Canada’s Motor Vehicle Parts Manufacturing Industry: Industrial Outlook Autumn 2012

The Conference Board of Canada, 9 pages, November 2012
Report by Ksenia Bushmeneva

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This report examines the short-and medium-term economic and profitability outlook for Canada’s Motor Vehicle Parts Manufacturing Industry.

Surging Sales—Pent-up demand for vehicles in the U.S. is expected to persist until 2014, leading to strong growth in sales volumes.
Moderating Raw Material Prices—The ongoing European debt crisis and softer growth in developing countries continue to weigh on oil and primary metal prices.
Looming U.S. Fiscal Cliff—Uncertainty surrounding U.S. fiscal policy in general and the fast-approaching “fiscal cliff” in particular poses the main risk to the outlook. Failure by Congress and the White House to reach a compromise could send the U.S. economy back into recession.

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