On the grind: Forecast stability in the growing Canadian economy will boost revenue

The Machine Shop Services industry in Canada creates finely tuned parts and components used in the manufacturing of high-performance durable goods, such as cars, aircraft, agricultural, oil field and medical equipment. Industry operators also provide custom milling, turning and boring services for conventional metal goods and stamped metals. Consequently, industry revenue is highly susceptible to changes in Canadian industrial production. Over the five years to 2023, forecast stability in the growing Canadian economy is expected to boost industry revenue. In addition, as disposable income and employment continue to rise, consumers are expected to spend more on cars and other forms of travel, bolstering demand for machined parts designated for automotive and aerospace manufacturers...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
0.3%
Forecast Growth 18-23
Profit
Employment
27,589
Businesses
4,094
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • As industrial output rose, revenue for the domestic Machine Shop Services industry expanded
  • Automotive manufacturing demand has slowly expanded
  • Increased disposable income will propel demand in downstream markets
  • Industry Report - Industry Locations Chapter

    The concentration of the Machine Shop Services industry in Canada's establishments is largely influenced by their proximity to downstream markets as well as upstream suppliers of key inputs. Machine shop locations also tend to be highly correlated with population density. Provinces with larger populations tend to have a greater concentration of machine shops due to heightened industrial activity. Hence, the majority of industry operators are located in Ontario, Quebec and Alberta.Ontario accounts for an expected 44.3% of establishments and is the most densely concentrated region for this industry. The province has a significant share of the population and is home to major business and urban centres. Ind...purchase to read more.

    Additional Insights for the Machine Shop Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Machine Shop Services Industry are

  • Access to multiskilled and flexible workforce
  • Effective quality control
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Industrial capacity utilization and Aggregate private investment in the Machine Shop Services industry impact industry performance..

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    What's in this report

    What is the Machine Shop Services Industry?

    This industry is primarily engaged in operating machine tools, such as lathes (including computer numerically controlled), automatic screw machines and machines for boring, grinding, milling and otherwise working metal, to produce machine parts and equipment, other than complete machines, for the trade. Machine shops providing custom and repair services are included.

    Industry Products
  • Milling
  • Turning
  • Grinding
  • EDM and ECM activities
  • Other machining services
  • Industry Activities
  • Manual and computer numerical control milling services
  • Drilling and boring services
  • Grinding and planning services
  • Turning services to produce cylindrical components
  • Fastening services using automatic screw machines
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial capacity utilization
  • Aggregate private investment
  • Demand from machinery manufacturing
  • Demand from metal stamping and forging

  • Current Performance
  • Boost in downstream aerospace demand
  • Tempered automotive demand constrains industry growth
  • Prominence of small- and medium-size machine shops
  • Chart: Revenue Growth

  • Industry Outlook
  • Vital downstream growth
  • Emerging technologies
  • Table: Machine Shop Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Machine Shop Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Screw, Nut & Bolt Manufacturing in Canada
  • Tractors & Agricultural Machinery Manufacturing in Canada
  • Construction Machinery Manufacturing in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada
  • Engine & Turbine Manufacturing in Canada
  • Wind Turbine Manufacturing in Canada
  • Power Tools & Other General-Purpose Machinery Manufacturing in Canada
  • Truck, Trailer & Motor Home Manufacturing in Canada
  • Aircraft, Engine & Parts Manufacturing in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Ferrous Metal Foundry Products in Canada
  • Metal Pipe & Tube Manufacturing in Canada
  • Metalworking Machinery Manufacturing in Canada
  • Screw, Nut & Bolt Manufacturing in Canada
  • Tool & Hardware Wholesaling in Canada

  • Products & Services
  • Turning
  • Milling
  • Grinding
  • Other machining services
  • EDM and ECM activities
  • Chart: Machine Shop Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Metalworking sector
  • Transportation sector
  • Heavy industrial sector
  • Healthcare sector
  • Tech sector
  • Other
  • Chart: Major Market Segmentation for the Machine Shop Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Machine Shop Services

  • Basis of Competition
  • Price
  • Product features
  • Geographic scope

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Machine Shop Services 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 Machine Shop Services 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 Machine Shop Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Industrial capacity utilization (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Boring
  • The process where a predrilled hole is enlarged with a tool.
  • Machine Shop
  • An establishment where machining takes place.
  • Milling
  • The process where a rotating cutting tool is used to carve or shape a stationary object.
  • Turning
  • An industry process that uses an edged cutting tool to remove material from a rotating object to create or improve the object's cylindrical shape.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Machine Shop Services 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 Machine Shop Services:
    • 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 Machine Shop Services 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 Machine Shop Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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