Sand & Gravel Mining in the US - Industry Risk Rating Report : Market Research Report

Sand & Gravel Mining in the US - Industry Risk Rating Report

Published by: IBISWorld

Published: Oct. 17, 2009 - 26 Pages

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

Private Fixed Investment - Residential
Public Consumption Expenditure and Fixed Investment
Real GDP Growth
Private Fixed Investment - Non-Residential Total
Legislative Compliance Requirements - Sand & Gravel Mining

INDUSTRY RISK AND INDUSTRY RISK SCORING METHODOLOGY

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

Abstract

Industry Risk Ratings Synopsis

This Industry Risk Ratings report from IBISWorld evaluates the inherent risks associated with the Sand & Gravel Mining 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 comprises firms mainly in mining and quarrying sand (construction and industrial) and gravel, along with clays, ceramic and refractory minerals. Industry activity may include the beneficiation of these minerals by washing, screening, and otherwise preparing the mined sand, gravel and clays. The principal activity of this industry is the production of sand and gravel for use as aggregates in the construction of buildings and infrastructure (e.g. highways) and a significant share of industry revenue (annually around 25% to 30%) is generated from the mining or quarrying of clays, ceramic and refractory minerals for downstream manufacturing applications.This industry comprises four main segments: NAICS 212321 Construction Sand and Gravel Mining which involves the operation, dredging and preparation of commercial grade sand and gravel.NAICS 212322 Industrial Sand Mining which involves the operation, dredging and preparation of industrial grade sand, often known as �€osilica�€�, �€osilica sand�€� or quartz sand�€� which is used glassmaking, foundry, abrasive, and many other industrial applications.NAICS 212324 Kaolin and Ball Clay Mining which involves mining and beneficiation of kaolin or ball clay (e.g., china clay, paper clay, and slip clay) mainly used in the production of paper and refractories (kaolin), and sanitary ware and ceramic tiles (ball clays).NAICS 212325 Clay and Ceramic and Refractory Minerals Mining which involves the mining and beneficiation of clays (except kaolin or ball clays), ceramic and refractory materials such as common clay and shale for production of bricks, lightweight aggregate and cement clinker, fire clay for refractories, fuller�€™s earth for absorbents, and bentonite for absorbents, drilling mud, foundry bonding agents and iron ore pelletizing.

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.

21232 - Sand & Gravel Mining in the US
21221 - Iron Ore Mining in the US
23321 - Single Family Home Building in the US
23491 - Pipeline Construction in the US
32211 - Wood Pulp Mills in the US
32711 - Pottery, Ceramics & Plumbing Fixture Manufacturing in the US
32712 - Clay Brick & Product Manufacturing in the US
32721 - Glass Product Manufacturing in the US
32731 - Cement Manufacturing in the US
32733 - Concrete Pipe, Brick & Block Manufacturing in the US
32791 - Abrasive & Sandpaper Manufacturing in the US
23332a - Commercial Building Construction in the US
23332b - Municipal Building Construction in the US
23411a - Road, Street & Highway Construction in the US
23411b - Road, Street & Highway Maintenance in the US

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Sand & Gravel Mining in the US - Industry Risk Rating Report

Table of Contents

Abstract