• Transportation and Storage is the worst industry for British businesses, with a decline of 16.51% since 2022
  • The Information and Communication industry is second, declining 6.89%, and Wholesale is third, with 6.81%
  • The best industry for businesses in the UK is Health and Social Care, growing 8.06%

 

A new study has revealed the worst industries for businesses in the UK, with Transportation and Storage topping the ranking.

Experts at MRPeasy, a provider of MRP software for small manufacturers, collected business birth and death data from the Office for National Statistics to calculate each industry’s rate of decline from 2022 to 2024. They were able to analyse and rank the worst industries for businesses in the UK.

 

8 Worst Industries for Businesses in the UK

 

Rank

Industry

% Change

1

Transportation and Storage

-16.51%

2

Information and Communication

-6.89%

3

Wholesale

-6.81%

4

Retail

-5.19%

5

Production

-4.75%

6

Agriculture, Forestry and Fishing

-4.62%

7

Professional, Scientific and Technical Activities

-4.47%

8

Business Administration and Support Services

-3.65%

 

 

At the top of the ranking is the transportation and storage industry, with a 16.51% decline rate since 2022. This means the industry has experienced a total loss of 22,785 businesses and 89,105 business deaths. Business deaths in the transportation and storage industry account for 10.23% of all business deaths in the UK.

Businesses in the transportation and storage industry provide transportation services, warehousing, and storage. These businesses also provide support activities like parking and terminal facilities, and infrastructure operations. For example: taxis, parking facilities, airlines, and cruise ships.

In second place is the information and communication industry, with a 6.89% rate of decline. This industry has lost 13,500 businesses since 2022 and experienced 67,350 business deaths, accounting for 7.73% of the UK total.

The information and communication industry is a sector that includes the production, distribution, and processing of information and data. Businesses also include technologies and services that enable communication and connectivity, such as telecommunications, broadcasting, publishing, and data processing.

The wholesale industry ranks third, with a decline rate of 6.81%. Since 2022, this industry has lost 7,355 businesses in total. Making up 3.63% of all business deaths in the UK, the wholesale industry has experienced 31,645 business closures since 2022.

Wholesale businesses involve buying and selling goods in bulk, where wholesalers purchase goods in large quantities from manufacturers and sell them to retailers, who then sell them to consumers.

Ranking fourth is the retail industry, where businesses are declining at a rate of 5.19%. Business deaths in this industry make up 9.20% of all business deaths, which is 80,110 since 2022. This means 11,620 retail businesses have been lost.

Businesses in the retail industry are involved in the sale of goods and services to consumers for personal use. It includes many types of businesses, such as shops, supermarkets, and online retailers.

Businesses in the production industry rank fifth, with a 4.75% rate of decline, with 7,360 businesses lost since 2022. In this industry, there have been 41,340 business deaths, which make up 4.75% of all business deaths in the UK.

Businesses in the production industry are those that convert raw materials into finished goods. This can include manufacturing, mining, and electricity production.

The agriculture, forestry and fishing industry is in sixth place, with a 4.62% rate of decline. 6,600 businesses have been lost in this industry since 2022, with a business death total of 14,210, making up 1.63% of the UK total.

This industry is made up of businesses that grow crops, raise animals, harvest timber, and catch fish. For example, dairy, cattle or pig farms, as well as beekeeping, apple orchards, and almond farms.

Ranking seventh with a decline rate of 4.47% is the professional, scientific and technical activities industry. Since 2022, 19,285 businesses have been lost, with a staggering business death total of 131,945 – this makes up 15.15% of the UK total.

This industry includes businesses that provide professional services to individuals and businesses. These services require a high level of education, training, and specialised knowledge, such as accounting and legal services, research and development, public relations, advertising, marketing, veterinary services, translating, management consultancy, and head office activities.

In eighth place is the business administration and support services industry, with a 3.65% rate of decline. 96,280 business deaths have been recorded in this industry since 2022, which makes up 11.05% of all business deaths. This industry has lost 8,360 businesses in total since 2022.

This industry is made up of businesses that provide administrative and support services to other businesses. These services can help businesses focus on their core functions and grow without having to hire additional staff, such as cleaning services, landscaping, accounting and finance, security, transport, and office supplies and equipment.

 

 

Karl Heinrich Lauri, CMO at MRPeasy, has commented on the findings, “In a post-COVID landscape, British businesses have entered a transformative era defined by both significant challenges and new opportunities. The lasting impact of the pandemic, coupled with the ongoing cost of living crisis, has created a complex and uncertain environment for many sectors.

“With consumers tightening their budgets and businesses contending with escalating operational costs, from surging energy prices to persistent supply chain disruptions, the pressure has never been greater. These circumstances underscore the critical need for resilience, adaptability, and innovation.

“For industries across the board, embracing change and rethinking strategies are now vital for navigating this evolving economic landscape and securing long-term success.”

 

 

Methodology

 

The net increase/reduction in businesses has been recorded, based on government data recording births and deaths of businesses by industry sector: https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/datasets/businessdemographyquarterlyexperimentalstatisticsuk

Total business numbers by industry sector were taken from the same source: https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/ukbusinessactivitysizeandlocation/2022

To calculate the 2022-2024 averages, all data from Q1 2022 to Q2 2024 has been included.

Net business registrations between Q1 2022 and Q2 2024 were calculated, and then various percentages were calculated from this data such as the percentage of this net increase/decrease against the total business numbers for Q1 2022 and Q2 2024, as well as the birth and death rates for the industry sectors as a percentage of the total business births and deaths in this period.

The industries were ranked according to the net increase/decrease (otherwise known as their ‘growth’ or ‘decline rates) in business registrations across this period (as a percentage). This gives a more accurate view of which industries are growing or declining rather than an absolute number which does not consider the size of the industry.

 

Full industry ranking

 

 

Rank

Industry

% Growth

1

Transportation and storage

-16.51%

2

Information and communication

-6.89%

3

Wholesale

-6.81%

4

Retail

-5.19%

5

Production

-4.75%

6

Agriculture, forestry and fishing

-4.62%

7

Professional, scientific and technical activities

-4.47%

8

Business administration and support services

-3.65%

9

Finance and insurance

-3.20%

10

Motor trades

+0.25%

11

Accommodation and food services

+0.91%

12

Arts, entertainment, recreation and other services

+1.83%

13

Construction

+1.93%

14

Education

+3.27%

15

Real estate

+5.06%

16

Health and social care

+8.06%





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