Industry Analysis & Industry Trends
The Ethanol Fuel Production industry is running on fumes. The past five years have been good for the industry with production volumes rising. Revenue is forecast to grow at an annualised 6.4% over the five years through 2014-15 to reach $277.9 million. However, most of this growth has been due to government assistance. The industry is characterised by its reliance on heavy subsidies in the form of fuels excise rebates.
Despite some growth over the past five years, the future for the industry is bleak. The 2014-15 budget proposed the scrapping of the excise rebate. A... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry's life cycle stage depends on regulation and government subsidisation. Since the introduction of the Ethanol Production Grants scheme in 2002, the industry has been receiving a steady flow of subsidies from the government. Under this arrangement, the industry boomed, with production of ethanol rising, the number of industry employees increasing and the number of retailers selling E10 fuel growing. Due to this support, industry value added (which measures an industry's contribution to the economy) has been performing well compared with GDP growth.
However, the subsidisation program is expected to end, which will move the industry into a decline phase of its life cycle... purchase to read more