Product Type: Market Research Report
Published by: IBISWorld
Published: October 2009
Product Code: R538-30105Description Industry Risk Ratings Synopsis
This Industry Risk Ratings report from IBISWorld evaluates the inherent risks associated with the Wooden Structural Component Manufacturing in Australia 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 class consists of units mainly engaged in manufacturing wooden structural fittings, wooden components for prefabricated wooden buildings, wooden or wooden framed doors or wooden roof trusses or wall frames or shop fronts, etc. (from standard wooden components or from wooden components manufactured at the same unit) or wooden joinery n.e.c. This class also includes units mainly engaged in installing (except on-site fabrication) shop fronts made of wood, or joinery (including custom made prefabricated built-in furniture).Manufacturers of wooden structural components acquire their raw materials from the timber resawing and dressing industry and process these materials into structural components used to construct buildings. These products are sold to home builders, commercial building constructors and distributors.
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.
C2323 - Wooden Structural Component Manufacturing in Australia
E4112 - Multi-Unit Apartment and Townhouse Construction in Australia
E4122 - Heavy Industry and Other Non-Building Construction in Australia
F4539 - Building Supplies Wholesaling in Australia
L7711 - Residential Property Operators and Developers in Australia
E4114 - Commercial and Industrial Building Construction in Australia
E4115 - Institutional Building Construction in Australia
G523a - Houseware Retailing in Australia
G523b - Hardware Retailing in Australia Table of Contents RISK OVERVIEW Industry Definition & Activities
Industry Risk Score
Risk Rating AnalysisSTRUCTURAL RISK Barriers to Entry
Basis of Competition
Domestic and International Markets
Industry Assistance
Life Cycle
Industry VolatilityGROWTH RISK Recent Growth Analysis
Forecast Growth Analysis
SENSITIVITY RISK Real Household Disposable Income
Downstream Demand - Non-Residential Building Construction
Dwelling Approvals
Competition from Substitutes - Polyester and Other Plastic Fibre Product mfg - Wooden Structural Component Manufacturing
Competition from Substitutes - Architectural Aluminium Product mfg - Wooden Structural Component Manufacturing
INDUSTRY RISK AND INDUSTRY RISK SCORING METHODOLOGY What is Industry Risk?
The Industry Risk Scoring Methodology
Risk Rating Score Definition
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