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30 January 2006

Seafood Consumption Climbs Rapidly while Distribution Industry Struggles

The market for seafood has been climbing rapidly with the recent increases in US prosperity, especially as highest income consumers reap most of the benefits of growth. Seafood is a luxury food, with an income elasticity of demand near 2.5, such that a 10% increase in consumer wealth brings about a 25% increase in seafood consumption. The seafood distribution industry serves about 1/3 of demand, the balance served by full-line food wholesalers. The seafood distribution industry has shrinking, struggling against intense industry competition and also against large full-line food wholesalers sourcing directly from large overseas suppliers. Average firm in the seafood distribution industry is about $5 million in sales, but the largest 50 regional distributors control over 30% of industry sales. Barriers to entry have increased substantially with the mandate for Hazard Analysis Critical Control Point systems, but have come at the expense of distributor profits and not through price increases to customers. Industry growth for seafood distributors does not match GDP growth, as they battle for market share against full-line food distributors. Full Report Available from Investor Risk (21 Pages).

24 January 2006

Blueberry Demand Skyrockets as Industry Booms

The demand for fresh blueberries, blueberries for juices and blueberry-bearing products has been soaring for years, growing at double to triple the rate of US GDP and US Personal Disposable Income. The health benefits of blueberries -- high in antioxidants and proanthocyanidins -- are well documented. More recently, there is growing evidence in the ability of blueberries to slow the aging process and memory loss, thus fueling demand of this super-health food among aging baby-boomers. Prices have been stable due principally to the agressive industry response, adding large acreage tracts to planting and adopting new cultivars suitable to blueberry growth in high-yield climates with machine harvesting. Both fresh and frozen products have seen outsized demand increases, but expansion of the fresh market has also come from Southern Hemisphere off-season blueberries in recent years, albeit at premium prices. This most recent cash crop for berry farms is proving a boon to those with the patience to carefully cultivate new production over the four years blueberry plants need to mature. Full Industry Analysis Report Available from Investor Risk (35 Pages) + Full Market Analysis Report Available from Investor Risk (33 Pages).

30 November 2005

Business Valuation Services Hits $2.6 Billion

The market for Business Valuation Services (BVS) is at least USD 2.6 billion in 2005, although the industry is highly fractionated into a wide variety of service providers including accounting firms, specialized valuation firms, and independent valuation professionals. Estate and Tax segments are depressed because of regulatory uncertainty, yet compliance-driven segments are on the rise because of new accounting and tax requirements.. Business valuation engagements are performed for a variety of unrelated reasons, such as estate planning, the death of business owner, divorce, M&A, etc. As the baby boomers retire and regulatory requirements increase, the BVS market should increase 4% annually for the next decade. Major industry issues include the fractionated nature of the service providers, multiple competing certification programs for BVS, low barriers to entry and myriad new entrants as a result of outsourcing in the financial services industry. Full Report Available from Investor Risk (26 Pages).

30 November 2005

California Dominates Vegetables and Melons

California has approximately 4% of US farms, about 3% of total US land engaged in farming, and yet produces nearly 13% of US farm output (sales). California agriculture reaches new records in its domination of the vegetable and melon industry, for in this sector, California output (about $5 billion) represents about half of total US vegetable and melon farming (about $13 billion). Production is highly uneqal, however, with the top 10% of the farms responsible for nearly 90% of the output. The industry is concentrating further, with the largest farms exhibiting a compound annual growth rate of over 5% annually. Profit margins in large farms are substantially larger than the high margins of California vegetable and melon farms generally. Aside from continued pressure of imports, California's vegetable and melon farming industry should see rosy growth in the next few years due to overall trends for increased per-capita vegetable consumption as well as increasing scale and efficiency from industry consolidation. Full Report Available from Investor Risk (31 Pages).

17 November 2005

Chinese Goods Flood Furniture Retailing

The US Furniture Retailers have finally found the key to future growth -- buy direct from the Chinese Manufacturers, and cut-out the US middlemen. Furniture retailers' sales increase slightly faster than the rate of economic growth, as furniture purchase claims about .65% of Personal Disposable Income (PDI). The 2001-2002 recession hurt Furniture Retailers a bit, because furniture is nominally a luxury good with an income elasticity of demand of approximately 1.20. Furniture manufacturers had moved most of their production to China in the 1990's, onselling Chinese-made goods to Retailers for a good profit. Now, the Furniture Retailers are sourcing directly from Chinese manufacturers, precipitating a massive channel conflict being fought through anti-dumping tariffs. Furniture Retailer's prices have deteriorated over the past few years, only regaining some strength in 2004, as a result of Retailers' 'buy-direct' approach to China. Full Report Available from Investor Risk (22 Pages).

7 November 2005

Electro-Medical Equipment Booming

The electromedical instrument industry is a dynamic, growing industry within the larger medical supplies industry; the 'materials' of the health-care industries. Whereas many medical supplies (e.g. - bandages) are low-growth commodities, the high-tech nature of the electromedical instrument industry makes it one of the most exciting, dynamic, and innovative industries in the world. Spending on medical technologies has accelerated over the past several years amid a robust new product cycle and rising Medicare reimbursement levels. Electromedical equipment is just one of the three principal capital needs of the health-care provider - facilities, capital equipment, and information technology (IT). Although health-care capital expenditure is forecast to grow 14% annually for the next few years, electromedical equipment continues to save treatment cost, fueling 8% annual growth in this industry. Full Report Available from Investor Risk (3 Pages).

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