Countries covered: United States
Industry Risk Ratings Synopsis
This Industry Risk Ratings report from IBISWorld evaluates the inherent risks associated with the Pump & Compressor 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 is part of the Manufacturing sector in the US. Operators within the industry manufacture a range of pumps and compressors that are on sold to original equipment manufacturers, coal, oil, and gas industries, and, the construction sector. This industry does not manufacture air conditioning pumps and compressors (see NAICS 33341), agricultural spraying equipment (see NAICS 33311), fluid power pumps and handheld pneumatic spray guns (see NAICS 33399), and laboratory vacuum pumps (see NAICS 33911). NAICS definition: This industry comprises establishments primarily engaged in manufacturing pumps and compressors, such as general purpose air and gas compressors, non-agricultural spraying and dusting equipment, general purpose pumps and pumping equipment (except fluid power pumps and motors), and measuring and dispensing pumps.
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 industryĆ¢™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.
33391 - Pump & Compressor Manufacturing in the US 21111 - Oil Drilling & Gas Extraction in the US 22111c - Hydroelectric & Renewable Power Generation in the US 22131 - Water Supply & Irrigation Systems in the US 22132 - Sewage Treatment Facilities in the US 23321 - Single Family Home Building in the US 23322 - Multi Family Housing Construction in the US 23331 - Industrial Building Construction in the US 23499 - Heavy Infrastructure Construction in the US 23581 - Water Well Drilling in the US 32211 - Wood Pulp Mills in the US 32411 - Petroleum Refining in the US 32512 - Oxygen, Nitrogen & Other Gas Manufacturing in the US 22111a - Coal & Gas Power Generation in the US 22111b - Nuclear Power Generation in the US 23332a - Commercial Building Construction in the US 23332b - Municipal Building Construction in the US 11511 - Crop Support Services in the US 21311 - Mining Support in the US 22121 - Natural Gas Distribution in the US
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