineral Mining industry's revenue has expanded at a compound annual rate of 1.1% over the past five years. The industry's production has shifted considerably as the largest mineral extractor, Cleveland Potash, changed its mine's production from muriate of potash to sulphate of potash (polyhalite) in 2018, causing revenue to fall as the company had to ramp up production. The two other major companies in the industry, Schlumberger Oilfield and Fluorsid British Fluorspar have also shifted production, with Schlumberger opening a new mine and Fluorsid moving mining operations from the western to the eastern portion of its... Learn More

6. Vodka Distilleries in the UK

Business Environment Risk for 2024: 6.6

Alcohol consumption, demand from pubs and bars, disposable income, health consciousness and the exchange rate heavily influence vodka distilleries revenue. The COVID-19 pandemic led to strict restrictions imposed on the hospitality sector, with sales to the on-trade tumbling as a result. Rising rates of at-home social gatherings led to an uptick in sales to the off-trade, although this wasn't enough to prevent a substantial fall in revenue and profitability in 2020-21. Revenue rebounded in 2021-22 as social distancing restrictions eased and people flocked back to bars and pubs. Demand for premium spirits is driving revenue growth in 2023-24, although it's... Learn More

7. Organic Basic Chemical Manufacturing in the UK

Business Environment Risk for 2024: 6.5

Revenue is expected to contract at a compound annual rate of 1.6% to £11 billion over the five years through 2023-24. The pandemic significantly disrupted downstream manufacturing activity, as buyers had lower production, reducing the need for organic basic chemicals used as intermediate products. The temporary closure of construction sites across the UK during the COVID-19 outbreak meant sales of organic basic chemicals used to make plastic piping, wire coatings, insulation and other construction products fell, dampening revenue.

The Russian invasion of Ukraine hiked the price of key inputs like crude oil and natural gas. While high gas and oil prices... Learn More

8. Mortgage Brokers in the UK

Business Environment Risk for 2024: 6.5

Mortgage broker revenue is anticipated to increase at a compound annual rate of 3.6% over the five years through 2023-24 to £2 billion. Growth has been driven by rising residential property transactions stimulated by government initiatives and rising house prices. However, mortgage brokers have faced numerous challenges, including downward pricing pressures from upstream lenders and a sharp downturn in the housing market as rising mortgage rates begin to bite, resulting in revenue growing by an estimated 1% in 2023-24.

After a standstill in residential real estate activity in the immediate aftermath of the COVID-19 outbreak, ultra-low base rates, the release of... Learn More

9. Off-Licences in the UK

Business Environment Risk for 2024: 6.5

Off-licences are facing major hurdles. Supermarkets have been undercutting them on prices and online retailers have been further eating into the market, undercutting off-licences because they don't have to pay for rent or customer-facing staff. The COVID-19 pandemic helped a bit by shutting down the hospitality sector, cutting out a key source of competition, but revenue still fell in 2020-21 and now off-licences are feeling the squeeze again.

In 2023-24, surging food and energy costs are set to tighten household budgets, reducing demand for wine, beer, spirits and snacks – that's why is forecast to contract by 2.5%. Shifting attitudes toward... Learn More

10. Bridal Stores in the UK

Business Environment Risk for 2024: 6.5

Bridal boutique revenue is expected to creep downwards at a compound annual rate of 3.1%. Unsurprisingly, bridal store revenue is heavily influenced by the marriage rate. Unfortunately, changing social structures make marriage less of a priority – with Britons prioritising expenditure on education, travel and other experiences over-elaborate weddings. Historically marriage has also been viewed as an economic contract, a way for men to support women financially. Still, times have changed, and it's becoming easier for women not to marry if they don't want to. Regulatory changes like the Marriage (Same Sex Couples) Act have boosted legal partnerships and ceremonies,... Learn More