Toy, Doll & Game Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

With manufacturers producing overlapping goods, price competition in this industry is high and domestic operators have been forced to reduce prices to compete with inexpensive imports; furthermore, over the five years to 2019, industry revenue will remain stagnant as high labor and utility costs hamper industry expansion. For these reasons, industry research firm IBISWorld has added a report on the Toy, Doll & Game Manufacturing industry to its growing industry report collection.

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Significant offshoring and price competition from imports will stifle revenue growth.

New York, NY (PRWEB) March 20, 2014

Products manufactured by the Toy, Doll and Game Manufacturing in Canada industry are discretionary items and so demand for these products depends on the prevailing economic conditions and economic outlook. These factors have considerable influence on consumer confidence, which in turn affects consumer spending and downstream demand. However, most of these drivers took a turn for the worse during the recession, severely hurting industry revenue.

According to IBISWorld Industry Analyst Zeeshan Haider “With manufacturers producing overlapping goods, price competition in this industry is high and domestic operators have been forced to reduce prices to compete with inexpensive imports, sourced from low-cost economies such as Vietnam and China, the latter of which produces about 80.0% of the world's toys.” However, as a labour-intensive industry, imports have a significant advantage when it comes to production costs. As a result, domestic operators have been forced to settle for lower profit margins in order to remain competitive. In addition to this, many companies in this industry have completely disbanded Canadian manufacturing operations and shifted production facilities to East Asia, which has also reduced the number of industry enterprises.

Given the significant offshoring and price competition from imports, which are expected to account for 94.7% of domestic demand in 2014, revenue growth is expected to remain subdued. Over the five years to 2014, industry revenue is expected to grow at an annualized rate of 2.2% to $309.3 million, with an expected decline of 1.1% in 2014. However, revenue is still below 2006 levels, after which it started experiencing severe declines. This inadequate recovery in revenue growth is fuelled by the overall economic recovery coupled with significant investments made by major player, Mega Brands.

Over the five years to 2019 industry revenue will remain stagnant. “Despite the reshoring movement gaining momentum and manufacturing industries aiming to return to the United States in order to serve the North American and Western European markets, Canada is not expected to benefit from this transition,” says Haider. According to Nigel South, chair of the Toronto chapter of the Society of Manufacturing Engineers, high labour and utility costs coupled with a strong Canadian dollar will hinder Canada's ability to attract manufacturers. Therefore, industry revenue is expected to grow over the five years to 2019.

For more information, visit IBISWorld’s Toy, Doll & Game Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

The Toy, Doll & Game Manufacturing in Canada industry comprises companies that manufacture dolls, doll accessories, action figures, toys, games (including electronic), hobby kits and children’s vehicles (except metal bicycles and tricycles).

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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    IBISWorld
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