Canadian Industrial Profile: Plastic and Rubber Products—Winter 2018

NAFTA—The United States is the destination for over 90 per cent of industry exports, many of which are used as intermediate inputs into other manufactured products, such as cars. As such, the outcome of the NAFTA renegotiations is critically important to the industry’s future. Cross-border taxes could raise final output prices and make Canadian products less competitive globally.

Key Input Prices—The prices for natural rubber have dropped considerably over the past year. This has resulted in significant cost savings for rubber products manufacturers.

Vehicle Sales—The U.S. market for new vehicles is saturated and sales are projected to decline throughout the medium term. This could translate into weaker export demand for automotive plastic and rubber products.