Introduction to the World Industry Service - IHS Markit · Introduction to the World Industry Service ... Size of market Share of global economy ... display cross-industry perspectives

Introduction to theIntroduction to theWorld Industry ServiceWorld Industry Service

April 2009

Copyright © 2009 IHS Global Insight. All Rights Reserved. 2

Introduction to the World Industry Service (WIS)

The World Industry Service is a unique product with a global set of sector data, benchmarks, written reports, sector experts, and forecasting model platforms.

Harmonized views and metrics of industries and countries constructed for accuracy, consistency and global comparison

Includes 95 industries for each of the 75 largest economies

Written reports to describe forecasts, drivers, assumptions

Industry metrics include Sales, Profits, B2B markets, Trade Patterns, CapEx, IT Spending, Risk Management, and more


Introduction to the World Industry Service (WIS)

User-friendly Web interface for navigation through dimensions of sector, country, indicator, currency, and timeframe

Valuable metrics and reports for use in global market sizing, company sales forecasting, market intelligence, strategic planning, corporate spending, asset allocation and risk management

Translate economic events into sector and business-level implications

Sector

Country

Indicator

CurrencyTimeframe

World Industry Service


Assimilated and harmonized data converted into globally consistent benchmarks and forecasts

Reliable data sources—supply side of each country’s National Income Accounts (NIA)

25-year history, 20-year forecast

Use of the common International Standard of Industrial Classification (ISIC) and Global Industry Classification Standard (GICS) to classify the industries in each economy

WIS Package Helps Identify Opportunities

Size, compare, rank, and benchmark sector and industry level activity and financial performances across different countries

Which sectors in which countries are the largest size, fastest growing, most volatile, most profitable, fastest spending, highest risk?

Which sectors provide opportunities for new client markets, M&A, outsourcing, new investments, cross-border trade, asset allocation?

Quality features and value-added attributes facilitate user applications

Harmonized sectors and indicators allow comparability and aggregations across sectors and countries; robust data structure ensures ease of use

The links among sectors, with macro spending and external trade provide a robust forecast framework and “top down” constraint for quality control

Easy web-based platform for user friendly navigation


WIS Includes Analysts and Analysis Behind the Numbers

News and Trends drivers

Orders remained strong in 2007, overtaking the banner total of 2005. Demand is fueled in particular by Asia-Pacific and in the Middle-East.

U.S. economic turmoil could challenge the rebound of demand in NAFTA. As world economic growth decelerates, limited new capital expenditures

by cautious manufacturers should moderate sales growth in the medium term, despite skyrocketing orders.

After missteps at Airbus, Boeing has also announced delays in the production of its 787 Dreamliner now expected only by the end of 2009.

Performance

LOW 0.4%

Industry RankIndustry Risk Rating(From Lowest (1) to Highest (10) Risk)

4.4

Share of global economySize of market

$459Billion

02468

10121416

World NAFTA Europe & CIS Asia-Pacific

2008 2009 2010

Sales forecast growth(Percent growth, based in real inflation-adjusted dollar)

NAFTA

Asia-Pacific

RoW

Europe & CIS

Sales geographical breakdown, 2007(Percent share, based in nominal dollar)

0 1 2 3 4 5 6 7 8 9 10

NAFTA

Asia-Pacific

Europe & CIS

RoW

Risk Rating geographical breakdown(From Lowest (1) to Highest (10) Risk)

Sales correlation to GDP(Percent growth, based in real-inflation-adjusted dollar)

-10-505

101520

1998 2000 2002 2004 2006 2008 2010

GDP Aircraft Sales

Aircraft Industry ScorecardISIC rev 3: 353, SIC: 372, NAICS: 3364, NACE: 353, GICS: 20101010


Who Are WIS Clients?

Sales forecasting Procurement Market intelligence Strategic planning Public sector revenues Credit risk research Investment management

Decision Makers, Planners, and Analysts


2006 Geographical Breakdown of World GDP (US$45 trillion)

WIS Includes Industry Metrics for 75 Economies, and Geographic Composites

World Total (75)(Number of Member Countries), [Shares of World]

North America (3) [34%] South America (14) [4%]

Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Honduras, Jamaica, Panama, Peru, Uruguay, Venezuela

Asia-Pacific (17) [25%] North Asia: Japan, South Korea, China, HK Taiwan South Asia: Australia, New Zealand, Bangladesh,

India, Pakistan, Sri Lanka, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam

Europe (25) [34%] Western Europe: EMU (Austria, Belgium, Finland,

France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain), UK, Sweden, Denmark, Norway, Switzerland, Turkey Eastern Europe & CIS: Bulgaria, Czech Republic,

Hungary, Poland, Romania, Russia, Slovak, Ukraine

Middle East (9) [2%]Bahrain, Egypt, Iran, Israel, Jordan, Kuwait, Qatar, Saudi Arabia, UAE

Sub-Saharan Africa (8) [1%]Cameron, Kenya, Morocco, Nigeria, Senegal, South Africa, Tunisia, Zimbabwe

Other Geographic Composites Include: BRIC (4) [11%] – Brazil, Russia, India, China ASEAN (6) [2%] - Indonesia, Malaysia,

Philippines, Singapore, Thailand, Vietnam Greater China (3) [15%] – China, Hong

Kong, Taiwan European Monetary Union (11) [21%]

Sub-Saharan

Africa 1%

North America

34%

South America

4%

Middle East2%

Asia-Pacific

25%

Europe34%


Product Sectors1. Agriculture: farm, forest, and fishing2. Mining: coal, oil and gas, metals, and minerals3. Manufacturing: food, beverages, textiles, wood,

paper, chemicals, pharma, metals, minerals, industrial machinery, computers, electronics, autos, shipping, aircraft, railroad, and scientific and medical equipment

4. Utilities: power, water5. Construction (construction materials and

machinery are in the manufacturing sector)

Services Sectors6. Wholesale, Retail, Restaurants, Hotels7. Transportation, Storage, and Communications8. Finance, Insurance, Leasing, Real Estate,

Computer Services, R&D, and Business Services

9. Public Administration, Defense, Healthcare, Education, Recreation, and Household Services

WIS Includes 95 Granular Industries, Which Are Also Grouped into Broad Sector Composites

Mining3%

Retail, Wholesale

15%

Construction6%

Finance25%

Social & Personel Services

21%

Transport, Storage, Com-

munication Services

7%

Agriculture3%

Utility2%Manufact-

uring18%

2006 Sector Shares of World GDP(US$45 trillion)

Other Industry Composites Include: Energy Complex [6%]: Coal, Oil & Gas, Uranium Mining;

Refined Petroleum& related, Nuclear Fuel; Electricity, Pipeline Transport Metals & Related Mining [2%]: Mining of Metals, Basic Metals Production Medical & Health Care [7%]: Health Care Services., Drugs, Medical Equipment


Total Sales (Gross Output), Operating Expenditures (OpEx), and Capital Expenditures (CapEx) are Indicators for Each Industry in Each Country in WIS

The National Income Accounts (NIA) in Each Country provide the basis for Sales, Profits, Operating Expenditures and Capital Expenditures

The Value Added from Each Industry adds up to GDP Annual Frequency for NIA is complimented by quarterly

frequency for production index, other recent indicators

Industry InvestmentSpending (CapEx) on

Plant, Machinery and Equipment)

Purchases of Products &

Services(OpEx)

Total Sales(Gross Output)

Value Added:○Profits○Wages○Depreciation○Other

Industry SpendingPatterns:

(OpEx, CapEx,Wages, R&D)

WIS Provides Unique Indicators of Industry Activity, Spending, and Profitability for Each Industry


WIS Compiles Industry Data from a Variety of Sources

United Nations Data(UNSNA, UNIDO)

OECD STAN

Country-Sourced

Data

The WIS compiles data from a variety of sources, starting with IHS Global Insight’s macroeconomic forecasts

IHS Global Insight Trade Data(Exports/ Imports)

IHS Global Insight Macroeconomic Data and Forecasts

Other data sources are then layered on top in successive tiers, such as trade data for exports and imports

The OECD STAN database is an valuable data source for member countries

The top layer represents data that comes from individual country sources and/or from trade associations

High-frequency historical data are used to bring the history data forward in time to produce a timely “nowcast” snapshot of the latest sector-level activity


WIS Forecasts Incorporate Both Country and Global Industry Views

Global Sector

Expertise

Global Macroeconomic

Expertise

World Industry Service

All Countries All Sectors

Harmonized to Common Standard

North America

Middle East and Africa

Europe: West and East

Asia-Pacific

Latin America &Caribbean

Autos

Tourism

Energy

Chemicals

Construction

Financial

Healthcare

Transport

Communications


Macro Policies and Performance Drive the Industry Outlook

All sectors together must add up to total GDP

Impacts are translated through consumer markets, B2B links, and capital equipment

Each sector’s exports are another’s imports

WIS “top down” compliments “bottom up”

Macro Policies Slate of Demand Scenarios Prices &

Exchange Rates

Industry

Sources of Demand Purchases, CapEx Consumer, B2B Markets Technology Linkages Trade & Competition Cost & Profits

Company

Sectors Are the “Gear Box” that Connect Macro and Companies!

Global & Regional Sales Growth

Cost Structure Market Share Competition, Risks


What Comprises IHS Global Insight’s WIS Package?

1) Globally comparative sector data and benchmarks Harmonized measures for 95 industries in 75 countries Composites of Countries and Industries, up to Economic and World Totals Industry forecasts driven by IHS Global Insight’s Macroeconomic Forecasts

2) Written reports describe industry forecasts, drivers, assumptions Summary Scorecards, Latest Developments, Rankings and Key Players

3) Active communication with sector analysts, client conferences

4) Platform for custom applications for individual clients Company Sales Forecasting Scenario Construction and Model Simulation Stress-testing Investment Portfolios and Credit Risk Management Sector Rotation Investment Strategy, Financial Analysis of Industries


World Industry Service Reports on MyInsight

Features include:

Updated once per quarter, or as events warrant

Industry reports includes “summary scorecard”, recent developments, forecast drivers, assumptions, industry structure, key players

Comparative Industry reports display cross-industry perspectives on growth, size, other characteristics

Macro economic summaries of spending, finance, policies

Sector experts are identified in each report, with phone and e-mail contact information


User-friendly navigation Easy point-and-click

choice of sectors, countries, indicators

Drill-down tree format Unique set of indicators

for each industry Flexible options for time

range and formats Data delivered via Web

into Excel, or saved in Workbooks on-line

Easy Access to WIS Data via DataInsight-Web

World Industry Service Data on DataInsight-Web


For more information, please see our public Web sites:

1) World Industry Service Home Pagehttp://www.ihsglobalinsight.com/WorldIndustry

2) Applications for Custom Market Indexes / Key Drivers for Technologywww.ihsglobalinsight.com/WIS

3) Sector Risk Ratingswww.ihsglobalinsight.com/WIS-Risk

4) Stock Sector Rotation Strategywww.ihsglobalinsight.com/WIS-Financial

Translating Economic Events into Implications for Global Sector Markets

Documents

Introduction to the World Industry Service - IHS Markit · Introduction to the World Industry Service ... Size of market Share of global economy ... display cross-industry perspectives