The Canadian Industrial Outlook Service includes detailed five-year forecasts in 16 key Canadian industries. The report examines the short-and medium-term economic and profitability outlooks for these industries.
Canada’s Motor Vehicle Parts Manufacturing Industry: Autumn 2007
Canada’s Motor Vehicle Parts Manufacturing Industry: Autumn 2007
Industry Economic Analysis
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- Canadian Dollar—The recent strength of the Canadian dollar will erode profits for Canadian parts producers, as motor vehicle assemblers scale down auto exports in response to slowing U.S. demand.
- Domestic Demand—Strong growth in personal disposable income and healthy corporate profits will continue to bolster domestic demand for new motor vehicles and parts, particularly in Western Canada.
- Expanded Customer Base—Diversification of auto parts manufacturers toward international clients will relieve dependence on the Big Three. However, the Big Three’s loss of U.S. market share dominance may prove problematic for smaller parts producers that rely on them.
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