Battery Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld
Los Angeles, California (PRWEB) August 14, 2013 -- Over the five years to 2013, the Battery Manufacturing industry experienced steep declines in revenue due to recessionary drops in demand. However, as the economy recovers, this industry is expected to rebound in the coming years. “The industry's revenue is volatile because it is heavily influenced by the automotive market as well as the level of trade,” according to IBISWorld industry analyst Caitlin Newsom. Industry operators have also had to contend with rising input prices, as the cost of key materials has fluctuated over the past five years. The cost of lead and nickel, materials used in battery manufacturing, have risen over the past five years and are expected to continue rising over the five years to 2018. The higher prices of these inputs are cutting into industry profit, driving down the average margin.
Battery Manufacturing industry revenue is expected to fall at an average annual rate of 4.5% to $165.0 million over the five years to 2013, including a 0.5% decline over 2013. “The recession in Canada and the United States caused downstream demand from the Car and Automobile Manufacturing industry to plummet in 2009,” says Newsom. Because the United States is the main importer of Canadian cars, accounting for about 98.0% of car exports, declines in demand have devastating effects on car manufacturers. Automotive batteries account for an estimated 43.1% of industry revenue; therefore, decreases in demand from car manufacturers drive down industry revenue.
Market share concentration in this industry is high. The number of enterprises has been falling at an annualized rate of 5.1% over the past five years due to declines in industry revenue, causing operators to exit the market. Due in part to the declining number of companies, market share concentration has increased over the five years to 2013. Major players include Exide Technologies and EnerSys Canada Ltd.
Over the five years to 2018, industry revenue is forecast to skyrocket due to recovering downstream demand. As domestic and foreign economies continue to rebound, downstream demand is expected to pick back up. Demand from car manufacturing and consumer spending are both expected to grow over the next five years. As consumers increase spending and buy more electronics and other products that require batteries, industry revenue will increase. Additionally, the level of exports is projected to grow over the next five years as industry operators develop more advanced batteries. Research and development investments are also expected to increase as industry revenue rebounds, allowing operators to develop more efficient and reliable batteries. As domestic batteries become more advanced, foreign markets increase their demand for industry products.
For more information, visit IBISWorld’s Battery Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures two types of batteries: primary and secondary batteries. Secondary batteries are also known as rechargeable or storage batteries. Primary batteries have only one life and are not rechargeable. Industry products have a variety of uses, including in cell phones, medical equipment, households and the automotive and transport sectors.
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Products & Markets
Supply Chain
Products & Services
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Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
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Major Companies
Operating Conditions
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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.
Gavin Smith, IBISWorld, 310 866 5042, [email protected]
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