May 20, 2014, New York, N.Y. – IBISWorld has released a new
report on the construction machinery manufacturing in Canada looking at the possibilities
for growth in the industry over the next five years.
May 20, 2014, New York, N.Y. – IBISWorld has released a new
report on the construction machinery manufacturing in Canada looking at the possibilities
for growth in the industry over the next five years.
Over the past five years, the Canadian construction market
has improved, which has helped boost industry revenue following several years
of decline. “Additionally, the industry generates the majority of its revenue
from exports, which are predominantly focused on the United States,” according
to IBISWorld Industry Analyst Jeremy Edwards. Therefore, stronger US
construction activity in residential, commercial and industrial markets spurred
growth in 2011 and 2012.
However, despite a recovering construction market
domestically and internationally, the industry has struggled to compete with
the increasing threat of foreign manufacturers. “Construction machinery
manufacturers in the United States, Germany and Japan are extending their
global reach, and a high Canadian dollar has precipitated increased demand for
foreign products as they become relatively cheaper,” says Edwards. As a result,
the industry is expected to grow at an average annual rate of 2.2% to $1.8
billion over the five years to 2014. Growth is expected to be stronger in 2014,
with rising demand from the United States and domestic markets pushing industry
revenue forward 2.0%.
Over the next five years, the industry is expected to record
short-term growth as US construction markets strengthen and Canadian
manufacturers increase production. However, competition is expected to remain
fierce and is projected to cause industry revenue to contract over the five
years to 2019. Local manufacturers will be forced to focus on the production of
specialized equipment and machinery parts, which will remain profitable. Other
manufacturers are expected to face difficult conditions and will be forced to
exit the industry.
For more information, visit IBISWorld’s Construction
Machinery Manufacturing in Canada industry report page.
IBISWorld industry Report Key Topics
This industry manufactures construction machinery and
equipment for use in residential, nonresidential, highway, street and other
infrastructure construction.
- 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
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