Catering listed among risky sectors for 2009

www.ausfoodnews.com.au
January 15, 2009
James Ferre

Amidst global financial meltdown and looming job losses, businesses - and employees - are apprehensive about what’s in store for 2009. Business information analysts IBISWorld have compiled a list of the “riskiest” industries this year, as well as those which are likely to be safe despite turbulent economic times.

While the risk forecasts take historical data into account, they largely look ahead and consider vital information about the dynamic business environment and influencing factors which will be critical to each industry’s future performance.

Factors taken into account include an industry’s life cycle, level of competition, trade exposure, external assistance, growth risk, macroeconomic variables and non-economic sensitivities.

Top 10 Riskiest:

Catering and food service contractors

IBISWorld believes lower demand for catering services from the financial and resources industries will hit this sector hard, as well as a prediction of poor demand for catering at sports and other major events as attendances fall in 2009. A predicted slump in Australian tourism will curb demand from airlines, while tighter budgets will see scaled-down or cancelled company events such as parties, conferences and off-site meetings.