Industry Reports
The Advisen Industry Reports provide a comprehensive description and analysis of broad industries (as defined by GICS) from a strategic and risk management perspective. They entail an industry overview, an analysis of the economic indicators impacting the industry, a breakdown of the top players of each industry segment, as well as a rigorous examination of the trends and pressure points affecting the business environment of the industry. The reports conclude with a strategic look at the business initiatives that all companies in the industry must consider in light of the business environment, and the associated risks of both pursuing and not pursuing such initiatives.
The food and staples retailing industry is a high-volume, low-margin business, with cutthroat competition from all quarters. more...
The financial services industry has witnessed its greatest challenges since the Great Depression, due to the bursting of the housing bubble and the resulting credit crunch.more...
Automotive components makers are experiencing a devastating downturn directly tied to bleak automobile sales, particularly those with close ties to U.S. automakers. This industry provides auto parts and tires used in automobiles.more...The players in this industry are increasingly integral to the auto assembly process and highly coordinated with automaker operations. These mostly non-union shops are a critical part of automakers' strategy to compete globally.
The automotive industry is at the core of America's love affair with driving, and has been the primary force behind shifting demographics to suburbia for over 50 years.more...For years, American consumers placed significance on the country that automobile companies hail, giving U.S. companies a substantial edge in the U.S. market. But this dynamic has broken down, and American consumers are increasingly looking at value alone when making auto-buying decisions, causing a precipitous falloff in sales of vehicles made by U.S. companies.
Household appliances, automobiles, buildings, packaging, capital goods and even computers depend on metals and minerals. The construction, automotive and machinery industries rely heavily on steel.more... The containers and packaging, automotive and building products industries depend on aluminum. Computers use gold, and most electronic products use copper wiring. Fashionistas depend on diamonds for acceptance among society's elite. The metals and mining industry might be intensely competitive and subject to devastating oversupply problems, but the economy's dependence on its products will ensure its survival.
Commercial banks, and thrifts and mortgage financing institutions are experiencing their worse crisis in recent history, and perhaps its worst since the Great Depression.more... Although the Federal Reserve and Treasury Department are attempting to overcome the situation through various measures and new regulatory proposals, improvements will only become visible in the medium-term.
Industrial conglomerates are diversified companies having operations in at least three sectors, with none of the sectors having a majority contribution toward total revenue. more...Subsidiaries of conglomerates usually operate independently and the management of the subsidiary reports to the management of the parent company.
The intense desire for increased life expectancy, coupled with a demand for personalized and sophisticated treatment, has promoted the biotechnology and pharmaceuticals industry in the U.S. more...Traditionally, the industry has grown through innovation, especially the biotechnology segment, which has driven innovation across the industry by generating new knowledge, tools, and substances. Although demand for these products has increased, the industry is facing substantial pressure because of mounting operating costs, the rise of generic competitors, and a restrictive regulatory environment.
The marine industry is the backbone of international commerce. Facilitating globalization, the industry is responsible for approximately 80% of shipments by weight, and 40% by cargo value in and out of the U.S. more...The vessels used in this industry transport everything from automobiles, to televisions, apparel, coal, oil, and just about anything under the sun.
The machinery industry consists of four segments, which are manufacturers of trucks, agricultural equipment, construction equipment, and industrial machinery and equipment. This mature industry is highly cyclical and tends to lag the general economy. more...It is one of the largest industries in the U.S., and is one of the few manufacturing industries that have grown over the past decade. Large capital requirements and skilled labor needs have given U.S. manufacturers a competitive advantage over low-wage/low-skilled developing countries.
Mark Twain once said, "Clothes make the man. Naked people have little or no influence on society." This industry does not merely provide generic pieces of material that has covered man since the days of Eden. more...It provides each person a chance to define himself before a word is uttered upon introduction, and a way to connect with a group of peers in unspoken ways. Clothes do indeed make the person, which provides the companies in this industry the opportunity to succeed, but its competitive nature presents pitfalls to stumble upon.
The household durables industry puts the "sweet" in "home sweet home." The industry consists of four segments: home furnishings, household appliances, housewares, and consumer electronics. more...
Information technology (IT) is a collection of products and services that transform otherwise abstract data into meaningful and accessible information. The IT industry comprises computer hardware, software, and services. more...At present, almost all organizations rely on IT for conducting their businesses and achieving higher operational efficiency. However, most firms do not have the required expertise to carry out IT-related functions in-house, thus creating opportunities for firms in the IT services industry.
The U.S. healthcare equipment and supplies industry is driven by increased demand for healthcare services and favorable demographic conditions, which includes a large and aging baby boomer population. more...However, the industry is facing a number of issues such as high R&D costs, low reimbursement rate, stringent government regulations and outsourcing ? with each one of them having a significant impact on business.
Companies are considering various options to counter challenges arising in the market. Consolidation activities are constantly on a rise, as major players are actively involved in acquisitions of smaller firms producing new and innovative products in order to remain competitive and diversify their product offerings. M&A activities in the industry is expected to further increase in next three to five years, primarily driven by consolidation activities in the IVD segment. Outsourcing activities have also soared significantly, with players looking to expand their businesses and take advantages of cost benefits. Firms have significantly improved their productivity by retaining the niche engineering work and outsourcing labor-intensive low-end work. Spending on R&D by U.S. healthcare equipment manufacturers has nearly doubled compared to their counterparts in the EU and Japan. In some segments of the industry, spending on R&D activities touches one-fifth of firm's total revenue. The high cost of research remains an entry barrier for new players who have the potential to produce innovative products but lack capital. Apart from this, regulatory compliances and approval requirements from the FDA regarding composition, labeling, testing, manufacturing and distribution of products delay the commercialization of healthcare equipment. These firms devote considerable resources and time toward product approval processes, clinical trials, user fees and plant audits.
The consumer base is concentrated around institutional purchasers who generally form a pool known as Group Purchasing Organizations (GPOs) to negotiate the price of equipment. These GPOs are again posing a major threat for smaller companies, as they charge high fees in exchange of awarding contracts. Small firms generally fail to snatch the contract because of unfair practices followed by powerful GPOs. These same small firms are also expected to be badly affected by the Patent Reform Act of 2007, which has put restrictions on a number of continuation filings. The limitation in a number of continuation filings directly translates to delay in patent filings by firms in order to gain significantly broader claims. The Act will add to the burdens of small firms, which are already facing the effects of post-grant oppositions. Also, insufficient protection after infringement is adding fuel to the fire.
The life sciences and tools segment is experiencing a rapid growth rate. Currently, this segment is marked with exponential growth in cell biology and small animal in-vivo analysis. However, growth in this segment is expected to remain flat in North America for the near-future because of sluggish growth of the pharmaceutical industry in the region. Overall, the outlook for this segment is positive, and several trends such as a lower mortality rate and increasing demand for healthcare among the baby boomer population are poised to drive demand for home-based healthcare equipment.
Please note that the full industry report is available only to Advisen clients. The full report provides an overview of this industry, discusses its business environment, and as importantly, provides an analysis of its business initiatives and associated risks.
The hotels, restaurants, and leisure industry is broad and diverse, but all parts offer services that satisfy the soul. It consists of a diverse set of leisure-related facilities separated into four basic segments: hotels, gaming, restaurants, and leisure. more... The summer vacation, long considered an implicit American right, would not be the same without this industry.
The intensely competitive global business environment and diversified businesses of conglomerates continue to provide an impetus to the professional services industry. The expansive array of services provided under the umbrella of professional services industry finds application across almost all companies. more...Traditionally, the importance of these services was not well recognized, as the base services can be viewed as plain-vanilla offerings. However, with the globalization of business activities, making business strategies, the legal environment, and accounting transactions more complex, the need for professional services has been significantly bolstered.
The digital wave has swept the world off its feet. The development of software, along with the emergence of the Internet has changed the way the world pursues social interaction, entertainment, and commercial activities. more...The software and Internet software industry includes establishments that are primarily engaged in the production of packaged and customized software for a gamut of applications, in businesses and information technology operations; at homes; and as software development tools.
Construction materials and building products are all around, from fixtures in offices and houses, to products that enhance and cover buildings, to the very materials that make up the structures and foundations of skyscrapers and roads. more...This industry makes products used by the construction industry.
It is a mature industry that is cyclical and seasonal in nature due to its reliance on the construction industry and home improvement market.
Although the construction and engineering industry plays a central role in any economic recovery and falloff, and is a major indicator of both global and national economic health, it remains stubbornly locally driven. more...The industry consists of companies involved in building and designing buildings, houses, factories, plants, roads, bridges, tunnels, and other facilities. The types of construction are generally broken down into three basic segments: residential, commercial, and infrastructure.
In this world of digital communication and towering steel skyscrapers, paper remains an important vehicle for communicating and wood continues to be the primary substance for constructing houses and most buildings. more...The paper and forest products industry includes establishments manufacturing paper, paperboard, wood products, wood pulp, and other timber derivatives as raw materials, as well as companies that own and manage timberland. This industry, steep in American folklore with Paul Bunyon as its most famous worker, employs 1.1 million in the U.S.
The need to quantify, protect, and store products has led to the development of the container and packaging industry. Historically, materials such as hollowed logs and woven grass were used for storage, and leaves, shells, and animal skins were used for packaging purposes. more...Later, with the discovery of metals and chemical compounds, other forms of materials began to be used for packaging and storage.
Growing and using tobacco by Native Americans dates back to well before Christopher Columbus landed on the shores of the Bahamas. more...As Europeans settled the New World, tobacco became a major trade crop. Today, Christopher Columbus would hardly recognize this heavily regulated, widely disdained, and intensely customer loyal oligopoly.