System overload: An influx of external competition has constrained industry activity

The Computer Manufacturing industry in Canada is quickly declining as fierce international competition continues to flood the domestic market with low-cost imports. Over the five years to 2017, industry revenue is expected to decline. Trade trends reveal the underlying factors that have precipitated the industry's demise over the past five years. Consumers are consistently opting to bypass industry operators in favour of often lower-cost imports. Computer manufacturers are expected to experience similar trends moving forward. Price competition will prevent manufacturers from commanding higher margins and achieving growth, and will simultaneously encourage operators to outsource...read more.

Industry Statistics & Market Size
Revenue
$523m
Annual Growth 12-17
-3.8%
Forecast Growth 17-22
Profit
Employment
1,421
Businesses
219
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Downstream customer groups are opting to bypass industry operators in favour of lower-cost imports
  • The United States dominates trade activity for computer equipment manufacturers
  • Operators will curb their domestic presence and further slim production
  • Industry Report - Industry Analysis Chapter

    The Computer Manufacturing industry in Canada is shrinking due to a confluence of factors. Domestic manufacturers are facing steep competition as operators in the United States and East Asia strengthen their global position. Low-priced competing products maintain high import penetration in the industry, siphoning demand away from industry manufacturers and exerting strong price pressures that further inhibit revenue growth. As a result, operators have relocated production abroad or exited the industry entirely. Remaining manufacturers contend with additional challenges, partially offset by increases in research and development (R&D) spending, which raises the industry’s competitiveness. However, the primary obstacle is market saturation, which has lowered demand for industry products. Fur...purchase to read more.

    Additional Insights for the Computer Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Computer Manufacturing Industry are

  • Ability to quickly adopt new technology
  • Effective advertising and branding
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Private investment in computers and software in the Computer Manufacturing industry impact industry performance..

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    What's in this report

    What is the Computer Manufacturing Industry?

    This industry manufactures or assembles personal computers, laptops and servers. Operators typically purchase computer components (e.g. motherboards and graphics cards) from dedicated manufacturers in other industries (see IBISWorld report 33441a, Semiconductor and Circuit Manufacturing). This industry does not include tablet computers, nor does it include manufacturers of computer monitors, mice, keyboards and printers (see IBISWorld report 33411b, Computer Peripheral Manufacturing).

    Industry Products
  • Portable computers
  • Desktop computers
  • Server
  • Industry Activities
  • Personal computer
  • Laptop
  • Desktop
  • Server
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Private investment in computers and software
  • Research and development expenditure
  • Consumer Confidence Index

  • Current Performance
  • Shrinking domestic presence
  • Price wars and external competition
  • Trade
  • Declining R&D expenditure
  • Chart: Revenue Growth

  • Industry Outlook
  • A diminishing industry
  • Trade trends
  • Table: Computer Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumer Electronics Stores in Canada
  • Information In Canada
  • Public Administration in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Semiconductor & Other Electronic Component Manufacturing in Canada
  • Wire & Cable Manufacturing in Canada

  • Products & Services
  • Portable computers
  • Server
  • Desktop computers
  • Chart: Computer Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Businesses
  • Public institutions
  • Individual consumers
  • Chart: Major Market Segmentation for the Computer Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Computer Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Computer Manufacturing 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 Computer Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Private investment in computers and software (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud Computing
  • Web-based processing that provides resources, software and information to computers and other devices on demand over the internet.
  • Liquid-Crystal Display (Lcd)
  • Technology that uses flat panel display to make thinner and lighter computer monitors and TVs than traditional cathode ray tube displays.
  • Moore's Law
  • Intel founder Gordon E. Moore's 1965 theory that the number of transistors that can be placed on an integrated circuit has the potential to double every two years.
  • Open Source
  • A licensing system that makes software source code available to the public to use, or develop further, at no charge.
  • Terabyte (Tb)
  • A unit of electronic storage equivalent to 1,024 gigabytes.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Computer Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Computer Manufacturing:
    • 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 Computer Manufacturing 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 Computer Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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