Ball Bearing Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) April 24, 2015 -- This industry manufactures ball and roller bearings, which reduce friction and control motion between two or more rotating parts. Bearings are needed for the manufacture of vehicles in the transportation, defense and aerospace sectors, as well as that of other equipment with rotating parts. “Therefore, the industry depends on demand from a variety of transport and manufacturing markets,” according to IBISWorld Industry Analyst Amal Ahmad. However, because much of the domestic demand is satisfied by imports, industry revenue growth has been sluggish at an annualized 0.9% in the five years to 2015. This includes a forecast decline of 6.1% in 2015 due to falling steel prices, which pull down the industry's selling prices, bringing total revenue to $610.1 million.
The industry is small and consolidated, comprising of only an estimated 17 companies and 21 production facilities. The production facilities are very large, with each generating $35.9 million annually on average and exporting extensively to the United States and other countries. Revenue from exports is key to industry performance because the Canadian market for bearings is heavily penetrated by imports. “The industry is highly globalized due to the significance of trade and the ownership structure of its major companies,” says Ahmad. The four largest companies with Canadian bearing manufacturing facilities are, in order of size, Japanese, German, American and Swedish. Multinationals are able to use economies of scale in procurement and production to contain costs and remain competitive despite high import penetration. Due to the profit margins of these large multinationals, industry profit is expected to average 8.5% of revenue in 2015.
In the five years to 2020, import penetration and saturation of export markets are likely to limit revenue growth. The declining contribution of this industry to economic output signifies its entry into decline. Still, consolidation and globalization among the industry's top players are expected to keep profit high in the short term.
For more information, visit IBISWorld’s Ball Bearing Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures ball bearings and roller bearings, which are small machines that constrain motion and reduce friction between moving parts of vehicles and other equipment. Major markets include the transportation, defense, aerospace and energy sectors. This industry does not manufacture plain (nonball and nonroller) bearings.
Industry Performance
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Globalization & Trade
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Market Share Concentration
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Major Companies
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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]
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