Synthetic Fibre Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) March 22, 2015 -- The Synthetic Fibre Manufacturing industry produces a range of man-made fibres using petrochemical inputs for apparel, home furnishings and technical textiles, such as seat belts, conveyor belts, tire cords and industrial hoses. “The industry has struggled with a contracting domestic customer base as textile mills have moved operations abroad,” according to IBISWorld Industry Analyst Leah Goddard. As a result, exports of synthetic fibres generate the majority of industry revenue. Nevertheless, the industry's export sales have suffered in recent years as domestic synthetic fibre manufacturers are priced out of the world fibre market by a stronger Canadian dollar and low-cost producers in developing economies.
Despite a strong rebound in 2010, driven by a recovery in industrial production both in Canada and abroad, industry revenue is forecast to fall at an annualized rate of 3.0% to $585.9 million. “Industry revenue has continued to decline since 2010, aided by falling export sales and increasing import penetration,” says Goddard. Revenue declines, combined with highly volatile input costs driven by changes in oil prices, have forced a number of synthetic fibre manufacturers to consolidated operations by closing unprofitable plants or leaving the industry. Despite a decline in the value of the Canadian dollar in 2015, industry revenue is forecast to fall at a modest 1.1% over the year, as domestic downstream manufacturers continue to shift production abroad.
Over the next five years, the Synthetic Fibre Manufacturing industry is expected to continue declining, with revenue remaining far below prerecessionary levels. Utilizing recycled fibres will become increasingly prominent as volatile oil prices increase uncertainty regarding input costs and regulatory standards and consumer preferences motivate manufacturers to use more environmentally friendly materials. While the Canadian dollar is anticipated to stabilize, export sales will modestly decrease due to increased production of lower-priced synthetic fibres abroad. Imports are also projected to increase, siphoning away domestic demand. Consequently, industry revenue is forecast to moderately decline over the five years to 2020.
For more information, visit IBISWorld’s Synthetic Fibre Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry produces cellulosic and noncellulosic fibers and filaments in the form of monofilament, filament yarn, staple or tow. Key cellulosic organic fibers and filaments include rayon and acetate. Noncellulosic fibers and filaments include acrylic, nylon, polyester and spandex. This industry does not include fiber, yarn or thread mills, thread manufacturers of any other fibers, or manufacturers of hemp yarn.
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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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