We have just gone over the industries that are set to boom this year according to the predictions of the business information analysts over at IBISWorld.
So if you were not on that list, you better cross your fingers and hope that you are not on this one either. The soothsayers have determined that this year will not be good for five particular sectors.
So without further ado, here are the businesses whose owners might soon need a hug…
1. Video and DVD hire outlets
How badly is it expected to perform?
Revenue in this industry is predicted to fall by 14.8 per cent in 2014 to $534.2 million.
Why is it expected to perform this badly?
Pay TV, the internet and new online entrants, such as streaming services will put up even stiffer competition and continue to choke video and DVD hire outlets out of the market.
They have been declining for some time now and improvements in technology will only continue to make it easier and cheaper for us to purchase movies over the internet.
I mean, who wants to walk all the way to the neighbourhood DVD hire shop when there’s Netflix right on the couch? Not me…
2. Sugarcane growing
How badly is it expected to perform?
Here, revenue is predicted to slump by 11.4 per cent in 2014 to $1.1 billion.
Sour expectations for sugarcane growers, the irony.
Why is it expected to perform this badly?
Things have not been going so well for these guys for some time now thanks to adverse growing conditions, particularly due to extreme weather patterns over the past five years.
Volatile fluctuating levels in global prices have also kept this industry on tenterhooks.
3. Mineral exploration
How badly is it expected to perform?
The mineral exploration industry is expected to contract by 7.7 per cent over 2014.
Why is it expected to perform this badly?
The slowing Chinese economy is bad news for these guys, as well as the increasing global mineral output which has unsurprisingly lowered world prices for the major commodities.
Plus, most of the established miners are shifting their focus from exploration to production.
4. Newspaper publishing
How badly is it expected to perform?
Newspaper publishing’s revenue is predicted to fall by 6.3 per cent to $4.0 billion.
Why is it expected to perform this badly?
In this Internet age, it comes as no surprise that less people are reading physical newspapers and more are turning to the internet for news.
I mean, look where you are reading this!
There is also higher competition from overseas mastheads, particularly from Fleet Street and the American press, which offer both global and domestic perspectives, unlike the local newspapers which only service the domestic market.
5. Horse and dog racing
How badly is it expected to perform?
Revenue from horse and dog racing is expected to slump 3.7 per cent in 2014 to $1.6 billion.
Why is it expected to perform this badly?
Unfavourable red tape in form of tightening government regulations and restrictions has resulted in fewer quality horse imports into Australia, reducing the public’s interest in racing events hence lower attendance figures which in turn translate into lower revenue.
Plus, the proliferation of corporate bookmaker services available online and on smartphones is not helping either when it comes to attendance numbers.
Let’s wait and see whether they will fail as expected, or surprise us against the odds.
