Printing, Paper, Food, Textile & Other Machinery Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) February 04, 2014 -- The Printing, Paper, Food, Textile & Other Machinery Manufacturing industry provides industrial equipment and machinery to disparate downstream manufacturing industries. Following a path that has plagued Canada's entire manufacturing sector, industries in food processing, paper production, textiles and printing services have experienced declining demand in the past five years. Underlying this trend is the reallocation of production to countries with more competitive labour and production costs, as well as an appreciating Canadian dollar that has encouraged imports of these products. As a result, manufacturing activity has slowed in these downstream industries, which translated into lower demand for machinery upgrades and replacements. Consequently, industry revenue is expected to decline at an annualized 2.0% to $1.4 billion in the five years to 2014.
According to IBISWorld Industry Analyst Darryle Ulama, “The strengthening Canadian dollar has had a dual effect on industry manufacturers in the past five years.” Firstly, it has indirectly raised the purchasing power of Canadian citizens, allowing them to purchase a greater amount of imported goods while also lowering demand from downstream domestic manufacturers. As these downstream industries struggle to compete with imports, they have postponed purchases of industrial machinery from industry operators. Secondly, and more directly, the rising value of the Canadian dollar has weakened the industry's export segment, as industry products become more expensive on the world market. In the five years to 2014, the value of industry exports grew at a tepid annualized rate of 0.2% to $466.0 million. The compounding effect of a strong Canadian dollar has translated to revenue in declines; in 2014, industry revenue is expected to decrease by an additional 4.2%. To retain profit, industry manufacturers have slimmed their labour force and shut down plants.
Without strong public policy intervention, overall manufacturing activity is anticipated to continue its exit in the five years to 2019. “Although demand from food manufacturing is expected to pick up during this period, declines in downstream paper and textile manufacturing are expected to offset this,” says Ulama. Additionally, the Canadian dollar is projected to continue appreciating in the next five years. This will hamper demand from downstream industries, as well as the industry's export segment. As a result of these trends, industry revenue is expected to decrease in the five years to 2019.
For more information, visit IBISWorld’s Printing, Paper, Food, Textile & Other Machinery Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Printing, Paper, Food, Textile & Other Machinery Manufacturing in Canada contains an amalgamation of disparate industrial machinery manufacturing, including machinery for food processing (e.g. ovens), machinery for sawmills and paper industries (e.g. log splitters), machinery for printing industries (e.g. printers) and other industrial machinery (e.g. knitting machinery and kilns).
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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