Plumbing Fixtures & Bathroom Accessories Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

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Operators in the Plumbing Fixtures & Bathroom Accessories Manufacturing industry in Canda have relied on strong export markets to mitigate losses from domestic sales, which have been threatened by lower-cost imports; in the five years to 2018, revenue will increase at the marginal rate as heightened growth in residential and nonresidential construction values, per capita disposable income and consumer confidence bolster demand for industry products. For these reasons, industry research firm IBISWorld has added a report on the Plumbing Fixtures & Bathroom Accessories Manufacturing industry to its growing industry report collection.

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Operators rely on strong export markets to mitigate losses from domestic sales

Nearly all products made by the Plumbing Fixtures and Bathroom Accessories Manufacturing industry, including the kitchen sink, can be imported more cost effectively. The vast majority of industry operators produce goods in the pottery, sculpture and kitchenware product segment, while a sizeable portion of industry revenue also stems from porcelain plumbing fixtures. About 97.8% of such products sold in Canada are manufactured elsewhere. Industry-relevant imports from China alone constitute about eight times the Canadian industry's output and are rising; US imports overshadow industry revenue by a factor of about four.

“As such, minor growth in domestic demand during the past five years has been too insignificant to benefit industry firms,” says IBISWorld industry analyst Hayden Shipp. “Instead, slight demand increases have been satisfied by lower cost imports; consumers' price sensitivity has persisted since the recession due to slow growth in consumer confidence and disposable income.” Because imports have crowded operators out of an increasing market share in the five years to 2013, revenue has fallen at an annualized rate of about 1.2% to $35.0 million. A boost in import competition in 2013, coupled with residential construction's first drop in value since the recession, are expected to result in 11.4% revenue loss during 2013.

Recently, operators have relied on strong export markets to mitigate losses from domestic sales. The US market accounts for about 79.8% of export revenue, and US exports have grown at an annualized rate of about 11.8% since 2008. “US buyers have remained highly receptive to Canadian-made porcelain figurines, decoys and ornaments, in part because of demand for “northwoods” themed products that are considered more authentic when made in Canada,” says Shipp. “Consumer confidence has grown at a far greater rate in the United States than in Canada during the past five years, which has helped boost US consumer spending on these discretionary items.” Market share concentration for the Plumbing Fixtures and Bathroom Accessories Manufacturing industry is low; however, the level of fragmentation varies across industry segments. The industry’s major players include Norceram Products Inc., American Standard Brands, and Masco Corporation.

In the five years to 2018, revenue will increase at the marginal rate of 0.5% to $35.8 million as heightened growth in residential and nonresidential construction values, per capita disposable income and consumer confidence bolster demand for industry products. Consumers' price sensitivity will decline alongside improvements in incomes and unemployment, aiding sales of this industry's goods. Additionally, exports will continue to generate a large share of revenue; this share will grow from 54.0% to 56.7% during the next five years. For more information, visit IBISWorld’s Plumbing Fixtures & Bathroom Accessories Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry comprises establishments primarily engaged in shaping, molding, glazing and firing plumbing fixtures, pottery and electrical supplies made entirely or partly of clay or other ceramic materials. Most commonly, products are porcelain, also called vitreous china.
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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