New York, NY (PRWEB) June 15, 2014
Over the past five years, the Glass Product Manufacturing in Canada industry has declined as both consumers and businesses have increasingly turned away from the use of domestic glass. Substitute goods such as plastics and metals have become more popular, and faltering construction levels have exacerbated declines in demand during the start of the five-year period. Furthermore, the industry has been exposed to an intensifying level of globalization, including increasing import activity and decreasing export demand. Imports have grown to account for the vast majority of domestic demand. IBISWorld estimates that 67.7% of domestic demand will come from imports in 2014, with the industry's largest trade partners being the United States, China, Mexico and Germany. As a result, industry revenue is estimated to decline at an average annual rate of 3.3% to $1.5 billion over the five years to 2014. Conditions are expected to improve slightly in 2014 because of increasing construction and consumer spending in the United States and Canada. Consequently, revenue is projected to grow 1.1% in 2014.
According to IBISWorld Industry Analyst Jeremy Edwards, “Falling industry profitability and the rising prominence of imported goods have encouraged many companies to exit the industry entirely.” Furthermore, major companies have consolidated their operations by purchasing smaller operators. As a result, the number of industry enterprises is projected to fall an annualized 1.4% to 543 over the five-year period.
The industry is expected to enjoy short-term growth due to a burgeoning construction sector in the United States, which is the industry's key export partner. Additionally, improving construction in Canada will help drive new growth for glass products. Nonetheless, revenue is expected to resume falling in 2016. According to Edwards, “As downstream customers continue to use more affordable substitute goods, demand for industry goods will continue to suffer.” Additionally, the industry is projected to experience increased levels of consolidation over the next five years as major companies acquire small businesses to increase dwindling profit margins, boost market share and develop greater economies of scale and distribution networks. As a result, the industry is projected to decline over the five years to 2019.
For more information, visit IBISWorld’s Glass Product Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Glass Product Manufacturing in Canada industry produces a wide range of glass products by melting silica sand or cullet and fabricating purchased glass. The industry comprises four manufacturing segments: flat glass, including laminated glass; pressed or blown glass and glassware; glass containers, including bottles and jars; and products made from purchased glass, which includes lighting, mirrors, architectural glass and electronic glassware.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.