Slippery slope: Increasing import penetration will continue to hurt the industry

The Lubricant Oil Manufacturing industry experienced its share of wear and tear in recent years, as falling exports and volatile oil prices significantly impacted industry revenue. Just prior to the period, improved domestic demand and a surge in export growth fuelled by a revitalized US auto industry pushed revenue upward; however, in the second half of the period, large declines in both export demand from the United States and the price of oil led the industry to post losses. However, IBISWorld expects industry revenue to reverse course and grow over the five years to 2022. Increases in domestic demand will likely be largely satisfied by imports, which will continue to capture a greater share of the domestic market...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-7.4%
Forecast Growth 17-22
Profit
Employment
1,669
Businesses
53

Industry Threats & Opportunities

  • Industry manufacturers are expected to keep shifting their focus toward foreign buyers
  • In response to declining demand, industry manufacturers have consolidated operations
  • A growing share of demand for lubricant oil will likely be consumed by imports
  • Industry Report - Industry Locations Chapter

    The location of lubricant oil manufacturing companies in Canada is largely determined by population trends and economic activity. While Canada is the world's second-largest country by total area, its population of 36.6 million people is relatively small and largely concentrated within the southern part of the country. With 34.8% of industry establishments, Ontario has the largest concentration of industry activity, followed by Alberta and Quebec with 28.8% and 13.6% of industry establishments, respectively. Ontario and Quebec are the two most heavily populated provinces in Canada, leading industry establishments to set up shop there in order to have access to workers and retail markets. Alb...purchase to read more.

    Additional Insights for the Lubricant Oil Manufacturing Industry

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

  • Ability to alter goods and services produced in favor of market conditions
  • Guaranteed supply of key inputs
  • Proximity to transport
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Per capita disposable income in the Lubricant Oil Manufacturing industry impact industry performance..

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    What's in this report

    What is the Lubricant Oil Manufacturing Industry?

    This industry manufactures petroleum products (except for asphalt paving, roofing and saturated materials), such as blended motor oils, brake fluids, lubricating greases and other oil-based additives. Key buyers include downstream automobile manufacturers, wholesalers and automotive retail chains.

    Industry Products
  • Automotive lubricants
  • Industrial lubricants
  • Industry Activities
  • Manufacturing lubricating oils and greases made from refined petroleum
  • Manufacturing brake fluids made from refined petroleum
  • Manufacturing petroleum jelly made from refined petroleum
  • Manufacturing petroleum waxes made from refined petroleum
  • Re-refining used petroleum lubricating oils
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Per capita disposable income
  • Industrial capacity utilization
  • New vehicle sales
  • Canadian-dollar effective exchange rate index

  • Current Performance
  • Industry vulnerability
  • Specialization and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Import penetration increases
  • Exports and oil prices stabilize revenue
  • Table: Lubricant Oil Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Iron & Steel Manufacturing in Canada
  • Auto Parts Stores in Canada
  • Local Freight Trucking in Canada
  • Long-Distance Freight Trucking in Canada

  • Key Selling Industries
  • Animal Feed Production in Canada
  • Inorganic Chemical Manufacturing in Canada
  • Oil Drilling & Gas Extraction in Canada
  • Petrochemical Manufacturing in Canada
  • Plastic Film, Sheet & Bag Manufacturing in Canada

  • Products & Services
  • Automotive lubricants
  • Industrial lubricants
  • Other
  • Chart: Lubricant Oil Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Other
  • Retailers
  • Chart: Major Market Segmentation for the Lubricant Oil Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Lubricant Oil Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lubricant Oil Manufacturing Industry

  • Industry Globalization
    Shell Canada Ltd., ExxonMobil, Ashland Inc., Suncor Energy Inc.,
  • Table: Shell Canada Ltd. - financial performance
  • Table: ExxonMobil - financial performance
  • Table: Ashland Inc. - financial performance
  • Table: Suncor Energy Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Lubricant Oil 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 Lubricant Oil 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)
  • World Price of Crude Oil (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Grease
  • A thick oil used to lubricate machinery.
  • Lubricant
  • A substance, such as grease or oil, that reduces friction when applied as a surface coating to moving parts.
  • Synthetic Oil
  • A substance created in the laboratory with crude oil products that has similar properties to conventional lubricant oil.
  • What Our Customers Say

    Why buy this report?

    The Lubricant Oil Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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

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