Wire & Spring Manufacturing in Canada Industry Market Research Report from IBISWorld Has Been Updated

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The Wire and Spring Manufacturing industry has been under strain, and this trend does not show any sign of reversing; over the next five years, exports will pick up due to a recovery in downstream US markets, but strong import competition will hinder growth. For these reasons, industry research firm IBISWorld has updated a report on the Wire & Spring Manufacturing industry in its growing industry report collection.

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NAFTA has caused the industry share of imports to rise, pushing revenue down strongly.

Operators in the Wire and Spring Manufacturing industry have had to contend with the global recession's lingering effects and increasing import penetration. As a result, revenue has dropped and profit margins have remained thin over the past five years. Industry players have been forced to close down factories and slash employment. While downstream industries have recovered, industry revenue has been slow to follow. Over the five years to 2014, revenue is expected to decline at an annualized rate, including a drop in 2014.

The removal of trade barriers between the United States and Canada via the North American Free Trade Agreement (NAFTA) and the countries' currencies trading near parity caused Canadians to increasingly rely on US products to fulfill their domestic needs. The United States accounts for over half of Canada's total imports, with total imports increasing from a significant proportion of domestic demand in 2009 to an even higher proportion of domestic demand in 2014, thus hurting domestic revenue. According to IBISWorld Industry Analyst Daniel Carusotto, “With exports accounting for a significant amount of industry revenue, industry operators rely on a healthy economy to generate sales.” In the years following the recession, “various central banks implemented stimulus programs to boost the economy, benefiting downstream users (e.g. the automobile and housing sectors),” says Carusotto. Exports are expected to grow at an annualized rate in the five years to 2014.

The Wire and Spring Manufacturing industry operates with a low level of market share concentration. Many of the industry's wire products are used in construction. The subprime debt crisis in the United States dramatically reduced demand for new construction and consequently, wire products. The automotive industry is also a major purchaser of spring and wire products for use in automotive suspensions and seating. In the United States, motor vehicle manufacturing revenue fell in 2009, which helped decimate demand for the Canadian automotive spring and wire products that are imported by US automakers. Nevertheless, both the automotive and construction markets have slowly rebounded since 2009, benefiting from central bank polices that have temporarily enabled industry growth.

From 2014 to 2019, IBISWorld forecasts industry revenue will fall at an annualized rate. Despite downstream demand for industry products increasing as US construction revives and consumer confidence strengthens, industry operators will continue to be challenged by rising import competition, particularly from the United States and China.

For more information, visit IBISWorld’s Wire & Spring Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

The Wire & Spring Manufacturing industry manufactures heavy-gauge and light-gauge springs using steel and drawn wire. Industry operators also manufacture other wire-based products.

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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Gavin Smith
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