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Hardware Manufacturing
Hardware Market and Players
The Canadian computer equipment industry in 1994 consisted of almost
300 companies, employing approximately 14,000 people and ranking #6 as a
country in IT hardware spending as shown in the table below. Canada’s
hardware manufacturers range from large Multinational Enterprises to
small, local operations that are involved in the design and manufacture of
electronic computers, peripheral equipment, data storage devices, computer
terminals and fully assembled computer processor boards.
The two largest Canadian plants, Digital and Celestica (a former
subsidiary of IBM), employ approximately 2,500 people each, while the next
three plants have about 500 employees each.
Some 178 computer manufacturing establishments in Canada have fewer
than 10 employees, suggesting that these companies either subcontract most
of their manufacturing, buy a high percentage of finished subassemblies
from outside suppliers, or both. Figure 3 below shows the size of Canadian
computer companies based on the number of employees.
Hewlett Packard, Symcod, DAP Electronique, Epson Canada, Logisys,
Teknor, Thought Technology and Dynapro are some of Canada’s
manufacturers of terminals and portable computers. While Canada does not
produce portable computers in high volumes, the terminal manufacturers
highlighted above are known to be performing well.
In the computer systems industry, Canadian companies include Digital,
Seanix, Mind Computers, Cemtech, Hewitt Rand and Sidus. Small Canadian
companies like Seanix and Sidus export actively.
In terms of regional distribution plants, Ontario has a dominant
position as home for Canada's computer industry. Shipments during 1994
were worth $5 billion, with an annual growth rate of about 15 percent for
1988-94. Evidence suggests that most of the growth for the rest of Canada
takes place in British Columbia, Alberta and Manitoba.
Source: Strategis,
Industry Canada's Information Source for Canadian Business.
Hardware Spending
IT Hardware Spending for Canada vs. United States (#
Ranking Worldwide)
| |
1993 |
1994 |
1995 |
1996 |
1997 |
| |
Spending (US$M) |
% of World |
Spending (US$M) |
% of World |
Spending (US$M) |
% of World |
Spending (US$M) |
% of World |
Spending (US$M) |
% of World |
|
Canada (#6) |
5,311 |
2.5% |
5,674 |
2.4% |
6,763 |
2.4% |
7,508 |
2.3% |
8,206 |
2.4% |
|
US (#1) |
80,965 |
37.7% |
89,792 |
38.3% |
105,670 |
37.9% |
128,874 |
40% |
138,611 |
41.2% |
Source: Digital Planet – The Global Information Economy
Future of the Hardware Market
Based on a market-value weighted index of publicly
traded Canadian computer firm stock prices, Canada's computer equipment
industry seems to be on the rise (Figure 2). Over the past five years, the
Canadian computer industry stock market index has significantly
outperformed that of the U.S. The Canadian computer stock market index has
also outperformed the rest of the market, as represented by the TSE-300.
The future for the Canadian hardware manufacturers looks strong and
bright.
Source: Strategis,
Industry Canada's Information Source for Canadian Business. |
