The Demand Forecast
This is derived by bottom-up, application-by-application examination. The analysis of cost-effectiveness and user perception risk provides us with great insight. We receive valuable information on the rate of penetration of the product into the various end applications at its minimum profitable price.
Input and output analysis applies the penetration predictions to the end-application production forecast to provide a crosscheck of the product consumption projection. This is then adjusted by forecasted imports, exports, and inventory change. R&D use and other non-production markets derive the total production forecast.
Finally, user interviews help predict the production and are segmented into captive (in-house) production versus the available (merchant) market. The data are then computer-processed and the forecasts are available via email delivery for easy viewing.
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