Summary

Key Highlights
The metal fabrication equipment in Canada is growing significantly and has huge potential in the coming future, owing to the growth in the key factors that influence the market. These key factors include the rise in population, increasing demand for aluminum, and increasing demand for machining and metal processing.
Metal fabrication is a process that includes making structures of metals by bending, cutting, and assembling. It is a value-added process that encompasses the construction of machines and other structures from various raw materials. Numerous applications, including automotive, job shops, and secondary ventures are escalating the demand for metal fabrication equipment. Withing the equipment type segment, the cutting process has commanded significant growth due to the rising demand from end-use industries and the availability of cost-efficient labor and raw materials has induced several companies in the developed regions are favoring the market growth. In terms of the supply chain, the distribution of goods in and around Canada is good, while the supply chain participants experience issues to access foreign markets in case of delays in shipping or costs that reduced their competitiveness in the foreign markets.


Key Market Trends

Steady Construction and Manufacturing Output Give Huge Impetus to Metal Fabrication Equipment Market

Canadian manufacturing has grown tremendously in the past one and half years. The sector has experienced its strongest growth rate in 20 years. In the period of 2016-2018, the value of goods produced and shipped by Canadian manufacturers has grown by almost 10%. The Canadian economy is well known for machinery intensive industries. Key industrial products include pumps and compressors, rolling mill and metalworking equipment, forestry equipment, mining equipment, farm machinery, and construction equipment. The natural resources sector is a strong source of demand for Canadian machinery. 64% of the machinery and equipment sector is in Ontario (based on the dollar value of plant shipments), with the largest Canadian machinery and equipment companies being Babcock-Wilcox, Dorr-Oliver, and Black Clawson-Kennedy.

Increasing Demand for the Industry Metal Fabrication Equipment

Demand from agriculture, forestry, fishing, and hunting represents an additional downstream revenue market for industry operators. As the amount of forestry activity increases, demand for industry forestry equipment rises. Demand from agriculture, forestry, fishing, and hunting is expected to increase in 2019, representing an opportunity for industry operators. Also, growing investment in Industry 4.0, especially in SMEs, will help drive industry productivity and innovation.

Competitive Landscape

The metal fabrication equipment market in Canada is fragmented due to the presence of a large number of small- and medium-sized companies competing with one another. Though the structural steel fabrication processes have not been evolving technically over the past two decades, industry experts say that the competition within the industry has risen significantly over the past few years.

The majority of the companies in the country cater to only to a few of the end-user segments and engages in bidding to gain fabrication projects as the companies in the end-user segments prefer a competitive bidding process to award their projects rather than retainer model. Ontario is the top producer of fabricated metal goods in Canada. It is home to more than 40.0% of all fabricated metal manufacturers in the country, which includes most of the large industry players. The province employs close to 43.0% of Canada's labor force in fabricated metal product manufacturing.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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