Low mortgage rates stimulated housing construction and increased industry demand.
New York, NY (PRWEB) December 23, 2014
During the past five years, the Interior Designers in Canada industry exhibited success, with moderate revenue growth and solid operational expansion. Despite the recession, demand from downstream markets, predominately the residential and nonresidential construction sectors, buoyed revenue growth. “Rising levels of government stimulus and low mortgage rates stimulated housing construction, which increased demand for interior designers as new homeowners personalized their space,” according to IBISWorld Industry Analyst Edward Rivera. Further, demand from the commercial sector also played its role in supporting revenue growth, as the industry relies on a diverse client base, including corporate offices, shopping malls, hotels, restaurants and hospitals.
Over the five years to 2014, the recovering economy incited more businesses to enter the market, which provided opportunities for industry operators. In several studies, including ones performed by the Association of Professional Interior Designers of Canada and the Groupe DBSF, it was concluded that the commercial sector accounts for 60.0% to 75.0% of industry revenue. With the value of nonresidential construction having grown over the past five years, revenue is expected to increase at an annualized rate of 2.6% to $1.2 billion during the five years to 2014, including revenue growth of 2.0% in 2014 alone.
“During the five years to 2019, industry revenue is forecast to grow,” says Rivera. While industry revenue is anticipated to rise, it will do so at a moderate pace due to potentially high interest rates, which will raise loan and mortgage costs and limit consumer demand for housing construction. As a result, fewer new homeowners will require industry services, which will hamper both industry revenue and profitability, as operators typically derive higher margins for residential design services than for commercial projects.
For more information, visit IBISWorld’s Interior Designers in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry designs architectural interiors and their furnishings. Firms take into account building codes, health and safety regulations, floor planning, electrical needs, interior fittings and furniture. These services are used by the hospitality, healthcare, commercial and residential sector.
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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