Cardboard Box & Container Manufacturing in the US - Industry Risk Rating Report

Cardboard Box & Container Manufacturing in the US - Industry Risk Rating Report

INDUSTRY RISK RATINGS REPORT

This is the replacement for August 2009 edition of Cardboard Box & Container Manufacturing in the US Industry Risk Ratings Report.

Industry Risk Ratings Synopsis

This Industry Risk Ratings report evaluates the inherent risks associated with the Cardboard Box & Container Manufacturing in the US industry. Industry Risk is assumed to be 'the difficulty, or otherwise, of the business operating environment'.

The report looks at the operational risk associated with this industry. Three types of risk are recognized in our analysis. These are: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk).

This approach is new in that it analyses non-financial information surrounding each industry. Industries are scored on a 9-point scale, where 1 represents the lowest risk and 9 the highest. The Industry Risk score measures expected Industry Risk over the coming 12-18 months.

Industry Definition

Operators in this industry convert purchased paper, paperboard, and old corrugated containers (OCC), into cardboard boxes, containers, and similar packaging solutions. The industry producers corrugated and solid cardboard packaging for a wide range of industries, including manufacturing, agriculture, wholesale, shipping, retail, and others. Approximately 70% of all industry products are corrugated cardboard boxes, while others include solid cardboard boxes and containers, non-folding sanitary food containers, paper dishes, fiber drums and reels, corrugated sheets, pads and pallets, and others.

Report Contents

Risk Overview

The Risk Overview chapter includes sections on Industry Definition and Activities, Industry Risk Score and Risk Rating Analysis. The Industry Definition and Activities section provides a detailed definition of the activities carried out by operators in this industry as defined in NAICS. A list of the primary activities of the industry is also included. The Industry Risk Score section provides the Overall Industry Risk Score as well as the Risk Scores for each of the three types of risk covered that combine to form the Overall Industry Risk Score. These three types of risk are Structural Risk, Growth Risk and External Sensitivity Risk. The Risk Rating Analysis section discusses the underlying factors contributing to the Overall Industry Risk Score.

Structural Risk

The Structural Risk chapter looks at risk arising from within the industry itself and provides a detailed discussion of the industry’s level of exposure to seven key indicators. These key indicators are Barriers to Entry, Competition, Industry Exports, Industry Imports, Level of Assistance, Life Cycle Stage and Volatility of Industry. The Overall Structural Risk Score is a weighted aggregation of these seven key indicators. Each of the key indicators is discussed in detail in this section.

Growth Risk

The Growth Risk chapter looks at risks arising from the expected future performance of the industry. The Overall Growth Risk Score is determined by amalgamating the scores for Recent Industry Growth and Forecast Industry Growth. Detailed analysis is provided discussing the reasons for the growth scores of both.

Sensitivity Risk

The Sensitivity Risk chapter looks at risks arising from forces (sensitivities) external to the industry. The Overall External Sensitivity Risk Score is determined by identifying the most significant (up to 6) external factors and weighting them to represent how significant each sensitivity is to the performance of the industry. Examples of External Sensitivities are Exchange Rates, Interest Rates, Commodity Prices and Government Regulations. There is also a detailed analysis of the affect each of the sensitivities has on the industry, including charts and data tables where appropriate.

Industry Risk and Industry Risk Scoring Methodology

This chapter provides an overview of how IBISWorld defines Industry Risk and discusses the methodology used to arrive at an Industry Risk Score. There is also a table that provides a definition of the seven levels of Industry Risk.

32221 - Cardboard Box & Container Manufacturing in the US
31123 - Cereal Production in the US
31222 - Cigarette & Tobacco Product Manufacturing in the US
31212 - Beer Production in the US
31213 - Wine Production in the US
31214 - Liquor & Spirits Production in the US
31111 - Animal Food Production in the US
33311 - Tractors & Agricultural Machinery Manufacturing in the US
33361 - Engine, Turbine & Power Transmission Equipment Manufacturing in the US
33411 - Computer & Peripheral Manufacturing in the US
33431 - Audio & Video Equipment Manufacturing in the US
31131 - Sugar Processing in the US
31141 - Frozen Food Production in the US
31142 - Canned Fruit & Vegetable Processing in the US
31181 - Bread Production in the US
31182 - Cookie, Cracker & Pasta Production in the US
31191 - Snack Food Production in the US
31199 - Other Food Manufacturing in the US
31211 - Soft Drink Production in the US

RISK OVERVIEW

Industry Definition & Activities
Industry Risk Score
Risk Rating Analysis

STRUCTURAL RISK

Barriers to Entry
Basis of Competition
Domestic and International Markets
Industry Assistance
Life Cycle
Industry Volatility

GROWTH RISK

Recent Growth Analysis
Forecast Growth Analysis

SENSITIVITY RISK

Personal Final Consumption Expenditure
Industrial Production Index
Downstream Demand - Food, Beverage and Tobacco mfg
Domestic Price - Recycled Paperboard
Competition from Substitutes - Cardboard Box & Container Manufacturing - Plastic Packaging Manufacturing

INDUSTRY RISK AND INDUSTRY RISK SCORING METHODOLOGY

What is Industry Risk?
The Industry Risk Scoring Methodology
Risk Rating Score Definition