Stalled out: Slowing North American construction activity will hinder industry revenue growth

The Construction Machinery manufacturing industry in Ontario has performed well over the past five years, taking advantage of strong growth in residential construction domestically and in Ontario in particular. Further, while nonresidential construction activity across the country fell over the past five years, it has actually expanded in Ontario, further buoying demand relative to the country as a whole. The industry has also benefited from strong construction growth in the United States, as a significant amount of revenue is generated through exports. Over the next five years, conditions are forecast to slow considerably. This will partly be because the industry will be beginning from a much higher base revenue, constraining growth potential...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
9.7%
Forecast Growth 18-23
Profit
Employment
3,623
Businesses
143

Industry Threats & Opportunities

  • Nonresidential construction activity expanded in Ontario, further buoying demand relative to the country as a whole
  • Additional Insights for the Construction Machinery Manufacturing in Ontario Industry

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

  • Must comply with required product standards
  • Economies of scope
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Housing starts in Ontario and Local and provincial government expenditure in Ontario in the Construction Machinery Manufacturing in Ontario industry impact industry performance..

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    What's in this report

    What is the Construction Machinery Manufacturing in Ontario 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 excavation equipment
  • Parts for construction machinery and equipment sold separately
  • Other equipment
  • Tractor shovel loaders
  • Off-highway trucks, coal haulers, trailers, tractors, bulldozers
  • Mixers, pavers, motor graders and light maintainers
  • 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
  • Housing starts in Ontario
  • Local and provincial government expenditure in Ontario
  • Value of nonresidential construction in Ontario
  • Canadian effective exchange rate index
  • World price of steel

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Construction Machinery Manufacturing in Ontario Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Industrial Building 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
  • Power cranes, draglines, shovels and excavation equipment
  • Other equipment
  • Off-highway trucks, coal haulers, trailers, tractors, bulldozers
  • Tractor shovel loaders
  • Parts for construction machinery and equipment sold separately
  • Mixers, pavers, motor graders and light maintainers
  • Chart: Construction Machinery Manufacturing in Ontario Industry Products and Services Segmentation

  • Major Markets
  • Residential building
  • Nonresidential other
  • Nonresidential building
  • Chart: Major Market Segmentation for the Construction Machinery Manufacturing in Ontario Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Construction Machinery Manufacturing in Ontario

  • Basis of Competition
    Barriers to Entry
    AMI Attachments Inc., Bay-Lynx Manufacturing Inc., Weldco-Beales Manufacturing, Strongco Corporation,
  • Table: AMI Attachments Inc. - financial performance
  • Table: Bay-Lynx Manufacturing Inc. - financial performance
  • Table: Weldco-Beales Manufacturing - financial performance
  • Table: Strongco Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Construction Machinery Manufacturing in Ontario 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 in Ontario Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (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
    Dozer
  • 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 in Ontario 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 in Ontario:
    • 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 in Ontario 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 in Ontario, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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