BUSINESS

Auto parts industry growth to slow this year, rebound in 2014: Conference Board

08/28/2013 10:48 EDT | Updated 10/28/2013 05:12 EDT
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 per cent 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 per cent 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 per cent 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.