Industry Analysis & Industry Trends
The Tire Manufacturing industry has traversed rocky roads over the five years to 2016. Volatile rubber prices, coupled with pressure from competitively priced imports, are anticipated to cause industry revenue to decline. Many companies are outsourcing their tire production to countries with lower labour costs, limiting domestic production. Moreover, research and development advancements have slowed over the past decade and smaller players that do not benefit from economies of scale have consequently lost their competitive advantage and been forced to exit the industry. Demand for tires is anticipated to improve over the next five years as consumer incomes rise and the economy gradually continues to strengthen... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Over the 10 years to 2021, industry value added (IVA), a measure of the industry's contribution to the overall economy, is expected to decrease 3.0% per year on average. Meanwhile, Canadian GDP is expected to grow 1.9% over the same period. Falling IVA amid a growing economy is highly indicative of a declining industry. Manufacturers are increasingly relocating their manufacturing operations to countries with lower labour costs to effectively compete with low-cost imports. Downstream markets are also highly saturated with limited opportunities for growth.
The global financial crisis has magnified structural problems in the Car and Automobile Manufacturing industry (IBISWorld report 33611a), ultimately resulting in the bankruptcy filings for GM and Fiat Chrysler... purchase to read more