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

The Computer Manufacturing industry in Canada has been declining as fierce international competition continues to flood the domestic market with low-cost imports. This influx of imports is driven by foreign competitors, primarily from developing economies, which have lower labour and production costs. Competition, combined with product standardization, has exerted strong downward pressure on prices, lowering the industry's revenue from its crucial consumer market segment. Computer manufacturers are expected to experience similar trends moving forward. Price competition will prevent manufacturers from commanding higher margins and achieving growth in the consumer segment. However, anticipated demand from domestic and foreign industrial activity is expected to buoy industry expansion...read more.

Industry Statistics & Market Size
Revenue
$842m
Annual Growth 13-18
10.2%
Forecast Growth 18-23
Profit
Employment
1,590
Businesses
211
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
  • The industry will experience concomitant investments in automated technology
  • Industry Report - Industry Investment Chapter

    The Computer Manufacturing industry in Canada has a moderate level of capital intensity. In 2018, an estimated $0.13 is allocated toward capital expenses for every dollar spent on labour. Capital intensity has increased since 2013, when $0.12 was invested in capital for every dollar spent on labour. Rising levels of capital intensity indicate the increasing reliance on highly skilled employees such as engineers, researchers and designers. Plus, workers in an assembly line process typically assemble industry products manually; while automation is technically feasible, the cost savings would be minor, inhibiting widespread automation processes for all aspects of computer production. Com...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
  • 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
  • A new operating system
  • Trade
  • Chart: Revenue Growth

  • Industry Outlook
  • PC restore
  • 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
  • Other
  • Desktop computers
  • Chart: Computer Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Distributors
  • Retailers
  • Public organizations
  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Private investment in computers and software (2009-2023)

  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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