Navigational Instrument Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

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The value of the Canadian dollar is forecast to remain low, encouraging growth in the export market and somewhat limiting import penetration. For these reasons, industry research firm IBISWorld has added a report on the Navigational Instrument Manufacturing industry to its growing industry report collection.

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The value of the Canadian dollar will remain low, encouraging growth in the export market.

The Navigational Instruments Manufacturing industry supplies a range of technical and analytical devices to client industries in defense, construction and manufacturing. Over the five years to 2015, import competition has eroded the industry's domestic presence. “Foreign manufacturers, particularly in China and the United States, have taken advantage of lower labour costs to produce competing products at lower price points,” according to IBISWorld Industry Analyst Darryle Ulama. In 2015, imports are expected to satisfy as much as 90.1% of domestic demand. As a result, domestic production has contracted; in the five years to 2015, industry revenue is expected to decrease at an annualized rate of 0.2% to $4.4 billion.

The industry is heavily reliant on trade, and both import and export activity are high among industry manufacturers. In 2015, exports, primarily to the United States, are expected to account for 81.1% of industry revenue. Thus, exchange rate fluctuations of the Canadian dollar and changes in the relative prices of Canadian goods are primary drivers of industry performance. In the five years to 2015, the Canadian dollar is expected to depreciate at an annualized 2.3%, forcing down the relative prices of Canadian goods on the global market. Consequently, export growth has outpaced industry revenue, increasing at an average annual rate of 2.6%.

The industry has benefited from recent growth in domestic construction and scientific and technical services, translating to 1.4% growth in revenue in 2015. “Nevertheless, Canadian manufacturers are exiting the industry or relocating production plants due to intensifying import competition,” says Ulama. In the five years to 2015, the number of industry establishments is expected to decrease at an annualized 1.3% to 707.

Similar trends are expected to occur over the next five years. The value of the Canadian dollar is forecast to remain low, encouraging growth in the export market and somewhat limiting import penetration. Additionally, the strengthening American dollar will bode well for the industry's export segment, as industry products become relatively inexpensive to American customers. Nevertheless, foreign competitors will continue to challenge the industry. These competing trends will enable slow revenue growth: in the five years to 2020, industry revenue is forecast to increase at an annualized 0.9% to $4.6 billion.

For more information, visit IBISWorld’s Navigational Instrument Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry primarily manufactures navigational, measuring and control instruments. Its products include aeronautical instruments, appliance regulators and controls (except switches), laboratory analytical instruments, navigation and guidance systems and physical properties testing equipment.

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.

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Gavin Smith
IBISWorld Inc.
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