Business information analysts IBISWorld this month compiled a list of which Australian business sectors are about to rise and fall in 2011.
Is your industry among them?
According to IBISWorld the top growing industry in 2011 is organic farming, followed by the video game industry. On the other side of the spectrum the industry that will take the greatest fall will be wired telecommunications carriers, followed closely by apple and pear growing.
The Top Five
The Australian organic farming industry will grow 14% and the reasons for this growth are, according to IBISWorld General Manager Mr Robert Bryant, “Higher disposable incomes, coupled with rising awareness of environmental sustainability and the increased convenience of organic foods”.
The video game industry is expected to grow 11.9%. Mr Robert Bryant justifies this growth by stating that “older gamers are maintaining their interest at the same time as new gamers embrace industry products as a fresh form of entertainment.” The Video Game Industry is expected to make $433.85 million more in 2011 than in 2010.
In third place comes the electricity distribution industry with a growth of 9.3%, which translates in $3.6 billion in 2011, as electricity prices will continue to increase and more expensive renewable energy will continue to grow.
The motor cycle dealing industry comes in fourth place with a 7.4% growth expected in 2011. “More people will seek a move away from traditional cars towards alternative means of transport as they try to cut costs and act upon mounting concerns over fuel efficiency and environmental impacts,” said Mr Robert Bryant.
In fifth place is the domestic airlines industry with a growth of 6.8% as it is expected that the low ticket prices of 2009 and 2010 will rise and return to normal in 2011.
The Bottom Five
The industry that will take the greatest dive in 2011 will be wired telecommunications carriers with a loss of 8.1%. According to IBISWorld this loss is due to the competition with mobile carriers and the rise of the DSL and VoIP products which take consumers away from wired carriers.
In second place comes the apple and pear growing industry with a loss of 6.8%. The cause of this fall is due to lower prices that are a result of the opening up of the Australian market. “Relatively new competitors, such as China, are rapidly ramping up production of fruit varieties currently grown by Australian farmers,” said Mr Robert Bryant.
The Australian telecommunications reseller industry comes in third place with losses of $146.9 million, -5.4% when compared to 2010. These losses are due to the intense and increasing competition, especially in the mobile sector.
In fourth place from the bottom is the Australian recorded media manufacturing and publishing industry with a decline in revenue growth of 2.1%. The reason for this fall is the CD and DVD sales decline in recent years, mostly due to content downloading and live streaming through the internet.
The professional photography industry in Australia will also take a dive this year with losses of 1.2%. The main reason for this loss is the fierce competition with 9000 professionals looking for a shot which results in lower prices and lower revenues for the industry.