New York, NY (PRWEB) July 25, 2014
In the five years to 2014, revenue for the Heating and Air Conditioning Equipment Manufacturing industry is expected to marginally decline at an average annual rate of 1.5% to $2.8 billion, which includes a projected 1.9% increase in 2014. “In the past five years, industry sales have been stifled by a widening trade gap, as Canadian industry operators have been pressured by the large-scale production of US manufacturers and low-cost labour in countries such as China,” according to IBISWorld Industry Analyst Stephen Morea. Both factors have lowered the per-unit cost of heating, air conditioning, ventilation and refrigeration (HVACR) equipment, consequently making imports more affordable for Canadian buyers.
However, industry revenue losses have been tempered by an increase in Canadian commercial and residential construction activity, as industry products are typically installed in new building projects to provide heating and air conditioning for residential housing, regulate climate conditions, refrigerate inventories and provide ventilation for commercial venues. In the five years to 2014, the Canadian construction and real estate market is expected to steadily expand due to strong underlying fundamentals, such as an expanding, urbanizing and progressively wealthy population. This, in turn, will bolster industry sales. “Replacements of existing HVACR equipment is another major market for industry operators,” says Morea. In the past five years, rising Canadian employment, disposable income and persistently high energy prices have encouraged the purchase of energy efficient products, increased demand for HVACR equipment upgrades and replacements.
Going forward, these trends are expected to continue in the five years to 2019. A weaker projected Canadian dollar compared with its major trading partners, such as the US dollar, will allow industry exports to perform slightly better, when compared with imports. However, the trade gap in the Heating and Air Conditioning Equipment Manufacturing industry will remain stubbornly high, limiting industry revenue growth. Additionally, from 2014 to 2019, expanding population, employment and disposable incomes will propel commercial and construction growth, helping increase industry sales of HVACR equipment. As a result, revenue in the Heating and Air Conditioning Equipment Manufacturing industry is expected to increase in the five years to 2019.
For more information, visit IBISWorld’s Heating and Air Conditioning Equipment Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures heating equipment, commercial refrigeration equipment, air conditioners, commercial and industrial fans, blowers, air purification equipment, and electric and nonelectric heating and refrigeration equipment. Marine and motor vehicle systems are excluded, as are industrial process furnaces and small household appliances.
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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