This domestic-oriented industry avoided the worst of the U.S. housing market meltdown. Still, weaker domestic construction activity caused output to fall by 15 per cent and profits dropped by 29 per cent in 2009. Although production is expected to begin recovery this year, as construction activity picks up, it will be 2011 before profits begin to improve.

Pharmaceutical Products

Thanks to an aging population, the H1N1 pandemic and the non-discretionary nature of many medical expenditures, the pharmaceuticals industry continued to expand through the recession. Profits are forecast dip in 2010, falling to $773 million. However, the industry is expected to experience healthy growth in the coming years, with the possible expansion of health care coverage in the U.S. providing additional upside potential.

Plastics and Rubber Products

The recession exacerbated problems for manufacturers of plastic packaging, plastic auto parts and tires, whose production declined for the fourth year in a row in 2009. After a 60 per cent profit decline in 2008, the industry's bottom line stabilized in 2009, and profits are expected to exceed $500 million in 2010. As low-cost countries expand market share and the Canadian dollar remains strong, international trade for this industry continues to deteriorate.

Source: CONFERENCE BOARD OF CANADA

Source: BUSINESS DEVELOPMENT BANK OF CANADA