Abstract

The rubber sector is considered to be a traditional industry, made up of dozens of active businesses, including: a small number of large companies, some of which are owned by kibbutzes, a small number of medium-sized companies, and the rest of the smaller companies and businesses. The products are sold to industry, with 3 target sectors making up a combined source of about 65% of sales in the rubber sector: the health industry, the defense industry, and the water and flow industries.

Hence the strength of the rubber sector and its potential for growth, which derives primarily from the strength and rate of growth of these target industries.

In order to protect themselves from dependence on a particular target industry, the companies distribute their products among additional sectors, such as the metal industry, the construction and infrastructure industries, the chemical industry, food industry, high-tech and others. The products they supply include: seals, planks, ribbon, rods, pipes, straps, conveyors, etc.

The sector is characterized by relative stability, although its activity has decreased in the last two years by about 10%, relative to previous years. This drop in the sector’s proceeds stems from a drop in demand from the local defense industry for CBRN defense products, resulting from the reduced threat of a chemical attack. This trend has required companies active in that industry to identify alternative sources for growth.

The review will elaborate on the local rubber sector and its size (financially), alongside a breakdown of sales and the rate of growth in the industry. More specifically, it will expand on the players in the sector, the target industries to whom the products are marketed, and the range of rubber products consumed by then, as well as the steps taken on the part of the companies to manage the business environment and competition.

Abstract

The honey sector in Israel consists of two main segments. The first segment, the marketing segment, is considered relatively stable as a result of the constant local demand for honey. On average, approximately 4,000 tons of local honey is consumed annually. The second segment is the production segment, which also includes small apiaries facing higher risk levels. While the production sector is considered decentralized, the marketing segment, controlled by a small number of players, is considered more centralized.
This review will present an examination of the size and structure of the sector, the central players and the business environment in light of recent trends and developments in the sector.

Abstract

The catering industry includes the field of institutional catering and non-institutional catering, and is one of the branches of the food and hospitality services industry. The sector is made up of about 1,000 companies and businesses, most of which are located in the Central District of Israel. The sector brought in cumulative revenues of several billion shekels (NIS) in 2016, from all of its activities.

The institutional catering companies connect directly with public institutions, government offices, the high-tech sector, the defense and finance sectors, broad segments of industry, and others.

The non-institutional caterers deal directly with some of the events venues – those that do not themselves prepare the meals served to their events’ guests, as well as private clients.

In recent years, the sector has been characterized by intense competition, primarily between the leading players in the field, that manifests in low meal pricing which hurts the growth in revenues and erodes the companies’ profitability. Additional risks that the sector is exposed to include: economic slowdown in the field that adversely affects the business of small companies in the sector, food prices, and others.

Nonetheless, the structure of the industry is relatively stable, and comprised primarily of large and medium-sized companies that have been operating in the field for many years.

This review will present the sector’s structure and size, the central players and the business environment, against the background of industry trends and developments in recent years.

Abstract

The restaurants, coffee shops and bars sector is a dynamic one that has developed rapidly in recent years. An increase in the number of restaurants operating in the sector has served as a growth engine for the economy, both in terms of an increase in the number of jobs and an increase in private consumption. In addition to its contribution to the economy and the GNP, this sector also reflects cultural and consumer-based changes, such as increased expenditures on luxuries and leisure, as the standard of living in the country has improved.
The growth in the economy over the past decade has had a significant impact on the amount of the disposable income of private Israeli consumers, which has led to an increase in spending on dining out and going to restaurants and bars as a recreational activity. In addition, the growth of the sector has been influenced in part by the public’s view of coffee shops and restaurants not only as places for leisure, but also as for business meetings.

Abstract

The parking facilities industry provides parking solutions outside of conventional parking, and these are divided into two main types: hydraulic parking lifts (parking multipliers) and automatic facilities.

Parking multipliers can be dual-story or more, used for small or medium-sized buildings, sometimes even big buildings, above ground or in an underground parkade.

Automatic parking lots, which are based on robotic and mechanized systems, are primarily used for downtown towers, and can include hundreds of parking spaces.

The parking solutions sector is a long-standing industry, although in Israel it is considered to be a relatively new one, and it is gaining momentum every year. In recent years there has been a global awakening in the field with the growing numbers of vehicles on the roads, the increasing parking congestion in cities and the constantly rising cost of land.

Parking solutions provide a response to these issues, particularly in urban renewal projects, especially TAMA 38 projects, which are required to add parking spaces in lots with spacial limitations. Therefore, the sector is directly influenced by the number of permits given to TAMA projects.

However, they can also be used in other situations, in any place with a parking crisis, and their use is financially worthwhile (particularly in high-demand areas of city centers).

The review will elaborate on the structure of the parking facilities sector, the major players and the business environment, against the background of industry trends and developments in recent years.

Abstract

The transport infrastructure sector is a subsector of the general infrastructure sector in Israel. It includes primarily road projects, but also encompasses railway, airport and port-related projects.
The sector is directly affected by the budgetary decisions made by the Israeli government. In recent years we have witnessed a trend of expanding infrastructure development throughout the country. This trend is reflected in significant increases in investment in infrastructure, including in the national budget.
Because of the nature of the transport infrastructure sector’s activity, the vast majority of clients are from the public sector, including government ministries and companies, as well as local authorities and municipal companies. Contracts for these clients’ projects are awarded through a competitive tender process, usually using the “Design and Build” pricing method. Netivei Israel is one of the prominent players in the sector. During 2016, the company developed a five-year work plan for 2017-2021, valued at NIS 42 billion.
Like the construction sector, the infrastructure sector suffers from barriers that limit its growth options. The leading impediments are: manpower shortages and credit limits that the banks cannot breach. In addition, several infrastructure contractors are facing difficulties due to problematic pricing and low margins stemming from their adoption of the Design and Build method, combined with a significant reduction of credit available from the banking system. However, the government and the Bank of Israel have begun to examine initial measures for dealing with these supply barriers.
This review presents a comprehensive overview of the developments in the transportation infrastructure sector and the impact of the recent measures on the players and current activity in the sector.

Abstract

The real estate sector is one of Israel’s fundamental economic sectors and supports numerous other sectors. Real estate’s development aspect involves locating and acquiring land, improving planning permission rights and constructing and selling building units.
After having suffered significant fluctuations in the past, activity in the real estate sector in Israel has stabilized in recent years, with the onset of the global economic crisis during the third quarter of 2008, there was some concern that Israel’s real estate sector, like the real estate markets in many countries worldwide, would stagnate. These concerns proved to be unfounded. In fact, quite the opposite occurred, and Israeli housing prices have risen since 2008. This can be attributed to the combination of low interest rates, the diversion of funds redeemed from savings during the global financial crisis to real estate channels as a substitute investment, and the ever-increasing deficit in supply.
During 2015 and 2016, the government and banks instituted regulatory measures aimed at influencing the supply and demand in the real estate sector. To restrain demand, a number of measures were taken. Those aimed at young couples included increases in interest rates on mortgages from banks, while those aimed at investors included government increases in the purchase tax on apartments for investment and its imposition of a tax on ownership of a third apartment. To increase supply, the government expanded the Mechir L’mishtaken or Occupant Price program, where the government auctions off land at a significant discount to developers willing to guarantee a final lower-priced apartment to eligible purchasers. This program resulted in the marketing of tens of thousands of residential units at reduced prices to eligible participants.
This review presents a comprehensive examination of current developments in different sectors involved in the residential real estate sector in Israel and the impact of the recent measures on sector activities.

Abstract

The construction contracting sector is an important part of Israel’s real estate sector. Construction includes both residential and non-residential or institutional construction, such as public and office buildings and industrial structures.
In 2016, the real estate sector continued to be one of the strongest sectors in Israel’s economy, with diverse activity in both residential and in non-residential construction. Residential construction experienced the starts of over fifty thousand residential units, representing the second year of high rates of construction starts as the “Occupant Price” program continued to expand.
Despite this growth, close to twenty medium to large-sized contractors and hundreds of small contractors found themselves facing financial difficulties. Several factors contributed to the problems experienced by contractors:

• The accepted “turnkey” payment method in the sector, whereby units are sold as completed products, which does not anticipate the project’s actual costs;
• An increase in the scope or timetable of the projects at the expense of profitability;
• Long lead times stemming from manpower shortages, among other reasons;
• Difficulties in collecting from those ordering the work, creating cash flow problems;
• Reductions in bank credit to the construction sector;
• Low profit margins, mostly concentrated among the entrepreneurs.

Currently, a number of measures to reduce the sector’s risk level are being examined and introduced. This review presents a comprehensive examination of current developments in the sector and the impact of the recent measures on the players and activities in the sector.

Abstract

According to data from the Local Government Administration, as of 2017, there were 257 local authorities in Israel, consisting of 76 municipalities, 125 local councils, 54 regional councils and two local industrial councils.
The review examines:

• Financial parameters, such as the distribution of expenses and the scope of revenues from municipal rates;
• Demographic parameters, such as the balance of migration;
• socioeconomic parameters, such as investment in education and welfare expenses;
• Education, including the percentage of individuals eligible for matriculation certificates as well as the scope of investment per child;
• Welfare expenses relative to total budget expenses;
• Gender distribution, including the percentage of female mayors and female municipal council members;
• Business opportunities at the municipal level, including:

– The number of businesses in the municipality per one thousand residents;
– The percentage of businesses in the municipality facing closure;
– The municipality’s unemployment rate and more.

Abstract

The Israeli cosmetics sector includes three types of participants: manufacturers, importers and retailers. The manufacturing segment consists of large and well-established factories, along with new smaller factories which have emerged over the past several years.
The import area consists of a limited number of large importers that control most of the field. The cosmetics sector is characterized by diverse export and import activity, with local manufacturers and importers each contributing approximately half of the sector’s total revenues. The sector’s products include toiletries, mainly makeup, perfume and beauty care.
The review presents a comprehensive examination of the structure and size of the cosmetics sector in Israel, distinguishing between local manufacturers and importers. It also examines key players and the business environment, including distribution according to destinations and according to countries and products considering recent trends and developments in the sector.

Abstract

The sweet snack bar sector is part of the restaurant and coffee shop sector and includes ice cream parlors, candy kiosks and stores. The sector is primarily based on the franchise system and is dominated by a number of leading chains with branches nationwide.
Among the products sold in this sector are ice cream, yogurt, crepes, Belgian waffles, desserts and hot and cold beverages, such as smoothies, natural juices, etc. In this market, consumers usually purchase the products on impulse, unlike the barcoded market of retail chains and minimarkets selling pre-packaged ice cream and desserts for home consumption, where most purchases are planned.
The review will present:

• The size of the market;
• The number of existing businesses in the field and their geographic distribution;
• The large chains, their standing in comparison to independently owned food businesses and the niche each chain occupies;
• Trends occurring during recent years, such as:

-The rise and relative fall of the yogurt trend;
-Location selection: malls or street fronts;
-New sector penetration;

• New opportunities resulting from market conditions;
• Risks that have emerged.

Abstract

The sporting goods sector is a subsector of the fashion sector, and includes products intended for sports enthusiasts and athletes from the private sector. The products marketed include fashion products, sportswear, athletic footwear and sports equipment and accessories.
There are over 700 sporting goods shops in Israel, approximately 230 of which belong to various chains stores. Although the chain stores constitute less than half the total number of sporting goods stores, they dominate the sector financially, contributing approximately 50% of the sector’s revenues. This can be attributed to the chains’ positioning and the attractive atmosphere in their stores.
In recent years, the sector has been characterized by a high level of competition that has increased over the past year as a result of fashion chains expanding into the field of sportswear. This trend, along with the increase in online shopping, has led to a rise in the sectoral risk.
This review will present a comprehensive examination of the structure and size of the sporting goods stores sector in Israel, the central players and the business environment in light of recent trends and developments in the sector.

Abstract

The pharmaceutical sector includes the medical equipment sector and the medicinal sector. The medical equipment sector includes three types of players:

• Companies engaged in developing and sometimes producing medical equipment;
• Companies engaged in manufacturing medical equipment;
• Importers and distributors.

The medicinal sector includes two types of players:

• Companies engaged in development and production;
• Marketing and distribution companies.

The sectors are export-oriented, especially the medicinal sector, in which over 85% of production is intended for export. This sector is characterized by a centralized structure, with a small number of players being responsible for the majority of exports.
This review will present the structure and size of the medical equipment and medicinal sectors, focusing on the production segment. It will discuss the latest trends and risk level in the sector, present extensive business information regarding key players and more.

Abstract

The solar energy sector is a sub-sector of the renewable energy sector, which offers alternatives to the conventional production of electricity. Over the past several years, there has been a growing awareness in Israel and around the world about renewable energy produced by utilizing solar energy, wind, biomass and other non-perishable energy sources other than fossil fuel.

This trend results not only from environmental considerations, but also from a reduction of dependence on the oil suppliers, some of which are hostile or unreliable countries. The Israeli government has even set a target to produce 10% of energy consumption using renewable energy sources by the year 2020. However, the country did not meet the interim goals set for 2014-2015, primarily due to the nature of the sector’s activities during these years and because the sector is highly regulated.
As a result, many players left the sector, leaving only a limited number of producers. However, the introduction of a new arrangement, Net Metering, which took effect during 2015, along with changes in new quotas in photo-voltaic technology, can serve as new growth engines for the sector, helping to move it forward to meet the goal for 2020.
This review will present a comprehensive examination of the structure of the sector in Israel, the central players and the business environment in light of recent trends and developments in the sector.

Abstract

The baby products sector, part of the retail sector, includes products designed for mothers and babies. These products include:

• Prams and strollers;
• Furniture: children’s rooms, changing tables, beds, etc.;
• Toys, including developmental toys;
• Safety products and more.

In Israel, this sector is based primarily on import and is characterized by high prices compared to the rest of the world, partially due to the multiple parties involved in the supply chain. Nonetheless, demand for the sector’s products has remained relatively stable, both because of the number of annual births in Israel and the strong emotional component of making purchases for a child.
The review will present an examination of the size and structure of the sector, the central players and the business environment in light of recent trends and developments in the sector.

Abstract

The security door sector is a subsector of the metal sector and includes processed products intended primarily for the construction sector. These products include front doors, APS doors and windows, emergency and fire doors and more. The vast majority of security doors sold in Israel are produced locally, reflecting local consumption habits and the quality of the local metal industry. The technological level of Israel’s metal industry is advanced, giving its products relatively high added value.
Since most security doors are produced for the construction sector, the security door sector is vulnerable to fluctuations in activity in the construction sector. The high level of competition, primarily between the leading players in the security door sector, creates a buyer’s market for the construction companies and contractors. This means that there is little opportunity for significant price increases in the products sold. This price stagnation, combined with the longevity of metal doors, which do not need to be replaced often because of their high quality, limit the growth of the sector. As a result, the sector has sought other sources of growth by diversifying into the field of wooden interior doors as well as increasing export operations.
This review will present the structure and size of the sector, including the quantity and financial aspects of security doors sold in Israel, the central players and the business environment in light of recent trends and developments in the sector.