Slippery slope: Rising oil prices will lead to higher product prices, benefiting industry revenue

The Lubricant Oil Manufacturing industry in Canada produces industrial and automotive lubricants for manufacturers and consumers, including motor oil, transmission fluid, rust inhibitors and machine oils. Most industry goods are based on petroleum products and industry revenue tends to track the price of crude oil. Over the past five years, the industry has experienced mixed results, in line with sharp volatility in the price of crude oil. ndustry revenue has fallen despite some positive indicators over the past five years. New vehicle registrations and the total distance driven have both risen across North America over the past five years, and domestic industrial capacity utilization has also grown. Notably, the industry structure has changed slightly over the past five years...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
-3.0%
Forecast Growth 19-24
Profit
Employment
1,748
Businesses
58

Industry Threats & Opportunities

  • Crude oil prices fell sharply during the first half of the reporting period, resulting in significant losses in revenue
  • While exports overall have fallen, operators have turned to Asian markets
  • Industrial capacity utilization is likely to remain at an elevated level
  • Industry Report - Industry SWOT Analysis Chapter

    The Lubricant Oil Manufacturing industry in Canada is in the mature stage of its life cycle, with well-established product lines and a saturated marketplace. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to rise an annualized 5.8% over the 10 years to 2024. In contrast, Canadian GDP is expected to grow an annualized 1.7% during the same period. However, the industry's outperformance is deceptive, as it is partly linked to a sharp jump in industry profitability during the second half of the reporting period due to declining oil prices.The industry does benefit from having very clearly defined product lines, which are necessary for many downstream industries. Fur...purchase to read more.

    Additional Insights for the Lubricant Oil Manufacturing Industry

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

  • Ability to alter goods and services produced in favor of market conditions
  • Guaranteed supply of key inputs
  • Proximity to transport
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Per capita disposable income in the Lubricant Oil Manufacturing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Lubricant Oil Manufacturing Industry?

    This industry manufactures petroleum products (except for asphalt paving, roofing and saturated materials) such as blended motor oils, brake fluids, lubricating greases and other oil-based additives. Key buyers include downstream automobile manufacturers, wholesalers and automotive retail chains.

    Industry Products
  • Automotive lubricants
  • Industrial lubricants
  • Industry Activities
  • Manufacturing lubricating oils and greases made from refined petroleum
  • Manufacturing brake fluids made from refined petroleum
  • Manufacturing petroleum jelly made from refined petroleum
  • Manufacturing petroleum waxes made from refined petroleum
  • Re-refining used petroleum lubricating oils
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Per capita disposable income
  • Industrial capacity utilization
  • New vehicle sales
  • Canadian effective exchange rate index

  • Current Performance
  • Key demand sources
  • Trade
  • Industry vulnerability and changes
  • Specialization and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Oil prices and manufacturing output stabilize revenue
  • Trade conditions
  • Industry structure
  • Table: Lubricant Oil Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Lubricant Oil Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron & Steel Manufacturing in Canada
  • Auto Parts Stores in Canada
  • Local Freight Trucking in Canada
  • Long-Distance Freight Trucking in Canada

  • Key Selling Industries
  • Animal Feed Production in Canada
  • Inorganic Chemical Manufacturing in Canada
  • Oil Drilling & Gas Extraction in Canada
  • Petrochemical Manufacturing in Canada
  • Plastic Film, Sheet & Bag Manufacturing in Canada

  • Products & Services
  • Automotive lubricants
  • Industrial lubricants
  • Other
  • Chart: Lubricant Oil Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Exports
  • Retailers
  • Other
  • Chart: Major Market Segmentation for the Lubricant Oil Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Lubricant Oil Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lubricant Oil Manufacturing Industry

  • Industry Globalization
    Petro-Canada Lubricants Inc., Imperial Oil Limited, Shell Canada Limited, Valvoline Inc.,
  • Table: Petro-Canada Lubricants Inc. - financial performance
  • Table: Imperial Oil Limited - financial performance
  • Table: Shell Canada Limited - financial performance
  • Table: Valvoline Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Lubricant Oil 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 Lubricant Oil Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • World Price of Crude Oil (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Grease
  • A thick oil used to lubricate machinery.
  • Lubricant
  • A substance, such as grease or oil, that reduces friction when applied as a surface coating to moving parts.
  • Synthetic Oil
  • A substance created in the laboratory with crude oil products that has similar properties to conventional lubricant oil.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Lubricant Oil Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Lubricant Oil 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 Lubricant Oil 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 Lubricant Oil Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear