Over the five years to 2016, revenue for the Automobile Engine and Parts Manufacturing industry in Canada is expected to trend upward as domestic economic conditions improve, unemployment falls and per capita income levels continue to trend upward. Subsequently, consumer confidence grew, which, combined with low interest rates drove up automobile purchasing, driving automakers to increase production and purchases from upstream engine and parts suppliers to meet increased demand. IBISWorld expects industry revenue to grow over the five years to 2016. Over the five years to 2021, industry operators are expected to experience several obstacles, which will increase price-based competition and inhibit profit growth. Steel prices are projected to increase and there has been a growing trend toward establishing a manufacturing presence in Mexico to take advantage of more affordable labour in the country. Overall, IBISWorld anticipates industry revenue to slowly decline over the five years to 2021.
This industry is primarily engaged in manufacturing and rebuilding motor vehicle gasoline engines and engine parts, whether or not for vehicular use.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.