Record year for auto parts industry: report
OTTAWA - The Conference Board says Canada's auto parts sector is expected to post a record increase in revenues this year along with impressive production and profit gains.
And although 2013 won't be as strong, the Ottawa-based think-tank forecasts it will still be another good year.
The Conference Board notes the auto parts industry fell a staggering 43 per cent between 2007 and 2009 during the global recession. But with pent up demand building and a more stable economy, the North American auto sector as a whole has rebounded strongly.
Conference Board analyst Michael Burt says North American vehicle sales are on track to post their best performance in five years, with some parts makers operating six days a week to meet demand.
Along with a 22.4 per cent production increase, revenues are projected to rise 22.7 per cent this year — the largest year-over-year gain in history — and profits are expected to surge 37 per cent to $1.4 billion.
For 2013, the Conference Board sees production rising almost 10 per cent, revenues by 11 per cent and profits by 3.7 per cent.