Heavy load: The depreciation of the Canadian dollar relative to other currencies will catalyze export activity

Over the five years to 2019, revenue for the Truck and Bus Manufacturing industry in Canada is expected to accelerate, bolstered by a resurgence in trade activity. As trade activity trends higher, downstream freight operators have responded by increasing their vehicle fleets, lifting demand at the manufacturing level. Plus, the depreciation of the Canadian dollar relative to other currencies is expected to catalyze industry export activity, further supporting industry expansion. Despite a forecast growth in economic conditions both domestically and in the United States, industry revenue is expected to reverse in upcoming years...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 14-19
6.1%
Forecast Growth 19-24
Profit
Employment
6,218
Businesses
40

Industry Threats & Opportunities

  • An anticipated appreciation of the loonie is expected to hamper industry revenue growth
  • The industry is anticipated to benefit from declining oil prices
  • Trade is anticipated to remain an integral component of the industry
  • Industry Report - Industry Key Buyers Chapter

    The Truck and Bus Manufacturing industry in Canada has a moderate to high level of market share concentration due to intense internal competition, the consolidation of demand through economies of scale and global supply chains and high barriers to entry which limits new competition. IBISWorld expects the top five players within the industry to account for over 70.0% of revenue in 2019. Over the past five years, the top players have remained dominant despite volatile industry conditions and in most cases have compounded their dominance in the domestic spheres due to currency valuations that worked in their favour since the largest companies report their financial performance in currencies that have done well against the loonie. IBI...purchase to read more.

    Additional Insights for the Truck & Bus Manufacturing Industry

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

  • Effective cost controls
  • Establishment of export markets
  • Use of most efficient work practices
  • IBISWorld analysts also discuss how external factors such as Demand from truck transportation and Canadian effective exchange rate index in the Truck & Bus Manufacturing industry impact industry performance..

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    What's in this report

    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from truck transportation
  • Canadian effective exchange rate index
  • Total trade value
  • World price of crude oil

  • Current Performance
  • Weak currency bolsters exports
  • Harmonized regulation, oil trends
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Trade drives performance
  • US reliance, regulatory outlook
  • Table: Truck & Bus Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Local Freight Trucking in Canada
  • Long-Distance Freight Trucking in Canada
  • Local Specialized Freight Trucking in Canada
  • Tank & Refrigeration Trucking in Canada

  • Key Selling Industries
  • Auto Parts Wholesaling in Canada
  • Automobile Electronics Manufacturing in Canada
  • Automobile Engine & Parts Manufacturing in Canada
  • Tire Wholesaling in Canada
  • Truck, Trailer & Motor Home Manufacturing in Canada

  • Products & Services
  • Compression ignition trucks
  • Spark ignition trucks
  • Passenger transport vehicles
  • Other
  • Chart: Truck & Bus Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Long-distance trucking companies
  • Specialized trucking
  • Public transportation
  • Local trucking companies
  • Chart: Major Market Segmentation for the Truck & Bus Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Truck & Bus Manufacturing

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

  • Industry Globalization
    PACCAR Inc., NFI Group Inc., AB Volvo,
  • Table: PACCAR Inc. - financial performance
  • Table: NFI Group Inc. - financial performance
  • Table: AB Volvo - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Truck & Bus 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 Truck & Bus 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)
  • Canadian-Dollar Effective Exchange Rate (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Class 6 Trucks
  • Trucks with a gross vehicle weight rating between 8,845 kilograms and 11,793 kilograms.
  • Class 7 Trucks
  • Trucks with a gross vehicle weight rating between 11,793 kilograms and 14,968 kilograms.
  • Class 8 Trucks
  • Trucks with a gross vehicle weight rating above 14,968 kilograms.
  • Gross Vehicle Weight Rating (Gvwr)
  • A measure of the allowable weight of a truck, including its trailer and cargo.
  • Heavy Trucks
  • Trucks categorized as either Class 6, 7 or 8.
  • Prebuy Activity
  • Purchases in excess of current demand, usually in anticipation of regulatory-related price increases.
  • What Our Customers Say

    Why buy this report?

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

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