Industry Analysis & Industry Trends
The Sanitary Product Manufacturing industry converts paper stock into paper sanitary products such as toilet paper, facial tissue and tampons. The industry is gripped by a long-term trend of decline, demonstrated by falling revenue, deteriorating profit margins and rising import competition. Import competition is partly rising because many companies are moving their production overseas to take advantage of lower production costs. Nevertheless, strong economic conditions and a healthy consumer backdrop fuelled temporary industry revenue growth over the two years through 2014-15. Since then, however, the industry has declined once again, Industry revenue is expected to decline at a compound annual rate of 0.5% over the five years through 2016-17 to £2.4... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering the industry are moderate. They include start-up capital requirements, brand loyalty and compliance with environmental regulations. Start-up capital will depend on the size of the operations, but each business will need machinery and equipment for the production process, which can be costly. Securing finance could also pose a problem for a new entrant, especially if credit markets are tight or if success expectations are low. This is a declining industry with strong competition, which could be deemed too risky by many financial institutions.
The high level of environmental regulation in the industry can be a large barrier for prospective new entrants. Com.. purchase to read more