THE wind and electricity generation industry is set for massive growth in 2018, while motor vehicle manufacturing is set for a major decline, according to analysis from business information specialists.
Sectors which made the best use of emerging technologies like artificial intelligence and big data really took off, along with businesses which tapped into the green agenda.
IBISWorld has revealed the top five industries expected to grow and shrink in 2018 and it has predicted the top predicted performer for 2018 will be the 'Wind and Other Electricity Generation', with growth of 35.3 per cent.
Rounding out the top five best performers is 'Sports and Recreation Facilities Operation', 'Dairy Cattle Farming', 'Petroleum Exploration' and 'Nature Reserves and Conservation Parks'.
IBISWorld's Top Five 'Industries to fly' in 2018
The predicted top performer, wind and other electricity generation, will soar thanks to the slow death of coal power, according to business research house IBISWorld.
The closure of ageing coal-fired power stations, supply constraints and rising gas prices in the eastern states have all wreaked havoc on electricity markets over the past two years.
IBISWorld senior industry analyst William McGregor says new projects around the country will give the sector a significant boost.
"We're predicting massive growth of over 35 per cent for this industry, with renewable energy operators in Victoria and South Australia likely to take advantage of rising prices to boost their revenue," says McGregor.
The Gold Coast Commonwealth Games are responsible for the number two sector's significant predicted boost.
Revenue for Sports and Receation Facilities Operation is expected to grow by 9.3 per cent in 2017-18 to reach $1.6 billion.
New purpose-built facilities from the GC2018, like the Anna Meares Velodrome and Carrara Sports and Leisure Centre will play a huge part.
"We believe the availability of these stellar new facilities, together with ticket sales from these venues will be major contributors to industry growth," says McGregor.
"An expected rise in sports spectating and growing spend on recreational and cultural activities will also contribute to growth."
While 2018 will be fantastic for some industries, the year might be challenging for others.
IBISWorld's top predicted industry to fall in 2018 is 'Motor Vehicle Manufacturing'.
With both GM Holden and Toyota closing their last manufacturing plants in 2017, truck manufacturers Volvo, PACCAR and Iveco are now the major players in the Australian industry.
However, the high comparative cost of Australian vehicle manufacturing, together with changing consumer preferences and increasing imports have had a devastating effect on the local sector, which is expected to decline by 41.3 per cent this year.
"While truck manufacturers are affected by the same tough trading conditions as passenger car markers, there is an element of protection for those designing and building trucks specifically for Australian conditions, such as transporting heavy loads over long distances in high temperatures," says McGregor.
"With truck manufactures now the key players in our domestic motor vehicle manufacturing sector, the industry's future performance is set to rely more on business confidence than consumer sentiment in years to come."
The sectors rounding out the top five industries to fall are 'Intellectual Property Leasing', 'Outdoor Vegetable Growing', 'Sugar Manufacturing', and 'Concreting Services'.
IBISWorld's Top Five 'Industries to fall' in 2018
Business News Australia
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