Inorganic Chemical Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

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Inorganic Chemical Manufacturing industry revenue is forecast to increase over the next five years as downstream manufacturing industries increasingly demand inorganic chemicals in line with expanding production and as export activity rises, supported by some easing in the Canadian dollar's value. For these reasons, industry research firm IBISWorld has added a report on the Inorganic Chemical Manufacturing industry to its growing industry report collection.

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Slow activity in the manufacturing sector hampered demand for inorganic chemicals.

Inorganic chemicals are primarily used as intermediates in the production of a number of products, including detergents, pharmaceuticals, fertilizers, paints and tires. End users include, among others, manufacturers in the automotive, construction and consumer goods sectors. Similar to other manufacturing industries, demand for the Inorganic Chemical Manufacturing industry has been volatile over the five years to 2013. When the recession hit in late 2008 and carried on through 2009, “demand from downstream users declined as consumers reduced purchases in light of lower disposable incomes,” says IBISWorld industry analyst Radia Amari. “This decline hindered revenue growth for inorganic chemical manufacturers. But as the economy began to recover, demand from end users like the construction sector and automotive, rubber and cleaning product manufacturers began to grow, which renewed demand for inorganic chemicals.” Over the five years to 2013, IBISWorld estimates industry revenue will fall at an average annual rate of 0.4% to $4.0 billion.

In addition to shifts in demand, the Inorganic Chemical Manufacturing industry "has endured fluctuating raw-material costs and strict government regulation,” says Amari. “Chemical manufacturing is energy-intensive, so rising electricity prices impeded profit growth.” While these challenges persist in 2013, the economy continues to grow and revenue and profit will follow suit. And during the five years to 2018, downstream manufacturing industries will increasingly demand inorganic chemicals as production increases. Demand for exports will also rise over the next five years, supported by some easing in the Canadian dollar's value.

Nonetheless, increasing government regulation, which is expected to raise costs for the industry, will hinder some growth. During the past five years, the Canadian federal government renewed the Chemicals Management Plan, which imposes monitoring, surveillance, and research and policy management on the chemicals sector. This type of legislation will likely be renewed in the coming years. In addition to rising regulatory costs, the industry will face threats from rising input prices. According to CBC News, the price of electricity is expected to grow through 2020. For more information, visit IBISWorld’s Inorganic Chemical Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures a variety of basic inorganic chemicals. Inorganic chemicals are generally mineral-based. Most organic chemicals, which are not part of this industry's products, are carbon-based. Inorganic chemicals are used as inputs in a number of manufacturing and industrial processes. Key identifiable industry segments include chlor-alkali and carbon black products. The industry does not manufacture industrial bleaches or chlorine preparations for swimming pools.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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