Shifting gears: Expected plant closures and continued export constraints will hamper revenue

Over the five years to 2018, revenue for the SUV and Light Truck Manufacturing industry in Canada is projected to increase, bolstered by a strong US economy where the majority of industry goods are sold. Industry operators are heavily reliant on US economic conditions. Consequently, as the US economy continues to grow strongly, industry operators are expected to benefit. However, this tethering to the US market is also conducive to extreme fluctuations in revenue. US demand is partially fuelled by currency valuations alongside economic vitality in the country. As the Canadian dollar rises relative to the US dollar, domestically produced vehicles become more expensive for US auto retailers and distributors, which can pressure revenue and profit expansion...read more.

Industry Statistics & Market Size
Revenue
$39bn
Annual Growth 13-18
3.7%
Forecast Growth 18-23
Profit
Employment
12,546
Businesses
61

Industry Threats & Opportunities

  • As the US economy continues to grow strongly, operators are expected to benefit
  • The vitality of the domestic industry is tethered to that of its US counterpart
  • The industry will continue to be threatened by volatile commodity prices
  • Industry Report - Industry SWOT Analysis Chapter

    The SUV and Light Truck Manufacturing industry in Canada is in the mature stage of its life cycle, characterized by slow growth rates, market acceptance, static product offerings and consolidation activity. Industry value added, which is a measure of the industry's contribution to the overall economy, is expected to decline at an annualized rate of 0.4% over the 10 years to 2023. Comparatively, Canadian GDP growth is projected to increase at an annualized rate of 1.9% during the same period. The industry is expected to experience a temporary decline in its economic contribution as industry operators divest domestic operations in Canada in favour of the United States and Mexico. Ess...purchase to read more.

    Additional Insights for the SUV & Light Truck Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the SUV & Light Truck Manufacturing Industry are

  • Product portfolio matches customer demand
  • Flexible cost structures
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Total exports and Canadian effective exchange rate index in the SUV & Light Truck Manufacturing industry impact industry performance..

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    What's in this report

    What is the SUV & Light Truck Manufacturing Industry?

    This industry manufactures light trucks and utility vehicles such as vans, pickups, sport-utility vehicles (SUVs) and crossover-utility vehicles (CUVs). The industry also manufactures light truck and utility vehicle chassis. This industry excludes the manufacturing of cars and motorcycles.

    Industry Products
  • Pickup trucks
  • Crossovers
  • SUVs
  • Industry Activities
  • Pickup truck
  • SUV and CUV
  • Light truck and utility chassis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total exports
  • Canadian effective exchange rate index
  • World price of crude oil
  • World price of steel
  • Per capita disposable income

  • Current Performance
  • Two-way street: The United States and Canada
  • Industry (re)structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Road blocks
  • International trade
  • Industry structure
  • Table: SUV & Light Truck Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - SUV & Light Truck Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling in Canada
  • New Car Dealers in Canada
  • Car Rental in Canada

  • Key Selling Industries
  • Automobile Engine & Parts Manufacturing in Canada
  • Battery Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada

  • Products & Services
  • Crossovers
  • Pickup trucks
  • SUVs
  • Other
  • Chart: SUV & Light Truck Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Automobile dealers
  • Wholesalers
  • Leasing companies and other
  • Chart: Major Market Segmentation for the SUV & Light Truck Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs SUV & Light Truck Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the SUV & Light Truck Manufacturing Industry

  • Industry Globalization
    Ford Motor Company of Canada Limited, Toyota Motor Corporation, General Motors Company, Fiat Chrysler Automobiles, Honda Canada Inc.,
  • Table: Ford Motor Company of Canada Limited - financial performance
  • Table: Toyota Motor Corporation - financial performance
  • Table: General Motors Company - financial performance
  • Table: Fiat Chrysler Automobiles - financial performance
  • Table: Honda Canada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the SUV & Light Truck 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 SUV & Light Truck Manufacturing Industry
    Includes:
  • 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)
  • Average price of a new truck in Canada (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Corporate Average Fuel Economy (Cafe)
  • A regulation intended to improve the average fuel economy of cars and light trucks.
  • Crossover-Utility Vehicle (Cuv)
  • A mid-sized vehicle that combines features of a car with an SUV. They are generally smaller and more fuel efficient that SUVs.
  • Fuel Cell
  • An energy source that operates like a battery but does not require recharging; oxygen passes over one electrode and hydrogen over a second, generating electricity, water and heat.
  • Fuel Economy/Efficiency
  • A term that refers to a motor vehicle's consumption of fuel relative to its performance.
  • Hybrid Vehicles
  • A vehicles that uses two different power sources to run, in most cases referring to an electric battery in conjunction with a gasoline engine.
  • Sport-Utility Vehicle (Suv)
  • A mid-sized vehicle similar to a station wagon, but built on a light-truck chassis.
  • What Our Customers Say

    Why buy this report?

    The SUV & Light Truck 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 SUV & Light Truck 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 SUV & Light Truck 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 SUV & Light Truck Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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