Structural Metal Product Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) October 12, 2014 -- The Structural Metal Product Manufacturing industry produces fabricated joists, concrete reinforcing bars and metal plate work, among other products. Industry products are essential for strengthening and evening out concrete foundations and for framing roofs and floors to walls. Therefore, they are heavily used in the construction of commercial buildings and multifamily (apartment) buildings. They are also used in utility and infrastructure projects. Rising construction activity is expected to spur revenue growth for the industry in the next five years.
Nonetheless, the Structural Metal Product Manufacturing industry has faced its share of challenges over the past five years, the first of which is steel price volatility. Over two-thirds of industry products are made of steel, making the price of steel immediately relevant to operators. IBISWorld Economic Analyst Amal Ahmad says “although rising steel prices raise the cost of raw material purchases, they also boost the value of inventory, enabling operators to raise selling prices and boost revenue.” In 2011, strengthening global demand and limited global supply pushed steel prices upward; this, combined with stronger construction activity, boosted operator revenue by double digits. However, oversupply has since subdued steel prices, lowering the value of inventory and slowing down revenue growth. Rising import levels have also constrained revenue growth. An increasing share of domestic demand for structural metal products is being fulfilled by more price-competitive imports from the United States and China. Import penetration has been encouraged by slight appreciation of the Canadian dollar over the period. In response, the industry has been consolidating, with fewer companies generating a greater share of industry revenue. This has helped the industry maintain profit margins over the period, despite rising competition.
Going forward, the industry is expected to continue benefiting from growing commercial and multifamily residential construction. “In addition, the Canadian government's multibillion-dollar plan for infrastructure investment over the next decade will propel demand for metal products for utility construction,” Ahmad says. However, growth will remain constrained by global oversupply of steel, volatile metal prices and rising import competition. Overall, IBISWorld expects revenue to grow over the next five years.
For more information, visit IBISWorld’s Structural Metal Product Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures a variety of structural metal products for use in building and infrastructure construction markets. Products include fabricated bar joists, concrete reinforcing bars, metal plate work, railway sections and structural panels for bridges, boats and ships.
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.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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