Industries with Most Risky Business Environments in the UK in 2023

1. Wired Telecommunications Carriers in the UK

Business Environment Risk for 2023: 6.8

Over the five years through 2022-23, wired telecommunications carriers' revenue is set to contract at a compound annual rate of 3.5% to £16.5 billion. Declining revenue has come from consumer preferences shifting to wireless telecommunications as they've improved in quality. Nevertheless, demand for fast and reliable connections and the expansion of full-fibre network services have somewhat supported demand.

Mobile and digital technologies are becoming more popular at the expense of wired telecommunications services, like landline telephony. Providers have attempted to mitigate lower demand for industry services by bundling traditional telecommunication offerings with popular services. However, this has come at the expense... Learn More

2. Healthcare Construction in the UK

Business Environment Risk for 2023: 6.7

Operators in the Healthcare Construction industry are contracted to construct, repair, maintain and alter health and social care buildings and facilities on behalf of private and public-sector entities. While private finance plays an important 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 a result, capital investment funding for healthcare construction projects has remained at the... Learn More

3. Direct Selling & Marketing in the UK

Business Environment Risk for 2023: 6.7

The Direct Selling and Marketing industry provides services to consumers away from a fixed retailing location and exclusively through personal contact. The industry markets and retails a wide variety of products, such as cosmetics, wellness products and clothing. The sale of fuel and food for immediate consumption does not fall under this industry. The industry markets itself through two methods: single-level marketing (SLM), where representatives earn money solely from commission; and multi-level marketing (MLM), where representatives earn commission from both their sales and those that they have recruited. MLM is expected to account for over three-quarters of industry revenue in... Learn More

4. Video & Game Rental in the UK

Business Environment Risk for 2023: 6.6

Industry operators rent physical copies of films, TV programmes and games in stores or over the internet to be delivered by post. The industry does not include the provision of media through streaming services (see IBISWorld report SP0.017), such as subscription video on demand providers, or downloadable games. Following the shift in consumer preference towards streaming services and the subsequent exit of major industry players, the industry has undergone massive structural change and is now highly fragmented.

Industry revenue is forecast to decline at a compound annual rate of 28.3% over the five years through 2022-23 to £13.5 million. This includes... Learn More

5. Electrical Household Appliance Retailing in the UK

Business Environment Risk for 2023: 6.6

Electrical household appliance retailers are vulnerable to fluctuations in consumer spending patterns, housing market volatility and e-commerce trends. The COVID-19 outbreak wreaked havoc on this industry. The housing market was put on the back burner, with property transactions falling to a record low in April 2020. The closures of non-essential businesses including those in this industry accelerated the ongoing death of the high-street. The slowdown in housing transactions limited demand for white goods (think large domestic appliances, e.g. washing machines) which are big-ticket, high-margin products. That's why both revenue and the average profit margin dipped over 2020-21. The pandemic has... Learn More

6. Solar Panel Installation in the UK

Business Environment Risk for 2023: 6.6

The UK solar market has exploded over the past 15 years, with more than 14,000 megawatts of capacity installed in 2022, a huge jump from less than 15 megawatts in 2007. The majority of this growth occurred prior to cuts to government incentives in January 2016, though renewed government support has driven an uptick in installations over the last couple of years. Variations in the level of government support for solar power have spurred significant volatility for solar panel installers. Overall, revenue has shot up at a compound annual rate of 18.3% to £1.3 billion over the five years through... Learn More

7. Hard Coal Mining in the UK

Business Environment Risk for 2023: 6.6

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

8. Removal Services in the UK

Business Environment Risk for 2023: 6.5

Demand for the Removal Services industry, which provides removal and relocation services to businesses and households by road, is highly dependent on activity in the residential and commercial property markets, and customers' willingness to spend on the range of extras that specialist removal firms offer. The industry's performance has fluctuated over the past five years. Industry revenue is expected to increase at a compound annual rate of 2.3% over the five years through 2022-23 to reach £1.2 billion.

Government support for the UK housing market is expected to have supported strong demand for industry services from households for most of the... Learn More

9. Footwear & Leather Goods Repair in the UK

Business Environment Risk for 2023: 6.4

The Footwear and Leather Goods Repair industry is composed of companies that repair or restore footwear, handbags and other leather goods. Over the majority of the past five-year period, industry growth has been constrained by challenging operating conditions. Low-cost imported shoes with thermoplastic soles have led to consumers opting for replacements over repairs. However, weak consumer confidence has supported demand, as low-income consumers have looked to reduce discretionary expenditure by repairing their shoes. Over the five years through 2022-23, industry revenue is anticipated to contract at a compound annual rate of 15.9%, including growth of 2.6% in the current year,... Learn More

10. Railway & Underground Railway Construction in the UK

Business Environment Risk for 2023: 6.4

Rail construction firms work under contract from public sector bodies funded by the Department for Transport (DfT) to develop and maintain the UK rail network. Network Rail organises investment in rail into five-year cycles called Control Periods (CP), which can induce volatility – this was displayed at the end of CP5, when revenue peaked in 2018-19 before crashing at the start of CP6. A full public sector wallet for rail infrastructure has added to volatility and supported an upward revenue trend. Revenue has increased at a compound annual rate of 8% over the five years through 2022-23 to £2.7 billion.

Train... Learn More