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This chart represents the
latest cost structure of
the industry. It shows the
proportion of revenue
each cost item absorbs,
with the remainder
representing profit.

The comparison to all
other industries in the
sector provides a
benchmark that shows
how the industry differs
from its peers.

Evaluation Three Refrigerated Storage in the US Industry Code 49312

The Refrigerated Storage industry has experienced a series of up and downs over the past
five y ears. Industry performance is closely tied to total trade volume, levels of agricultural
output and demand from frozen food production and grocery wholesaling. For example,
lower trade levels in 2013 led to revenue decline during that year.

Over the five years to 2016, industry revenue is expected to increase at annualized rate of
1.6%, as a result of higher trade volumes and demand for new food products. In 2016,
revenue is anticipated to expand 1.3% to $4.6 billion.

The growth in the total number of industry operators has slowed in recent y ears, despite
an annualized increase of 0.3% during the period. Greater capital requirements have made
it more difficult for prospective companies to enter the industry. Companies have invested
in new tracking and monitoring systems and in larger warehouses with a variety of
temperate-controlled rooms, boosting the efficiency of existing operations.

Moreover, the industry consolidated during this period as the leading companies acquired
smaller operators to expand their market share. Increased use of technology and the
consolidation of operations have helped raise industry profitability.

The industry is forecast to continue to grow in the next five y ears, supported by
heightened demand from downstream markets and greater refrigerated storage capacity.
Higher levels of disposable income will enable consumers to purchase more goods through

Prepared for Growers Ice Company, Inc.
37
Jim White, PhD --- JL White International