Car and Automobile Manufacturing in Canada Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) February 04, 2015 -- Over the five years to 2015, the Car and Automobile Manufacturing industry has been on a bumpy road. The pace of the industry generally moves in lock step with export demand, particularly from the United States. According to IBISWorld Inudstry Analyst Brandon Ruiz, “expected to account for more than half of industry revenue in 2015, exports are the largest market for the industry.” Thus, as US demand for vehicles rebounded during the economic recovery, domestic operators benefited.
Although demand for vehicles has rebounded, industry operators have been gradually scaling back operations domestically in favour of manufacturing in neighbouring countries, such as the United States and Mexico. Operators in Mexico benefit from lower wage costs, which they can then pass on to downstream markets in the form of lower selling prices. Alternatively, the United States is experiencing a surge in reshoring activity due to greater government support for manufacturing operations. From 2011 to 2015, 3.5 million units of capacity will be added by automakers in North America, according to Morgan Stanley. Of that, Canada is expected to add only 110,000 units of capacity, just 3.0% of the total. The United States and Mexico are anticipated to receive 63.0% and 34.0% of the total, respectively. As a result, industry revenue is expected to fall over the five years to 2015.
Over the next five years, revenue for the Car and Automobile Manufacturing industry is expected to reach an inflection point and trend higher. Unlike the previous five-year period, global automotive investment is expected to increase, as demand for vehicles continues to rise. “Domestic operators are expected to experience stronger investment due to their well-trained workforce and automotive infrastructure, in addition to their reputation for quality,” says Ruiz. Moreover, improvements in economic conditions, particularly at the consumer level, are expected to promote demand for new vehicles. For example, per capita disposable income is anticipated to rise, which will stimulate demand for big-ticket purchases. As a result, industry revenue is expected to grow over the five years to 2020.
For more information, visit IBISWorld’s Car and Automobile Manufacturing in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The Car and Automobile Manufacturing industry manufactures cars and automobile chassis. These companies, referred to as automakers, typically produce cars, including electric cars, in assembly plants. The manufacture of light trucks (e.g. vans, pickups and SUVs), heavy trucks and motorcycles is excluded from this industry.
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 Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
Share this article