BELOVED DOG company has been attached For Canada and US COUNTRY need the below information to be written 1.5 page Introduction ( about Canada country ) Company Background ( focus on the company give the details about both US and Canada ) Main Competitor Background and Comparability Rational ( about Canada country )APA STYLE REFERENCES AND CITATIONS
BELOVED DOG company file Canada and its comparison in US AND CANADA COUNTRY need the below information to be written 1.5 page Introduction ( about Canada country ) Company Backg
This report was provided to University of British Columbia Library (2130501157) by IBISWorld on 26 November 2018 in accordance with their licence agreement with IBISWorldWWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 1 IBISWorld Industry Report 81291CA Pet Grooming & Boarding in Canada December 2017 Nathaniel Leach The dog’s day: Revenue will continue to grow due to rising consumer spending 2 About this Industry 2 Industry Definition 2 Main Activities 2 Similar Industries 2 Additional Resources 3 Industry at a Glance 4 Industry Performance 4 Executive Summary 4 Key External Drivers 6 Current Performance 8 Industry Outlook 10 Industry Life Cycle 12 Products & Markets 12 Supply Chain 12 Products & Services 13 Demand Determinants 14 Major Markets 15 International Trade 16 Business Locations 18 Competitive Landscape 18 Market Share Concentration 18 Key Success Factors 18 Cost Structure Benchmarks 19 Basis of Competition 20 Barriers to Entry 21 Industry Globalization 22 Major Companies 23 Operating Conditions 23 Capital Intensity 24 Technology & Systems 24 Revenue Volatility 25 Regulation & Policy 25 Industry Assistance 26 Key Statistics 26 Industry Data 26 Annual Change 26 Key Ratios 27 Jargon & Glossary www.ibisworld.ca | 1-800 -330 -3772 | info @ ibisworld.ca Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 2 This industry primarily provides pet care services, such as boarding, grooming and training. This industry includes animal shelters, obedience training services, guard dog training services, pet boarding and animal grooming services. This industry does not include establishments that predominantly retail products, board horses, transport pets or practice veterinary medicine. The primary activities of this industry are Animal grooming Operating animal shelters Boarding pets Guard dog training Obedience training Pet sitting Pet training 44511CA Supermarkets & Grocery Stores in Canada This industry sells pet-related merchandise, including food, toys, shelters and grooming products. 45291CA Warehouse Clubs & Supercentres in Canada This industry sells pet-related merchandise, including food, toys, shelters and grooming products. 45391CA Pet Stores in Canada This industry includes stores that sell pet-related merchandise, including food, toys, shelters and grooming products. 54194CA Veterinary Services in Canada This industry comprises vet hospitals and clinics. Industry Definition Main Activities Similar Industries Additional Resources About this Industry For additional information on this industry www.ipgicmg.com International Professional Groomers Inc. www.petbusiness.com Pet Business www.pijaccanada.com Pet Industry Joint Advisory Council of Canada The major products and services in this industry are Boarding Grooming Merchandise Training Other services Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 3 % change 4 -1 0 1 2 3 23 11 1315171921 Year Per capita disposalble incofe SOURCE: IBISfORLD 4-102357 16 0 4 b 12 23 9 11 1315171921 Year Revenue bfployfent Revenue vs. efployfenlt growth Products and services se.gmentation (2017) 36.f%Boarding 31.b%Grooming 2f.6%Other services 8.1%Training 3.4%Merchandise SOURCE: IBISWORLD Key Statistics Snapshot Industry at a Glance Pet Grooming & Boarding in 2017 Industry Structure Life Cycle Stage Growth Revenue Volatility Medium Capital Intensity Low Industry Assistance Low Concentration Level Low Regulation Level Light Technology Change Low Barriers to Entry Low Industry Globalization Low Competition Level High Revenue $544.8m Profit $117.1m Wages $175.1m Businesses 3,813 Annual Growth 17-22 2.6% Annual Growth 12-17 6.9% Key External Drivers Per capita disposable income Population International trips by Canadian residents Price of electric power Market Share There are no major players in this industry p. 22 p. 4 FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 26 Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 4 Key External Drivers Per capita disposable income Although the pet services industry has proven to be virtually immune to downturns in the economy, industry revenue is bolstered by rising per capita disposable income. When disposable income rises, consumers are more likely to purchase luxury services for their pets. Furthermore, a rise in consumer income allows for more international travel, which in turn creates a greater need for pet-boarding facilities. Per capita disposable income is expected to rise in 2017, representing a potential opportunity for this industry. Population A rising population is positively correlated with demand for industry services. About 32.0% of Canadians own a cat, and about 34.0% own a dog, according to the Canadian Animal Health Institute. Pet-ownership tends to rise with the population, which increases Executive Summary The Pet Grooming and Boarding industry has grown considerably over the past decade thanks to rising per capita disposable income and changing consumer preferences regarding pet care, which have accelerated demand growth for price-premium pet services. Over the five years to 2017, IBISWorld estimates that industry revenue has grown at an annualized rate of 6.9% to $544.8 million, including a 2.3% increase in revenue for the year. Several trends have driven industry performance. In particular, strong growth in the rate of pet ownership has led to a significant increase in demand for industry goods and services. In addition, pet owners, in particular, pet “parents” who have begun to treat their pets as members of the family, have been increasingly demanding a greater range of high-value services for their pets. In response to this, companies in the industry have begun to offer a greater number of high-end services; pet groomers are increasingly providing luxuries, such as pet massages and travelling to consumers’ homes to perform grooming services. Pet boarders have also introduced deluxe hotel suites equipped with TVs, music, training services and wading pools, among other amenities. As a result, the average price for pet boarding has risen significantly over the past five years, further contributing to growth in industry revenue and helping industry operators maintain strong profit margins. The outlook for the next five years remains bright for the industry. Over the five years to 2022, industry revenue is forecast to grow at an annualized rate of 2.6% to reach $620.1 million, as pet owners continue to humanize their furry friends and splurge on high-end pet grooming and boarding services. The growing Canadian population and increasing per capita disposable income will bolster this trend, providing consumers with the financial means to purchase a pet and treat them to high- price services. In addition, higher levels of international travel among Canadian citizens will bolster the need for pet boarding services, the largest industry product category. Industry competition, however, is expected to intensify; for example, at-home grooming products will continue to siphon price-conscious consumers away from the industry, and growing competition will constrain revenue growth for existing pet grooming companies. Industry Performance Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage Pet groomers are providing more luxuries, such as pet massages and at-home grooming Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 5 Key External Drivers continued demand for pet boarding, training and grooming. Canada’s population is expected to increase in 2017. International trips by Canadian residents When pet owners travel, demand rises for pet boarding services. Consequently, demand for industry services is positively correlated with the number of international trips taken by Canadian residents. During 2017, the number of international trips by Canadian residents is expected to increase. Price of electric power Companies in the Pet Grooming and Boarding industry use electricity for grooming items, such as blow dryers and, more specifically, to light grooming, boarding and training facilities. Utilities account for less than 10.0% of industry costs; however, as a cost for the industry, an increase in the price of electricity will likely cause profit margins to decrease. The price of electric power is forecast to increase in 2017, representing a potential threat to the industry. Million people 39 33 34 35 36 37 3823 9 11 1315171921 Year Population SOURCE: IBISfORLD % change 4 -1 b 1 2 3 23 11 1315171921 Year Per capita difpofablde income Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 6 Current Performance The Pet Grooming and Boarding industry has continued to fetch a greater share of consumer spending, as owners pamper their pets with premium services. The industry provides services such as pet grooming, boarding, training and dog- walking. Bolstered by rising consumer confidence and levels of disposable income, revenue is expected to rise at an annualized rate of 6.9% over the five years to 2017. This growth is partially underpinned by changing consumer attitudes toward pets; many owners are treating their pets like family members and are spending money on luxury pet services, such as pet massages. In line with industry trends, revenue is anticipated to rise 2.3% over 2017, as Canadian consumers spend an estimated $544.8 million on industry services. % change 150 3 6 9 12 23 9 11 1315171921 Year Industry revenue SOURCE: IBISWORfD Rising pet ownership One of the key drivers of demand for industry goods and services is the level of pet-ownership across the country, as a larger number of pets will translate directly into increased demand for industry goods and services. For example, rising numbers of pets will increase demand for pet training as owners seek to establish bonds and instill habits in their new animals. In addition, larger numbers of animals will necessarily lead to increase demand for grooming, boarding, and various products and other services. During the last five years, solid economic growth alongside rising consumer confidence has prompted an increasing number of households to adopt pets. According to a 2017 report by the Canadian Animal Health Institute, cat and dog ownership in Canada has risen during the reporting period, and between 2014 and 2016 (the only available data), the number of household cats grew 25.7% to 8.8 million, while the number of household dogs grew 18.8% to 7.6 million. Overall, cat and pet ownership combined is estimated to have risen 10.0% over the last decade, although the majority of that growth has taken place in the last several years. This growth has been fundamental to the sharply rising demand for industry goods and services. Changing consumer attitudes Alongside significant growth in the number of household pets, consumers have also increasingly begun to treat pets as they would children, with the term “pet parent” coined to describe such enthusiasts. This development towards treating pets as family members and humanizing them has prompted a strong increase in demand for premium pet products and services. In particular, the industry has begun to offer a greater array of luxury services for pets, as many operators have begun developing products with the intention of catering to more affluent consumers. The rise of pet-boarding facilities and pet Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 7 Industry structure and competition In response to strong consumer demand for industry services, there has been consistently strong growth in the number of industry operators during the five-year period. Over the five years to 2017, IBISWorld estimates that the number of industry operators will rise at an annualized rate of 6.8%, totalling 3,813 companies. Similarly, industry employment has been on the rise, as the number of industry workers has increased at an annualized rate of 7.3% to 6,438 employees. Strong growth in enterprise and employment figures has been facilitated by online platforms, such as DogVacay.com, that allow people to offer pet boarding and related services from their home as a source of side income, and emblematic of this trend is the fact that the number of sole proprietors have grown at a faster rate than businesses with employees. The industry’s low barriers to entry allow for new operators to easily enter the industry, which has contributed to enterprise, establishment, employment and wage growth over the five-year period. However, as the industry has become more saturated, competition has increased, forcing operators to more heavily compete with one another on the basis of price, location and skill. Despite an increasingly saturated marketplace, profit levels have actually grown since 2012, likely as a result of shifts towards more expensive value- added goods and services. Certain segments of the industry have also dealt with high levels of external competition over the five years to 2017. For example, veterinarians and pet stores have taken to offering grooming or boarding services as an extra source of income, directly competing with operators. Further, during the economic recession, when per capita disposable income and consumer confidence were low, many retailers such as Walmart began to stock at-home grooming products that allow pet owners to groom their own animals. These products cost less than hiring a professional groomer, which attracted consumers when the economy was weak. Although the economic landscape has since improved, many pet owners adapted to these at-home grooming products during the recessionary period and have opted to continue grooming their own pets. The sale of these products has somewhat pressured revenue gains over the five- year period. The industry’s low barriers to entry allow for new operators to easily enter the industry hotels (formerly referred to as kennels) highlights this trend. Some pet boarders offer dog suites and kitty condos equipped with TV sets tuned to animal shows, lambskin blankets, special ventilation systems, extra playtime, wading pools and even aromatherapy. Another popular service pet boarder’s offer is allowing owners to see their pets with a webcam while they are away. Additionally, to avoid the seasonal nature of pet-boarding demand, many boarders have begun offering new services, including grooming, training and dog daycare, to stabilize revenue throughout the year. Changing consumer attitudes continued Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 8 Demand conditions Over the next five years, rising per capita disposable income and high pet ownership will be integral to industry performance. Per capita disposable income is forecast to rise at an annualized rate of 3.0%, as unemployment falls and the economy continues to grow. As a result, consumers will be able to continue purchases of higher-value goods and services. High levels of pet ownership will also benefit the industry. As the economy grows over the five years to 2022, more consumers will have the financial means to purchase a pet, which can be a significant investment. Companion animals, such as cats and dogs, are becoming more popular for single professionals, empty nesters and young couples. Such demographics are expected to account for the majority of pet ownership growth over the next five years. Moreover, busy professionals are time-strapped and highly likely to use dog boarding and grooming services. Canada’s population is expected to rise at an annualized rate of 0.9% over the next five years, faster than other industrialized nations. With brighter employment prospects and higher incomes, more consumers will be able to afford to live on their own, resulting in accelerated household growth. The rising population will likely increase demand for pets, particularly because companion animals are popular with single-person households. In addition, the number of international trips taken by Canadian citizens is forecast to rise 4.1% over the five years to 2022. Pet boarding is the industry’s largest product category and it is to a large extent dependent on domestic and international trips taken by Canadians, as they will often send their pets to industry operators to house them while they are away. Industry Outlook Over the five years to 2022 the Pet Grooming and Boarding industry is expected to continue to grow, albeit at a slightly slower rate than during the previous period, with continued growth in pet ownership and demand for industry services being counteracted slightly by an increasingly competitive marketplace. Overall, IBISWorld forecasts revenue to rise at an annualized rate of 2.6%, reaching an estimated $620.1 million. Notably, this burgeoning industry has benefited from changing consumer attitudes, which have increased demand for a variety of new luxury services for pets. Over the next five years, this trend is expected to persist as pet owners increasingly purchase an array of high-value services for their pets. Growth will primarily be driven by rising per capita disposable income and increased pet ownership Pet parents on the rise The term “pet parents” was recently coined to describe enthusiasts who view pets as members of the family. Pet parents are more likely to purchase a greater number of high-value services and products, supporting industry revenue growth. Changing consumer attitudes have resulted in rising demand for pet hotels, which offer luxury accommodations, and pet groomers, which offer deluxe grooming treatments for both cats and dogs. Demand for these Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 9 Persistently high profit margins Profit margins are projected to remain high but fall slightly over the next five years. Individuals offering boarding services from their home incur minimal overhead costs relative to specialized kennels and other facilities, while increasing per capita disposable income will also bolster profit because consumers will purchase a greater number of luxury services that typically have higher profit margins. However, a forecast rise in energy costs will cut into profit margins, and given the significant number of operators that are entering the space, it is likely that price competition will rise, putting downward pressure on margins. In addition, in recent years Walmart has been expanding its pet care section and testing grooming stations in some of its US stores under the name Pet Care Specialists. Pet Care Specialists offer a full range of grooming treatments, including bathing and brushing, haircuts and styling, ear cleaning and nail trimming. Although Walmart has yet to bring these grooming establishments to Canada, the potential expansion represents a threat to industry demand. Furthermore, the at-home grooming products that Walmart sells represent an additional threat to the industry, as the industry loses revenue from consumers who opt to use these products in lieu of visiting a groomer. These external sources are expected to provide increased competition over the five years to 2022. services is forecast to rise over the next five years, fuelling revenue growth. As a result of burgeoning demand, the number of companies operating in the industry is projected to expand. Over the next five years, the number of industry enterprises is expected to rise at an annualized rate of 5.9% to 5,071 companies by 2022. Given the industry’s labour-intensive nature, industry employment will experience significant growth as well, rising at an annualized rate of 4.5% to reach 8,009 employees by 2022. Much of this growth will come in the form of nonemployer sole proprietors that leverage sites such as DogVacay.com, which is expected to keep the number of employees per establishment between one and two during the period. Pet parents on the rise continued At-home grooming products represent an additional threat to the industry Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 10 The number of industry entrants is increasing rapidly Changing consumer attitudes have spurred consumer spending on industry services Industry value added is rising faster than the overall economy Life Cycle Stage SOURCE: WWW.IBISWORLD.COM 20 15 105 0 -5 -10 % Growth in share of economy % Growth in number of establishments -10 -5 0 5 10 15 20 Decline Shrinking economic importance Quality Growth High growth in economic importance; weaker companies close down; developed technology and markets Maturity Company consolidation; level of economic importance stable Quantity Growth Many new companies; minor growth in economic importance; substantial technology change Key Features of a Growth Industry Revenue grows faster than the economy Many new companies enter the market Rapid technology & process change Growing customer acceptance of product Rapid introduction of products & brands Supermarkets & Grocery Stores Animal Food Production Warehouse Clubs & Supercentres Soap & Cleaning Compound Manufacturing Pet Stores Pet Grooming & Boarding Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 11 Industry Life Cycle The Pet Grooming and Boarding industry is in the growth phase of its industry life cycle. Over the 10 years to 2022, IBISWorld estimates that industry value added (IVA), which measures the industry’s contribution to the overall economy, will grow at an annualized rate of 6.6%. During the same 10-year period, Canadian GDP is expected to grow at an annualized rate of 1.9%. IVA growth that is more rapid than GDP is generally indicative of an industry in the growth stage of its life cycle. Over the past decade, Canadian pet ownership rates have been high, and pet ownership has risen among empty nesters, single professionals and couples who have delayed having children. Changing consumer attitudes toward their pets has also stimulated industry growth. Pets are increasingly indulged with luxury goods and services, with owners purchasing animal couture, massages, organic premium foods and luxury suites for their pets. To articulate this trend, the term “pet parent” has been used to describe pet owners who increasingly treat their pets as members of their family. To capitalize on these changing consumer attitudes, industry operators have begun to introduce an array of luxury services for pets. For instance, operators who own pet-boarding facilities have introduced a greater number of services for pets, including TV sets tuned to animal shows, lambskin blankets, extra playtime and swimming pools. Additionally, many pet hotels now have web cameras installed so that owners can see their pet through the company’s website. Moreover, because some pets may be too nervous or elderly to be transported to grooming establishments, some companies have begun providing mobile grooming operations. Company vans come to the pet owner’s home equipped with an interior grooming station. These changes to the service offerings of industry operators is a key indicator of the industry’s status as a growing part of the economy. Additional indicators of this life cycle stage include a rising number of industry operators, establishments and employment. This industry is Growing Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 12 Products & Services Boarding In 2017, IBISWorld estimates that pet boarding accounts for 36.0% of industry revenue. Pet boarding entails providing overnight care for animals, typically including accommodation, food, exercise and, often, play time. This segment does not include overnight care that pets may receive during medical treatment. Over the past five years, animal boarding has increasingly diversified, with companies greatly expanding their selection of services. Although standard kennels are still common, a variety of luxury pet boarding establishments have cropped up that offer tiered accommodations. For example, pet owners have the option of purchasing grooming and training services for their pets. Additionally, some companies offer TVs that play pet-themed shows, wading pools, daily play sessions, aromatherapy and classical music. Further, some pet boarders install cameras in pets’ luxury suites so that pet owners can check in on their pet while they are away. Conversely, pet sitters that look after animals in the owners’ homes are also included in this industry; this faction of the service segment offers low-priced pet sitting that typically includes one to three visits per day or overnight stays. Despite these increased options, this segments share of revenue has likely fallen in recent years thanks to an overall decrease in international travel. Products & Markets Supply Chain | Products & Services | Demand Determinants Major Markets | International Trade | Business Locations KEY BUYING INDUSTRIES 9901CA Consumers in Canada Consumers purchase the services of this industry. KEY SELLING INDUSTRIES 31111CA Animal Food Production in Canada Pet boarding houses must purchase food from the Animal Food Production industry to feed their visitors. 32561CA Soap & Cleaning Compound Manufacturing in Canada Pet groomers must purchase bathing products from this industry to use on clients’ cats, dogs and other animals. Supply Chain Products and services se$gmentation (2017) Total $f44.8m b6.0%Boarding b1.9%Grooming 20.6%Other services 8.1%Training b.4%Merchandise SOURCE: IBISWORLD Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 13 Demand Determinants Determining factors for the success of this industry include per capita disposable income, the Canadian population, external competition levels and the number of international trips by residents. Pet ownership is the primary determinant of demand, and the Canadian population’s growth provides a useful proxy to measure this, as the Canadian government does not track year-by-year pet ownership rates. As the population rises, so should the demand for pets kept in Canada. As pet ownership rises, demand for additional care services for household pets will also increase. The main pets that are owned by Canadians are cats, dogs, fish, small mammals, birds and reptiles. Demand is also related to household income, alongside the size of the home and ages of the children in a given family. Households with higher incomes are able to spend more on discretionary services and have been the primary customers for luxury pet services. For pet boarding services, specifically, demand generally relates to the number of international trips taken by Canadian residents. As the number of international trips increases, so does demand for boarding services. To a slightly lesser Products & Services continued Grooming Grooming is the second-largest source of industry revenue, accounting for an estimated 31.9% of total industry demand. Animal grooming includes cutting and shaving hair; trimming nails; and cleaning hair, ears and teeth. Some pet groomers have also begun offering a greater variety of luxury services, including massages, flea and tick removal and undercoat removal to decrease shedding. Furthermore, many pet groomers now offer mobile services so that groomers can come to the pet’s home to perform the grooming. This especially appeals to households that own elderly or nervous pets. The animal-grooming segment’s share of revenue has increased during the past five years due to rising external competition from grocery stores and department stores offering in-home, do-it-yourself grooming products. This rise is mainly due to increased average prices for grooming, partly due to its greater selection of luxury services. Training Pet training covers general obedience classes for puppies as well as group and private lessons for more advanced obedience classes. Pet training also includes providing lessons for guard dogs and guide dogs, as well as training animals to race. Pet training has begun to be offered in conjunction with other services such as pet boarding and day care. In 2017, IBISWorld estimates that pet training accounts for 8.1% of industry revenue, with sales growing in line with the rest of the industry over the past five years. Other services Other pet care services provided by the industry include pet sitting, dog walking, animal adoption, animal identification and marking services. These other pet services are estimated to account for 19.1% of industry revenue. Industry operators will also typically sell pet- related merchandise to pet owners at their operating establishment. This includes animal treats, collars, leashes, clothing, shampoos, food and other products. Merchandise sales are estimated to account for 3.4% of industry revenue in 2017. In addition, industry operators sometimes provide limited veterinary services, which are expected to account for 1.5% of industry revenue. Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 14 Major Markets Lowest and second income quintile The lowest and second income quintiles are expected to account for 7.2% and 15.1% of industry revenue, respectively. Consumers in these income quintiles are less likely to own a pet that requires industry services due to the high costs associated with owning a cat or dog. Moreover, the low levels of disposable income associated with these income quintiles discourages travel, which decreases the need for pet boarding. Lastly, these income quintiles are most like to choose to groom and train their own pets, as a means of saving money and as a result are less likely to require these industry services. Over the five years to 2017, IBISWorld estimates that the lowest quintile has contracted its share of industry service while the second quintile has risen slightly, with the net result being that their combined demand overall has not changed. Many industry operators have begun to offer more value-added services to capture consumer dollars from high-earning quintiles, focusing less on these income quintiles. Third and fourth income quintile The third and fourth income quintiles are anticipated to comprise 17.5% and 22.7% of industry revenue, respectively. Such consumers benefit from higher disposable income, leading to strong demand for industry services. Both income quintiles have fallen slightly as a share of industry revenue, likely due to rising demand from other quintiles rather than any flagging demand on their part. Highest income quintile Consumers in the highest income quintile are estimated to account for 37.5% of industry revenue. Consumers in this Demand Determinants continued extent, the number of domestic trips by Canadian citizens will also affect demand. International travel is not the sole impetus for seeking boarding services; other reasons for boarding a pet include relocation of households, households having guests who do not like pets or are allergic to animals, an owner’s illness that hinders proper pet care and home renovation or fumigation. There is also seasonal influence on demand for some service segments. Operators that perform grooming services typically experience greater demand in the warmer months, particularly for coat clipping and bathing. Major market segmentation (2017) Total $544f8m 37f5b Highest income qui4ntile 22f7b Fourth income quintile 17f5b Third income quintile 15f1b Second income quin4tile 7f2b Lowest income quintile SOURCE: IBISWORLD Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 15 International Trade The Pet Grooming and Boarding industry is a service industry, which means that it only provides domestic services for pets located within Canada. As a result, there is no international trade within this industry. Major Markets continued income quintile benefit from high disposable income levels and are consequently able to purchase more price-premium services for their pets. Moreover, this income quintile can afford to travel more frequently, boosting demand for pet boarding services. IBISWorld estimates that this wealthy cohort has risen as a share of revenue over the five years to 2017, likely because many operators have been diversifying the higher-end range of services in recent years in an attempt to boost revenue from more affluent customers. Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 16 Business Locations 2017 NORTHERN TERRITORIES 0.2 BC19.8 AB16.2 SK2.9 MB2.7 QC12.6 NS2.9 PE0.5 NB1.5 NL1.4 Establishments (%) Less than 5% 5% to less than 20% 20% to less than 40% 40% or more SOURCE: IBISWORLD ON39.3 Products & Markets YT NT NU Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 17 Business Locations Industry location is based primarily on the number of households in each region, as well as the median income level of households. Since the industry supplies a variety of luxury services for pets, establishments are disproportionately located in higher-income areas. Pet grooming and boarding businesses are mostly found in or near large cities where the population tends to be higher and the need more concentrated. As a result, the highest proportion of establishments is in Ontario, at 39.3% of industry locations. Ontario is home to Toronto, Canada’s largest city, which increases the province’s share of establishments. British Columbia, home to Vancouver, hosts 19.8% of industry establishments, while Alberta, home to Edmonton, contains another 16.2% of establishments. Quebec, meanwhile, ranks fourth, with 12.6% of establishments. The metropolitan city of Montreal is in the Quebec province. % 400 10 20 30 Saskatchewan Alberta fritish Cblumbia Manitbba New frunswick Newfbundland NW Territbries Nbva Scbtia Ontarib Prince Edward Islandr Quebec Establishments Population Distribution of esta blishments vs. popul ation SOURCE: IfISWORLD Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 18 Cost Structure Benchmarks Profit In 2017, profit for the Pet Grooming and Boarding industry, measured as earnings before interest and tax, is expected to total 21.5% of revenue. Profit margins have improved over the past five years, as despite due to an increase in value-added offerings; furthermore, consumers have shown an increasing willingness to spend money on their pets, particularly on luxury or high-margin services, which has helped boost margins. Wages Similar to all personal services industries, there is a relatively high level of direct labour in this industry. Therefore, wages are the largest expense for industry operators. In 2017, wages are expected to account for 32.1% of industry revenue. Quite often, experienced groomers are paid on a commission basis, which can usually account for 50.0% of fees paid by clients. Labour intensity can vary based on the activity being performed, with kennel operators and trainers that work to train and handle pets requiring a higher level of labour input. Purchases Purchases in this industry include supplies such as shampoos, pet food, drugs and medicines. Purchasing costs vary depending on the size of the operator; however, for the majority of the industry, purchasing costs are high, as smaller operators are unable to get discounts associated with large-volume orders. Overall, purchases are estimated to account for 11.7% of revenue. Key Success Factors Receiving the benefit of word of mouth recommendations Businesses that maximize customer satisfaction are more likely to gain favourable word of mouth recommendations, which are highly important for gaining new customers. Access to multiskilled and flexible workforce Access to appropriately trained and flexible staff who can perform a variety of tasks and services (e.g. grooming, kennel and support staff ) is beneficial, particularly in terms of lowering labour costs. Proximity to key markets Being situated in close proximity to households with a high degree of pet ownership, particularly dogs and cats, will benefit industry players by ensuring consistent demand for services. Effective quality control Ensuring that grooming and other pet care services are provided to the agreed standards for particular breeds is a key success factor for participants. This will ensure many repeat visits by customers, as well as good word of mouth recommendations. Market Share Concentration The Pet Grooming and Boarding industry is highly fragmented and has a low level of market share concentration. The majority of companies operating in the industry are nonemployers and those that do have employees tend to have only one or two full-time workers. This is exacerbated by the fact that pet owners tend to board and have their dogs groomed at facilities within their immediate geographic vicinity, which encourages small, fragmented establishments. Competitive Landscape Market Share Concentration | Key Success Factors | Cost Structure Benchmarks Basis of Competition | Barriers to Entry | Industry Globalization Level Concentration in this industry is Low IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are: Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 19 Basis of Competition Industry competition is high and increasing, given the numerous small companies operating in the industry. Furthermore, the number of companies has been continually growing in response to rising demand. In addition to internal competition, operators face a degree of external competition from pet stores, veterinary clinics and retailers that sell at-home grooming products. Internal competition Competition with other industry groomers, trainers and boarders is based mainly on location, price, quality of service and customer loyalty. Industry operators hold a significant competitive Cost Structure Benchmarks continued Rent and Utilities Utilities and rental payments are estimated to account for a combined 11.0% of industry revenue. This is one of the more significant costs associated with the industry, as many industry operators, particularly those that board animals, have to acquire large facilities in which to do so. Utilities has fallen as a share of revenue in recent years thanks to falling electricity prices. Other Advertising, promotional costs, insurance, legal fees and other administrative and overhead costs are among the expenses that account for the remaining share of revenue. Advertising and promotional costs have fallen over the past five years to 2.2% of revenue. Meanwhile, depreciation has risen to an estimated 3.2%, which includes equipment for grooming and kennel activities. Sector vs. Industry Costs n P r o fi t n Wages n Purchases n Depreciation n Marketing n Rent & Utilities n Other Average Costs of all Industries in sector (2017) Industry Costs (2017) 0 20 40 60 Percentage of revenue 80 10 0 SOURCE: IBISWORLD 8.9 21.5 18.3 11.0 2.2 3.2 11.7 32.1 18.8 8.5 1.4 2.2 31.7 28.5 Level & Trend Competition in this industry is High and the trend is Increasing Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 20 Barriers to Entry The industry’s barriers to entry are low since there are no formal industry licensing or training requirements and the costs of establishing an at-home or mobile service are relatively low. However, some training is encouraged for becoming an animal groomer. Training typically lasts about four months. There are roughly 87 individual breeds of dogs alone, many of which require specialized grooming. The industry is in the growth stage of its economic life cycle. Therefore, companies are still entering the industry due to rising demand from pet owners for a greater array of luxury services for their pets. Competition is high and increasing within the industry, as there are a significant number of operators, most of which operate small companies with only one or two employees. Start-up costs vary depending on the scale of operations. Groomers and pet trainers may not need a physical establishment and can instead visit consumers’ homes. However, the majority of industry operators will need to secure an operational facility, even if it is a simple mobile van. Pet grooming establishments will need to purchase shampoos, brushes and hoses. Pet boarders will also need supplies such as pet food, leashes, collars, medicines and toys. Labour is another important requirement for entering the industry. Although the number and type of employee varies depending on the type of operation, typical employees include groomers, trainers and kennel attendants. Basis of Competition continued advantage if their establishment is in a highly visible location with easy access for customers. The majority of consumers choose groomers, trainers and boarders who are within their direct geographic vicinity. Price is another significant source of competition. Although the price of pet care services has been rising as consumers increasingly purchase more luxury services, establishments can also capture a wider share of the market by providing a variety of lower-cost goods and services. Also of high importance is the level of specialized knowledge of a company’s employees, as employees with a greater understanding of the needs of different animals and breeds will be able to greater satisfy a wider range of clients. For boarding kennels, competition is typically related to the general appearance of the establishment (clean and hygienic), whether it is secure enough to prevent escape of pets from cages, safety and the presence of solid dividers between cages to prevent intrusions by other animals. The availability of exercise areas is also important, along with supervision, feeding procedures (e.g. food types/brands) and access to veterinary and other requested services, such as grooming. External competition The industry is exposed to external competition from pet stores and veterinary hospitals and clinics that offer pet grooming and boarding services. Additionally, the industry faces external competition from the sale of at-home grooming products from retailers; consumers with lower levels of disposable income are more likely to groom their pets themselves. Barriers to Entry checklist Competition High Concentration Low Life Cycle Stage Growth Capital Intensity Low Technology Change Low Regulation & Policy Light Industry Assistance Low SOURCE: IBISWORLD Level & Trend Barriers to Entry in this industry are Low and Steady Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 21 Industry Globalization The Pet Grooming and Boarding industry has a low level of globalization. There is no international trade in this service-based industry and industry operators typically serve their respective regions. Barriers to Entry continued Companies will also typically have management and administrative employees. Licensing requirements are an added expense of time and money. In the majority of provinces, a business licence is required to operate a pet grooming, kennel or related service. Boarding kennels are restricted in residential areas, due to noise factors. They are subject to provincial and local government regulations concerning animal care, hygiene, safety, security and noise control regulations. Level & Trend Globalization in this industry is Low and the trend is Steady Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 22 Other Companies This industry is composed of owner- operator enterprises, with very few companies operating more than one establishment. Online startups, such as Rover.com and DogVacay.com, have facilitated notable nonemployer growth by providing a platform for operators looking to provide pet care from their home. Both companies aim to pair travellers with independent pet sitters for a fee, allowing people to generate side income from home without the extensive outreach traditionally associated with such endeavours. Major Companies There are no Major Players in this industry | Other Companies Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 23 Capital Intensity The Pet Grooming and Boarding in Canada industry has a low level of capital intensity. In 2017, for every $1.00 spent on labour, the industry will invest $0.10 in capital. Capital intensity has risen marginally over the five-year period since industry practices have not changed significantly over this time. The majority of training, boarding and grooming operations are labour-intensive rather than capital-intensive, as employees are needed for exercising, feeding, cleaning and grooming pets. Operators also rely on store staff for customer service roles and arranging merchandise. Although there is a low degree of capital intensity, industry operators must invest in buildings or, increasingly, vehicles in which to operate; if they operate dog-grooming operations, they must purchase dryers, tables, tubs, faucets, floor grills and trays and often ramps for pets. Additionally, pet- Operating Conditions Capital Intensity | Technology & Systems | Revenue Volatility Regulation & Policy | Industry Assistance Tools of the Trade: Growth Strategies for Success SOURCE: IBISWORLD Labour Intensive Capital Intensive Change in Share of the Economy New Age Economy Recreation, Personal Services, Health and Education. Firms benefi t from personal wealth so stable macroeconomic conditions are imperative. Brand awareness and niche labour skills are key to product differentiation. Traditional Service Economy Wholesale and Retail. Reliant on labour rather than capital to sell goods. Functions cannot be outsourced therefore fi rms must use new technology or improve staff training to increase revenue growth. Old Economy Agriculture and Manufacturing. Traded goods can be produced using cheap labour abroad. To expand fi rms must merge or acquire others to exploit economies of scale, or specialize in niche, high-value products. Investment Economy Information, Communications, Mining, Finance and Real Estate. To increase revenue fi rms need superior debt management, a stable macroeconomic environment and a sound investment plan. Supermarkets & Grocery Stores Animal Food Production Warehouse Clubs & Supercentres Soap & Cleaning Compound Manufacturing Pet Stores Pet Grooming & Boarding Capital intensity 0.5 0.0 0.1 0.2 0.3 0.4 SOURCE: IBISWORLf fotteb line shows a hLigh level of capital Lintensity Capital units per labour unit Pet Grooming & Boarbing Other Services (except Public Abministration) Economy Level The level of capital intensity is Low Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 24 Revenue Volatility The Pet Grooming and Boarding industry exhibits a low-to-moderate level of volatility. Revenue consistently expanded over the five-year period, including growth as strong as an estimated 12.6% in 2015. Some of this growth can be attributed to rising prices for industry services alongside a sizable increase in demand thanks to steadily rising disposable income levels. With increased income, pet owners have been able to increasingly splurge on high-value goods and services. These trends have resulted in consistent revenue growth for the industry. Technology & Systems The Pet Grooming and Boarding industry has undergone a low level of technological development over the past decade, with the most significant change occurring in the boarding segment. There has been little change in the underlying tools involved in pet washing and grooming. Companies that operate pet-boarding facilities have experienced a higher degree of technological change. These facilities may incorporate TV and music to soothe nervous pets. Additionally, some companies offer pet owners the option of placing a camera inside pet enclosures so that owners can see their pet while they are gone. Videos are typically available through the company’s website. Further, sites like Rover.com and DogVacay.com match travellers with independent pet sitters, encouraging the continued fragmentation of this industry and increasing the use of technology. Capital Intensity continued boarding operators must purchase bowls, bedding and cleaning materials, as well as enclosures for pets. Industry operators will also likely invest in computers and computer equipment for record keeping and inventory control. Level The level of Technology Change is Low SOURCE: IBISWORLD Volatility vs. growth Revenue volatility* (%) 1000100101 0.1 Five-year annualized revenue growth (%) –30 –10 10305070 Hazardous Stagnant Rollercoaster Blue Chip * Axis is in logarithmic scale A higher level of revenue volatility implies greater industry risk. Volatility can negatively affect long-term strategic decisions, such as the time frame for capital investment. When a fi rm makes poor investment decisions it may face underutilized capacity if demand suddenly falls, or capacity constraints if it rises quickly. Pet Grooming & Boarding Level The level of Volatility is Medium Operating Conditions Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 25 Industry Assistance The industry receives no governmental assistance in the form of subsidies or otherwise. There are a variety of industry associations including the International Boarding and Pet Services Association and the National Groomer Association of Canada. The International Boarding and Pet Services Association provides information, publications, advertising opportunities, facility accreditation, cost-saving programs, meetings and business networking opportunities to industry providers. The National Groomer Association of Canada offers workshops and certification-testing sessions for dog grooming. Regulation & Policy The Pet Grooming and Boarding industry is subject to a low level of regulation. The rights of disabled persons with service dogs are covered by each individual province; generally, the consensus is that service dogs are permitted anywhere their handler goes, including restaurants, schools, buses, taxis, airplanes, stores, movie theatres, doctors’ offices and any other public space. Service dogs include guide dogs, signal dogs or other animals individually trained to provide assistance to an individual with a disability. In some provinces, a business licence is required to operate a pet-grooming business, kennel or related company. Boarding kennels are barred from being built in residential areas, due to noise factors. They are subject to provincial and local government animal care, hygiene, safety, security and noise control regulations. Operators are advised to carry some form of groomer malpractice and public liability insurance in case of owner disputes. While there is no formal or vocational training or apprenticeship involved with pet grooming, there are increasing moves toward the vocational licensing of pet groomers. The National Groomer Association of Canada and the International Boarding and Pet Services Association (IBPSA) represent the industry. The IBPSA offers several different services and resources including business development models, animal training certifications and industry information. Further, the Canadian Veterinary Medical Association writes the Code of Practice for Canadian Kennel Operations. Level & Trend The level of Regulation is Light and the trend is Steady Level & Trend The level of Industry Assistance is Low and the trend is Steady Operating Conditions Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 26 Key Statistics Revenue ($m) Industry Value Added ($m) Establish – ments Enterprises Employment Exports Imports Wages ($m) Domestic Demand Per capita dis – posable income ($) 2008 293.3 137.8 1,846 1,844 2,999 — — 88.5 N/A 28,766.8 2009 315.2 155.1 2,028 2,025 3,261 — — 94.0 N/A 29,846.5 2010 337.1 176.4 2,255 2,251 3,642 — — 100.7 N/A 30,138.3 2011 365.6 183.5 2,576 2,572 4,183 — — 110.7 N/A 29,929.6 2012 389.9 191.0 2,745 2,740 4,527 — — 121.2 N/A 30,301.3 2013 409.7 219.2 2,936 2,931 4,877 — — 124.6 N/A 30,916.9 2014 437.8 228.1 3,123 3,118 5,219 — — 132.2 N/A 31,411.6 2015 492.8 267.1 3,379 3,363 5,679 — — 153.8 N/A 32,308.7 2016 532.3 299.5 3,575 3,548 6,120 — — 167.0 N/A 32,895.4 2017 544.8 309.6 3,825 3,813 6,438 — — 175.1 N/A 34,112.5 2018 562.0 322.0 4,049 4,043 6,748 — — 183.5 N/A 35,329.2 2019 576.5 333.4 4,349 4,321 7,093 — — 192.5 N/A 36,353.7 2020 590.6 341.4 4,571 4,550 7,378 — — 200.1 N/A 37,371.6 2021 604.8 352.2 4,860 4,851 7,702 — — 208.5 N/A 38,418.0 2022 620.1 361.7 5,108 5,071 8,009 — — 216.8 N/A 39,592.9 IVA/Revenue (%) Imports/Demand (%) Exports/Revenue (%) Revenue per Employee ($’000) Wages/Revenue (%) Employees per Est. Average Wage ($) Share of the Economy (%) 2008 46.98 N/A N/A 97.80 30.17 1.62 29,509.84 0.00 2009 49.21 N/A N/A 96.66 29.82 1.61 28,825.51 0.00 2010 52.33 N/A N/A 92.56 29.87 1.62 27,649.64 0.00 2011 50.19 N/A N/A 87.40 30.28 1.62 26,464.26 0.00 2012 48.99 N/A N/A 86.13 31.08 1.65 26,772.70 0.00 2013 53.50 N/A N/A 84.01 30.41 1.66 25,548.49 0.00 2014 52.10 N/A N/A 83.89 30.20 1.67 25,330.52 0.00 2015 54.20 N/A N/A 86.78 31.21 1.68 27,082.23 0.00 2016 56.27 N/A N/A 86.98 31.37 1.71 27,287.58 0.00 2017 56.83 N/A N/A 84.62 32.14 1.68 27,197.89 0.00 2018 57.30 N/A N/A 83.28 32.65 1.67 27,193.24 0.00 2019 57.83 N/A N/A 81.28 33.39 1.63 27,139.43 0.00 2020 57.81 N/A N/A 80.05 33.88 1.61 27,121.17 0.00 2021 58.23 N/A N/A 78.53 34.47 1.58 27,070.89 0.00 2022 58.33 N/A N/A 77.43 34.96 1.57 27,069.55 0.00 Figures are in inflation-adjusted 2017 dollars. Revenue (%) Industry Value Added (%) Establish – ments (%) Enterprises (%) Employment (%) Exports (%) Imports (%) Wages (%) Domestic Demand (%) Per capita dis – posable income (%) 2009 7.5 12.6 9.9 9.8 8.7 N/A N/A 6.2 N/A 3.8 2010 6.9 13.7 11.2 11.2 11.7 N/A N/A 7.1 N/A 1.0 2011 8.5 4.0 14.2 14.3 14.9 N/A N/A 9.9 N/A -0.7 2012 6.6 4.1 6.6 6.5 8.2 N/A N/A 9.5 N/A 1.2 2013 5.1 14.8 7.0 7.0 7.7 N/A N/A 2.8 N/A 2.0 2014 6.9 4.1 6.4 6.4 7.0 N/A N/A 6.1 N/A 1.6 2015 12.6 17.1 8.2 7.9 8.8 N/A N/A 16.3 N/A 2.9 2016 8.0 12.1 5.8 5.5 7.8 N/A N/A 8.6 N/A 1.8 2017 2.3 3.4 7.0 7.5 5.2 N/A N/A 4.9 N/A 3.7 2018 3.2 4.0 5.9 6.0 4.8 N/A N/A 4.8 N/A 3.6 2019 2.6 3.5 7.4 6.9 5.1 N/A N/A 4.9 N/A 2.9 2020 2.4 2.4 5.1 5.3 4.0 N/A N/A 3.9 N/A 2.8 2021 2.4 3.2 6.3 6.6 4.4 N/A N/A 4.2 N/A 2.8 2022 2.5 2.7 5.1 4.5 4.0 N/A N/A 4.0 N/A 3.1 Annual Change Key Ratios Industry Data SOURCE: IBISWORLD Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.CA Pet Grooming & Boarding in Canada December 2017 27 BARRIERS TO ENTRY High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry. CAPITAL INTENSITY Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labour. IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labour; medium is $0.125 to $0.333 of capital to $1 of labour; low is less than $0.125 of capital for every $1 of labour. CONSTANT PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the “real” growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using Statistics Canada’s implicit GDP price deflator. DOMESTIC DEMAND Spending on industry goods and services within Canada, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports. EMPLOYMENT The number of permanent, part-time, temporary and casual employees, working proprietors, partners, managers and executives within the industry. ENTERPRISE A division that is separately managed and keeps management accounts. Each enterprise consists of one or more establishments that are under common ownership or control. ESTABLISHMENT The smallest type of accounting unit within an enterprise, an establishment is a single physical location where business is conducted or where services or industrial operations are performed. Multiple establishments under common control make up an enterprise. EXPORTS Total value of industry goods and services sold by Canadian companies to customers abroad. IMPORTS Total value of industry goods and services brought in from foreign countries to be sold in Canada. INDUSTRY CONCENTRATION An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less than 40%. INDUSTRY REVENUE The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded. INDUSTRY VALUE ADDED The market value of goods and services produced by the industry minus the cost of goods and services used in production. IVA is also described as the industry’s contribution to GDP, or profit plus wages and depreciation. INTERNATIONAL TRADE The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For exports/revenue: low is less than 5%; medium is 5% to 20%; and high is more than 20%. Imports/domestic demand: low is less than 5%; medium is 5% to 35%; and high is more than 35%. LIFE CYCLE All industries go through periods of growth, maturity and decline. IBISWorld determines an industry’s life cycle by considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments; the amount of change the industry’s products are undergoing; the rate of technological change; and the level of customer acceptance of industry products and services. NONEMPLOYING ESTABLISHMENT Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-employed individuals. PROFIT IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding interest and tax. VOLATILITY The level of volatility is determined by averaging the absolute change in revenue in each of the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%. WAGES The gross total wages and salaries of all employees in the industry. Benefits and on-costs are included in this figure. Industry Jargon IBISWorld Glossary PET GROOMING A service that can provide dog or cat shampooing, drying, hair or fur clipping, nail cutting and other services as demanded by owners and depending on the pet. PET HOTEL A boarding kennel for cats and dogs that sometimes offers luxury services. PET SITTING Pet watching service while owners are away on vacation or on business trips. Jargon & Glossary Disclaimer This product has been supplied by IBISWorld Inc. (‘IBISWorld’) solely for use by its authorized licensees strictly in accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any other person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or incurred by any other person resulting from the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Inc. The publication is sold on the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication – in papers, reports, or opinions prepared for any other person – it is agreed that it will be sourced to: IBISWorld Inc. 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BELOVED DOG company file Canada and its comparison in US AND CANADA COUNTRY need the below information to be written 1.5 page Introduction ( about Canada country ) Company Backg
This report was provided to University of British Columbia Library (2130501157) by IBISWorld on 26 November 2018 in accordance with their licence agreement with IBISWorldWWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 1 IBISWorld Industry Report 81291 Pet Grooming & Boarding in the US August 2018 Jack Curran Furry friends: Changing consumer attitudes will increase demand for luxury industry services 2 About this Industry 2 Industry Definition 2 Main Activities 2 Similar Industries 3 Additional Resources 4 Industry at a Glance 5 Industry Performance 5 Executive Summary 5 Key External Drivers 7 Current Performance 9 Industry Outlook 11 Industry Life Cycle 13 Products and Markets 13 Supply Chain 13 Products and Services 14 Demand Determinants 15 Major Markets 16 International Trade 17 Business Locations 19 Competitive Landscape 19 Market Share Concentration 19 Key Success Factors 19 Cost Structure Benchmarks 20 Basis of Competition 21 Barriers to Entry 22 Industry Globalization 23 Major Companies 23 Best Friends Pet Care Inc. 23 Camp Bow Wow 23 Aussie Pet Mobile International Company 25 Operating Conditions 25 Capital Intensity 26 Technology and Systems 26 Revenue Volatility 27 Regulation and Policy 27 Industry Assistance 28 Key Statistics 28 Industry Data 28 Annual Change 28 Key Ratios 29 Industry Financial Ratios 30 Jargon & Glossary www.ibisworld.com | 1-800 -330 -3772 | info @ ibisworld.com Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 2 This industry primarily provides pet care services such as boarding, grooming and training. This industry includes animal shelters, obedience training services, guard dog training services, pet boarding and animal grooming services. This industry does not include establishments that predominantly retail products, board horses, transport pets nor those that practice veterinary medicine. The primary activities of this industry are Animal grooming Operating animal shelters Boarding pets Operating dog pounds Guard dog training Obedience training Pet sitting Pet training 11521 Livestock Production Support Services in the US This industry includes operators that raise livestock. 44511 Supermarkets & Grocery Stores in the US Retailers in this industry frequently sell pet merchandise and food. 45391 Pet Stores in the US This industry includes stores that sell pet merchandise and food. 54194 Veterinary Services in the US This industry comprises veterinary hospitals and clinics. Industry Definition Main Activities Similar Industries About this Industry The major products and services in this industry are Pet boarding Pet grooming Pet sitting and dog walking Pet training Other Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 3 Additional Resources For additional information on this industry www.americanhumane.org American Humane Association www.americanpetproducts.org American Pet Products Association www.nationalcatgroomers.com National Cat Groomers Institute of America www.nationaldoggroomers.com National Dog Groomers Association of America IBISWorld writes over 1000 US industry reports, which are updated up to four times a year. To see all reports, go to www.ibisworld.com About this Industry Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 4 Million 220 160 170 180 190 200 210 23 911 1315171921 Year Number of pets (fats and dogs) SOURCE: WWW.fBfSWORL.D.COb bRf437L9 12 0 2 4 6 8 10 24 10 121416182022 Year Revenue Employment Revenue vs. employ(ment growth Products and services se.gmentation (2018) 39.f%Pet boarding 29.b%Pet grooming 15.4%Other 7.7% Pet sitting and dog. walking 7.5%Pet training SOURCE: WWW.IBISWORLf.COM Key Statistics Snapshot Industry at a Glance Pet Grooming & Boarding in 2018 Industry Structure Life Cycle Stage Growth Revenue Volatility Low Capital Intensity Low Industry Assistance None Concentration Level Low Regulation Level Light Technology Change Low Barriers to Entry Low Industry Globalization Low Competition Level High Revenue $8.2bn Profit $967.1m Wages $3.2bn Businesses 115,691 Annual Growth 18–23 1.3% Annual Growth 13–18 6.8% Key External Drivers Number of pets (cats and dogs) Per capita disposable income Number of households Demand from pet stores National unemployment rate Market Share There are no major players in this industry p. 23 p. 5 FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 28 SOURCE: WWW.IBISWORLD.COM Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 5 Key External Drivers Number of pets (cats and dogs) Demand for industry services is expected to heighten as the number of pet owners rises. Pet ownership has been on the rise, which is one of the main reasons for this industry’s growth. The number of pets is expected to increase in 2018, representing a potential opportunity for the industry. Per capita disposable income The industry has proven to be somewhat immune to downturns in the economy, with rising per capita disposable income bolstering industry revenue. Although consumers decreased spending on the majority of their own goods and services during the recession, fewer consumers cut back on pet service expenses, such as boarding, training and grooming. However, when disposable income rises, consumers are likely to purchase an even greater number of luxury services for their pets. Per capita disposable income is expected to rise in 2018. Executive Summary The Pet Grooming and Boarding industry has nearly doubled over the past decade. Demand for pet grooming, boarding, training and walking is at an all-time high due to rising pet ownership, improved disposable income and changing consumer preferences regarding pet care. Over the five years to 2018, revenue is anticipated to grow at an annualized rate of 6.8% to $8.2 billion, reflecting a rise in consumer spending toward price-premium pet services. Revenue has posted consistent gains and is continuing to outpace the overall economy, with an increase of 1.7% in 2018 alone. Pet parents have been purchasing a greater range of high-value services for their pets, contributing to industry revenue growth. Furthermore, industry operators have expanded their services to capture additional revenue. Pet groomers are increasingly providing luxuries like pet cologne. Pet boarders have also introduced deluxe hotel suites equipped with TVs, webcams for owners and training services, among other amenities. Operators have also increasingly focused on advertising animal safety at their boarding facilities by promoting special skills such as animal CPR. The premium pricing for these lavish services has improved industry revenue over the past five years. However, rising operating costs have hampered potential profit gains. Consequently, profit margins have been stagnant over the past five years. The outlook remains bright for the Pet Grooming and Boarding industry. Over the five years to 2023, industry revenue is forecast to grow at an annualized rate of 1.3% to $8.7 billion. Rising pet ownership will increase demand for services and per capita income will enable more owners to be able to afford luxury services. However, industry competition is expected to intensify as the number of nonemployers that offer pet-sitting services increases. New websites, such as DogVacay.com, provide online reviews for pet sitters and has made it easier for smaller operators to establish themselves. Consequently, the number of industry operators is expected to further rise over the five years to 2023. Additionally, because pet sitters often host animals in their own homes or visit the pet’s home, these operators may have a lower cost structure than traditional pet boarding facilities. Consequently, traditional operators will focus on providing more luxury services in the future to differentiate themselves. Industry Performance Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage Pet owners have been purchasing a greater range of high-value services for their pets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 6 Key External Drivers continued Number of households Pet ownership and demand for industry services tend to coincide with household formation. As the number of households increases, pet ownership rates rise, heightening demand for pet boarding, training and grooming. As rising income levels increase the number of individuals living alone, the number of households is expected to increase in 2018. Demand from pet stores Demand from the Pet Stores industry (IBISWorld report 45391) represents the total revenue generated by pet stores. In addition to selling pets and pet-related items, some pet stores also offer industry- relevant services such as grooming and training. However, revenue generated for industry-relevant services by pet stores is not included in the Pet Grooming and Boarding industry. Consequently, rising pet store revenue takes away revenue from industry-relevant companies. In 2018, revenue for pet stores is expected to increase, representing a potential threat to the industry. National unemployment rate As more Americans return to work, these individuals will have less time to care for their pets. Therefore, a decrease in unemployment will increase demand for pet grooming and boarding services. The national unemployment rate is expected to decline in 2018. % change 4 -4 -2 0 2 23 11 1315171921 Year Per capita disposalble incofe SOURCE: WWW.fBfSWORL.D.COb Million 220 160 170 180 190 200 210 23 9 11 1315171921 Year Nufber ob pets (catsl and dogs) Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 7 Current Performance The Pet Grooming and Boarding industry has proven to be one of the few established industries to post consistently strong gains over the past decade. It nearly doubled in size and grew even amid the recession as consumers purchased a wider array of luxury services for their animal companions. The industry offers a variety of pet services, including grooming, boarding and training. Accelerated by economic recovery, IBISWorld expects industry revenue to increase at an annualized rate of 6.8% to $8.2 billion over the five years to 2018, with the industry rising 1.7% in 2018 alone. Changing consumer attitudes toward pets has driven growth through much of the period, as an increasing number of pet owners now treat their pets like family members. This humanization of pets has led to increased demand for luxury services as owners want their pets to have the best products and services that money can buy. % change 120 2 4 6 8 10 24 10 121416182022 Year Industry revenue SOURCE: WWW.IBISWOLRLf.COM Growing pet ownership Increased pet ownership benefits the industry in many ways. More pets translates to more pet services used, as owners will inevitably require pet boarding, grooming or other services. In particular, new pets will boost demand for pet training, as owners seek to build healthy bonds and habits with their animals. During the five-year period, pet ownership has been on the rise. According to the 2016-17 National Pet Owners Survey, published by the American Pet Products Association, 68.0% of US households (about 84.6 million homes) own a pet. This figure represents an increase from 56.0% of households in 1988. In addition, according to IBISWorld estimates, the number of cats and dogs in the United States is anticipated to grow at an annualized rate of 0.9% over the five years to 2018, totaling an estimated 186.9 million animals in 2018. With increasing pet ownership, demand for boarding, sitting, grooming and training services has experienced strong growth. Changing consumer attitudes According to the US Pet Ownership and Demographic Sourcebook, more than 60.0% of pet owners consider their pets as family members. During the five-year period, the trend of owners viewing their pets as family members has increased and greatly benefited industry operators. Some owners have even been referred to as a pet parent. Pet parents are enthusiasts who treat their pets like a child, which further shows the acceptance of pets as a member of the family. This gradual shift in consumer attitudes and the humanization of pets has resulted in strong demand for luxury goods and services for pets. In response to changing consumer attitudes, the industry began offering a greater array of luxury services for pets. The rise of pet boarding facilities, as well Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 8 as day camps, highlights this trend. Some pet boarders offer dog suites and cat condos equipped with TV sets tuned to animal shows, lamb’s wool bedding and extra playtime. Additionally, many boarders also offer new services such as grooming, training and retail items for sale. Owners also want to know that their pets are in good hands when they are away. Therefore, many operators advertise on the basis of safety and note any special skills or training that employees have, such as animal CPR. Another popular service pet boarders now offer is letting owners to see their pets via webcam while the owners are away. Webcams provide owners the ability to check in on their pets from anywhere, just like many parents check in on their children when they are left with a babysitter. In addition to providing increased revenue, the wide array of services that operators offer help businesses stand out in an increasingly competitive market. Changing consumer attitudes continued Industry structure In response to robust consumer demand for boarding, training and grooming services, the number of industry operators has grown significantly. Over the five years to 2018, IBISWorld anticipates the number of industry operators to rise at an annualized rate of 5.1% to 115,691 companies. Low barriers to entry enable easy entrance for new players and pushes up competition. Industry employment has also been on the rise, falling in line with enterprise growth due to the high level of labor required for industry services. Most pet grooming is done by hand. Additionally, owners can purchase one-on-one training sessions or individual play sessions for their pets. Over the five years to 2018, industry employment is expected to grow at an annualized rate of 6.7% to 211,288 people. Wage growth also grew significantly, leading to a rise in the average industry wage as companies seek to attract skilled workers. Despite rising demand for luxury services, the average industry profit margin has remained stagnant over the five years to 2018. Due to intense competition in the industry, marketing costs have risen as companies try to stand out from competitors. Additionally, depreciation and purchase costs have also increased during the five-year period due to operators’ need to provide more luxury products and services. Consequently, rising costs hindered potential gains from the increased demand for luxury services. Low barriers to entry enable easy entrance for new players and pushes up competition Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 9 Industry landscape The term pet parent describes enthusiastic pet owners that view pets as members of the family. These pet parents are more likely to purchase more high- value services and products, supporting revenue growth for the industry. Changing consumer attitudes have boosted demand for pet hotels that offer luxury accommodations and services from groomers and trainers. Demand for services is forecast to rise further over the next five years, fueling revenue and profit growth. Due to growing demand, the number of companies operating in the industry is projected to rapidly expand. Over the five years to 2023, IBISWorld expects the number of industry operators to rise at an annualized rate of 3.5% to 137,632 enterprises. Given the industry’s labor- intensive nature, industry employment will increase at an annualized rate of 2.7% to 241,310 people. Owners who want to provide more individual services for their pets, such as training and playtime at pet boarding centers, will help drive employment growth during the five-year period. Industry Outlook The Pet Grooming and Boarding industry’s strong performance is expected to continue over the five years to 2023, rising at an annualized rate of 1.3% to $8.7 billion. The growing industry has benefited from changing consumer attitudes, which increases demand for a variety of new luxury pet services. Over the next five years, this trend is expected to gain further momentum as pet ownership rises and owners spend their increasing disposable income on services for their pets. Over the five years to 2023, rising per capita disposable income and increased pet ownership will largely drive sales growth. Per capita disposable income growth is expected to increase at an annualized rate of 1.9% during the five-year period. Increased per capita disposable income is expected to boost industry sales, as consumers will be able to splurge on higher-value services and a greater number of services. Increased pet ownership in the United States will also benefit the industry. The number of pet cats and dogs in the United States is projected to reach 210.6 million in 2023. The number of companies operating in the industry is projected to rapidly expand Increasing competition Operators experience strong external and internal competition for their services. Barriers to entry and governmental regulations are expected to remain low, enabling easy entrance for new competitors. In addition, nonemployers offering pet services from the home are expected to increasingly contend with traditional pet boarding facilities. Individuals that offer pet services from their homes are often referred to as pet sitters. While pet owners originally chose professional pet boarding services to ensure safety and reputability, sites like DogVacay, which launched in 2012, have alleviated many of these concerns. DogVacay connects pet sitters with owners and helps ensure sitters’ reliability through interviews, background checks and online reviews from owners who have used the pet sitter. Growing consumer acceptance of at- home pet boarding services has encouraged people who work from home Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 10 to host pets in their house as a source of side income. Sitters can also visit animals at their own homes, so pet sitters are ideal for animals that do not like to travel to boarding facilities. Since these operators do not need to purchase separate facilities, their costs are considerably lower than traditional pet boarding facilities. This trend is expected to add pressure to traditional facilities over the next five years, with many opting to expand their luxury services to differentiate themselves from increasing competition. Industry operators also experience external competition from retail stores that offer pet grooming and training services. These stores include Walmart, which began testing pet grooming services during the recession, and pet stores such as PetSmart. In 2016, PetSmart announced that it would be opening 80 new stores, up from 50 new stores in 2015. In addition to offering pet supplies, stores also include grooming and training services. Large retailers such as PetSmart already have a strong connection with owners because owners purchase pet supplies from the stores. Therefore, as these retailers expand their number of stores that offer grooming and training services, it could take demand away from industry operators and hinder revenue. Increasing competition continued Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 11 Increasing pet ownership, particularly dogs and cats, is leading to strong industry revenue growth Changing consumer attitudes have spurred consumer spending on luxury pet services The industry is growing faster than the overall economy Life Cycle Stage Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 12 Industry Life Cycle The Pet Grooming and Boarding industry is in the growing phase of its industry life cycle. Indicators of this life cycle stage include a rising number of industry operators, establishments and employment. Additionally, industry operators have introduced a wide array of luxury services for pets over the past five years, driving industry growth and improving the average industry profit margin. Industry value added (IVA), which is a measure of the industry’s contribution to the economy, has continuously outpaced overall GDP during the 10-year period. Over the 10 years to 2023, IVA is expected to rise at an annualized rate of 3.9%. GDP is projected to increase at an annualized rate of 2.2% during the same period. Over the past two decades, US pet ownership rates have been increasing. For example, in 1988, 56.0% of US households owned a pet. Comparatively, according to the 2016-17 National Pet Owners Survey, 68.0% of US households owned at least one pet. The rising number of pets over the past 10 years has increased demand for industry services. In addition, industry growth has been stimulated by consumers’ changing attitudes toward their pets. US pets are increasingly given luxury goods and services, with owners purchasing massages and luxury suites for their pets. Over the past decade, the term pet parent has cropped up to describe pet owners who treat their pets as members of their family. As a result of changing consumer attitudes toward their pets, the industry has experienced remarkable growth. In response to changing consumer attitudes, industry operators who own pet-boarding facilities have introduced a greater number of services for pets, including TV sets tuned to animal shows and lamb’s wool bedding. Additionally, many pet hotels now have web cameras installed so that owners can see their pet through the company’s website. As a result of these increased services, many pet hotels now have tiered accommodations so pet owners can choose between basic rooms and elaborate luxury suites for their pets. The increase in luxury services has boosted the average industry profit margin over the 10 years to 2023. As revenue and profit rose over the period, this has attracted new operators. Consequently, the number of industry enterprises is anticipated to increase at an annualized rate of 4.3% over the 10 years to 2023. This industry is Growing Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 13 Products & Services Pet ownership has been on the rise in the United States, increasing demand for grooming, boarding, training and other services. Moreover, demand for these services proved to be recession-proof, with industry revenue rising consistently over the past decade, despite the economic downturn. Pet boarding, sitting and dog walking Pet boarding is expected to account for 39.8% of industry revenue in 2018, while sitting and dog walking generates 7.7%. Pet sitting is an alternative to pet boarding and often entails having someone take care of a pet in the home of the owner or sitter. Dog walking is a form of taking care of dogs while owners are away. Often, walkers may take dogs to a park where they can socialize with other dogs. Pet boarding entails providing overnight care for animals, including accommodation, food and exercise. Although standard kennels are still common, a variety of luxury pet boarding establishments offering tiered accommodations have appeared. Additionally, some companies offer TVs that play pet-themed shows, wading pools and daily play sessions. Furthermore, some pet boarders install cameras in luxury suites so that owners can check in on their pet while they are away. Due to the rise of luxury services, Products & Markets Supply Chain | Products & Services | Demand Determinants Major Markets | International Trade | Business Locations KEY BUYING INDUSTRIES 9901 Consumers in the US Households with pets are the main source of demand for this industry. KEY SELLING INDUSTRIES 31111 Animal Food Production in the US This industry supplies animal feed for pets. 32561 Soap & Cleaning Compound Manufacturing in the US Operators in this industry supply shampoos and other cleaners for pets. 33993 Toy, Doll & Game Manufacturing in the US This industry manufactures pet toys. Supply Chain Products and services se$gmentation (2018) Total $f.2bn b9.f%Pet boarding 29.6%Pet grooming 15.4%Other 7.7% Pet sitting and dog$ walking 7.5%Pet training SOURCE: WWW.IBISWORLf.COM Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 14 Demand Determinants Demand for pet grooming, training and boarding services is determined by the number of pet owners, household income and pet expenditures, demographics and the time of year. Pet ownership is the primary determinant of demand; when pet ownership rises, demand for additional care services for pets is expected to increase as well. Pet ownership has been on the rise over the past twelve years. In 1988, 56.0% of US households owned a pet. Comparatively, according to the American Pet Products Association 2015-16 National Pet Owners Survey, about 65.0% of households own a pet. The main pets that are owned by Americans are dogs, cats, freshwater fish and birds. Demand is also related to income, pet expenditure and whether or not a person has children. Consumers and households with higher incomes are able to spend more on discretionary services and have been the primary customers for luxury pet services. While households with children are more likely to own a pet, they are also less likely to spend on their pets. According to the Bureau of Labor Statists, households with just two spouses spend an average of $698.00 per year on their pets. Conversely, households with two spouses and a child under the age of 6 will spend $412.00, while single parents with children under the age of 18 spend just $267.00 per year. Household spending on pets influences Products & Services continued demand for the pet boarding, sitting and dog walking category has expanded over the past five years. Pet grooming Pet grooming is expected to account for an estimated 29.6% of industry revenue. Animal grooming includes cutting and shaving hair, trimming nails and cleaning hair, ears and teeth. Additionally, pet groomers have begun offering a greater variety of luxury services, including massages, flea and tick removal and undercoat removal to decrease shedding. Some pet groomers also provide mobile services so that groomers can come to the pet’s home to perform the grooming. This mainly appeals to households that own elderly or nervous pets. However, the animal-grooming segment has declined as a share of revenue due to heightened competition from pet-store groomers and rapid rises in revenue from pet boarding and sitting. Pet training Pet training covers general obedience classes for puppies, as well as group and private lessons for more advanced dogs. Pet training also includes lessons for guard and guide dogs and training animals to race. Pet training has begun to be offered in conjunction with other services such as pet boarding and day care services. Despite rising revenue, high competition from external competitors and significant increases in revenue for pet boarding and sitting services have caused this segment to decrease as a percentage of industry revenue. In 2018, pet training is expected to account for 7.5% of industry revenue. Other pet care services Other pet care services provided by the industry include a variety of services such as pet funeral services. Additionally, industry operators will typically sell pet-related merchandise to pet owners at their operating establishment. This includes animal treats, collars, leashes, pet clothing, shampoos, food and other products. IBISWorld expects this segment to generate 15.4% of revenue in 2018. Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 15 Major Markets People aged 30 to 49 Pet owners aged 30 to 49 generate the most industry revenue. In 2018, this IBISWorld expects 40.0% of revenue to come from this segment. People in this age group have the highest percentage of pet ownership. According to Pew Research Center, 64.0% of people in this age group own a pet. Due to the age of people in this group, many are likely to have families and children, which boosts the percentage of pet ownership. Additionally, this age group has one of the highest annual expenditures for their pets ($495.50). Consumers in this age group are also likely to travel either for family vacations or work. Therefore, this segment is likely to use boarding and pet sitting services. Owners in this segment are often busy with work and family, making the more likely to use grooming or training services. The segment’s high annual expenditure on pets also increases the change for the segment to purchase luxury services. However, this segment has decreased slightly as a percentage of revenue due to high growth from people aged 50 and over. People aged 50 to 64 People aged 50 to 64 are the second- largest market for industry operators. In 2018, this segment will generate 33.5% of revenue. Consumers in this age group have one of the highest percentages of pet ownership. According to Pew Research Center, 57.0% of people in this age group own a pet. Pet ownership is popular with this segment because pets provide great companions. In addition to having a high Demand Determinants continued industry revenue because the more a household spends on its pets, the more likely it is to use industry services and premium services. For pet boarding services specifically, demand generally relates to several factors. These include households taking holidays or traveling for business; relocation of households; households having guests who do not like pets or are allergic to animals; illness of the owner which hinder proper pet care; and home renovation or fumigation. There is also seasonal influence on demand for grooming services as industry operators typically experience greater demand for grooming services during the warmer months, particularly for coat clipping and bathing. Major market segmentation (2018) Total $8.fbn 40.0b People aged 30 to 49. 33.5b People aged 50 to 64. 15.6b People aged 18 to f9 10.9b People aged 65 and .over SOURCE: WWW.IBISWORLf.COM Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 16 International Trade The Pet Grooming and Boarding industry is a service industry and only provides domestic services for pets located within the United States. As a result, there is no international trade within this industry. Major Markets continued percentage of pet ownership, this age group spends the most on their pets per year, with an estimated annual expenditure of $632.30. High pet ownership, in conjunction with high spending on pets, boosts this segment’s demand for industry services such as training, grooming and boarding. Also, since owners in this segment spend a large amount on their pets, they are more likely to use luxury services than any other age group. Over the five years to 2018, IBISWorld estimates revenue from this segment to increase due to rising population. People aged 18 to 29 IBISWorld estimates that pet owners in this segment account for 15.6% of total industry revenue. While consumers in this segment are extremely likely to own a pet, they spend the least amount of money on their pets ($340.70), compared with other age groups. Since many people in this segment are just starting out in life, they may not have high of disposable incomes like other segments. Therefore, owners in this segment are less likely to use luxury services; to save money, they are more likely to do grooming and training themselves. People aged 65 and over Pet owners in this age group account for an estimated 10.9% of revenue. While this segment typically spends a high amount on their pets ($416.50), they are least likely to own a pet. Although pets can make great companions, especially if a person lives alone, they are often tiring and require a lot of attention. Therefore, people in this age group may not want to own a pet. Since people in this age group have low levels of pet ownership, they demand fewer industry services than other age groups. Consequently, this segment accounts for a small percentage of revenue. However, revenue from this segment has been on the rise as the number of people aged 65 and over increase, increasing the number of pet owners in this segment. Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 17 Business Locations 2018 MO2.2 VT0.4 MA3.0 RI0.5 NJ3.1 DE0.3 NH0.7 CT1.4 MD1.9 DC0.2 1 53 7 2 6 4 8 9 Additional States (as marked on map) AZ1.9 CA10.3 NV0.9 OR1.8 WA3.3 MT0.5 NE0.6 MN1.9 IA1.0 OH3.4 VA3.0 FL6.8 KS0.8 CO3.0 UT0.8 ID0.5 TX6.7 OK1.0 NC3.5 AK0.3 WY0.2 TN1.6 KY1.0 GA2.7 IL4.7 ME0.7 ND0.2 WI2.4 MI2.7 PA4.3 WV0.4 SD0.3 NM0.7 AR0.6 MS0.4 AL0.9 SC1.7 LA0.7 HI0.2 IN1.9 NY6.0 5 6 7 8 3 2 1 4 9 SOURCE: WWW.IBISWORLD.COM Establishments (%) Less than 3% 3% to less than 10% 10% to less than 20% 20% or more Products & Markets West West West Rocky Mountains Plains Southwest Southeast New England Mid- Atlantic Great Lakes Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 18 Business Locations Industry location is based mainly on the population, median household income level and population. Regions with higher populations provide access to a greater number of pet owners. Additionally, regions with higher median income levels also have more establishments. Since the industry supplies a variety of luxury services for pets, establishments are disproportionately located in higher- income areas. Southeast The Southeast holds the highest number of industry establishments with an estimated 23.4%. The Southeast is the most populated region of the United States with a quarter of the nation’s population, which provides access to many pet owners. Within the Southeast, Florida has the highest proportion of industry establishments, estimated at 6.8%. West The West has the second-highest proportion of industry establishments, with an estimated 16.7%. It also has the second-highest median income level out of any region. High population enables industry operators to gain access to many pet owners. In the West, California houses the highest percentage of establishments with 10.3%. According to the US Census Bureau, California has one of the highest medium income per household in the United States. California is also where large companies, such as Aussie Pet Mobile International Company, have their corporate headquarters. Mid-Atlantic The Mid-Atlantic region comprises 15.7% of the industry’s establishments. New York alone houses 5.9% of industry establishments. The region has one of the highest populations in the country due to its large metropolitan centers such as New York City. The region’s high median income level also boosts demand for industry services, especially luxury services. Additionally, pet owners that live in areas like New York City may find it difficult to exercise their dogs due to the lack of open space. Therefore, city residents are more likely to use dog exercise services. Additionally, the busy lifestyle of people in large cities may make it difficult for owners to find time to walk their dogs. Therefore, people who live in large cities maybe more likely to use dog walking services. Great Lakes The Great Lakes is the fourth-most popular region for industry establishments, with 15.0%. Illinois is the fifth-most populated state in the nation and comprises an estimated 4.7% of total industry establishments. It also has a high median household income of $60,413. Others Other small participating regions in the industry include the Southwest (10.2%), Plains (7.1%), New England (6.8%) and the Rocky Mountains (5.1%). These regions have a smaller consumer market, which reduces demand for pet services. % 300 10 20 Southwest West Great Lakes fid-btlantic New England Plains Rocky fountains Southeast Establishments Population Distribution of esta blishments vs. popul ation SOURCE: WWW.IBISWORLkD.COf Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 19 Cost Structure Benchmarks Profit Profit, as measured by earnings before interest and taxes, is expected to account for 11.8% of industry revenue in 2018. The average industry profit margin has decreased over the past five years, despite rising demand for luxury services as consumers choose to indulge their pets. Rising purchase, depreciation and marketing costs have all hindered potential profit gains and led to a decrease in the average industry profit margin. Wages Similar to all personal services industries, there is a relatively high level of direct labor input in this industry. Therefore, wages are the largest expense for industry operators. In 2018, wages are expected to account for 39.4% of revenue. For kennel operators, there is a high level of labor input for pet handling, feeding, exercising and cleaning kennels. There is also a high level of labor input for training, which may require one on one time with a trainer. Purchases Payment for supplies, such as shampoos, pet food, drugs and related items can vary depending on the size and type of operator. However, most industry players operate on a small scale and do not benefit from wholesale prices. Overall, purchases are estimated to account for 11.6% of revenue and have risen over period as operators focus on providing more luxury services. Key Success Factors Proximity to key markets Being located near households with high pet ownership levels, particularly dogs and cats, will benefit industry players by ensuring consistent demand for services. Effective quality control High quality grooming and other pet care services ensure repeat visits by customers and word of mouth recommendations. Access to multi-skilled and flexible workforce Access to appropriately trained and flexible staff who can perform a variety of tasks and services (e.g. grooming, kennel and support staff ) lowers labor costs and increases industry expertise and value. Compliance with government regulations Meeting all ongoing government business licensing and pet and animal regulations is a basic requirement for industry players. Word of mouth recommendations Businesses that maximize customer satisfaction are more likely to gain favorable word of mouth recommendations, which are important for gaining new customers. Market Share Concentration The Pet Grooming and Boarding industry is highly fragmented and exhibits a low level of market share concentration. IBISWorld estimates that no single company accounts for 5.0% or more of total revenue. Low barriers to entry make it easy for new players to enter the industry, increasing competition and making it difficult for operators to capture a significant share of the market. Additionally, the majority of operators in this industry are small operators, with 95.5% of enterprises having less than 20 employees. The small scale of operators makes it difficult to capture a majority of the market, even though some companies have multiple locations. Competitive Landscape Market Share Concentration | Key Success Factors | Cost Structure Benchmarks Basis of Competition | Barriers to Entry | Industry Globalization Level Concentration in this industry is Low IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are: Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 20 Basis of Competition Internal competition Industry competition is high due to the industry’s large number of nonemployers and low barriers to entry. Based on US Census data, IBISWorld estimates that while nonemployers account for less than half of industry revenue, there are an estimated five nonemployer enterprises for every one enterprise with employees. Furthermore, the number of companies has been continually growing over the period, increasing the level of internal competition. Competition with other industry groomers, trainers and boarders is mainly based on location, price, quality of service, safety and customer loyalty. Industry operators hold a significant competitive advantage if their establishment is in a highly visible location with easy access for customers Cost Structure Benchmarks continued Other Marketing expenses, reflected through advertising and promotional costs, have risen over the past five years to reach 2.0% of industry revenue due to increased competition within the industry. Meanwhile, depreciation is estimated to be 3.1%. Depreciation costs have risen over the five-year period as operators offer more luxury services, like TVs for pets to watch while away from their homes and webcams for owners to check in on their pets. Rent and utilities have also increased, accounting for 10.8% in 2018, given that dog-boarding facilities require more space and round-the- clock heating. Other expenses, such as accounting and administrative fees, account for the remaining 21.3% of revenue. Sector vs. Industry Costs n P r o fi t n Wages n Purchases n Depreciation n Marketing n Rent & Utilities n Other Average Costs of all Industries in sector (2018) Industry Costs (2018) 0 20 40 60 Percentage of revenue 80 10 0 SOURCE: WWW.IBISWORLD.COM 9.1 11.8 21.3 10.8 2.0 3.1 11.6 39.4 25.3 7.8 1.4 3.4 21.7 30.5 Level & Trend Competition in this industry is High and the trend is Increasing Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 21 Barriers to Entry Barriers to entry for the Pet Grooming and Boarding industry are low since there are no formal industry licensing or training requirements. In addition, the cost of establishing an at-home or mobile service is relatively low. Some training is, however, recommended for becoming an animal groomer. Classes are available, but most groomers learn through apprenticeships and on-the-job training. There are over 340 dog breeds alone that are recognized by the Federation Cynologique Internationale, which is the largest canine organization in the world. Different breeds of dogs may require specialized grooming procedures according to owners’ needs and the particular breed. Moreover, this industry is in the growth stage of its economic life cycle. Therefore, companies are still entering the industry due to rising demand from pet owners for a greater array of luxury services for their pets. The level of competition is high and increasing within the industry as there are a significant number of small companies. High industry competition could be a potential barrier to entry because it makes it difficult for new operators to establish a client base. Basis of Competition continued and pets. This increases the convenience for customers. Price is another significant source of competition. Although the price of pet care services has been rising as consumers increasingly purchase more luxury services, an establishment’s ability to offer a wide range of services at lower prices will give the company an edge over others. Specific skills and knowledge of operators are also important. Companies with employees that have a high degree of knowledge of various animals and breeds are likely to have a competitive advantage. Additionally, due to the strong bond that often exists between pets and pet owners, owners want to know that their friends are in good hands. Therefore, a company with a reputation for safe care is likely to attract more businesses. For boarding kennels, competition is typically related to the general appearance of the establishment (clean and hygienic), security to prevent the escape of pets from cages, safety with no sharp objects in or near cages and solid dividers between cages to prevent intrusions by other animals. The availability of exercise areas is also important, along with supervision, specialized food (e.g. food types/brands) and access to veterinary and other requested services, such as grooming. Luxury pet hotels with high-end suites and services like massages are becoming increasingly popular as a growing number of pet owners treat their pets as family members. External competition External competition includes grooming services and training services at stores such as PetSmart in addition to some veterinary hospitals and clinics that offer pet grooming and boarding services in conjunction with medical treatments and services. The industry also experiences external competition from the sale of at-home grooming products from retailers. Level & Trend Barriers to Entry in this industry are Low and Increasing Barriers to Entry checklist Competition High Concentration Low Life Cycle Stage Growth Capital Intensity Low Technology Change Low Regulation & Policy Light Industry Assistance None SOURCE: WWW.IBISWORLD.COM Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 22 Industry Globalization The Pet Grooming and Boarding industry has a low level of globalization. Since the industry is service-based, there is no international trade. Furthermore, the majority of companies are domestic- based. While industry operator Aussie Pet Mobile was originally located in Australia, the company has since transferred its corporate headquarters to the United States. Aussie Pet Mobile and some other mobile pet-grooming companies have international franchise systems that expose the industry to a low level of globalization. Barriers to Entry continued Groomers and pet trainers may not need a physical establishment and can instead go to consumers’ homes. However, industry operators planning to expand services will need to secure an operational facility. Pet boarders will also need supplies such as pet food, bedding, leashes, collars, medicines and toys. Additionally, pet-grooming establishments must purchase shampoos, brushes and hoses. Labor is another important requirement for entering the industry. Although the number and type of employee varies depending on the type of operation, typical employees include beginning and experienced kennel attendants, groomers and trainers. Finding well-trained, certified and attentive employees could be a potential barrier to entry for operators due to the high amount of competition in the industry. Level & Trend Globalization in this industry is Low and the trend is Steady Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 23 Other Company Performance Best Friends Pet Care Inc. (Best Friends) is one of the leading boarding and grooming providers in the United States. The company was founded in 1991 and is headquartered in Kent, WA. With the majority of the company’s locations on the East Coast, Best Friends operates 52 centers in 20 states. The company offers luxury pet boarding services and each suite is complete with lamb’s wool bedding. Customers also have the option of purchasing training services and daily playtime for their pets with certified Doggy Day Camp counselors. Some of the Other Company Performance Started in 2000 in Denver, Camp Bow Wow began as a way to offer high-quality pet care service for the founder’s two dogs. After opening two locations, the company began to franchise in 2003 and now has an estimated 190 franchises and company-owned establishments in the United States. In 2014, Camp Bow Wow was purchased by VCA Inc., a pet healthcare services provider. Camp Bow Wow offers dog day care, boarding, training, grooming and walking, as well as in-home pet care and poop-scooping services. Day care services include all-day playtime in indoor climate-controlled environments as well as outdoor areas. For the company’s boarding services, dogs have individual cabins with fleece padding and all-day playtime. Staff members are trained in dog behavior, pet first aid and CPR. Additionally, the facilities are monitored 24 hours a day, seven days a week, and owners have the ability to check in with their dogs using webcams. In 2018, IBISWorld estimates Camp Bow Wow will generate $139.0 million in US industry-relevant revenue. Other Company Performance Aussie Pet Mobile International Company (Aussie Pet) began in Australia in 1996, entering the US market in 1999 and establishing its global headquarters in Aliso Viejo, CA. Aussie Pet has locations throughout the United States, Canada, Ireland, Cyprus, Greece and Australia. In 2018, the company is expected to have an estimated 225 franchises in the United States and five others across the globe that offer mobile dog and cat grooming. Vans typically are equipped with fur dryers, a grooming table and a heated hydrobath. In addition to standard grooming services, Aussie Pet offers flea bath services and a FURminator system, which reduces shedding up to 80.0% by removing the dog’s or cat’s undercoat. Aussie Pet also provides luxury services such as massages, pad care and teeth brushing. Mobile grooming services appeal to pet owners who own elderly or nervous pets, since these services do not require pets to be transported from their home. The convenience also benefits time-sensitive owners who want their pets to be well- cared for but may not be able to take them to the groomers. In 2018, Aussie Pet is estimated to generate $173.7 million from its US franchise operations. Other Companies The Pet Grooming and Boarding industry is highly fragmented, with no industry player accounting for a significant share of the market. Nonetheless, the Pet Stores industry (IBISWorld report 45391) is moderately concentrated, with its two largest players, PetSmart Inc. and Petco Animal Supplies Inc. both offering industry-relevant services. Major Companies There are no Major Players in this industry | Other Companies Aussie Pet Mobile International Company Market Share: 2.1% Camp Bow Wow Market Share: 1.7% Best Friends Pet Care Inc. Market Share: 0.6% Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 24 Other Company Performance continued company’s locations even let owners view their pets via webcam. In addition to boarding, the company also offers bathing and grooming services for dogs and cats, which include shampoos, haircuts, flea treatment, styling, pedicures, pad and foot care and cologne. Training classes for dogs of all ages are also offered and can be purchased as part of the boarding service. Although the company generates the majority of its sales through pet care services, Best Friends also sells a range of pet products such as dishes, carriers, collars and treats. Best Friends is a private company and, therefore, no official financial information is available. However, the company is estimated to generate $45.2 million in US industry- relevant revenue in 2018. Major Companies Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 25 Capital Intensity The Pet Grooming and Boarding industry has a low level of capital intensity. In 2018, for every $1.00 spent on labor, the industry will invest just $0.08 in capital. The majority of training, boarding and grooming operations are labor-intensive rather than capital-intensive, as employees are needed for exercising, feeding, grooming and cleaning pets. Operators also rely on store staff for customer service roles and arranging merchandise. Although there is a low degree of capital intensity, most dog-grooming operations must purchase dryers, tables, tubs, floor grills and trays, faucets and often ramps for pets. Additionally, pet-boarding operators must purchase bowls, bedding and cleaning materials as well as enclosures for pets. Industry operators will likely invest in computers and computer equipment for recordkeeping and inventory control. The Operating Conditions Capital Intensity | Technology & Systems | Revenue Volatility Regulation & Policy | Industry Assistance Capital intensity 0.5 0.0 0.1 0.2 0.3 0.4 SOURCE: WWW.IBISWOLRLf.COM fottbd linb shows a higLh lbvbl of capital intLbnsity Capital units per labor unit Pbt Grooming & Boarding Othbr Sbrvicbs (bxcbpt Public Administration) Economy Level The level of capital intensity is Low Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 26 Revenue Volatility There is a low level of revenue volatility for this industry. Revenue maintained strong upward growth over the past five years. This growth occurred because of rising prices for industry services as well as increased pet ownership. These trends have resulted in consistent revenue growth for the industry. Additionally, the Pet Grooming and Boarding industry is relatively resilient to economic downturns. During the recession, the industry still continued to grow, although at a slower rate. According to the American Pet Products Association, the majority of pet owners reported that the downturn in the economy did not affect spending levels on their pet. Technology & Systems The Pet Grooming and Boarding industry has undergone a low level of technological development over the past decade. The technology involved in pet washing and grooming has remained largely the same, although companies that offer mobile grooming have become more common over the past decade and increasingly use navigation systems, which save companies time and money. Mobile pet grooming provides pet owners with at-home grooming services for elderly or nervous pets. Companies that operate pet-boarding facilities have experienced a higher degree of technological change. Luxury pet-boarding facilities sometimes place TVs inside of enclosures for pets to watch pet-themed shows. These facilities may also play music to soothe nervous pets. Additionally, some companies offer pet owners the option of placing a camera inside pet enclosures so that owners can see their pet while they are away. Sites like DogVacay, which connects pet owners with sitters, have increased the number of people who host dogs in their home as a source of side income. Capital Intensity continued rising amount of luxury services offered in the industry, such as TVs for dogs in kennels, have led to a slight increase in capital intensity. Level The level of Technology Change is Low Level The level of Volatility is Low Operating Conditions Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 27 Industry Assistance The industry receives no governmental assistance in the form of subsidies or otherwise. There are a variety of industry associations including the International Boarding and Pet Services Association (IBPSA) and the National Dog Groomers Association of America, as well as the National Cat Groomers Institute of America. The International Boarding and Pet Services Association provides education, training, products, trends, networking opportunities, information and legislative support. The National Dog Groomers Association of America and National Cat Groomers Institute of America offer workshops and certifications for grooming. Regulation & Policy This industry is subject to a low level of regulation. In the majority of states, a business license is required to operate a pet-grooming business, kennel or related company. Boarding kennels often require zoning permits to be built in residential areas. They are subject to state and local government animal care, hygiene, safety, security and noise control regulations. Additionally, operators are advised to carry some form of groomer malpractice and public liability insurance in case of owner disputes. While there is no formal or vocational training required to become a pet groomer, there are increasing moves toward the vocational licensing of pet groomers. The main association representing dog groomers is the National Dog Groomers Association of America Inc., while the National Cat Groomers Institute of America represents cat groomers. These associations offer certificate courses to groomers and educational workshops. The organization that represents kennels is the International Boarding and Pet Services Association (IBPSA). The IBPSA offers several different services and resources including legislative support, animal training certifications and industry information. Level & Trend The level of Regulation is Light and the trend is Increasing Level & Trend The level of Industry Assistance is None and the trend is Steady Operating Conditions Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 28 Key Statistics Revenue ($m) Industry Value Added ($m) Establish – ments Enterprises Employment (People) Exports Imports Wages ($m) Domestic Demand Number of pet cats and dogs (Mil) 2009 4,559.9 2,411.3 74,720 74,617 118,601 — — 1,695.4 N/A 171.0 2010 4,863.2 2,695.8 78,806 78,687 126,179 — — 1,810.8 N/A 164.6 2011 5,133.8 2,763.4 82,386 82,257 133,305 — — 1,936.8 N/A 164.4 2012 5,566.8 2,948.3 86,276 86,104 143,977 — — 2,157.8 N/A 171.7 2013 5,912.2 3,409.9 90,411 90,232 153,047 — — 2,262.9 N/A 178.9 2014 6,484.9 3,458.9 95,621 95,441 163,760 — — 2,440.8 N/A 171.3 2015 7,154.6 3,703.5 101,492 101,342 175,755 — — 2,687.6 N/A 163.6 2016 7,791.4 4,153.4 106,323 106,213 188,741 — — 2,953.4 N/A 173.8 2017 8,057.8 4,378.6 111,881 111,765 204,985 — — 3,135.8 N/A 183.9 2018 8,195.9 4,449.8 115,811 115,691 211,288 — — 3,229.0 N/A 186.9 2019 8,374.2 4,631.5 121,259 121,133 219,044 — — 3,345.0 N/A 192.7 2020 8,476.1 4,678.3 125,067 124,937 224,642 — — 3,425.6 N/A 197.5 2021 8,575.4 4,819.7 129,367 129,233 230,297 — — 3,506.6 N/A 202.7 2022 8,663.1 4,838.1 133,436 133,298 235,802 — — 3,584.4 N/A 207.2 2023 8,742.6 4,993.7 137,775 137,632 241,310 — — 3,661.3 N/A 210.6 Sector Rank 17/28 15/28 6/28 6/28 10/28 N/A N/A 15/28 N/A N/A Economy Rank 539/696 420/696 66/696 62/696 169/696 N/A N/A 369/696 N/A N/A IVA/Revenue (%) Imports/ Demand (%) Exports/ Revenue (%) Revenue per Employee ($’000) Wages/Revenue (%) Employees per Est. Average Wage ($) Share of the Economy (%) 2009 52.88 N/A N/A 38.45 37.18 1.59 14,294.99 0.02 2010 55.43 N/A N/A 38.54 37.23 1.60 14,351.04 0.02 2011 53.83 N/A N/A 38.51 37.73 1.62 14,529.09 0.02 2012 52.96 N/A N/A 38.66 38.76 1.67 14,987.12 0.02 2013 57.68 N/A N/A 38.63 38.28 1.69 14,785.65 0.02 2014 53.34 N/A N/A 39.60 37.64 1.71 14,904.74 0.02 2015 51.76 N/A N/A 40.71 37.56 1.73 15,291.74 0.02 2016 53.31 N/A N/A 41.28 37.91 1.78 15,647.90 0.02 2017 54.34 N/A N/A 39.31 38.92 1.83 15,297.70 0.03 2018 54.29 N/A N/A 38.79 39.40 1.82 15,282.46 0.03 2019 55.31 N/A N/A 38.23 39.94 1.81 15,270.90 0.03 2020 55.19 N/A N/A 37.73 40.41 1.80 15,249.15 0.03 2021 56.20 N/A N/A 37.24 40.89 1.78 15,226.43 0.03 2022 55.85 N/A N/A 36.74 41.38 1.77 15,200.89 0.03 2023 57.12 N/A N/A 36.23 41.88 1.75 15,172.60 0.03 Sector Rank 4/28 N/A N/A 25/28 3/28 21/28 25/28 15/28 Economy Rank 91/696 N/A N/A 680/696 64/696 630/696 661/696 420/696 Figures are in inflation-adjusted 2018 dollars. Rank refers to 2018 data. Revenue (%) Industry Value Added (%) Establish – ments (%) Enterprises (%) Employment (%) Exports (%) Imports (%) Wages (%) Domestic Demand (%) Number of pet cats and dogs (%) 2010 6.7 11.8 5.5 5.5 6.4 N/A N/A 6.8 N/A -3.7 2011 5.6 2.5 4.5 4.5 5.6 N/A N/A 7.0 N/A -0.1 2012 8.4 6.7 4.7 4.7 8.0 N/A N/A 11.4 N/A 4.4 2013 6.2 15.7 4.8 4.8 6.3 N/A N/A 4.9 N/A 4.2 2014 9.7 1.4 5.8 5.8 7.0 N/A N/A 7.9 N/A -4.2 2015 10.3 7.1 6.1 6.2 7.3 N/A N/A 10.1 N/A -4.5 2016 8.9 12.1 4.8 4.8 7.4 N/A N/A 9.9 N/A 6.2 2017 3.4 5.4 5.2 5.2 8.6 N/A N/A 6.2 N/A 5.8 2018 1.7 1.6 3.5 3.5 3.1 N/A N/A 3.0 N/A 1.6 2019 2.2 4.1 4.7 4.7 3.7 N/A N/A 3.6 N/A 3.1 2020 1.2 1.0 3.1 3.1 2.6 N/A N/A 2.4 N/A 2.5 2021 1.2 3.0 3.4 3.4 2.5 N/A N/A 2.4 N/A 2.6 2022 1.0 0.4 3.1 3.1 2.4 N/A N/A 2.2 N/A 2.2 2023 0.9 3.2 3.3 3.3 2.3 N/A N/A 2.1 N/A 1.6 Sector Rank 11/28 11/28 5/28 5/28 6/28 N/A N/A 6/28 N/A N/A Economy Rank 392/696 396/696 93/696 90/696 140/696 N/A N/A 191/696 N/A N/A Annual Change Key Ratios Industry Data SOURCE: WWW.IBISWORLD.COM Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 29 Apr 2016 – Mar 2017 by company revenue Apr 2013 – Apr 2014 – Apr 2015 – Apr 2016 – Small Medium Large Mar 2014 Mar 2015 Mar 2016 Mar 2017 (<$10m) ($10-50m) (>$50m) Liquidity Ratios Current Ratio 1.3 1.8 2.7 1.4 1.7 n/a n/a Quick Ratio 1.0 1.3 2.2 1.3 1.5 n/a n/a Sales / Receivables (Trade Receivables Turnover) n/c n/c n/c n/c n/c n/a n/a Days’ Receivables 0.4 0.4 n/a 0.4 0.4 n/a n/a Cost of Sales / Inventory (Inventory Turnover) n/a n/a n/a n/a n/a n/a n/a Days’ Inventory n/a n/a n/a n/a n/a n/a n/a Cost of Sales / Payables (Payables Turnover) n/a n/a n/a n/a n/a n/a n/a Days’ Payables n/a n/a n/a n/a n/a n/a n/a Sales / Working Capital 52.0 27.5 21.2 82.8 41.2 n/a n/a Coverage Ratios Earnings Before Interest & Taxes (EBIT) / Interest 4.5 5.9 6.3 9.7 11.0 n/a n/a Net Profit + Dep., Depletion, Amort. / Current Maturities LT Debt n/a n/a n/a n/a n/a n/a n/a Leverage Ratios Fixed Assets / Net Worth 2.4 1.0 1.0 1.2 1.4 n/a n/a Debt / Net Worth 2.7 0.8 1.0 0.8 1.2 n/a n/a Tangible Net Worth 22.1 38.0 38.4 39.2 36.0 n/a n/a Operating Ratios Profit before Taxes / Net Worth, % 18.0 33.0 35.2 38.7 42.2 n/a n/a Profit before Taxes / Total Assets, % 6.8 13.5 12.3 12.2 16.1 n/a n/a Sales / Net Fixed Assets 2.0 4.3 6.4 2.2 3.0 n/a n/a Sales / Total Assets (Asset Turnover) 1.1 1.8 2.3 1.2 1.4 n/a n/a Cash Flow & Debt Service Ratios (% of sales) Cash from Trading n/a n/a n/a n/a n/a n/a n/a Cash after Operations 15.9 12.8 11.0 16.4 19.0 n/a n/a Net Cash after Operations 16.8 14.3 10.6 15.4 16.5 n/a n/a Cash after Debt Amortization 8.2 4.6 5.0 3.9 4.1 n/a n/a Debt Service P&I Coverage 3.8 8.0 4.9 2.4 2.6 n/a n/a Interest Coverage (Operating Cash) 7.2 8.6 7.8 8.3 8.8 n/a n/a Assets, % Cash & Equivalents 21.4 24.4 31.7 24.7 24.9 n/a n/a Trade Receivables (net) 1.1 0.9 2.0 0.6 0.5 n/a n/a Inventory 2.9 1.6 1.0 0.9 1.0 n/a n/a All Other Current Assets 3.1 2.4 0.7 0.7 0.6 n/a n/a Total Current Assets 28.5 29.3 35.4 26.9 27.0 n/a n/a Fixed Assets (net) 52.7 53.4 46.4 54.7 54.5 n/a n/a Intangibles (net) 7.7 5.4 8.0 9.8 10.5 n/a n/a All Other Non-Current Assets 11.1 11.9 10.2 8.6 8.0 n/a n/a Total Assets 100.0 100.0 100.0 100.0 100.0 n/a n/a Total Assets ($m) 223.8 355.2 268.2 219.1 77.1 142.1 n/a Liabilities, % Notes Payable-Short Term 7.7 8.3 6.6 4.4 4.4 n/a n/a Current Maturities L/T/D 5.7 2.8 4.0 2.3 2.4 n/a n/a Trade Payables 2.7 1.9 3.7 2.8 2.9 n/a n/a Income Taxes Payable 0.1 0.2 n/a 0.3 0.4 n/a n/a All Other Current Liabilities 7.7 10.4 7.6 8.3 8.7 n/a n/a Total Current Liabilities 23.8 23.6 21.9 18.1 18.7 n/a n/a Long Term Debt 29.9 22.9 24.6 28.0 29.6 n/a n/a Deferred Taxes n/a n/a n/a n/a n/a n/a n/a All Other Non-Current Liabilities 16.5 10.0 7.0 4.9 5.2 n/a n/a Net Worth 29.8 43.4 46.4 49.0 46.5 n/a n/a Total Liabilities & Net Worth ($m) 223.8 355.2 268.2 219.1 77.1 142.1 n/a Maximum Number of Statements Used 46 56 64 57 53 4 n/a Industry Financial Ratios Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more than 260,000 statements of member financial institutions’ borrowers and prospects. Note : For a full description of the ratios refer to the Key Statistics chapter online. Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 30 BARRIERS TO ENTRY High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry. CAPITAL INTENSITY Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor. CONSTANT PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the “real” growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator. DOMESTIC DEMAND Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports. EMPLOYMENT The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry. ENTERPRISE A division that is separately managed and keeps management accounts. Each enterprise consists of one or more establishments that are under common ownership or control. ESTABLISHMENT The smallest type of accounting unit within an enterprise, an establishment is a single physical location where business is conducted or where services or industrial operations are performed. Multiple establishments under common control make up an enterprise. EXPORTS Total value of industry goods and services sold by US companies to customers abroad. IMPORTS Total value of industry goods and services brought in from foreign countries to be sold in the United States. INDUSTRY CONCENTRATION An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less than 40%. INDUSTRY REVENUE The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded. INDUSTRY VALUE ADDED (IVA) The market value of goods and services produced by the industry minus the cost of goods and services used in production. IVA is also described as the industry’s contribution to GDP, or profit plus wages and depreciation. INTERNATIONAL TRADE The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand: low is less than 5%, medium is 5% to 35%, and high is more than 35%. LIFE CYCLE All industries go through periods of growth, maturity and decline. IBISWorld determines an industry’s life cycle by considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments; the amount of change the industry’s products are undergoing; the rate of technological change; and the level of customer acceptance of industry products and services. NONEMPLOYING ESTABLISHMENT Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-employed individuals. PROFIT IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding interest and tax. VOLATILITY The level of volatility is determined by averaging the absolute change in revenue in each of the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%. WAGES The gross total wages and salaries of all employees in the industry. The cost of benefits is also included in this figure. Industry Jargon IBISWorld Glossary PET GROOMING A service that can provide dog or cat washing, shampoo, drying, clipping, nail cutting and other services as demanded by owners and depending on the pet. PET HOTEL A boarding kennel for cats and dogs that sometimes offers luxury services for pets. PET-SITTING Pet-minding service while owners are away on holidays or business trips. Jargon & Glossary Disclaimer This product has been supplied by IBISWorld Inc. (‘IBISWorld’) solely for use by its authorized licenses strictly in accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any other person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or incurred by any other person resulting from the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Inc. The publication is sold on the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication – in papers, reports, or opinions prepared for any other person – it is agreed that it will be sourced to: IBISWorld Inc. 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