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IBISWORLD INDUSTRY RISK RATINGS REPORT

This is the replacement for IBISWorld's April 2013 edition of Paper Bag & Disposable Plastic Product Wholesaling 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 Paper Bag & Disposable Plastic Product 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

Wholesalers in this industry purchase a range of paper and plastic products from manufacturers, and distribute them to retail stores, food service outlets and agricultural producers. Industry products are wide- ranging and typically include sanitary and tissue products, disposable cutlery and food trays, cartons, plastic and paper bags, paper party goods and cardboard packaging. This industry does not include the wholesale distribution of stationery or office supplies.


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.
Paper Bag & Disposable Plastic Product Wholesaling in the US
44511 - Supermarkets & Grocery Stores in the US
44512 - Convenience Stores in the US
45291 - Warehouse Clubs & Supercenters in the US
56191 - Packaging & Labeling Services in the US

Table Of Contents

Paper Bag and Disposable Plastic Product Wholesaling 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
National unemployment rate
Price of paper
Demand from food manufacturing
Demand from supermarkets and grocery stores

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

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