Auto parts industry growth to slow this year, rebound in 2014: Conference Board
OTTAWA - A new report by the Conference Board suggests Growth in Canada's auto parts manufacturing industry will slow significantly this year before rebounding in 2014.
The board says parts production is expected to gain just 0.1 percent in 2013 due to weak demand from automakers.
However, it says the slowdown is expected to be only temporary.
Production growth is expected to bounce back with a 5.5 percent increase next year as U.S. car sales are expected to reach pre-recession levels.
The board predicts the auto parts industry's pre-tax profits will fall 16.5 percent to $1.16 billion this year.
Meanwhile, the Conference Board says that in the long term the sector will face challenges as North American vehicle assembly shifts away from the U.S. Midwest and Ontario to the southern states and Mexico.