Stalling out: Despite recent gains, projected input price hikes may cause problems for the industry

Over the five years to 2018, revenue for the Automobile Engine and Parts Manufacturing industry in Canada is expected to trend upward as domestic economic conditions improve. Over the five years to 2023, the industry is expected to continue its cyclical demand fluctuations. There has been a growing trend toward establishing a manufacturing presence in Mexico to take advantage of more affordable labour in the country. Recent union contracts and large automakers' domestic manufacturing investment plans are expected to provide short-term industry support. Additionally, Canadian automotive industry participants rely on uncertain provincial level incentives. Overall, IBISWorld anticipates industry revenue to grow slightly over the five years to more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • As demand for automobiles improved, automakers increased purchases from upstream suppliers
  • Regulation has spurred product innovation in the industry
  • External competition is expected to rise, which will likely increase price-based competition
  • Industry Report - Industry Products Chapter

    Industry operators produce gasoline engines and related mechanical components. These engines are mostly used in new vehicles and include components like crankshafts, camshafts, fuel-injection systems and pistons. The proportion of sales from each product segment rarely changes because they are all standard components in most engines. Fuel-injection systems are an exception, as US manufacturing of carbureted motor vehicles engines ended in the early 1990s. However, carburetors are still manufactured for sale to small engine manufacturers, which are primarily used in lawnmowers and other equipment alongside specialized restoration establishments.EnginesThe engine category can be broken down into two types: new and rebuilt engines, comprising a combined 94.1% o...purchase to read more.

    Additional Insights for the Automobile Engine & Parts Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Automobile Engine & Parts Manufacturing Industry are

  • Access to automated manufacturing technology
  • Ability to accommodate environmental requirements
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and Consumer Confidence Index in the Automobile Engine & Parts Manufacturing industry impact industry performance..

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    What's in this report

    What is the Automobile Engine & Parts Manufacturing Industry?

    This industry is primarily engaged in manufacturing and rebuilding motor vehicle gasoline engines and engine parts, whether or not for vehicular use.

    Industry Products
  • Gasoline engines
  • Camshafts, crankshafts, piston rings and piston pins
  • Fuel injection systems
  • Engine valves and other engine parts
  • Rebuilt gasoline engines
  • Industry Activities
  • Crankshaft
  • Camshaft
  • Fuel injection system
  • Carburetor
  • Piston and piston ring
  • Fuel pump
  • Timing gear and chain
  • Engine valve
  • Gasoline engine block and assembly
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian effective exchange rate index
  • Consumer Confidence Index
  • Demand from transportation equipment manufacturing
  • World price of crude oil
  • New vehicle sales

  • Current Performance
  • North American trade conditions
  • Regulation spurs innovation
  • Industry restructuring amid declining profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry challenges
  • Profitability restraints
  • Table: Automobile Engine & Parts Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Automobile Engine & Parts Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Car & Automobile Manufacturing in Canada
  • SUV & Light Truck Manufacturing in Canada
  • Truck & Bus Manufacturing in Canada
  • Auto Parts Wholesaling in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada
  • Metal Stamping & Forging in Canada
  • Metalworking Machinery Manufacturing in Canada

  • Products & Services
  • Gasoline engines
  • Rebuilt gasoline engines
  • Camshafts, crankshafts, piston rings and piston pins
  • Engine valves and other engine parts
  • Fuel injection systems
  • Chart: Automobile Engine & Parts Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Original equipment manufacturers
  • Automotive repair shops
  • Auto parts stores
  • Chart: Major Market Segmentation for the Automobile Engine & Parts Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Automobile Engine & Parts Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Automobile Engine & Parts Manufacturing Industry

  • Industry Globalization
    Linamar Corporation, Ford Motor Company of Canada Limited, General Motors,
  • Table: Linamar Corporation - financial performance
  • Table: Ford Motor Company of Canada Limited - financial performance
  • Table: General Motors - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Automobile Engine & Parts Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Automobile Engine & Parts Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of steel (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big Three
  • Another name for the top US automobile manufacturers, which are General Motors, Ford and Chrysler.
  • Corporate Average Fuel Economy (Cafe)
  • US regulations intended to improve the fuel economy of cars and light trucks.
  • Electric Vehicle
  • A plug-in vehicle that eschews gasoline in favour of an electric battery.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Automobile Engine & Parts Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Automobile Engine & Parts Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Automobile Engine & Parts Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Automobile Engine & Parts Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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