Services, misc.

[129-999] Sector: Services

Contents P1: Industry Population, Time Series P2: Failure Rates P3: Industry Market Volume, Average Company Sales P4: Company Sales Class Trends P5: Market Share by Sales Class, Average Annual Company Sales by Class P6: Market Share by Segment, Sales Per Employee P7: Facility Employment Class Trends, Average Employment Trends P8: Entrepreneurial Activity, New Branch Development, Sales- Employment Growth Indices P9: Industry Concentrations, Consolidation Trends, Emerging Vitality Chart P10: About the Data

Time Series Coverage:

2007 2008 2009 June 2010

Industry Population Analyzed

as of: Firms: Establishments: Small Businesses: Startups: Branches: 2007 143,273 144,366 142,255 13,018 1,093 2008 110,589 111,529 109,447 11,860 940 2009 130,051 131,034 128,818 11,718 983 June 2010 140,221 141,218 138,964 17,222 997

The Industry Population table displays the number of firms in the industry for five groups: Establishments: Firms plus Branch operations. Firms: Independent companies. Small Businesses: In order to focus the analysis on the small businesses of greatest interest to our users, the analysis defines small businesses as single
site firms with fewer than 25 employees. All small businesses are also firms. Startups: In order to reduce distortion and focus the analysis on the startup population of greatest interest to our users, the startup sales and employment analysis limits the definition of startups to single site firms with fewer than 50 employees, with less than $10m annual sales and reporting one year or less of operation. All Startups are also firms; The overwhelming majority are also small businesses. Branches: Subsidiary facilities of firms; non- headquarters operations. The Time Series: The report analyzes trends in three running years, each for the twelve months (real time) ending [2007], [2008] and [2009]. Content is adjusted to account for time lags in raw data. We adjust the time series to compensate; the dates shown generally reflect the actual time series shown in the Time Series table. In some tables 2009 denotes the snapshot at the end of the time series. 2007 is the snapshot at the start of the time series.

Failure Rates
Firms: Establishments: Small Businesses: Startups: Branches: 2007 Firms 143,273 144,366 142,255 13,018 1,093 2009 Survivors 73,116 73,835 72,237 7,165 1,234 Failure Rates 48.97% 48.86% 49.22% 44.96% -12.90%

Failure Rates: Failure rates track the actual experience of business establishments, firms, small businesses, startups and branches doing business at the start of the time series, and still in operation today. "Survivors" are business operations within a given category which have maintained operations for at least three years. Throughout the report, Survivor measures isolate and report on these ongoing firms. As a result, these Survivor benchmarks display experience- rated measures, rather than snapshots of the industry at a particular point in time.

Firms which have experienced a transfer in ownership but continue as independent firms are considered "survivors". Firms which relocate but maintain independent operations are considered survivors if they do not move out of the jurisdiction being analyzed. Firms which are purchased or merge and become subsidiary locations, or whose location is terminated, are grouped with the "failures". Any business entity which does not evidence ongoing operations (for example, by registering with government agencies or credit reporting services) is considered to have ceased viable operations and is classified with the "failures".

The Failure rate analysis is developed for discrete business segments by segregating the original pool of tracked firms by industry classification, location, and population segment (all firms, small businesses, startups etc.) That beginning universe is segregated and tracked to develop the failure rate for that group.

As a result, failure rates occasionally reflect performance above 100% or below 0% due to business migration among industries (changes in primary business line) or (in the case of location- specific failure rates) due to business relocations during the analysis period.

Industry Market Volume, Average Sales and Sales Class Trends QII-10 data refers to the 12- months ending June 30. Annual Market Volume ($)
as of 2007: 2008: 2009: June 2010: 26,404,765,732 22,043,769,197 25,446,894,255 25,484,909,253

Industry Market Volume: Reported Annual Market Volume includes industry sales figures from multi- site firms classified in the selected industry, generally including branch revenues. The Market Volume figures include sales of US firms and US- reporting subsidiaries of firms headquartered outside the US. The volume figures are for the industry (firms identifying this as their primary classification) not the product or service. As an example, a report for retail furniture stores analyzes sales of stores whose predominant revenue stream is furniture sales; That data would not include furniture sold at a general department store, for example. Consequently, more detailed industry segments may under- report volume due to the choice of companies to identify a higher level parent classification as their primary line of business.

Average Annual Sales

as of 2007 Avg Sales: 2008 Avg Sales: 2009 Avg Sales: Change: June 2010: Site Sales 182,902 197,651 194,201 6.2% 180,465 Firms 184,297 199,331 195,669 6.2% 181,748 Small Business 169,135 179,512 180,203 6.5% 167,296 Startups 156,314 156,231 152,142 -2.7% 152,834

Average Annual Sales:The Average Annual Sales table displays snapshot average dollar sales for all industry sites (including branches), firms, small businesses and startups in each of the three years in the time series. The Change rows express the growth or decline of these snapshots in percentage terms. Sales will often fluctuate most radically in the startup category (both snapshot and survivor), in part because startup operations are less numerous and differ dramatically in size, growth and, in many cases, failure.

While there is significant overlap of firms in each category between years, results can be affected by business failures, mergers and the migration of companies between the three categories. Migration between business classifications has a much lesser impact in most cases.

Company Sales Class Trends

as of $1 - $500k $500k - $999k $1m - $2.49m $2.5m - $4.99m $5m - $9.99m $10m - $24.99m $25m - $49.99m $50m - $99.99m $100m - $249.99m $250m - $499.99m $500m- $999.99m > $1b unknown Total 2007 firms 140,630 1,749 628 130 60 25 7 3 2 2 0 0 37 143,273 2008 firms 106,956 2,317 691 136 67 32 12 3 2 0 0 0 373 110,589 2009 firms 125,804 2,830 734 166 66 41 10 3 1 0 0 0 396 130,051 2007 % 98.16% 1.22% 0.44% 0.09% 0.04% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.03% 100% 2008 % 96.71% 2.10% 0.62% 0.12% 0.06% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.34% 100% 2009 % 96.73% 2.18% 0.56% 0.13% 0.05% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.30% 100%

Company Sales Class Trends: This large table classifies the number of industry firms which fall into each of thirteen sales classes. Data is displayed as the number of firms in each of the three years of the time series. The fourth column displays the distribution of Survivor firms (only those tracked from Yr1 and still in operation) through the same sales classes.

Each of the final four columns corresponds to the first four by year, and displays the distribution as a percentage of all firms for that year. Firms which do not report sales are noted in the unknown row, while the final row sums the total number of firms in the industry in each of the years and for the survivor category. The analysis in the Company Sales Class Trends table is deepened by reading it in conjunction with the Market Share by Sales Classand Average Annual Company Sales by Class tables on the following page.

Market Share by Sales Class ($ million)

as of $1 - $500k $500k - $999k $1m - $2.49m $2.5m - $4.99m $5m - $9.99m $10m - $24.99m $25m - $49.99m $50m - $99.99m $100m - $249.99m $250m - $499.99m $500m- $999.99m > $1b unknown Total 2007 21,803.8 1,219.0 907.2 442.5 401.8 370.4 235.3 195.1 206.3 617.2 0.0 0.0 6.2 26,404.8 2008 16,862.5 1,659.3 976.0 451.5 435.6 483.8 399.6 194.2 220.1 0.0 0.0 0.0 361.2 22,043.8 2009 19,750.4 2,055.3 1,043.7 552.2 413.9 646.2 340.7 189.3 100.1 0.0 0.0 0.0 355.1 25,446.9 2007% 82.58% 4.62% 3.43% 1.68% 1.52% 1.40% 0.89% 0.74% 0.78% 2.34% 0.00% 0.00% 0.02% 100% 2008% 76.50% 7.53% 4.43% 2.05% 1.98% 2.20% 1.81% 0.88% 1.00% 0.00% 0.00% 0.00% 1.64% 100% 2009% 77.61% 8.08% 4.10% 2.17% 1.63% 2.54% 1.34% 0.74% 0.39% 0.00% 0.00% 0.00% 1.40% 100%

Negative numbers may be displayed due to rounding.

Market Share by Sales Class: This table displays the total reported dollar sales volume (market share) captured by firms in each of 13 sales categories in each of the three years of the time series. The percentage of total sales is displayed in the four corresponding columns on the right. Projected sales for non- reporting firms are displayed in the "unknown" cells. Average Annual Company Sales by Class
as of $1 - $500k $500k - $999k $1m - $2.49m $2.5m - $4.99m $5m - $9.99m $10m - $24.99m $25m - $49.99m $50m - $99.99m $100m - $249.99m $250m - $499.99m $500m- $999.99m > $1b unknown 2007 155,044 696,970 1,444,586 3,403,846 6,696,667 14,816,000 33,614,286 65,033,333 103,150,000 308,600,000 0 0 167,568 2008 157,658 716,142 1,412,446 3,319,853 6,501,493 15,118,750 33,300,000 64,733,333 110,050,000 0 0 0 968,365 2009 156,993 726,254 1,421,935 3,326,506 6,271,212 15,760,976 34,070,000 63,100,000 100,100,000 0 0 0 896,717

Average Annual Company Sales by Class: This table displays the average firm sales within each industry sales class, indicating a benchmark within that peer group. The average sales figure is derived by dividing the total market share within each sales class by the number of firms in the class. Reported sales are utilized, capturing revenue from all headquarters and branch operations of multi- site firms.

Market Share by Segment (% total industry sales)

as of 2007: 2008: 2009: Firms 100.00% 100.00% 100.00% Small Business 91.12% 89.13% 91.22% Startups 7.71% 8.41% 7.01%

Market Share by Segment: The share of total industry market volume captured by each category of firms is displayed as a percentage for each year of the time series. Naturally, the (all)Firms category captures 100% of the snapshot sales in each year. To the right, the Small Business and Startup shares of total market volume is displayed.

Annual Sales per Employee

as of 2007 SPE: 2008 SPE: 2009 SPE: June 2010 SPE: Industry 100,190 89,837 93,309 94,439 Small Business 273,255 94,270 97,880 98,801 Startups 124,079 122,749 140,944 137,741

Sales per Employee: A common indicator of productivity, Sales per Employee data is presented for the Industry (all firms), and theSmall Business and Startupsectors within it. Sales per employee measures are displayed for each of the three years in the time series. As is the case for average sales calculations, sales per employee will often fluctuate most radically in the startup category (both snapshot and survivor), in part because startup operations are relatively few in number and differ dramatically in size, growth and failure rates.

Facility Employment Class

as of 2007 2008 2009 June 2010 2007 2008 2009 June 2010 1 emp 80,898 98,590 2-4 emps 21,052 21,670 5-9 emps 4,674 5,777 6,558 6,919 10-24 emps 2,173 2,515 2,784 2,878 1.51% 2.26% 2.12% 2.04% 25-49 emps 618 699 750 760 0.43% 0.63% 0.57% 0.54% 50-99 emps 200 224 220 224 0.14% 0.20% 0.17% 0.16% 100-249 250-499 500-999 > 1000 unknown emps emps emps emps 51 53 58 54 0.04% 0.05% 0.04% 0.04% 14 15 13 13 0.01% 0.01% 0.01% 0.01% 4 4 5 4 0.00% 0.00% 0.00% 0.00% 0 0 0 0 0.00% 0.00% 0.00% 0.00% 415 292 386 427 0.29% 0.26% 0.29% 0.30%

117,726 18,491

107,014 22,925

Percentage breakdown
81.55% 12.81% 3.24% 72.54% 18.88% 5.18% 75.24% 16.54% 5.00% 75.78% 16.23% 4.90%

Facility Employment Class: Using the same general format as the previous Sales Class Trends table, the Facility Employment Class analysis displays the distribution of industry establishments (not just firms, and including branches) among ten employment size categories. An eleventh column on the right reports the number of industry establishments which do not identify employment data. In the second set of rows in the table, the row labels are repeated and table cells display the percentage of establishments in each year which are distributed among the same employment categories. This analysis method makes it possible to observe significant shifts in employment, toward larger or smaller operations in a more granular way than average employment data alone (below) can indicate. In this regard, survivor percentage changes between employment categories may be especially noteworthy.

Average Employment Trends

Industry: Small Business: Startups: Branches: 2007 4 2 1 30 2008 4 2 1 29 2009 4 2 1 31 June 2010 2 2 1 31

Average Employment Trends:Presented as a more traditional method of measuring industry employment trends, this table displays average establishment employment in the Industry (by establishment, not firms), as well as for Small Business, Startupand Branch categories. Total reported employment can be ascertained by multiplying average employment data by the number of total establishments taken from the Industry Population table on P1.

Vitality Trends Entrepreneurial Activity (June 2010)

US All- Industry Startup Rate: Segment Startup Rate: Segment Startup Index: 7.89% 24.38% 3.09

Entrepreneurial Activity: The Segment Startup Rate measures the percentage of all industry firms which indicated one year or less of operation during the one year period reflected by the Time Series table and which maintained operation through the end of the time series. These startup firms are compared to the number of firms in the industry for which ages can be identified to create the Segment Startup Rate. This is then compared to theUS All- Industry Startup Rate, the national startup percentage for all industries combined. TheSegment Startup Index benchmarks the industry rate against national all- industry startup patterns, expressed as a two- digit decimal where the US all- industry rate equals 1.00; An Index of 1.10 indicates an industry rate 10% above the economy- wide average. Independent, newly initiated franchise operations are included in these calculations as startup operations.

New Branch Development (June 2010)

US All- Industry New Branch Rate: Segment New Branch Rate: Segment New Branch Index: 0.79% 0.07% 0.09

New Branch Development: The Segment New Branch Rate measures the number of new branches developed in the final year of the time series and which maintained operation through the end of the time series. These are compared to the total number of industry establishments to develop the Segment New Branch Rate. The US Segment New Branch Rate performs the comparable calculation at the national level for comparison purposes. Like the Startup Activity Rate, New Branch Rates are an indicator of new growth and sector vitality. The Segment New Branch Index benchmarks the industry rate against national all- industry new branch development patterns, expressed as a two- digit decimal where the US all- industry rate equals 1.00; An Index of 1.10 indicates an industry rate 10% above the economy- wide average.

Sales Growth Index (June 2010)

Segment Sales Growth Rate: Segment Sales Growth Index: -13.03% 0.47

Employment Growth Index (June 2010)

Segment Employment Growth Rate: Segment Employment Growth Index: -7.73% 0.67

Sales Growth Index and Employment Growth Index: The Sales Growth Index compares the change in total sales over the time series displayed in the report. The industry specific growth rate is displayed, followed by a two- decimal index benchmarking the industry against economy- wide growth percentages. The US Index equals 1.00 in all cases, so an Index of 1.10 indicates an industry growth rate 10% above the economy- wide average. Similarly, the Employment Growth Indexcompares the change in total employment over the time series reflected by the report. Again, the industry specific growth rate is displayed, followed by a two- decimal index benchmarking the industry against economywide growth percentages.

US Industry = 1.00 in all market vitality index ratings

Industry Concentrations (% of total area)

Establishments: Employment: Reported Sales: 2007 2008 2009 0.8973% 0.2308% 0.0973% June 2010 0.9601% 0.2170% 0.1046% 0.9520% 0.7610% 0.2093% 0.2023% 0.0755% 0.0816%

Industry Concentrations: The Establishment Concentration compares the number of operating establishments in this industry to those in the national economy overall for each of three years. The Employment Concentration is comparably analyzed, displaying reported employment in the industry to the economy. The Reported Sales Concentration shows the industry percentage of total economy- wide sales. (Reported Sales data attributes all company sales to the location of headquarters operations.) In each case, the three year trend indicates the increasing or decreasing importance of the industry for the economic metric under review. Consolidation Trends
Industry Branch Concentration 2007: Industry Branch Concentration 2008: Industry Branch Concentration 2009: Industry Branch Concentration June 2010: All US Branch Concentration 2007: All US Branch Concentration 2008: All US Branch Concentration 2009: All US Branch Concentration June 2010: 0.76% 0.84% 0.75% 0.71% 9.74% 9.02% 9.16% 8.98%

Consolidation Trends: The Consolidation Trends table displays three years of national all industry- specific data reflecting the percentage of branch operations to all establishments (Industry Branch Concentration), and compares that to three years of economy- wide data reflecting national all- industry branch operation percentages (All US Branch Concentration). Taken together, the two measures indicate increasing or decreasing trends toward industry consolidation, either as a stand- alone metric or benchmarked against economy- wide patterns.

 About the Data Raw data analyzed for BizMiner reports is sourced from an array of the nation's government and private statistical sources. None of these raw data sources creates the final measures reflected in BizMiner industry profiles. In total, BizMiner accesses over a billion sourced data points from eighteen million business operations for each of its twice annual updates covering a 3-5 year time series. Historical data and BizMiner algorithms are used to inform and test projections for non- reporting firms. Data elements are sourced specifically from: - IRS SOI Corporation Income TaxReturns - IRS SOI Corporation Tax Book - IRS SOI 1040 Schedule C Income Tax Returns - IRS SOI Statistics of Income- Individual Tax Statistics - US Economic Census of Manufactures - US Census Economy Overview - US Census Annual Survey of Manufactures - US Census Annual Retail Trade Survey - US Census Annual Wholesale Trade Survey - US Census Quarterly Financial Reports - US Census County Business Patterns - Bureau of Labor Statistics Monthly Employment Reports - Bureau of Labor Statistics Monthly Unemployment Reports - US Census Wholesale Trade Report - US Census Quarterly (New Housing) Sales by Price and Financing - US Census Total Construction Spending - US Census Retail Trade Report - US Census Quarterly Services Survey - Commercial Real Estate Survey - Credit Reporting Agencies - Business Directories While 100% firm coverage is desirable for analysis purposes, the greatest value of BizMiner reports rests in discerning patterns of activity, which are reflected in the large samples used to develop our reports. The overall current coverage of the databases surpasses 13 million active business operations at any point in time. As is the case with any databases this large, some errors are inevitable. Some firms are missed and specific information on others is lacking from the database. Not all information received is uniform or complete, resulting in the need to develop projection algorithms for specific industry segments and metrics in some report series. No representation is made as to the accuracy of the databases utilized or the results of subsequent analyses. Neither the Brandow Company nor its resellers has undertaken independent primary research to confirm the accuracy of the data utilized in the Profile analyses. Neither the Brandow Company nor its resellers are responsible for conclusions drawn or decisions made based upon this data or analysis. In no event will the Brandow Company or its resellers be liable for any damages, direct, indirect, incidental or consequential resulting from the use of the information contained in BizMiner reports.
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