Industries with Least Riskiest Business Environments in Canada in 2025

• 1. Automobile & Light-Duty Motor Vehicle Manufacturing in Canada

  Business Environment Risk for 2025: 4

  Canadian automakers have faced severe volatility through the current period, especially given prominent offshoring trends over the past two decades. Higher labor costs, smaller markets and lower economies of scale have encouraged automakers in Canada to prioritize the United States and Mexico, leading to greater import exposure. Most notably, passenger vehicle production volumes have plummeted in Canada, with a majority of automakers instead prioritizing SUVs and light trucks. Regardless, tot...

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• 2. Automobile Wholesaling in Canada

  Business Environment Risk for 2025: 4

  High prices have become the signature challenge for the industry, as rising costs for materials like plastics spill over, pressuring companies to strategically price their offerings. Meanwhile, original equipment manufacturers (OEMs) that manufacture and sell cars directly to consumers remain a genuine challenge, prompting the industry to focus on competitive pricing to maintain its market appeal. Notably, the end of the iZEV program, which once provided economic incent...

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• 3. Truck & Bus Manufacturing in Canada

  Business Environment Risk for 2025: 4

  Truck and bus manufacturing remains a staple in the Canadian economy since transporting people and goods is paramount to a healthy economy. Even so, the pandemic slashed demand for truck and bus manufacturers since lockdown restrictions limited manufacturing capabilities, international trade and downstream demand. However, robust e-commerce demand, along with favorable construction spending programs, especially as people returned to work, and the economy's overall recovery in the latter half ...

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• 4. Dairy Wholesaling in Canada

  Business Environment Risk for 2025: 4

  Companies in the Dairy Wholesaling industry in Canada wholesale various dairy products, including raw milk, processed milk, butter, cheese, cream, ice cream and yogurt, 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 ...

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• 5. Seafood Preparation in Canada

  Business Environment Risk for 2025: 4

  In recent years, Canada's Seafood Preparation industry has demonstrated resilience and adaptability in a rapidly evolving market. This industry, which plays a critical role in the country's food sector and makes significant export contributions, has faced numerous challenges and opportunities. Recent performance highlights include steady growth driven by domestic consumption and exports, alongside an increasing focus on sustainability and innovation. These factors have shaped a dynamic landsc...

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• 6. Media Streaming, Social Networks & Other Content Providers in Canada

  Business Environment Risk for 2025: 4

  Canada’s media streaming and content provider industry is in the throes of a sweeping transformation, driven by dramatic shifts in consumer behaviour and technological advancement. In recent years, cord-cutting has reached an all-time high, with traditional TV subscriptions experiencing their steepest single-year drop yet. Over 10 million Canadian households are now exclusively subscribed to at least one streaming platform, a telling sign of how thoroughly digital services have eclipsed the o...

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• 7. Renewable Power in Canada

  Business Environment Risk for 2025: 4

  Renewable power producers have endured declines, largely because of drought conditions impacting hydroelectric generation in provinces like British Columbia and Manitoba. These challenges have led to increased reliance on electricity imports and have raised operational costs, hindering profit. However, Hydro-Québec's resilience, because of more favourable conditions, has allowed it to maintain stability and even expand its market share. Industry revenue has been decreasing at a CAGR of 1.9% o...

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• 8. Bars & Nightclubs in Canada

  Business Environment Risk for 2025: 4

  Facing shifting social trends and a pandemic, bars and nightclubs in Canada have seen a slump in recent years. Canadians are increasingly choosing to consume alcohol at home, with per capita alcohol intake dropping over the last five years. Additionally, bars faced stiff competition from restaurants and alternate entertainment outlets serving alcohol. To the industry's benefit, revenue has recovered from the pandemic low, albeit expected to remain below the pre-pandemic...

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• 9. Freight Forwarding Brokerages & Agencies in Canada

  Business Environment Risk for 2025: 4

  Over the last five years, the industry has reflected responses to evolving inventory strategies and shifting trade conditions. Companies have scaled back on earlier stockpiling practices intended to address supply concerns, moving toward leaner, more demand-driven inventory models. These changes reduced the need for extensive forwarding services, leading to more cost-conscious and flexible scheduling of goods movement. Companies responded by investing in system upgrades and partnering with su...

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• 10. Auto Mechanics in Canada

  Business Environment Risk for 2025: 4

  Auto mechanics provide mechanical and electrical repair and maintenance for various vehicles, including cars, trucks and vans. The industry is typically stable because, regardless of the state of the economy, cars still need to be maintained. However mechanics have faced volatility over the past five years as the Canadian economy has fluctuated in the years following the pandemic. The number of vehicle registrations has consistently increased over the past five years, creating a steady need f...

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