External and Internal Environmental Analysis



Abstract

This paper includes external and internal environment analysis of Albany International. The company is still privately owned and manufactures a wide variety of products, including knitted fabrics, broad-woven fabrics, carpets, chemicals and petroleum products. It operates about 50 manufacturing facilities in the United States and 7 countries around the world.

Table of Contents

Abstractii

Introduction to the Company1

External Environmental Factor1

SWOT Analysis3

Strength3

Weaknesses3

Opportunities4

Threats5

External Competition5

Conclusion6

References7

External and Internal Environmental Analysis

Introduction to the Company

The company is listed in the Russell 2000® Index, and globally sells products in the paper machine clothing and industrial door sectors. As of today, the company employs nearly 2.1 million people. Since operating in a highly competitive international market, the company is experiencing several risks, including market risk, commodity risk, foreign exchange risk and interest rate risk. The company is still privately owned and manufactures a wide variety of products, including knitted fabrics, broad-woven fabrics, carpets, chemicals and petroleum products.

I have choosen Albany International,which is globally sells products in the paper machine clothing and industrial door sectors. As of today, the company employs nearly 2.1 million people. The purpose of choosing this company is because it is listed in Russell 2000. It operates about 50 manufacturing facilities in the United States and 7 countries around the world. The company accounts for 1.0% of the Textile Mills industry in the United States. The Textile Mills industry has experienced a sharp decline over the five years to 2011. More firms are outsourcing manufacturing activities to low-cost countries, and the global recession has affected demand and exchange rates, making the economic environment difficult for players.

External Environmental Factor

Over the five years to 2011, IBISWorld estimates that revenue will decline at an average annual rate of 7.3% to $42.2 billion. Downstream apparel manufacturers have largely moved their operations offshore, taking entire supply chains with them and limiting the presence of textile mills in the United States.

Along with weak consumer sentiment, offshoring has reduced demand for industry products. Despite a 0.2% increase due to improved downstream demand during 2011, the situation is not expected to ease much over the five years to 2016. IBISWorld forecasts that revenue will continue to fall at an average annual rate of 3.4% to $35.6 billion, and establishment numbers will also decline by 2.2% to total 7,679. As downstream manufacturers and industry participants seek out lower operational costs by moving production offshore, the size of the domestic industry will continue to shrink. However, not all product segments will be shifted overseas; non-woven fabrics are expected to remain part of the domestic industry as their advanced technology will prevent cost-efficiency in offshoring. Many low-cost countries are not well equipped to produce these specialized materials, so mill owners will stay put, changing the structure of the US industry and keeping it relevant (Levy et al. 2004).

International trade is also expected to play a larger role in next five years, with imports growing at an annualized rate of 4.7% to $28.9 billion by 2016. Countries like China and India will take ...