Industry Analysis & Industry Trends
During the past five years, downstream demand for beef and pork decreased due to the recession, which caused revenue to significantly decline that year. Instead of buying fresh red meat included in this industry's product offerings, some consumers switched to meat products outside this industry's scope. However, the industry is projected to experience revenue growth during the five years to 2018, as the economy undergoes expected recovery. Per capita disposable income is projected to increase as employment levels recuperate and consumers regain confidence in the economy. As a result, Americans will slowly increase spending and consumption, subsequently increasing demand for pork and beef throughout downstream markets... purchase to read more
Industry Report - Industry Investment Chapter
Capital expenditures in the Beef and Pork Wholesaling industry include the purchase, storage and distribution of industry products. These tasks involve minimal transformation of the product, but they incorporate marketing activities, preparation and checking and shipping orders to customers. Because these tasks are generally labor intensive, the industry heavily depends on labor rather than capital goods, which is why the industry has a moderate level of capital intensity.
The capital costs for this industry are slightly higher than other wholesale industries because meat is perishable... purchase to read more