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Car & Automobile Manufacturing in Canada: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Car & Automobile Manufacturing in Canada Market Research Report | NAICS 33611aCA | Apr 2016

Reverse gears: Industry revenue will suffer as production shifts abroad

IBISWorld’s Car & Automobile Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 11-16
-1.0%
Annual Growth 16-21
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Profit
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Employment
14,359
Businesses
27
Industry Analysis & Industry Trends

Over the five years to 2016, the Car and Automobile Manufacturing industry has struggled to recover from recessionary lows. Dissuaded by high labour costs in Canada, many international automakers have refocused investment toward Mexico and the United States. As a result, output has fallen from Canada's biggest car producers. Over the next five years, the industry is expected to remain relatively unchanged. Disposable income levels are anticipated to rise, while demand from new car dealerships will climb at a moderate rate. These factors will stabilize revenue growth to a degree. However, economic conditions in Canada will prove undesirable to major international automakers, encouraging a continued capacity shift to Mexico and the United States... purchase to read more

Industry Report - Industry Investment Chapter

The level of capital intensity is moderate for the Car and Automobile Manufacturing industry. For every dollar spent on labour, the average industry operator will invest about $0.26 in capital equipment. In general, operators in this industry spend large sums on plants and equipment, with periodic reinvestment in cases of equipment failure. Vehicle assembly plants are highly automated production lines fitted with high-tech machinery and equipment. Labour accounts for a substantial portion of cost structure, due to the generosity of union compensation agreements. In 2012, the Canadian Auto Workers union agreed to new contracts with GM, Ford and Chrysler. The contracts delineated a new pay scale for established workers versus new hires... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Car & Automobile Manufacturing Industry?

Companies in this industry manufacture cars and automobile chassis. These companies, referred to as automakers, typically produce cars, including electric cars, in assembly plants. The manufacture of light trucks (e.g. vans, pickups and SUVs) and heavy truck is excluded from this industry. In addition, crossover vehicles (CUVs) are excluded from this industry, despite being built on car chassis.

Industry Products
Compact and subcompact carsMid-size and full-size sedansSports carsLuxury cars
 
Industry Activities
Automobile assemblyAutomobile chassis


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