Strengthening Canadian and US construction markets will continue to benefit the industry.
New York, NY (PRWEB) May 16, 2014
Firms in the Construction Machinery Manufacturing industry are involved in the production of a variety of machinery and equipment that are used in the construction of residential, nonresidential, highway, street and other infrastructure construction. Over the past five years, the Canadian construction market has improved, which has helped boost industry revenue following several years of decline. “Additionally, the industry generates the majority of its revenue from exports, which are predominantly focused on the United States,” according to IBISWorld Industry Analyst Jeremy Edwards. Therefore, stronger US construction activity in residential, commercial and industrial markets spurred growth in 2011 and 2012.
However, despite a recovering construction market domestically and internationally, the industry has struggled to compete with the increasing threat of foreign manufacturers. “Construction machinery manufacturers in the United States, Germany and Japan are extending their global reach, and a high Canadian dollar has precipitated increased demand for foreign products as they become relatively cheaper,” says Edwards. As a result, the industry is expected to grow at an average annual rate of 2.2% to $1.8 billion over the five years to 2014. Growth is expected to be stronger in 2014, with rising demand from the United States and domestic markets pushing industry revenue forward 2.0%.
Over the next five years, the industry is expected to record short-term growth as US construction markets strengthen and Canadian manufacturers increase production. However, competition is expected to remain fierce and is projected to cause industry revenue to contract over the five years to 2019. Local manufacturers will be forced to focus on the production of specialized equipment and machinery parts, which will remain profitable. Other manufacturers are expected to face difficult conditions and will be forced to exit the industry.
For more information, visit IBISWorld’s Construction Machinery Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures construction machinery and equipment for use in residential, nonresidential, highway, street and other infrastructure construction.
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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