.

Where the
Translation
Money Is
An Atlas of Business
Opportunities

By Renato Beninatto and

Donald A. DePalma

January 2003

Where the Translation Money Is

Table of Contents
Sales Goal: Finding the Translation Buyer....................................................................................8
Market Share and Penetration for Translation Companies .......................................................8
Methodology: How We Arrived at the Numbers .......................................................................9
Changing Classifications: Goodbye, SIC Codes. Hello, NAICS! .......................................... 10
Localization Spending Estimates by Industry........................................................................... 11
Where the Translation and Localization Firms Are ................................................................. 15
Aerospace and Defense ................................................................................................................. 16
Small Arms Ammunition (3482) .....................................................................................17
Small Arms (3484).............................................................................................................18
Aircraft (3721)....................................................................................................................19
Aircraft Engines and Engine Parts (3724)......................................................................20
Aircraft Parts and Equipment, Not Elsewhere Classified (3728) ...............................21
Guided Missiles and Space Vehicles (3761)...................................................................22
Space Propulsion Units and Parts (3764).......................................................................23
Tanks and Tank Components (3795)..............................................................................24
Search and Navigation Equipment (3812).....................................................................25
Transportation Services, Not Elsewhere Classified (4789)..........................................26
Facilities Support Services (8744)....................................................................................27
Automotive and Transportation.................................................................................................. 28
Internal Combustion Engines, Not Elsewhere Classified (3519)................................29
Carburetors, Pistons, Rings, Valves (3592)....................................................................30
Vehicular Lighting Equipment (3647)............................................................................31
Motor Vehicles and Car Bodies (3711) ...........................................................................32
Truck and Bus Bodies (3713) ...........................................................................................33
Motor Vehicle Parts and Accessories (3714)..................................................................34
Truck Trailers (3715).........................................................................................................35
Motor Homes (3716) .........................................................................................................36
Shipbuilding and Repairing (3731).................................................................................37
Boatbuilding and Repairing (3732).................................................................................38
Railroad Equipment (3743)..............................................................................................39
Motorcycles, Bicycles, and Parts (3751) .........................................................................40
Travel Trailers and Campers (3792) ...............................................................................41
Transportation Equipment, Not Elsewhere Classified (3799) ....................................42
Beverages and Tobacco.................................................................................................................. 43
Malt Beverages (2082).......................................................................................................44
Bottled and Canned Soft Drinks (2086)..........................................................................45
Cigarettes (2111)................................................................................................................46
Cigars (2121) ......................................................................................................................47
Beer and Ale (5181)...........................................................................................................48
Wine and Distilled Beverages (5182)..............................................................................49
Chemicals ......................................................................................................................................... 50
Alkalies and Chlorine (2812) ...........................................................................................51
Industrial Gases (2813) .....................................................................................................52
Inorganic Pigments (2816) ...............................................................................................53
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Where the Translation Money Is

Industrial Inorganic Chemicals, Not Elsewhere Classified (2819) .............................54

Plastics Materials and Resins (2821)...............................................................................55
Synthetic Rubber (2822) ...................................................................................................56
Cellulosic Manmade Fibers (2823)..................................................................................57
Organic Fibers, Noncellulosic (2824)..............................................................................58
Pharmaceutical Preparations (2834) ...............................................................................59
Diagnostic Substances (2835) ..........................................................................................60
Biological Products, Except Diagnostic (2836) ..............................................................61
Market Size Statistics........................................................................................................61
Surface Active Agents (2843)...........................................................................................62
Paints and Allied Products (2851) ..................................................................................63
Paints and Allied Products (2851) ..................................................................................63
Gum and Wood Chemicals (2861)..................................................................................64
Cyclic Crudes and Intermediates (2865) ........................................................................65
Industrial Organic Chemicals, Not Elsewhere Classified (2869)................................66
Nitrogenous Fertilizers (2873).........................................................................................67
Phosphatic Fertilizers (2874)............................................................................................68
Fertilizers, Mixing Only (2875)........................................................................................69
Agricultural Chemicals, Not Elsewhere Classified (2879) ..........................................70
Adhesives and Sealants (2891) ........................................................................................71
Explosives (2892)...............................................................................................................72
Printing Ink (2893) ............................................................................................................73
Chemical Preparations, Not Elsewhere Classified (2899) ...........................................74
Computer Hardware and Software ............................................................................................ 75
Electronic Computers (3571) ...........................................................................................76
Computer Storage Devices (3572)...................................................................................77
Computer Terminals (3575).............................................................................................78
Computer Peripheral Equipment, Not Elsewhere Classified (3577) .........................79
Calculating and Accounting Equipment (3578)............................................................80
Office Machines, Not Elsewhere Classified (3579) .......................................................81
Telephone and Telegraph Apparatus (3661).................................................................82
Radio and T.v. Communications Equipment (3663) ....................................................83
Communications Equipment, Not Elsewhere Classified (3669).................................84
Magnetic and Optical Recording Media (3695) ............................................................85
Custom Computer Programming Services (7371)........................................................86
Prepackaged Software (7372) ..........................................................................................87
Computer Integrated Systems Design (7373)................................................................88
Data Processing and Preparation (7374) ........................................................................89
Information Retrieval Services (7375) ............................................................................90
Computer Facilities Management (7376).......................................................................91
Computer Maintenance and Repair (7378) ...................................................................92
Computer Related Services, Not Elsewhere Classified (7379)....................................93
Business Services, Not Elsewhere Classified (7389).....................................................94
Business Consulting, Not Elsewhere Classified (8748)................................................95
Conglomerates ................................................................................................................................ 96
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January 2003

Where the Translation Money Is

Holding Companies, Not Elsewhere Classified (6719)................................................97

Consumer Products (Durable) ..................................................................................................... 98
Office Furniture, Except Wood (2522)............................................................................99
Furniture and Fixtures, Not Elsewhere Classified (2599)..........................................100
Lawn and Garden Equipment (3524) ...........................................................................101
Power-driven Handtools (3546)....................................................................................102
Household Cooking Equipment (3631) .......................................................................103
Household Refrigerators and Freezers (3632).............................................................104
Household Laundry Equipment (3633) .......................................................................105
Electric Housewares and Fans (3634)...........................................................................106
Household Vacuum Cleaners (3635)............................................................................107
Household Appliances, Not Elsewhere Classified (3639) .........................................108
Household Audio and Video Equipment (3651) ........................................................109
Photographic Equipment and Supplies (3861) ...........................................................110
Musical Instruments (3931) ...........................................................................................111
Dolls and Stuffed Toys (3942) .......................................................................................112
Games, Toys, and Children's Vehicles (3944) .............................................................113
Sporting and athletic Goods, Not Elsewhere Classified (3949) ................................114
Consumer Products (Non-Durable)......................................................................................... 115
Dog and Cat Food (2047) ...............................................................................................116
Canned and Cured Fish and Seafoods (2091) .............................................................117
Watches, Clocks, Watchcases, and Parts (3873)..........................................................118
Electronics and Miscellaneous Technologies........................................................................... 119
Electron Tubes (3671) .....................................................................................................120
Printed Circuit Boards (3672) ........................................................................................121
Semiconductors and Related Devices (3674)...............................................................122
Electronic Capacitors (3675) ..........................................................................................123
Electronic Resistors (3676) .............................................................................................124
Electronic Coils and Transformers (3677)....................................................................125
Electronic Connectors (3678) .........................................................................................126
Electronic Components, Not Elsewhere Classified (3679) ........................................127
Laboratory Apparatus and Furniture (3821)...............................................................128
Process Control Instruments (3823)..............................................................................129
Fluid Meters and Counting Devices (3824) .................................................................130
Instruments To Measure Electricity (3825)..................................................................131
Analytical Instruments (3826) .......................................................................................132
Optical Instruments and Lenses (3827)........................................................................133
Measuring and Controlling Devices, Not Elsewhere Classified (3829)...................134
Engineering Services (8711)...........................................................................................135
Electrical Apparatus and Equipment (5063) ...............................................................136
Electronic Parts and Equipment, Not Elsewhere Classified (5065)..........................137
Energy............................................................................................................................................. 138
Crude Petroleum and Natural Gas (1311) ...................................................................139
Drilling Oil and Gas Wells (1381) .................................................................................140
Oil and Gas Exploration Services (1382)......................................................................141
January 2003

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Where the Translation Money Is

Oil and Gas Field Services, Not Elsewhere Classified (1389) ...................................142
Petroleum Refining (2911) .............................................................................................143
Lubricating Oils and Greases (2992).............................................................................144
Petroleum and Coal Products, Not Elsewhere Classified (2999)..............................145
Oil and Gas Field Machinery (3533).............................................................................146
Natural Gas Transmission (4922)..................................................................................147
Gas Transmission and Distribution (4923) ..................................................................148
Gas Production and/or Distribution (4925) .................................................................149
Manufacturing............................................................................................................................... 150
Paper Mills (2621) ...........................................................................................................151
Paper; Coated and Laminated Packaging (2671)........................................................152
Paper; Coated and Laminated, Not Elsewhere Classified (2672).............................153
Bags: Plastic, Laminated, and Coated (2673)...............................................................154
Tires and Inner Tubes (3011) .........................................................................................155
Rubber and Plastics Hose and Beltings (3052) ............................................................156
Gaskets; Packing and Sealing Devices (3053)..............................................................157
Mechanical Rubber Goods (3061) .................................................................................158
Laminated Plastics Plate and Sheet (3083)...................................................................159
Plastics Bottles (3085) .....................................................................................................160
Plastics Plumbing Fixtures (3088).................................................................................161
Plastics Products, Not Elsewhere Classified (3089)....................................................162
Abrasive Products (3291) ...............................................................................................163
Minerals, Ground or Treated (3295).............................................................................164
Metal Cans (3411)............................................................................................................165
Metal Barrels, Drums, and Pails (3412)........................................................................166
Hardware, Not Elsewhere Classified (3429) ...............................................................167
Fabricated Structural Metal (3441) ...............................................................................168
Automotive Stampings (3465).......................................................................................169
Metal Stampings, Not Elsewhere Classified (3469)....................................................170
Industrial Valves (3491) .................................................................................................171
Valves and Pipe Fittings, Not Elsewhere Classified (3494).......................................172
Fabricated Pipe and Fittings (3498) ..............................................................................173
Turbines and Turbine Generator Sets (3511)...............................................................174
Farm Machinery and Equipment (3523) ......................................................................175
Construction Machinery (3531).....................................................................................176
Mining Machinery (3532)...............................................................................................177
Elevators and Moving Stairways (3534) ......................................................................178
Conveyors and Conveying Equipment (3535)............................................................179
Hoists, Cranes, and Monorails (3536) ..........................................................................180
Industrial Trucks and Tractors (3537) ..........................................................................181
Welding Apparatus (3548).............................................................................................182
Textile Machinery (3552)................................................................................................183
Woodworking Machinery (3553) ..................................................................................184
Paper Industries Machinery (3554)...............................................................................185
Printing Trades Machinery (3555) ................................................................................186
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January 2003

Where the Translation Money Is

Food Products Machinery (3556) ..................................................................................187

Special Industry Machinery, Not Elsewhere Classified (3559).................................188
Pumps and Pumping Equipment (3561)......................................................................189
Ball and Roller Bearings (3562) .....................................................................................190
Air and Gas Compressors (3563) ..................................................................................191
Blowers and Fans (3564) ................................................................................................192
Packaging Machinery (3565) .........................................................................................193
Speed Changers, Drives, and Gears (3566)..................................................................194
Industrial Furnaces and Ovens (3567) .........................................................................195
Power Transmission Equipment, Not Elsewhere Classified (3568).........................196
General Industrial Machinery, (3569) ..........................................................................197
Automatic Vending Machines (3581)...........................................................................198
Refrigeration and Heating Equipment (3585).............................................................199
Measuring and Dispensing Pumps (3586)...................................................................200
Service Industry Machinery, Not Elsewhere Classified (3589).................................201
Fluid Power Cylinders and Actuators (3593)..............................................................202
Fluid Power Pumps and Motors (3594) .......................................................................203
Scales and Balances, Except Laboratory (3596)...........................................................204
Industrial Machinery, Not Elsewhere Classified (3599) ............................................205
Transformers, Except Electric (3612) ............................................................................206
Switchgear and Switchboard Apparatus (3613) .........................................................207
Motors and Generators (3621).......................................................................................208
Carbon and Graphite Products (3624) .........................................................................209
Relays and Industrial Controls (3625)..........................................................................210
Residential Lighting Fixtures (3645).............................................................................211
Commercial Lighting Fixtures (3646)...........................................................................212
Lighting Equipment, Not Elsewhere Classified (3648)..............................................213
Storage Batteries (3691) ..................................................................................................214
Engine Electrical Equipment (3694) .............................................................................215
Electrical Equipment and Supplies, Not Elsewhere Classified (3699).....................216
Environmental Controls (3822) .....................................................................................217
Measuring and Controlling Devices, Not Elsewhere Classified (3829)...................218
Manufacturing Industries, Not Elsewhere Classified (3999) ....................................219
Electrical Apparatus and Equipment (5063) ...............................................................220
Electronic Parts and Equipment, Not Elsewhere Classified (5065)..........................221
Hardware (5072) .............................................................................................................222
Plumbing and Hydronic Heating Supplies (5074) .....................................................223
Warm Air Heating and Air Conditioning (5075)........................................................224
Refrigeration Equipment and Supplies (5078)............................................................225
Construction and Mining Machinery (5082) ...............................................................226
Farm and Garden Machinery (5083) ............................................................................227
Industrial Machinery and Equipment (5084) ..............................................................228
Industrial Supplies (5085) ..............................................................................................229
Service Establishment Equipment (5087) ....................................................................230
Plastics Materials and Basic Shapes (5162)..................................................................231
January 2003

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Where the Translation Money Is

About Common Sense Advisory........................................................................................ 232

Future Research ...................................................................................................................... 232
Copyright Information .......................................................................................................... 232

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January 2003

Where the Translation Money Is

Sales Goal: Finding the Translation Buyer

In November 2002 we concluded that international business activity accounts
for a disproportionate percentage of corporate profits at large companies
(Beggars at the Globalization Banquet). In select verticals this non-U.S.
xenorevenue accounts for more than twenty percent of worldwide revenue of
many Fortune 500 companies (see Figure 1). In this report we review the
standard classification codes for the market segments that localize or
should localize the most based on their international revenue. We plot
locations of their headquarters on maps of the Unite States. Both suppliers
and buyers of services and technology will find actionable information:

Suppliers can see where the action is. Using this data, vendors can
estimate the revenue potential of key verticals, optimize the location and
distribution of their sales force against these market segments, assign
territories and quotas based on market potential, and find the best
markets to attack in specific geographic areas. The report also includes a
U.S. map with the main production locations of 450 translation firms,
thus allowing vendors to compare their presence against competitors.

Buyers can benchmark their spending levels. The discussion of each

industry segment includes an aggressiveness factor that gauges the
percentage of xenorevenue spent on localization efforts. This figure
provides a point of reference on what companies should spend in their
sector as well as data for benchmarking against other industry segments.

Market Share and Penetration for Translation Companies

After reviewing their client base and comparing it with the information
provided in this report, translation companies can also quickly determine
their market share and market penetration in selected vertical markets by
applying the following formulas.
Market Potential = {Outsourceable Translation Budget} - {Dollar Value of
Existing Clients in SIC Code}
Market Penetration =

January 2003

{Dollar Value of Existing Clients in SIC Code}

{Outsourceable Translation Budget}

100

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Where the Translation Money Is

87

Prepackaged Software (7372)

Establishments primarily engaged in the design, development, and
production of prepackaged computer software. Important products of this
business include operating, utility, and applications programs.
Establishments of this business may also provide services such as preparation
of software documentation for the user; installation of software for the user;
and training the user in the use of the software.
Market Size Statistics
Estimated number of U.S. establishments: 26,051
Number of people employed in this industry: 342,369
Total annual sales in this $95,772.7 million
Average number of employees per establishment: 13
Average sales per establishment: $4.4 million
Outsourceable Translation Budget: $71.4 million

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January 2003

Where the Translation Money Is

232

About Common Sense Advisory

Common Sense Advisory, Inc. is an independent research firm committed to
objective research and analysis of the business practices, services, and
technology for localization. With its buy-side research, Common Sense
Advisory endeavors to improve the quality and practice of international
business, and the efficiency of the online and offline operations that support
it. To find out more about our research and how to subscribe:

E-mail us info@commonsenseadvisory.com.
Visit www.commonsenseadvisory.com/en/subscribe.
Call +1.646.286.7975.

Future Research
Common Sense Advisory seeks interviewees from the community of people
involved in building biz applications for international use. If you would like
to be interviewed or have clients who would like to share their experiences,
please e-mail us at info@commonsenseadvisory.com. We anonymize
participants and hold all information in the strictest confidence.

Copyright Information
Published and Copyright 2003 by Common Sense Advisory, Inc. All rights
reserved. Common Sense Advisory, Globa Vista, Quick Take, and Technical
Take are trademarks of Common Sense Advisory, Inc. All other trademarks
are the property of their respective owners.
No part of this publication may be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical,
photocopying, scanning, or otherwise, except as permitted under Section 107
or 108 of the 1976 United States Copyright Act, without either the prior
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www.commonsenseadvisory.com/en/citationpolicy.html.
Information is based on best available resources at the time of analysis.
Opinions reflect the best judgment of Common Sense Advisorys analyst at
the time, and are subject to change.

January 2003

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