OTTAWA, Dec. 6, 2012 /CNW/ - After posting record growth in 2012
Canadian auto parts production is forecast to expand at a more modest
but still strong pace in 2013, according to The Conference Board of
Canada's Industrial Outlook: Autumn 2012 for the motor vehicle parts manufacturing industry.
"The Canadian auto parts industry has been in recovery mode since output
fell by a staggering 43 per cent between 2007 and 2009," said Michael Burt, Director, Industrial Economic Trends. "The parts industry continues to
benefit from a turnaround in North American vehicle sales, which are on
track to post their best results since 2007. Demand for parts has been
so strong, that some parts manufacturers are running six days a week in
an effort to keep up with the automakers."
Canadian auto parts production is forecast to increase by an impressive
22.4 per cent in 2012. Beyond the recovery in North American sales,
production has been boosted by the return of Japanese automakers Honda
and Toyota to normal operating conditions following last year's
production disruptions caused by the earthquake and tsunami. Looking
beyond this year, the two Japanese auto giants will continue to
represent a big opportunity for Canadian parts manufacturers. Japanese
automakers are actively looking to move more production to North
America in order to limit the impact of a strong yen and improve the
durability of their supply chains.
Industry revenues are expected to rise 22.7 per cent this year—the
largest one-year increase on record. Revenues will advance more
moderately beyond 2012, but parts manufacturers will continue to
benefit from healthy sales growth until North American vehicle sales
fully recover. Revenues are forecast to increase by 11.4 per cent in
2013 and 7.4 per cent in 2014.
Due to record growth in production and revenues, profits surged by an
estimated 37 per cent in 2012, to $1.4 billion. However, profit growth
is expected to be more muted in the coming years. Lower-cost economies,
such as Mexico and China, are capturing market share in North America
and will place pressure on industry profits and margins.
SOURCE: Conference Board of Canada
For further information:
Brent Dowdall, Media Relations, Tel.: 613- 526-3090 ext. 448