Heavy metal: Outsourcing services to countries with low labour costs will threaten industry revenue

Over the five years to 2019, the Metal Plating and Treating industry in Canada declined marginally despite expanding manufacturing and construction activities. This industry provides services to fabricated metal product manufacturers, such as structural steel, steel sheet and steel coil manufacturers. The industry contended with the countervailing forces of rising nonresidential construction, floundering residential construction and weakened demand during the current period. Particularly, the industry remains threatened by outsourced services to metal treating companies located in countries with low labour costs...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
-1.8%
Forecast Growth 19-24
Profit
Employment
12,136
Businesses
751
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • International competition and volatile input costs will impact profit levels
  • Demand from the construction and manufacturing sectors sustains the industry
  • An increase in metal prices will boost purchase costs for downstream clients
  • Industry Report - Starting a New Business Chapter

    The Metal Plating and Treating industry is characterized by medium and increasing barriers to entry. In general, companies require only moderate upfront capital investments, as even small operators can provide services to local steel product manufacturers. However, capital requirements have been growing due to increased reliance on automated manufacturing technology. Nevertheless, high fragmentation means that no single company dominates, enabling new entrants to gain a foothold in this industry. Ultimately, prohibitive capital expenditures are only present for wide-scale operations, of which there are very few domestically, with only one industry establishment employing more than 500 workers, according to Statistics Canada...purchase to read more.

    Additional Insights for the Metal Plating & Treating Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Metal Plating & Treating Industry are

  • Ability to offer a wide range of services
  • Ability to pass on cost increases
  • Access to most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Demand from manufacturing and Value of nonresidential construction in the Metal Plating & Treating industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Metal Plating & Treating Industry?

    This industry provides coating, engraving, heat-treating and metal processing services. Other activities include tempering, brazing, plating, polishing, sand blasting and colouring metals.

    Industry Products
  • Metal coating, engraving and allied services
  • Electroplating, plating, polishing, anodizing and colouring
  • Metal heat treating services
  • Industry Activities
  • Hardening metals and metal products
  • Coating metals and metal products
  • Colouring metals and metal products
  • Enamelling metals and metal products
  • Galvanizing metals and metal products
  • Lacquering metals and metal products
  • Varnishing metals and metal products
  • Providing other treatment services for metals and metal 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 manufacturing
  • Value of nonresidential construction
  • World price of zinc
  • Industrial capacity utilization
  • Value of residential construction
  • World price of steel

  • Current Performance
  • Commodity price volatility
  • Varying demand conditions
  • Changing industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Constraints on demand, boons for profit
  • Industry landscape
  • Table: Metal Plating & Treating Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Metal Plating & Treating Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Metal Stamping & Forging in Canada
  • Hand Tool & Cutlery Manufacturing in Canada
  • Structural Metal Product Manufacturing in Canada
  • Sheet Metal, Window & Door Manufacturing in Canada
  • Metal Tank Manufacturing in Canada
  • Wire & Spring Manufacturing in Canada

  • Key Selling Industries
  • Abrasive & Sandpaper Manufacturing in Canada
  • Chemical Product Manufacturing in Canada
  • Nonferrous Metal Foundry Product Manufacturing in Canada
  • Paint Manufacturing in Canada

  • Products & Services
  • Metal coating, engraving and allied services
  • Electroplating, plating, polishing, anodizing and colouring
  • Metal heat treating services
  • Chart: Metal Plating & Treating Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Architectural and structural metals manufacturers
  • Machine shops and screw manufacturers
  • Boiler, tank and shipping container manufacturers
  • Other fabricated metal product manufacturers
  • Hardware manufacturers
  • Forging and stamping
  • Chart: Major Market Segmentation for the Metal Plating & Treating Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationMarketingRentUtilitiesOther Costs
  • Chart: Cost Structure Benchmarking – Sector vs Metal Plating & Treating

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Metal Plating & Treating 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 Metal Plating & Treating 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 Plating & Treating Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Industrial Capacity Utilization (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Anodizing
  • A process used to increase the corrosion and wear resistance of metals.
  • Electroplating
  • A process where electrical currents are used to deposit a protective metal coating, often zinc, on steel and iron products.
  • Galvanization
  • The process of applying a zinc coating to steel and iron products to prevent rusting.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Metal Plating & Treating 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 Metal Plating & Treating:
    • 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 Plating & Treating 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 Plating & Treating, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear