Industry Lens: Motor Vehicle Parts and Manufacturing—December 2021
The Conference Board of Canada,
December 9, 2021
This report examines the short-and medium-term economic and profitability outlook for Canada’s motor vehicle and parts manufacturing industry.
- The rise of COVID-19 variants, in addition to global parts shortages, means that it will take time for the motor vehicle and parts industry to reach its pre-pandemic levels.
- After falling 24 per cent in 2020, real GDP in the industry will continue to decline a further 4.9 per cent this year due to global supply chain challenges. However, we forecast the industry will grow by 9.1 per cent in 2022, followed by a stronger recovery in 2023 with a growth of 17.5 per cent as we start moving past pandemic-related challenges.
- With the continuous rise of automation, especially in the motor vehicle and parts manufacturing industry, we do not expect significant growth in employment rates in the short to medium term.