NewellRubbermaid operates in the consumer products manufacturing industry. This industry is defined as companies that design, manufacture, and/or market apparel ,cleaning products, hand and power tools, home furniture, housewares, linens, and consumer electronics and appliances. NewellRubbermaid is comprised of many well known brand names that are a basic part of society. There are many competitors in this industry and NewellRubbermaid needs to distinguish its brand from many others.
Key macroeconomic variables that affect the consumer product industry include gross domestic product (GDP), industrial output, interest rates, disposable income, prices and employment. Two of these variables will be discussed below and their impact described in terms of how they affect NewellRubbermaid specifically. The two variables are as follows: prices and industrial output.
Price a very important variable in that it determines the cost of materials and ultimately what is passed on to the consumer. Industrial output is also very significant in that the market can be flooded and demand decreases, while demand for raw materials can increase as more product is produced.
Plastics are derived from oil, so prices can fluctuate uncontrollably on a daily basis. The first figure shows a very detailed trend of consumer prices in general. It is very easy to see there is a constant increase from year to year. This is perhaps due to inflation or supply and demand influences.
Table 1(inflationdata, 2007)
Current Consumer Price Index
Year Jan Feb Mar Apr May Jun Jul Au ...