Industry Analysis & Industry Trends
Since flour mills provide goods that are considered diet staples, the industry will remain relevant in the years to come. Revenue and profit will depend on the price and production of wheat and rice, which are expected to remain stable during the five years to 2014. As companies vertically integrate and merge operations to take advantage of economies of scale, revenue will rise... purchase to read more
Industry Report - Industry Investment Chapter
Firms within the Flour Milling industry use a high level of capital during production. Milling grains and rice requires heavy machinery such as traditional mills or stone grinders. Also, cereal grain malting requires specialized equipment because the malting process consists of two unique steps: germinating and drying. This process requires equipment such as malthouses, which are designed to dry the germinated seeds in perforated wooden floors. Because some equipment is so specialized and expensive, many firms are vertically integrated to lower their per-unit costs. Therefore, for every dollar spent on labor, the industry incurs $0.40 in capital expenditures.
The ratio of capital to labor is expected to increase during the five years to 2014... purchase to read more