INSTRUCTIONS OF THE INDUSTRY PROFILE

Instructions of the Industry Profile

 

Please create a 6-digit NAICS industry profile for the aviation manufacturing sector. Please be aware that an establishment, which is a single physical site where production is being done, has an NAICS number assigned to it. A company or organization may be made up of various businesses that generate various goods or services, and as a result, it may be assigned more than one NAICS code. For instance, GE produces at least in the following NAICS code industries: 515120 Television Broadcasting, 522220 Sales Financing (main), 333611 Turbine and Turbine Generator Set Units Manufacturing, and 334510 Electro-medical and Electrotherapeutic Apparatus Manufacturing.

The report must also specifically incorporate and analyze easily accessible, objective data that is relevant to the industry. The required analyses are listed below, along with information on where to locate the necessary data. These assessments are necessary, but keep in mind that they should assist your discussion of the industry within the context of the Five Forces Model.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

The report has to have

A page for the executive summary

b. The report’s body
i. A brief summary of the products the industry produces, together with a list of the top (maximum of 5) companies in the sector. If you can, include the market share of these companies in your particular industry as well.
ii. An evaluation of each of the five forces using the criterion “Is it sufficiently strong to reduce or eliminate industry profits (both currently and in the future)?” The management economics principles that have been developed must be applied to this examination.
There are five forces: internal competition, entry, substitute and complementary items, supplier power, and buyer power are the first three factors. Internal rivalry occupies the central position because it could be impacted by all other forces. The question “Is it sufficiently strong to reduce or eliminate industry profits?” should be used to evaluate each factor, and you should then try to find a response by using economic concepts. Profits today should be taken into account in addition to patterns.
iii. The appendix will contain the necessary information, analyses, and questions. To support your analysis of the five forces, you should, where necessary, resort to your tables or analyses.
c. Bibliography
d. Appendix: Contains responses to direct queries, data manipulations, and data requests. Reminder: Avoid pasting tables or data straight into the appendix. Instead, enter the data into Word or Excel and edit and format as necessary.

Data, analyses, and/or questions that are necessary

1. What products does the sector produce?

2. Companies in the industry that produce

a. Locate up to five “large” American companies that are active in your sector. In other words, you’re seeking the “major U.S. players” in the sector—companies that have a “large” part of the U.S. consumer market. The industry may or may not be these companies’ main source of revenue.
a. Select five independent businesses with caution.
b. Conduct research on these companies using the Five Forces Analysis. You can use the information you discovered in the databases below, on websites, or by reading yearly reports. You might be able to find things like

The size of the companies overall (revenue and staff count), the number of various NAICS codes they participate in, and their level of diversification (estimated market share of the companies in the American market) are all important factors.
iv. scale economies; v. entry-level restrictions

d. Potential Data Sources

1. The Hoovers Online Database

1. Select “Build a List” from the menu.

2. Expand the Industry Option, then use your NAICS code to look for businesses.

IBISWorld is ii. If your 6-digit NAICS code and 5-digit NAICS industry code are different, proceed with caution.

1. Locate the IBISWorld report at the 5-digit level that applies to your sector.

2. In these reports, scale economies and barriers to entry for your business are frequently discussed.

3. ORBIS.

1. You can create a list of businesses using the NAICS 2007 at ORBIS.

2. Location can be set to the United States, and status can be set to active.

3. The scope and expansion of your sector in the US

What was the size of your industry in 2002, 2007, and 2012? Employee count and shipment value are the two factors that determine size. These figures for the three Economic Census years of 2002, 2007, and 2012 should be shown in a table.
b. Determine the average annual percentage growth rates for employment and shipping value for the corresponding 2002–2007 and 2007–2012 time periods. For an illustration of how to perform this calculation, go to http://www.wikihow.com/Calculate-an-Annual-Percentage-Growth-Rate.

Data accessibility:

I. Visit http://www.census.gov/econ/index.html for 2012 data.

First, choose the 2012 Economic Census.

2. Select the “What Has Been Released” link.

3. After Sectors 31–33: Manufacturing, click the “+”.

4. Select “Link to AFF” from any location in the table’s column labeled “Link to Data.”

5. Select the data set. Manufacturing: Industry Series: Detailed Statistics by Industry for the United States, 2012, is covered in the publication EC123111.

ii. Visit http://www.census.gov/econ/index.html for statistics from 2007.

1. After searching databases, select 2007.

2. Select the data set. EC0731SG1: Production Industry Statistics for Industry Groups and Industries: A General Summary, 2007.

iii. Visit http://www.census.gov/econ/census/data/historical_data.html to access the 2002 data.

1. Select Manufacturing 31–33. For a pdf study specific to your industry, click on Industry Series. Table 1 includes data from 2002 and 1997.

2. Select Data EC0231SG102: Production: Industry Statistics for Industry Groups and Industries: 2002, General Summary

4. Comparing nominal and actual industry growth

d. In the last exercise, you calculated growth rates that were nominal changes. Determine how much of the expansion in your industry is a result of shifting prices and how much is a result of shifting physical quantities.
e. The annual percent change in cargo value roughly equates to the annual percent change in both physical quantity and price. As a result, you can find the yearly percent change in quantity by subtracting the annual percentage change in price from the annual percent change in shipment value. Quantity change as a percentage represents a real increase after accounting for inflation.
f. The difference in the producer price index (PPI) between two years, expressed as a percentage, is the rate of inflation. Utilizing the same method as in problem 3.g, determine the annual percent change in prices. Data Accessibility
i. Visit the website http://www.bls.gov to learn more about price inflation in your industry.
ii. Select “Producer Price Indices (PPIs)” from the “Subjects” pull-down option under “Inflation and Prices.”
Scroll down to access the PPI database data.
iv. Select the “One-Screen Data Search” or “Multi-Screen” icon from the Industry Data Row.

5. Forecasts for US Industries

h. For industries with 4-digit NAICS codes, the US Bureau of Labor Statistics anticipates output and employment. You can find these forecasts at http://www.bls.gov/emp/empinddetail.htm.
i. Remember to multiply the two predictions by the appropriate ratio (either employment or the value of shipments) of the size of the six-digit industry to the size of the four-digit industry since your six-digit industry only reflects a portion of the bigger aggregate industry represented on this website. Use the task 3 guidelines to find four-digit shipments and employment.

j. What are the real output and employment projections for your industry’s annual compounded growth? In light of the historical expansion of your industry (as determined by tasks 3 and 4), discuss whether the Bureau of Labor Statistics’ forecast makes sense to you. If not, kindly propose and implement a different approach while properly outlining what you do.

6. Industry concentration among U.S. sellers

a. How many businesses make up your industry overall?

b. Visit the website at http://www.census.gov/econ/census/help/sector/data_topics/concentration_ratios.html. to find the information you need. For your industry, find the four-firm concentration ratio (CR4) and Herfindahl-Hirschman index (HHI) for the years 2002 and 2007 (the most recent year for which data is available). Please note that you should not calculate these in-dexes using the market shares of specific firms. This computation has already been done for you by this website.

c. Would your industry be categorized as competitive, moderately concentrated, or highly concentrated according to CR4 and HHI, respectively, based on the following tables? Was this different in 2002 compared to 2007?

CR4 > 75 0 CR4 50 50 CR4 50
competitive concentration: relatively high concentration

HHI = 0 HHI = 1500 HHI = 2500 HHI > competitive 2500 Concentration: relatively high Concentration
7. Buyers and Suppliers of Industry Inputs in the United States

a. This has two objectives:

i. To determine the proportion of your industry’s output that is used as an intermediate good in the manufacture of other commodities as opposed to a final good consumed by customers, etc.

ii. To identify the sectors that your industry relies on the most as suppliers.

c. You have to report.

i. The total quantity of your industry’s output that is purchased by ultimate consumers, the total amount of your commodity produced, and the percentage of your industry’s total output of commodities that are purchased by private consumers, institutional investors, the government, or foreign buyers (exports). An input-output sector should be designated as a final purchaser with an “F” for “final”.

ii. The total amount of your industry’s output that intermediate-buying industries purchase, as well as the proportion of all commodity output that the top five intermediate-buying industries buy.

The total number of intermediate inputs used by your industry, along with the percentage of these total intermediate inputs that were sourced from each of the top five input-supplying sectors,

iv. Please do not list an industry as one of the five if it is among its own top five buyers or suppliers.

Data Accessibility

Visit www.bea.gov, step 1.

ii. Select the “Benchmark Input-Output Accounts” link under the “Industry” header.

iii. Select the link for the 2007 Benchmark I-O data tables.

iv. Locate the “Use Tables/After Redefinitions/Producer Value” option under the Supplemental Estimates List. To access the Excel workbook for 388 Industries, click the “XLSX” link.
v. The sheet’s final tab contains the data.

d. Note:

i. Locate the row that contains your industry and read across to gain information on intermediate buyers and final purchasers.

ii. Locate the column that contains your industry and read down to identify the intermediate inputs that your industry purchased.
8. Salary and Payscale Trends in Your Sector in the U.S.

a. Calculate the average yearly wage (payroll divided by the number of employees) and the average hourly wage rate (production worker wages divided by the number of hours a production worker works) for your industry between 2007 and 2012.
b. Data on payroll, employee count, wages paid to production workers, and total production worker hours are necessary.

Data Accessibility

i. Same location as in “Size of Industry” above as of 2012.

ii. Same location as in “Size of Industry” above in 2007.

9. The Location of Industry in the United States

a. Describe where in the US production took place in 2012, 2007, and 2002 for your industry. One way to gauge this is to give a list of the top 5 states for employment in your sector.
Availability of Data on County Business Patterns

i. Visit www.census.gov/econ/cbp.

ii. After selecting the U.S., States, and Countries pulldown in the “View data in tables” box, click the “Go” button. Make sure that “United States” is still listed in the pull-down menu.

iii. On the manufacturing line, select “Detail.”

iv. Click on Compare after finding your particular industry.

v. The page’s pull-down menu allows you to view data from 2012, 2007, and 2002.

vi. Take note that if a state’s name begins with a letter (such as “C”), this normally signifies that some states may show a range of employees rather than a specific count. That’s okay. Please include states that may be among the largest 5 states if they have a lot of employees (some states may have a range of 10,000 to 24,999 employees, for example).

vii. If a state isn’t listed, it’s safe to conclude that virtually no one works in your industry.

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now