By Dan Barrett

Growing Industries In Australia

Businesses



In preparing to launch a small business, an entrepreneur will need to determine just how viable a business within their chosen industry is today and consider whether it will still have that potential five years from now.
It would be ill-advised, for example, to open a video store today with the home entertainment market shifting to online delivery, or a tobacco shop with fewer people smoking nowadays. In identifying which industries offer the most prosperous opportunities, it provides entrepreneurs with the best possible chance at financial success.

Professional Services company Deloitte have released a report listing the 25 highest growth sectors of Australia’s economy for the next 20 years. As detailed by Deloitte, the Deloitte Growth 25 cites Mining as the industry currently propelling Australia’s growth. While it will continue to play a significant role in Australia’s annual growth, the next wave of growth is set to come from Agribusiness, Gas, Tourism, International Education and Wealth Management. These industries are dubbed by Deloitte as the ‘Fantastic Five’. Deloitte have also identified a further 19 future growth pockets (ranging from areas as diverse as financing the ‘Fantastic Five’ to Retirement Living and Leisure).

Growing Industries In Australia

In considering these additional 19 growth pockets, Deloitte have identified growth in areas associated with Australia’s ageing population, along with the health costs identified with that. Areas of growth cited by Deloitte include:

  • Digital delivery of health to remote areas. Deloitte also cite new technologies playing a role to open up digital health delivery more broadly.
  • Tapping into the growth associated with private schooling and in efforts by parents to provide the best possible educational experiences for their children.
  • Reskilling an ageing workforce. People want to work for longer these days, but with industries evolving their skill requirements, it’s important to evolve the skills of the workforce to enable them to keep working.

While Deloitte are considering industries 20 years from now, analysts at IBISWorld have offered a more immediate glance at growth industries, examining the industries that they expect to see growth from throughout 2015.

IBISWorld predict growth from:

Industries Revenue 2014 ($m) Revenue 2015 ($m) Growth (%)
Coal seam gas extraction 737.9 1830.0 148.0
Online grocery sales 1914.2 2194.0 14.6
Fast fashion 1219.4 1346.5 10.4
Private equity 365.0 401.8 10.1
Hydroponic crop farming 791.7 836.4 5.6

Serving counter to this are the industries that IBISWorld believe will struggle in 2015 and (presumably) going forward:

Industries Revenue 2014 ($m) Revenue 2015 ($m) Growth (%)
Petroleum exploration 4631.0 3755.3 -18.9
Cigarette & tobacco manufacture 1895.3 1685.1 -11.1
Electricity distribution 18547.6 16694.7 -10.0
Mining & construction machinery manufacture 5425.0 5092.1 -6.1
Film & video distribution 1857.5 1788.4 -3.7

When launching a new business, it is vital that you have a passion for the industry you are entering into. But you should never forget that this is a business, first and foremost. The intention is to generate wealth. Investing your money, time, and resources into a business that services a growing industry will greatly improve your chance at success. Does the industry you are considering have a future?

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