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IBISWORLD INDUSTRY RISK RATINGS REPORT

This is the replacement for IBISWorld's April 2013 edition of Adhesive Manufacturing in the US Industry Risk Ratings Report.

Industry Risk Ratings Synopsis

This Industry Risk Ratings report from IBISWorld evaluates the inherent risks associated with the Adhesive 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

This industry manufactures adhesives, glues and caulking compounds. Adhesives are materials that are initially fluid or semifluid, but when placed between two opposing solid materials, they become solids. They bond to the surfaces they are applied to and prevent joint movement. This industry excludes asphalt, dental and gypsum-based adhesives.


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.
Adhesive Manufacturing in the US
23833 - Flooring Installers in the US
23815 - Glass & Glazing Contractors in the US
31621 - Shoe & Footwear Manufacturing in the US
32223 - Office Stationery Manufacturing in the US
33631 - Automobile Engine & Parts Manufacturing in the US
33641a - Aircraft, Engine & Parts Manufacturing in the US
33911a - Medical Instrument & Supply Manufacturing in the US
56191 - Packaging & Labeling Services in the US
23822b - Plumbing in the US

Table Of Contents

Adhesive Manufacturing in the US - Industry Risk Rating Report
RISK OVERVIEW
Industry Definition and 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
Growth Analysis

SENSITIVITY RISK
Trade-weighted index
Price of plastic materials and resin
Demand from construction
Demand from car and automobile manufacturing
Demand from aircraft, engine and parts manufacturing

IBISWORLD INDUSTRY RISK SCORING METHODOLOGY
What is Industry Risk?
Methodology
Risk Levels

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