Industry Analysis & Industry Trends
Over the five years to 2015, 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 towards 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 continue declining, although at a slower rate. While automakers are expected to continue their foreign investment strategies, a significant amount of production will remain in Canada. 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.
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Industry Report - Industry SWOT Analysis Chapter
The Car and Automobile Manufacturing industry in the mature stage of its life cycle. Industry value added, a measure of the industry's contribution to the overall economy, is expected to fall at an annualized rate of 0.5% over the 10 years to 2020. Comparatively, Canadian GDP growth is expected to reach 2.1% per year on average over the same period. The industry is expected to perform poorly, as industry operators divest domestic operations in Canada in favor of the United States and Mexico. The United States is experiencing a resurgence in reshoring activity due to more flexible labour agreements, in addition to greater support from the government to retain manufacturing facilities locally... purchase to read more