Pipe down: Import competition and volatile steel prices will hamper industry revenue

Demand for the Metal Pipe and Tube Manufacturing industry in Canada grew in 2014, only to fall markedly over the next few years. The 2015 collapse in crude oil prices, followed by a massive slump in demand from the energy sector, which is the industry's largest market, has hurt industry performance. Furthermore, volatile steel prices made it difficult for industry operators to pass costs on to customers, thereby constraining average industry profit. Industry operators are expected to continue experiencing challenging demand conditions over the next five years. For example, oil prices are expected to rebound yet remain volatile in the near future, which may discourage petroleum companies, both domestic and foreign, from investing in new drilling machinery and equipment...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
-1.6%
Forecast Growth 18-23
Profit
Employment
5,430
Businesses
153
Market Share of Companies

Industry Threats & Opportunities

  • Oil prices are expected to rebound yet remain volatile, which may discourage petroleum companies
  • Plummeting demand from the oil sector has forced operators to cut prices on existing inventory
  • Plastic pipes present the most potent form of external competition
  • Industry Report - Industry Analysis Chapter

    The Metal Pipe and Tube Manufacturing industry in Canada includes standalone producers of ferrous pipes and other tubular products made from purchased iron or steel. The industry performed well in 2014, driven by robust exports to the United States and rapidly growing demand from the domestic and foreign energy markets, as well as sustained demand from the domestic automotive and water infrastructure markets. However, these trends reversed course in late 2014 as steel prices plummeted, which pressured industry operators to reduce prices to sustain sales volume. Fur...purchase to read more.

    Additional Insights for the Metal Pipe & Tube Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Metal Pipe & Tube Manufacturing Industry are

  • Ability to pass on cost increases
  • Economies of scale
  • Having a diverse range of clients
  • IBISWorld analysts also discuss how external factors such as Demand from oil drilling and gas extraction and World price of steel in the Metal Pipe & Tube Manufacturing industry impact industry performance..

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    What's in this report

    What is the Metal Pipe & Tube Manufacturing Industry?

    This industry includes standalone manufacturers of welded, riveted or seamless pipes or tubes made from iron or steel. Steel is purchased as an input material for the manufacturing process, generally in coil or billet form.

    Industry Products
  • Seamless pipes and tubes
  • Welded pipes and tubes
  • Riveted pipes and tubes
  • Pipe and tube fittings
  • Industry Activities
  • Manufacturing drill pipes and pipe casings
  • Manufacturing steel pipe products
  • Manufacturing mechanical and structural tube and pipe products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from oil drilling and gas extraction
  • World price of steel
  • Demand from water supply and irrigation systems
  • Canadian effective exchange rate index
  • Value of nonresidential construction

  • Current Performance
  • Steel prices and profit margins
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Shifting markets
  • Globalization and consolidation trends
  • Competition from substitute products
  • Table: Metal Pipe & Tube Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Metal Pipe & Tube Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction in Canada
  • Industrial Building Construction in Canada
  • Car & Automobile Manufacturing in Canada

  • Key Selling Industries
  • Ferrous Metal Foundry Products in Canada
  • Iron & Steel Manufacturing in Canada
  • Nonferrous Metal Foundry Product Manufacturing in Canada

  • Products & Services
  • Welded pipes and tubes
  • Seamless pipes and tubes
  • Riveted pipes and tubes
  • Pipe and tube fittings
  • Chart: Metal Pipe & Tube Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Downstream performance
  • Input prices and imports

  • Major Markets
  • Exports to the United States
  • Energy sector
  • Construction and utilities
  • Manufacturing industries
  • Exports to other countries
  • Chart: Major Market Segmentation for the Metal Pipe & Tube 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 Metal Pipe & Tube Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Metal Pipe & Tube Manufacturing Industry

  • Industry Globalization
    Tenaris SA,
  • Table: Tenaris SA - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Metal Pipe & Tube 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 Metal Pipe & Tube 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)
  • World price of steel (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ferrous
  • Any metal product predominantly made from iron or steel
  • Galvanizing
  • The process of coating steel with a thin layer of zinc to prevent corrosion.
  • Penstock
  • A pipe that transports water to sewerage systems or hydraulic turbines or a structure that controls water flow.
  • Pipe
  • A hollow, usually round and rigid section of steel that is supplied in straight lengths called joints or sticks.
  • Tube
  • A hollow, usually round and flexible section of steel that is supplied in a roll.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Metal Pipe & Tube Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Metal Pipe & Tube 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 Metal Pipe & Tube 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 Metal Pipe & Tube Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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