The Canadian Automotive Industry Is Looking To Address The Problem Of Excess Supply

DUBLIN, Ireland--Research and Markets (http://www.researchandmarkets.com/reports/c50714) has announced the addition of the new Frost & Sullivan Report “Country Industry Forecast - Economic Analysis for the Canadian Automotive Industry” to their offering.

The automotive industry is one of Canada's largest manufacturing sectors, accounting for 11.4 percent of manufacturing gross domestic product (GDP) and 2.0 percent of the economy GDP in 2004. It employs more than 180,000, personnel in automotive assembly and original equipment (OE) manufacturing, and another 350,000 in distribution and aftermarket sales and service. However, the Canadian automotive industry in the recent past has had to deal with several growth restraints such as high commodity prices, intensifying global competition, rising global oil prices, an appreciating Canadian dollar, and increasing base metal prices. The Canadian automotive industry, which is a trade-oriented one, is among the worst affected industries due to the structural as well as cyclical changes on both the domestic as well as the external fronts.

Over the last five years Canada has witnessed sweeping changes in its automotive industry. Increased foreign competition, appreciating Canadian loonie, and rising input prices have exerted enormous pressure on OEMs profit margins. The market shares of most American automakers are shaky. The new domestic and foreign transplants are fast eating into the American automakers shares. Price deflation for motor vehicles and automotive parts segment coupled with unsustainable incentives for consumers has shrunk the profits of most industry participants.

The Canadian automotive industry, which is in the middle of a severe cyclical downturn, is also looking to address the problem of excess supply. This trend was most prominent among North American automakers. The Big Three automakers have devised plans to reduce their capacity. Although both Canadian and U.S. demand for motor vehicles surged in 2005, the majority of the industry witnessed, at best, profitless sales and, at worst, bankruptcy.

Frost & Sullivan Automotive Industry Country Industry Forecast service provides vital inputs for evaluating the attractiveness of a country and its automotive industry. Besides enabling decision makers to assess the impact of non-market forces, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans. In addition, investors can assess industry-specific risk factors as well as conduct a more in-depth micro research.

Benefits of this Service

Identify New Market Opportunities

The future trends and developments in the Canadian automotive industry have been identified by taking into consideration the political, economic, and policy environment of the country as well as analyzing global trends of the market. This analysis will provide valuable information to industry participants, which would aid in seizing onto the strategic market opportunities in the industry.

Understand Future Industry Trends

The research gives an insight into the Canadian automotive industry, its turnover, exports, and import trends. This will enable industry participants to gauge the trends in their respective segments and thereby, enabling them to devise appropriate market strategies to improve their market shares.

Understand Policy and Regulatory Environment

A detailed analysis of the economic and industry framework of the Canadian automotive industry is provided in the research service to help industry participants to gain insights into the industry environment, as it exists and the future direction of the same.

Evaluate Industry Segment Potential

The analysis of the segments of the automotive industry along with a discussion of its vertical market segments provides details of the trends and forecasts for the segments as well as an insight into the key indicators and resources. This will help corporate planners in developing accurate business plans and enhance credibility to planning company resources.

For more information, visit http://www.researchandmarkets.com/reports/c50714