Hardware Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

The Hardware Manufacturing industry was forced to contend with increased competition from abroad and recession-driven declines in demand from downstream markets over the past five years; going forward, a recovery in downstream construction markets, both in Canada and the United States, will drive demand for industry products, presenting an opportunity for industry manufacturers. For these reasons, industry research firm IBISWorld has added a report on the Hardware Manufacturing in Canada industry to its growing industry report collection.

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The industry faces rising price competition from international operators.

New York, NY (PRWEB) January 31, 2014

The Hardware Manufacturing industry was forced to contend with increased competition from abroad and recession-driven declines in demand from downstream markets over the past five years. Furniture manufacturing (IBISWorld report 33712CA) and construction markets purchase hardware products manufactured by this industry. Consequently, in 2009 downturns in these sectors contributed to industry revenue plunging. While revenue has been on the rise since 2010, it is still expected to only marginally increase at an average annual rate of 0.6% in the five years to 2014. However, as the economy recovers, demand from downstream industries is expected to go to cheap imports from abroad. Industry revenue is expected to increase by 1.8% in 2014 to reach $1.2 billion.

Industry sales have been partially slow to recover due to increasing imports. According to IBISWorld Industry Analyst Omar Khedr, “Import penetration in this industry has caused strong competition from countries with lower wages, which are able to manufacture industry products at lower costs.” As a result, many companies transferred production from Canada to lower-wage countries, such as China and Mexico. Imports are estimated to satisfy 84.4% of domestic demand in 2014, reaching $1.8 billion. Import competition has led to plant closures and consolidation, as some domestic operators have been unable to compete with less expensive imports. Consequently, the number of establishments is expected to decline at an average annual rate of 2.0% to 161 in the five years to 2014. However, due to consolidation, factories closing and companies offshoring to countries with lower wages, overall industry profitability has been recovering since 2010.

Going forward, a recovery in downstream construction markets, both in Canada and the United States, will drive demand for industry products, presenting an opportunity for industry manufacturers. In the five years to 2019, domestic demand for industry products is anticipated to increase, underpinned by growing demand for new houses. “Over the same period, exports are expected to rise as the US economy recovers, bolstering revenue,” says Khedr. This growth, however, will be offset by continued increases in import volumes. This setback will cause industry revenue to decline over the next five years.

For more information, visit IBISWorld’s Hardware Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

The Hardware Manufacturing in Canada industry manufactures various forms of metal hardware. Items produced include metal hinges, metal handles, keys and locks, but exclude time locks and coin-operated locks.

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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