Auto Parts Wholesaling in the US - Industry Risk Rating Report

Auto Parts Wholesaling in the US - Industry Risk Rating Report

INDUSTRY RISK RATINGS REPORT

This is the replacement for May 2009 edition of Auto Parts Wholesaling in the US Industry Risk Ratings Report.

Industry Risk Ratings Synopsis

This Industry Risk Ratings report evaluates the inherent risks associated with the Auto Parts Wholesaling 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

This industry is part of the Wholesale Trade sector in the US. The automotive parts wholesaled by operators in this industry can be divided into three groups: engine components ( i.e. batteries, oil filters and pumps), non-engine auto parts (i.e. steering wheels, interior trim), and accessories (i.e. sports seats, seat covers, speed shifters). This industry wholesales motor vehicle parts to automobile manufacturers and automotive parts retailers. This industry does not wholesale motor vehicles (see NAICS 42111), tires and tubes (see NAICS 42113), or used automotive parts (see NAICS 42114).NAICS definition: this industry comprises establishments primarily engaged in wholesaling motor vehicle supplies, accessories, tools and equipment; and new motor vehicle parts (except new tires and tubes).

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.

42112 - Auto Parts Wholesaling in the US
44131 - Auto Parts Stores in the US
33611a - Car & Automobile Manufacturing in the US
33611b - Light Truck & Sport Utility Vehicle Manufacturing in the US
33612 - Truck & Bus Manufacturing in the US
33621a - Motor Vehicle Body Manufacturing in the US
33621b - Truck, Trailer & Motor Homes Manufacturing 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

Per Capita Disposable Income
Total Motor Vehicle Registrations
Motor Vehicle Use - Average miles driven per vehicle
Domestic Price - Motor Vehicle Parts and Accessories
Downstream Demand - Motor Vehicle Manufacturing in the US

INDUSTRY RISK AND INDUSTRY RISK SCORING METHODOLOGY

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