DUN'S 100 - 2020

2020

Dun's 100

| 2020

operations on the backdrop of the Coronavirus

crisis, further exacerbating the challenges that

faced the industry in 2019, in which it recorded

lower volumes compared to previous years in

both construction starts and the number of new

apartments sold on the free market, excluding

affordable Buyer’s Price apartments.

This mostly impacts demand, resulting in fewer

apartments being bought due to lacking occupa-

tional safety in the labor market. This follows the

(temporary) manpower and construction input

shortage that suppliers suffered from in March-

April as a result of the lockdown in Israel and in

areas of the Palestinian Authority.

Regulatory speaking, under the new administra-

tion, theMinistry of Finance’s Housing Headquar-

ters was dismantled, and its powers were split

between the Ministry of Construction & Housing

and theMinistry of Interior. Furthermore, theMin-

istry of Construction & Housing announced the

conclusion of Buyer’s Price and the implementa-

tion of a new program to encourage construc-

tion in peripheral areas. Meanwhile, in order to

increase demand, the government reacted in July,

announcing an investor purchase tax reduction

(purchase tax reduction for buyers of a second

apartment from 8% to 5%, back to 2015 levels,

before investors were pushed away from the

economy). Moreover, the government is examin-

ing the conversion of office spaces to residential

spaces as a practical solution for office projects

that commenced at a time when a significant part

of the labor market has been transitioned to re-

mote or “capsule” work.

Despite the decline in transactions, the industry

has entered a crisis in which demand exceeds

supply. One can assume that, after a certain pe-

riod, demand is projected to soar back; govern-

ment policy has an important role in managing

the industry’s crisis.

Dear Readers,

Dun & Bradstreet has been analyzing the Israeli

market for the past six decades, examining active

companies in various sectors and ranking the

leading companies among them. Companies

included in the DUN’S 100 rankings are awarded

the Standard of Achievement, bestowing them

with appreciation and esteem and reflecting

business strength, superiority, and excellence.

We are proud to present the 40th edition of

DUN’S 100, which reflects the achievements of

outstanding companies and the management

teams that lead them.

We are currently in the midst of the Coronavirus

Pandemic, one of the harshest economic and

health crises mankind has ever endured. The

impact on various economies worldwide can be

seen clearly.Worldwidemarkets are experiencing

significant slowdown and reduction in growth. On

the backdrop of the global crisis, the risk level of

businesses and companies around the world has

increased. Thisfurtheremphasizestheimportance

of credit risk and supply chain risk management

processes, and the indispensability of available,

accurate and credible business information for

managers and heads of companies seeking to

not just survive but thrive during the crisis. Dun &

Bradstreet is proud to stand alongside its Israeli

and global clients, providing them with the most

advanced business information solutions to

assist and turn insecurity into security, risks into

opportunities, and potential into growth.

At the end of 2019 there were approximately

610,000 active businesses in the Israeli market,

nearly 50% under single ownership. 56,500

businesses opened in 2019 while 45,500 closed

down, a net addition of 11,000 businesses to the

market, a drop from the 2018 numbers in which

12,500 net businesseswere added to themarket.

Unfortunately, in 2020 as a result of the crisis,

fewer businesses are being opened, and

significantly more businesses are being closed

down. Data for the first half of 2020 reveals a

35%-40% drop in new businesses compared to

the previous period. As for business closures,

according to Dun & Bradstreet data for the first

half year of 2020, nearly 37,600 businesses

have already closed down; we estimate that over

80,000businesseswillclose thisyear (a projected

increase of 80% in business closures compared

to 2019).

Based on the data, 2020 is expected to be the

first year in a decade that the economy shrinks

(i.e., the net addition of businesses is negative –

more businesses are being closed than opened).

Overall, we estimate that the economy will shrink

by 40-50 thousand

businesses, a 7%-8%

drop in the number of

active businesses.

Despite the crisis,

there are still many

companies that have

stood out, persevered,

and shown true Israeli spirit in working their way

through the crisis. It is our duty to recognize and

appreciate, as we do every year, the companies

thatled the Israeli economy, stood atthe forefront,

and functioned as the locomotive that drives its

growth.The DUN’S100 ranking showcases 1,856

companies, ranked during the previous ranking

year according to 30 primary rankings, covering

all sectors of the economy, and according to 123

sub-rankings of industrial, commercial, services,

and real estate sectors, including attorney niches.

In light of our obligation to provide you with the

most updated, comprehensive and professional

ranking guide, this year we innovated further and

addednew rankings to the edition: 4newly-added

attorney niches, including leading attorneys in the

fields of medical cannabis, military and security

laws, transportation and mediation.

The DUN’S 100 edition contains thorough

mapping of the economy according to sectors

and industries, reflecting the cooperation of

leading companies that Dun&Bradstreet benefits

from and the sheer power of the information at

our disposal. The DUN’S 100 rankings serve a

multitude of businesses in Israel and worldwide

asa source for locating notjustleading companies

of the Israeli economy, but also for locating

companies that provide the best solutions for the

needs of such businesses, managing risks and

opportunities, and for solidifying strong business

connections.

I would like to take this opportunity to thank

the employees of Dun & Bradstreet Israel for

maintaining a 40-year tradition, despite the crisis

that has descended upon us, and for working

tirelessly to publish this professional edition,

which showcases outstanding companies and

their leaders, and covers every sector of the Israeli

economy.

With kind regards,

Doron Cohen

Chairman and CEO

Dun & Bradstreet Israel

Doron Cohen

Chairman & CEO Dun & Bradstreet Israel