Lubricant Oil Manufacturing in Canada Industry Market Research Report from IBISWorld Has Been Updated

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Revenue has rebounded since the recessionary lows of 2009, but import penetration will limit industry growth.

New York, NY (PRWEB) April 04, 2014

The Lubricant Oil Manufacturing industry produces industrial and automotive lubricants for manufacturers and consumers, including motor oil, transmission fluid, rust inhibitors and machine oils. The industry experienced its share of wear and tear during the past five years, as the global economic downturn led to a drop in consumer income and downstream manufacturing activity. “These factors compelled consumers to drive less and hold off on car expenses, and manufacturers were forced to leave factories idle or close down production altogether,” according to IBISWorld Industry Analyst Jocelyn Phillips. In addition, the collapse of US automakers (this industry's biggest foreign customer) left a massive void in demand. As a result, industry revenue fell 15.9% in 2009. Fortunately for the industry, improved domestic demand and a surge in export growth fuelled by a revitalized US auto industry pushed revenue growth of 8.4% in 2010, contributing to 1.2% annualized growth during the five years to 2014, when IBISWorld expects revenue to total more than $2.3 billion.

However, increasing import penetration (especially from the United States, which accounts for more than three-quarters of the industry's imports into Canada) has significantly limited industry revenue growth. In 2014, imports are expected to account for 55.5% of domestic demand, up from 35.2% in 2009. “Volatile input prices have also negatively affected industry performance, stifling profit growth from 2009 to 2011,” says Phillips. Fortunately for the industry, profit margins finally expanded in 2012 and are expected to remain steady in 2014, thanks to a levelling off in oil prices and strong demand from overseas markets.

Despite recent improvements, industry revenue is expected to decline in the coming years. Increases in domestic demand will likely be largely satisfied by imports, which will continue to capture a greater share of the domestic market. In response, industry manufacturers are expected to continue to shift their focus toward foreign buyers. Additionally, while revenue is expected to fall, industry profit margins will likely experience a boost during the next five years as growth in oil prices stabilizes, and demand from foreign markets continues to grow.

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

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IBISWorld industry Report Key Topics

This industry manufactures petroleum products (except for asphalt paving, roofing and saturated materials), such as blended motor oils, brake fluids, lubricating grease and other oil-based additives. Key buyers include downstream automobile manufacturers, wholesalers and automotive retail chains.

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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