Industry statistics gather data from companies in defined industries to represent an average trend across areas such as sales and raw material costs. Companies use these as benchmarks to evaluate performance. Data is collected from direct and indirect competitors and displayed as percentages or numerical figures. Companies use industry statistics to identify strengths and weaknesses, and personnel areas such as compensation and unemployment rates are represented. The types of companies in each industry are also included in an industry overview.
Industry statistics are compilations of data taken from numerous companies. Companies are grouped into defined industries for a primary product or activity, such as the manufacturing of snack foods or medical services. The collected data is used to represent an average trend for each industry across a number of areas, including gross sales and cost of raw materials. Industry statistics are used by companies as a benchmark to evaluate individual performance. The desired level of performance is typically at or above the industry average.
Depending on their main productive activity, companies are classified into industrial sectors and sub-sectors. For example, a manufacturer of potato chips might be classified in the general manufacturing industry and the food manufacturing sub-industry. Industry statistics for both the main and sub-industry will include data obtained from the individual potato chip producer. The statistics for those sectors will also include data obtained from direct and indirect competitors. A direct competitor might include a company that makes another brand of potato chips while an indirect competitor might include a cracker and cookie maker.
The data obtained from all the companies that participate in the main activity of an industry is put into an aggregate or average figure. This average figure represents the industry trend. Industry statistics can be displayed as percentages or numerical figures. These statistics provide investors and analysts with an insight into the performance of a particular industry as a whole. Analysts can view averages to get a sense of how one industry compares to another, as well as how a sub-industry compares to the overall industry category.
Individual companies often use industry statistics to identify strengths and weaknesses. For example, if the average industry worker puts in 40 hours a week and the average company worker puts in 50 hours a week, this could indicate a need to restructure job responsibilities. Similarly, comparing average workplace injuries for the industry to company-specific data can help identify the need for potential safety improvements.
Areas of personnel that are typically represented in industry statistics include average compensation, new job openings, layoffs, hiring and termination activity, and the unemployment rate. Data is collected on the types of jobs available in each industry and the number of people employed in each position. Product or service price data is compiled, including percentage changes.
The types of companies in each industry are also included in an industry overview. The number of private companies versus government agencies is compared, along with the amount of workers working for each type. Sub-sector statistics often feature the same categories.
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