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Naics Code: Except Frozen Manufacturing Industry

703 Words3 Pages

CS Identification
U.S. Census Bureau 2017 NAICS Code: 31151
Title: Dairy Product (except Frozen) Manufacturing
According by IBISWorld, this product characteristics additional analysis of the Coffee Creamer Production industry (OD4978), which is generalize within industry code 31151.
Industry Description
This industry manufactures dairy and nondairy coffee creamers in powdered and liquid form. The production of other products, such as half and half, whipping cream, ice cream mix, milk or milk substitutes, sour cream, cheese or powdered beverages, is excluded from this industry (McCormack, 2016). This U.S. industry comprises establishments primarily engaged in (1) manufacturing processed milk products, such as pasteurized milk or cream and sour …show more content…

While the industry benefited from the increasing popularity of yogurt and cheese products in the United States and abroad, fluid milk consumption has declined. Dairy producers have been able to pass along raw milk costs to consumers, especially producers that manufacture value-added products such as cheese, yogurt and condensed milk products. However, following the recent fall in the price of milk, industry revenue has grown slowly over the past five years to 2017. During this period, industry revenue is expected to increase at an annualized rate of 1.3% to $115.8 billion, which includes a 0.9% rise in 2017. Milk prices fell dramatically in 2015, and as a result, operators lowered their prices to increase demand while still maintaining their profit margins (Longo, …show more content…

The Coffee Creamer Production industry (OD4978) has grown in the past five years, boosted in part by rising coffee consumption. Although many companies and individuals temporarily downgraded their coffee creamer by buying a private-label product or using less of it daily, demand for coffee creamer bounced back quickly because it is a relatively low-cost product. Additionally, the price of coffee creamer rose during the past five years as companies marked up products to account for rising input costs, especially the price of milk. Higher prices also offset the slight decline in coffee consumption. As a result, industry revenue is estimated to grow at a 2.4% annualized rate to $1.8 billion during the five years to 2016, including a 2.8% increase in 2016 alone (McCormack, 2016).
Industry Life Cycle

The industry is increasingly investing in new technologies to upgrade and automate production systems. More efficient and durable machines, as well as improved tracking and monitoring technologies, are reducing the industry's reliance on certain employees. As a result, industry wages, which make up one component of IVA, are projected to increase an annualized 1.5% in the 10 years to 2021. Conversely, profit and depreciation, the remaining components of IVA, are forecast to expand as a share of revenue during this time (McCormack,

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