Market Trends of Canada Metal Fabrication Equipment Industry
This section covers the major market trends shaping the Canada Metal Fabrication Equipment Market according to our research experts:
Construction Industry Offers Immense Demand for the Metal Fabrication Equipment
Metal fabrication equipment is used for the fabrication and assembly of metal products. This metal fabrication equipment helps to fabricate and install the final product, such as gates, grills, doors, structural materials like beams, OTS, safety rails, parking structures, etc. There are lots of pieces of fabrication equipment available for each process, like cutting, bending, assembling, etc., and varieties of each piece of equipment available for specific tasks. Some of them include lathe machines, welding machines (TIG, MIG, SPOT, etc.), drilling machines, milling machines, grinding machines, bending machines, pressing machines, etc. Nowadays, most fabrication workshops use advanced, high-tech automated equipment for sophisticated fabrication work, such as CNC lathes, CNC welding machines, laser cutting machines, waterjet/plasma cutting machines, etc., to get maximum finishing and save time.
Metal fabrication is used in commercial construction operations for metal ladders, trusses, and beams. Any size of commercial construction project requires the use of these metal tools and structures. Hence, the metal fabrication equipment market is expected to find an increase in the number of applications in the building and construction industry. In the second quarter of 2022, there were roughly 24,000 more new home construction starts in Canada than in the previous quarter. Meanwhile, in the first quarter of 2022, the lowest output level since early 2020 was reached. The impact of the coronavirus pandemic was felt in Q2 2020. However, the number of housing starts in Canada during that quarter fell by around 13 percent year-on-year, which represents a smaller decrease. The new residential construction in both Q3 and Q4 2020, when starts grew by nearly 20 percent year over year, made up for earlier losses. So the rise in the construction industry offers immense demand for metal fabrication equipment in Canada.
Electric Vehicle Manufacturing Boost the Demand for Metal Fabrication Equipment
Growth in the metal and manufacturing industries, rising R&D investment, and growth in the aviation and automobile industries are some of the factors responsible for the growth of the Canadian metal fabrication equipment market. In April 2022, GM Canada announced an investment of more than USD 2 billion to transform its CAMI and Oshawa manufacturing plants and improve operations across all of its manufacturing and R&D facilities in Ontario. This investment was supported by USD 259 million in funding from the province. Continuously growing advancements in technology and growth in the automotive and aviation industries are escalating overall market growth.
The introduction of favorable initiatives in Canada is anticipated to enhance the demand for machine tools, thereby growing the metal fabrication equipment market. Over the last two years, Ontario has attracted USD 16 billion in transformative automotive investments from global automakers and suppliers of EV batteries and battery materials. This includes more than USD 12.5 billion in EV and EV battery-related manufacturing investments. Exponential growth in electric vehicle manufacturing is supplementing the demand for metal fabrication equipment. According to data provided by EV-Volumes in 2021, Canada's auto dealers sold about 66,815 electric vehicles. In December 2022, the Ontario government celebrated the opening of General Motors of Canada's first full-scale electric vehicle (EV) manufacturing plant in Ingersoll and the first BrightDrop Zevo 600s to be made at the facility. With support from the province, GM Canada has transformed its CAMI manufacturing plant into an all-EV manufacturing facility, the first of its kind in Canada. This project helps secure the province's position as a global automotive hub, with the vehicles of the future being built in Ontario by Ontario workers, from start to finish.
Moreover, growth in electrical equipment manufacturing is also fueling the growth of the Canadian metal fabrication equipment market. The trend of shifting manufacturing industries to emerging countries is boosting the demand for metal fabrication equipment in the manufacturing industry. Due to more industrialization, the market for metal fabrication equipment may grow at a fast rate.
