Industry Analysis & Industry Trends
The Ferrous Metal Foundry Products industry, which sells iron and steel castings to manufacturing and construction industries, has struggled with fluctuating demand and increased import competition over the five years to 2015. Foreign competition from low-cost producers in China and India has increasingly challenged domestic operators for market share. Furthermore, volatile input prices have made it difficult for companies to forecast costs. Despite moderate revenue growth, the industry will struggle with significant challenges over the next five years. Excess supply of ferrous metals is expected to keep iron ore and steel prices low. This will benefit margins but prevent revenue from growing dramatically... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Ferrous Metal Foundry Products industry is mature. Industry value added, which measures an industry's contribution to the overall economy, is forecast to increase at an annualized rate of 1.8% in the 10 years to 2020. Over the same period, Canadian GDP is projected to rise at an average annual rate of 2.1%, indicating that the industry is growing in line with the overall economy. However, further industry growth will be limited by increased competition, particularly from less-expensive imports. This will encourage industry consolidation in coming years, as operators seek to maximize economies of scale.
As foreign competition increases, industry operators will increasingly rely on consolidation... purchase to read more