Keep on truckin': A depreciating loonie spurred significant industry revenue growth

A major boost in demand in 2015 and 2016 amid a depreciating loonie was the primary catalyst for industry expansion during the period. Strong growth these years were offset by declines in other years, creating a cyclicity of demand that raised revenue. These patterns are mirrored in the industry's structure. Over the five years to 2018, industry revenue is expected to grow strongly. Over the next five years, the industry is forecast to continue its expansion, albeit at a subdued pace as production stabilizes. The anticipated appreciation of the loonie is projected to curtail export activity, while demand for specialized vehicles is expected to support profitability amid a deceleration of revenue growth...read more.

Industry Statistics & Market Size
Revenue
$97m
Annual Growth 13-18
23.3%
Forecast Growth 18-23
Profit
Employment
315
Businesses
11

Industry Threats & Opportunities

  • A major boost in demand amid a depreciating loonie was the primary catalyst for industry expansion during the period
  • Industry Report - Industry Products Chapter

    •Most provincial production is focused on higher-margin specialized vehicles with a greater emphasis on buses compared with the national average.•Within Ontario, specialized buses and vehicles make up nearly double the share of the national industry's market.•In particular, school buses and firefighting vehicles are expensive products that contribute to the province's higher profitability than the national estimate.•Most trucks are manufactured in Quebec, making provincial operators less reliant on demand for trucks compared with the national average.•Still, the market for the largest class 8 trucks is the most similar to the national market, lagging behind by less than 5.0%...purchase to read more.

    Additional Insights for the Truck & Bus Manufacturing in Ontario Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Truck & Bus Manufacturing in Ontario Industry are

  • Effective cost controls
  • Establishment of export markets
  • Use of most-efficient work practices
  • IBISWorld analysts also discuss how external factors such as Demand from truck transportation and Canadian-dollar effective exchange rate index in the Truck & Bus Manufacturing in Ontario industry impact industry performance..

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    What's in this report

    What is the Truck & Bus Manufacturing in Ontario Industry?

    This industry primarily manufacturers heavy-duty vehicles and heavy-duty vehicle chassis for highway use. This industry includes all motor vehicles that are outside of passenger automobiles and light-duty vehicles such as buses, trucks and specialized trucks for military or civil purposes.

    Industry Products
  • Class 4 to 7 trucks
  • Class 8 trucks
  • Buses including military and firefighting vehicles
  • Special-purpose trucks
  • Industry Activities
  • Manufacturing heavy-duty trucks
  • Assembling complete heavy-duty trucks
  • Assembling complete buses
  • Assembling heavy-duty motor vehicles for highway use
  • 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 truck transportation
  • Canadian-dollar effective exchange rate index
  • Total exports from Ontario
  • World price of crude oil

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Truck & Bus Manufacturing in Ontario Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Local Freight Trucking in Canada
  • Long-Distance Freight Trucking in Canada
  • Local Specialized Freight Trucking in Canada
  • Tank & Refrigeration Trucking in Canada

  • Key Selling Industries
  • Auto Parts Wholesaling in Canada
  • Automobile Electronics Manufacturing in Canada
  • Automobile Engine & Parts Manufacturing in Canada
  • Tire Wholesaling in Canada
  • Truck, Trailer & Motor Home Manufacturing in Canada

  • Products & Services
  • Class 8 trucks
  • Buses including military and firefighting vehicles
  • Class 4 to 7 trucks
  • Special-purpose trucks
  • Chart: Truck & Bus Manufacturing in Ontario Industry Products and Services Segmentation

  • Major Markets
  • Short-freight trucking companies
  • Long-freight trucking companies
  • School bus companies
  • Other bus operations
  • Waste-collection companies, government and other
  • Chart: Major Market Segmentation for the Truck & Bus Manufacturing in Ontario Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Truck & Bus Manufacturing in Ontario

  • Basis of Competition
    Barriers to Entry
    Hino Motors Ltd., Gincor Industries Inc., Pride Bodies Ltd., Wilcox Bodies Ltd.,
  • Table: Hino Motors Ltd. - financial performance
  • Table: Gincor Industries Inc. - financial performance
  • Table: Pride Bodies Ltd. - financial performance
  • Table: Wilcox Bodies Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Truck & Bus Manufacturing in Ontario 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 Truck & Bus Manufacturing in Ontario Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Canadian-Dollar Effective Exchange Rate Index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Class 6 Trucks
  • Trucks with a gross vehicle weight rating between 8,846.0 kilograms and 11,793.0 kilograms.
  • Class 7 Trucks
  • Trucks with a gross vehicle weight rating between 11974.0 kilograms and 14,969.0 kilograms.
  • Class 8 Trucks
  • Trucks with a gross vehicle weight rating above 14,969.0 kilograms.
  • Gross Vehicle Weight Rating (Gvwr)
  • A measure of the allowable weight of a truck, including its trailer and cargo.
  • Heavy Trucks
  • Trucks categorized as either Class 6, 7 or 8.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Truck & Bus Manufacturing in Ontario market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Truck & Bus Manufacturing in Ontario:
    • 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 Truck & Bus Manufacturing in Ontario 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 Truck & Bus Manufacturing in Ontario, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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