High levels of international trade define and challenge the domestic industry
New York, NY (PRWEB) March 06, 2014
The Forklift and Conveyor Manufacturing industry in Canada is largely driven by US demand for Canadian goods. Exports to Canada's southern neighbour consistently account for more than 70.0% of all industry exports and more than 80.0% of total industry revenue. Thus, US trends in the industry's key downstream markets of manufacturing, construction and warehousing largely dictate revenue potential and outcomes.
The tension between this industry's reliance on exports to the United States and its ongoing trade deficit have created a state of decline. Coupled with historically high steel prices during the past five years, price-based competition from low-cost US products has placed downward pressure on manufacturers' profit margins. In turn, the number of companies making forklifts and conveyors in Canada has been steadily declining. According to IBISWorld Industry Analyst Jocelyn Phillips, “To avoid exiting the industry, some companies have slashed their unskilled labour forces to increase operational efficiencies while investing in highly skilled engineers to perform research and development (R&D) on higher-margin, value-added products.” These activities have resulted in steady declines in industry employment during the past five years, but the average wage has actually risen somewhat because higher salaries for R&D departments offset reductions on the assembly line.
During the five years to 2014, IBISWorld projects industry revenue will grow. “This growth stems largely from a double-digit increase in revenue in 2011, when US demand for Canadian goods rebounded in line with the onset of recovery from the economic recession,” says Jocelyn. As this recovery sustains and export demand continues to grow, revenue is expected to increase in 2014. As the industry moves further from the booming recovery of 2011 and 2012, however, revenue growth is expected to slow. Over the five years to 2019, IBISWorld expects industry revenue to increase at a slower rate than that of the previous five-year period.
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IBISWorld industry Report Key Topics
The Forklift & Conveyor Manufacturing in Canada industry manufactures equipment used to lift or move materials or people. Major products include forklifts and industrial trucks; escalators and elevators; conveyor belts, hoists, winches, cranes and monorail systems; and related parts, attachments and equipment.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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