Paving the way: Strong growth in the US housing market has benefited industry operators

The Construction Machinery Manufacturing industry in Canada has experienced significant revenue volatility over the past five years, although ultimately it has risen sharply. The industry has benefited in particular from strong growth in US housing markets, as over half of industry revenue is generated through exports, the majority of which are bound for the United States. While domestic demand has been volatile, particularly in response to declining commodity prices of crude oil and natural gas between 2015 and 2016, the industry benefited from the subsequent depreciation in the domestic dollar, which helped boost exports and lead to growth in 2015 despite plummeting domestic nonresidential construction, a key more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Foreign competition is anticipated to remain strong, limiting industry revenue growth
  • Improved residential construction markets in Canada and abroad helped boost industry revenue
  • Intense foreign competition is expected to result in several industry players consolidating
  • Industry Report - Industry Investment Chapter

    The Construction Machinery Manufacturing industry in Canada is characterized by a low to moderate level of capital intensity. Industry operators are required to purchase raw materials such as steel, iron and plastics and then manipulate them into complex and durable machines. Typical capital expenditures in this industry include machinery and repair parts needed to construct industry products, as well as investment in facilities and computer technology needed to run the manufacturing process.In 2018, IBISWorld estimates that for every dollar spent on labour, $0.13 is spent on capital, which includes the purchase of machinery used in production, repair parts, facility upgrades and new computer technology. Ove...purchase to read more.

    Additional Insights for the Construction Machinery Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Construction Machinery Manufacturing Industry are

  • Must comply with required product standards
  • Establishment of export markets
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and Canadian effective exchange rate index in the Construction Machinery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Construction Machinery Manufacturing Industry?

    This industry manufactures construction machinery and equipment for use in residential, nonresidential, highway, street and other infrastructure construction. This industry does not manufacture agricultural or mining vehicles such as farming tractors or mining drills.

    Industry Products
  • Power cranes, draglines, shovels and lifting and handling equipment
  • Other construction machinery and equipment including parts
  • Dozers, off-highway trucks, haulers and other tractors
  • Tractor shovel loaders
  • Graders, mixers, pavers, maintainers and related equipment
  • Industry Activities
  • Manufacturing construction machinery parts
  • Manufacturing trucks and other vehicles
  • Manufacturing lifting and handling machinery
  • Manufacturing grading and excavating machinery
  • Manufacturing snowplowing machinery
  • Manufacturing machinery for handling stone, ore and minerals
  • Manufacturing tractors
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • Canadian effective exchange rate index
  • Value of nonresidential construction
  • Government expenditure and investment
  • World price of steel

  • Current Performance
  • Trade bolsters performance
  • Domestic markets
  • Industry structure and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic construction markets
  • Continued struggle with foreign competition
  • Greater specialization from fewer players
  • Infrastructure investment to drive revenue
  • Table: Construction Machinery Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Construction Machinery Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction In Canada
  • Construction & Forestry Equipment Wholesaling in Canada
  • Heavy Equipment Rental in Canada
  • Industrial Equipment Rental & Leasing in Canada

  • Key Selling Industries
  • Engine & Turbine Manufacturing in Canada
  • Metal Pipe & Tube Manufacturing in Canada
  • Metal Stamping & Forging in Canada
  • Power Tools & Other General-Purpose Machinery Manufacturing in Canada
  • Sheet Metal, Window & Door Manufacturing in Canada
  • Steel Rolling & Drawing in Canada

  • Products & Services
  • Other construction machinery and equipment including parts
  • Power cranes, draglines, shovels and lifting and handling equipment
  • Dozers, off-highway trucks, haulers and other tractors
  • Tractor shovel loaders
  • Graders, mixers, pavers, maintainers and related equipment
  • Chart: Construction Machinery Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Residential construction
  • Nonresidential construction
  • Chart: Major Market Segmentation for the Construction Machinery Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Construction Machinery Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Construction Machinery Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Construction Machinery 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 Construction Machinery 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
  • A machine with long blades capable of creating flat surfaces.
  • Grading
  • A construction process to ensure there is a level base or intended sloped base.
  • North American Free Trade Agreement (Nafta)
  • A generally duty-free agreement signed by the governments of Canada, Mexico and the United States, creating a trilateral trade bloc in North America.
  • What Our Customers Say

    Why buy this report?

    The Construction Machinery Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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
    • Quickly build competitive intelligence
    This report on Construction Machinery 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 Construction Machinery 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 Construction Machinery Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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