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Heating and Air Conditioning Equipment Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld
Date:6/21/2013

Los Angeles, CA (PRWEB) June 21, 2013

At more than 60.0% of revenue, exports drive the Heating and Air Conditioning Equipment Manufacturing industry. Unfortunately for industry participants, imports as a share of domestic demand outpace exports as a share of revenue. This trade deficit stems from the ability of US manufacturers to produce goods at a larger scale, which lowers the per-unit cost of products such as heaters, air conditioners and ventilation products. Further, producers in other countries, especially in Asia, produce relatively cheaper goods using low-cost labour and operate with less regulatory oversight, says IBISWorld analyst Josh McBee. “Consequently, savings realized during production are passed on to the consumer and make imports more affordable for Canadian buyers.” Domestic operators are then forced to compete on price, which pressures profitability. Similarly, the price of steel as a production input determines manufacturers' cost structures. This commodity's price decreased in 2012 due to lingering economic uncertainty, but will nonetheless remain elevated in 2013, further pressuring profit margins.

In addition to the structural shift common to the manufacturing sector as a whole, in which the manufacturing process is being moved overseas or outsourced to foreign third parties, the US housing crisis and subsequent recession decimated demand from commercial and residential building markets. Because the United States consistently accounts for the vast majority of export demand, movements within that economy have direct implications for the

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