Stronger market share, profit and revenue growth compared to their peers.

What factors prevent new companies from entering the industry, and why?

High barriers to entry indicate that new companies struggle to enter the industry.

Medium barriers to entry indicate that new companies are faced with moderate challenges and problematic roadblocks when attempting to enter the industry.

Low barriers to entry indicate that it is easy for new companies to enter the industry

High buyer power indicates that buyers in the downstream supply chain hold significant leverage over industry participants and are able to influence the price and the quantity of products sold with ease. High buyer power assumes buyers in downstream markets can bargain on volume or switching costs and find substitute goods and services effortlessly.

Medium buyer power indicates that buyers in the downstream supply chain hold moderate leverage over industry participants and are able to influence price and the quantity of products sold, albeit not without a degree of difficulty doing so. Medium buyer power assumes buyers in downstream markets can bargain on volume or switching costs, and find substitute goods and services; however, negotiations can prove difficult, while substitute goods and services are not always readily available.

Low buyer power indicates that buyers in the downstream supply chain hold limited or no leverage over industry participants, and if able to, struggle to influence the price and the quantity of products sold. Low buyer power assumes buyers in downstream markets are unable to bargain on volume or switching costs with any notable success, while substitute goods and services are limited or not available.

Compound Annual Growth Rate (CAGR) is the rate at which a value of something will/has grown if it grew at a steady rate over the set period (usually five-year or 10-year periods in our reports).

Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.

High capital intensity indicates that more than $0.333 is spent on capital (plant, machinery and equipment) to every $1 spent on labor in each of the past five years.

Medium capital intensity indicates that between $0.125 to $0.333 is spent on capital (plant, machinery and equipment) to every $1 spent on labor in each of the past five years.

Low capital intensity indicates that less than $0.125 is spent on capital (plant, machinery and equipment) to every $1 spent on labor over the past five years.

Industry concentration is an indicator of the dominance of the top players in an industry.

The top four companies account for greater than or equal to 70% of revenue; an industry with a high market share concentration is characterized by oligopolistic competition or is a monopoly.

The top four companies account for between 40% and 70% of revenue; an industry with medium market share concentration has a number of major players, yet the industry is competitive in several product or market niches.

The top four companies account for less than or equal to 40% of revenue; an industry with low market share concentration is fragmented, consisting of several small players that have negligible market power.

The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e., year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

(Often referred to as cost of goods sold in companies’ annual reports) include inputs, raw materials, final goods purchases and other items the company resells as a good or as an input into a service

Wages cover salaries and wages of all full-time, part-time, temporary and contract employees. This figure also includes all on-costs and benefits such as health insurance, superannuation and payroll taxes.

Rent expenses include payments for the use of land, buildings or office space. It can include mortgage payments, office or land rent/lease/let expenses and all associated utility charges (e.g., water, gas, electricity). Equipment and machinery rental costs should not be included here (see Other).

Depreciation should exclude amortization, which is related to intangible assets. Depreciation reflects the capital intensity (the amount spent on machinery and equipment) of an industry. Equipment leasing expenses should not be included in depreciation (see Other).

Marketing expenses include those paid by firms to external parties to promote or sell products or services. This includes market research, publicity, promotional materials and advertising (print, radio, internet, TV, etc.).

Other costs may also include insurance, legal costs, bad and doubtful debts, repair and maintenance charges, equipment and machinery rental costs, professional fees, amortization, administrative costs and any other cost incurred in the industry that is not itemized elsewhere. Atypical, one-time costs, or costs relevant to only one industry player (e.g., restructuring charges) generally should not be included in Cost Structure.

Lower to medium market share that’s rising rapidly, but weaker profits compared to some of their peers.

Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

A division that is separately managed and keeps management accounts. Each enterprise consists of one or more establishments that are under common ownership or control.

The smallest type of accounting unit within an enterprise, an establishment, is a single physical location where business is conducted or where services or industrial operations are performed. Multiple establishments under common control make up an enterprise.

Total value of industry goods and services sold by US/CA/UK/DE/AU/NZ/EU companies to customers abroad.

Exports account for over 20% of revenue.

Exports account for between 5% and 20% of revenue.

Exports account for less than 5% of revenue.

Medium to strong market share and strong profit, but slower revenue growth than some of their peers

Government and/or other measures in place designed to improve the performance of the industry or sections of the industry (i.e., grants, subsidies).

The industry life cycle refers to the various stages of evolution through which an industry progresses as it emerges, experiences growth, matures and declines. The stage of a given industry's life cycle at a certain point in time is determined by the industry's underlying growth, in particular, relative to that of the wider economy; the rate of growth in business numbers and whether consolidation activity is significant; the degree of market saturation and resultant efforts to innovate product and service offerings to sustain growth; and businesses' eagerness to adopt new technologies.

The growth life cycle stage indicates that the industry is growing faster than GDP.

The mature life cycle stage indicates that the industry is growing at the same rate as GDP.

The decline in the life cycle stage indicates that the industry is declining faster than GDP.

The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other operating income from outside the firm (E.g., commission income, repair and service income, and rent, leasing and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.

The market value of goods and services produced by the industry minus the cost of goods and services used in production. IVA is also described as the industry's contribution to GDP, or profit plus wages and depreciation.

Total value of industry goods and services brought in from foreign countries to be sold in the United States/United Kingdom/Australia/Canada/Germany/New Zealand.

*Change based on report geography

Imports account for over 35% of domestic demand.

Imports account for between 5% and 35% of domestic demand.

Imports account for less than 5% of domestic demand.

Strong market share, but lower profit and revenue growth than some of their peers.

The level of international trade is determined by the ratios of exports to revenue and imports to domestic demand. For exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand: low is less than 5%, medium is 5% to 35%, and high is more than 35%.

Lower market share alongside slower profit and revenue growth than their peers.

A major player operates primarily in the industry and has at least a 5% market share.

Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-employed individuals.

For information on nonemployer data in reports, read How does the inclusion of nonemployer data impact industry statistics?.

Discuss smaller (i.e., those with less than 5% market share), peripheral or niche players here.

The industry has 5+ product and/or service lines which account for 5%+ of revenue respectively.

The industry has 4 product and/or service lines which account for 5%+ of revenue respectively.

The industry has 3 product and/or service lines which account for 5%+ of revenue respectively.

The industry has 2 product and/or service lines which account for 5%+ of revenue respectively.

Earnings before interest and taxes (EBIT, also referred to simply as profit) for the current year.

The Regulation/Deregulation section discusses the occurrence of regulation (whether government or self-government) and/or deregulation and its effects. In discussing regulatory or deregulatory issues, details of the particular issues are highlighted and any expected changes to the regulations are stated.

A high level of regulation indicates that the industry is subject to intense scrutiny and or must comply with a plethora of regulations, directives, standards etc.; the regulatory framework that governs the industry is rigorous and typically complex.

A medium level of regulation indicates that the industry is subject to moderate scrutiny and or must comply with several regulations, directives, standards etc.; the regulatory framework that governs the industry is detailed.

A low level of regulation indicates that the industry is subject to limited scrutiny and or must comply with few regulations, directives, standards etc., or is unregulated; if present, the regulatory framework that governs the industry is lenient and typically simple.

Lower market share, but displaying stronger profit and revenue growth than some of their peers.

How volatile is industry revenue, how has it changed in recent years, and why? How does this affect industry performance?

High supplier power indicates that suppliers in the upstream supply chain hold significant leverage over industry participants and are able to influence the price and availability of raw material inputs and resources provided with ease. High supplier power assumes industry participants are dependent on entities in the upstream supply chain and cannot switch to alternative suppliers due to higher costs and a lack of alternative sources.

Medium supplier power indicates that suppliers in the upstream supply chain hold a degree of leverage over industry participants. Suppliers are able to influence price and the availability of raw material inputs and resources provided; however, the degree of influence is capped to a certain extent. Medium supplier power assumes industry participants are relatively reliant on entities in the upstream supply chain and find it difficult - but not impossible - to switch to alternative suppliers due to substantial costs and limited alternative sources.

Low supplier power indicates that suppliers in the upstream supply chain hold limited or no leverage over industry participants and, if able to, struggle to influence the price and availability of raw material inputs and resources provided. Low supplier power assumes industry participants are not reliant on entities in the upstream supply chain and find it easy to switch to alternative suppliers due to negligible costs associated with changing providers and various alternative sources being made available.

A high level of substitution indicates that there are ample alternatives to the industry's product and/or service offering, and, in turn, industry participants are faced with significant external competition.

A medium level of substitution indicates that there are sufficient alternatives to the industry's product and/or service offering, and, in turn, industry participants are faced with moderate external. competition.

A low level of substitution indicates that there are no or few alternatives to the industry's product and/or service offering, and, in turn, industry participants are faced with negligible external. competition.

The level of volatility is determined by averaging the absolute change in revenue in each of the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%.

Very high volatility indicates that the average averaging the absolute change in revenue in each of the past five years is greater than ±20%.

High volatility indicates that the average averaging the absolute change in revenue in each of the past five years is between ±10% to ±20%.

Moderate volatility indicates that the average averaging the absolute change in revenue in each of the past five years is between ±3% to ±10%.

Low volatility indicates that the average averaging the absolute change in revenue in each of the past five years is less than ±3%.

Wages cover salaries and wages of all full-time, part-time, temporary and contract employees. This figure also includes all on-costs and benefits such as health insurance, superannuation and payroll taxes.

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