Rolling away: Consolidation and increasing prices will limit industry revenue growth

The Steel Rolling and Drawing industry in Canada has rapidly expanded over the past five years due to strong export sales to the United States and the compounding effects of falling steel prices and a depreciating Canadian dollar. Integrated steel mills generally have a competitive advantage due to their ability to source steel internally, thus eliminating the need to rely on outside suppliers for steel rods or sheets. As primary steel producers continue to consolidate operations, they ultimately cut standalone rolling and drawing mills out of the market by selling rolled and drawn steel products directly to customers. The industry is expected to stagnate over the next five years, with growth stifled primarily by rebounding steel prices and an anticipated appreciation of the loonie...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
10.4%
Forecast Growth 18-23
Profit
Employment
2,642
Businesses
105

Industry Threats & Opportunities

  • The decline in the world price of steel made steel products more desirable in comparison with substitute metals
  • The nonresidential construction sector is a major market for rolled and drawn steel products
  • demand from the infrastructure construction sector is expected to rise in the coming years
  • Industry Report - Industry Analysis Chapter

    Steel Rolling and Drawing industry operators in Canada act as intermediaries between upstream primary steel producers and downstream metal wholesalers and end use markets. However, primary steel producers typically have large, integrated operations, which have increasingly included rolling and drawing steel. These operators have been the most salient threat to industry operations for the past decade. Nevertheless, as integrated steel mills tend to sell steel in large volumes, their primary customers are large manufacturers that buy steel inputs in bulk. The...purchase to read more.

    Additional Insights for the Steel Rolling & Drawing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Steel Rolling & Drawing Industry are

  • Economies of scale
  • Having a diverse range of clients
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as World price of steel and Demand from car and automobile manufacturing in the Steel Rolling & Drawing industry impact industry performance..

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    What's in this report

    What is the Steel Rolling & Drawing Industry?

    This industry rolls or draws steel purchased externally, which may be sourced from local steelmakers or imported. Industry operators produce a variety of shapes through the rolling process, while the only drawn product is wire of various grades and gauges. The industry does not include vertically integrated steel companies that incidentally draw or roll-form steel, nor does it include metal service centres whose primary business is the distribution of steel products to end markets.

    Industry Products
  • Cold-rolled steel sheet and strip
  • Cold-finished steel bars
  • Steel wire products
  • Industry Activities
  • Rolling plates, sheets, strips, rods and bars from purchased steel (often described as cold rolling)
  • Drawing wire from purchased steel
  • Processing purchased steel to meet customer specifications
  • 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 steel
  • Demand from car and automobile manufacturing
  • Canadian-dollar effective exchange rate index
  • Value of nonresidential construction
  • Industrial capacity utilization

  • Current Performance
  • Steel drawing attention
  • Attracting talent in a globalized sector
  • Chart: Revenue Growth

  • Industry Outlook
  • Rolling uphill
  • Stretching beyond borders
  • Table: Steel Rolling & Drawing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Steel Rolling & Drawing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Heavy Infrastructure Construction in Canada
  • Metal Pipe & Tube Manufacturing in Canada
  • Metal Stamping & Forging in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada
  • Car & Automobile Manufacturing in Canada
  • Metal Wholesaling in Canada
  • Commercial Building Construction in Canada

  • Key Selling Industries
  • Electric Power Transmission in Canada
  • Iron & Steel Manufacturing in Canada
  • Metalworking Machinery Manufacturing in Canada

  • Products & Services
  • Cold-rolled steel sheet and strip
  • Steel wire products
  • Cold-finished steel bars
  • Other
  • Chart: Steel Rolling & Drawing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to the United States
  • Construction
  • Steel service centres and other wholesalers
  • Manufacturing and industrial
  • Automotive
  • Exports to other countries
  • Chart: Major Market Segmentation for the Steel Rolling & Drawing 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 Steel Rolling & Drawing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Steel Rolling & Drawing Industry

  • Industry Globalization
    Heico Corporation,
  • Table: Heico Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Steel Rolling & Drawing 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 Steel Rolling & Drawing 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 in CAD (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Die
  • A specialized tool used in manufacturing industries to cut or shape material using a press. Like molds, dies are generally customized to the item they are used to create.
  • Integrated Steel Mill
  • A facility that has all the functions of primary steel production, including the manufacture and processing of raw steel.
  • Steel Rolling
  • The process of reducing the thickness of steel by passing it through a series of rollers.
  • What Our Customers Say

    Why buy this report?

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

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