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Canada Metal Fabrication Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 150 Pages
  • April 2023
  • Region: Canada
  • Mordor Intelligence
  • ID: 5529242
UP TO OFF until Sep 30th 2023
Canada's metal fabrication equipment market is expected to witness a CAGR of more than 6% through the forecast period.

Key Highlights

  • The market for metal fabrication equipment was adversely affected by the outbreak of the COVID-19 pandemic. The supply chain for raw materials across borders was hampered by the implementation of several rules, such as complete lockdown, social distance norms, and the ban on imports and exports. However, the demand for various healthcare equipment, beds, and other products compelled governments to allow the production of these products with a restricted labor workforce, which supported the demand for metal fabrication equipment in the market. However, as things got back on track and governments withdrew restrictions from the manufacturing units, the need for metal fabrication equipment is expected to increase over the next few years.
  • The Canadian metal fabrication equipment industry is expected to grow significantly, primarily driven by the development of the construction and manufacturing sectors. Canada has been continuously acting as a significant player in enhancing the demand for automobiles, which further supported the growth of metal-forming equipment. With an increasing number of industries concentrated in Canada, there has been a high demand for steel fabrication. This may certainly propel the demand for metal fabrication equipment in the coming years. Its reviving economic growth is also helping boost demand in this sector.
  • However, an increase in raw material prices and rising labor costs are anticipated to hinder the growth of the market. Another major market restraint is the chance of mechanical failures. Any kind of machine, equipment, or tool used across the manufacturing units has a high chance of mechanical as well as technical failure. To obtain high efficiency from such equipment, companies need to make sure that it is working in proper conditions. These machines need to be maintained and regularly inspected to ensure their high efficiency and better outcomes.

Canada Metal Fabrication Equipment Market Trends

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.

Canada Metal Fabrication Equipment Industry Overview

The Canadian metal fabrication equipment market is fragmented by nature, with a large number of small and medium-sized companies competing with one another. The majority of the large fabricators present in the market studied are majorly EPC companies, which handle end-to-end solutions for structural steel fabrication and process equipment fabrication services. The increasing raw-material prices, increased competition within the industry, and the drive toward eco-friendly manufacturing practices are expected to impact the profitability of the suppliers, as the costs associated with these improvements and competitions can directly be passed on to the fabricators. Furthermore, the potential growth opportunities in the market studied are expected to attract more investment and new entrants. This is likely to increase market competition.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
2.5 Project Process And Structure
2.6 Engagement Frameworks
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Industry Value Chain/Supply Chain Analysis
4.4 Government Regulations and Key Initiatives in the Market
4.5 Impact of COVID-19 on the Market
5.1 Market Drivers
5.2 Market Restraints/Challenges
5.3 Market Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6.1 By Service Type
6.1.1 Machining and Cutting
6.1.2 Forming
6.1.3 Welding
6.1.4 Other Service Type
6.2 By Product Type
6.2.1 Automatic
6.2.2 Semi-automatic
6.2.3 Manual
6.3 By End User Industry
6.3.1 Manufacturing
6.3.2 Power and Utilities
6.3.3 Construction
6.3.4 Oil and Gas
6.3.5 Other End-user Industries
7.1 Market Overview(Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 BTD Manufacturing
7.2.2 Colfax
7.2.3 Komaspec
7.2.4 Matcor Matsu Group Inc.
7.2.5 Sandvik Mining and Construction Canada Inc.
7.2.7 TRUMPF Canada Inc.
7.2.8 Atlas Copco
7.2.9 AMADA Canada
7.2.10 DMG MORI Canada*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • BTD Manufacturing
  • Colfax
  • Komaspec
  • Matcor Matsu Group Inc.
  • Sandvik Mining and Construction Canada Inc.
  • TRUMPF Canada Inc.
  • Atlas Copco
  • AMADA Canada
  • DMG MORI Canada*