Canadian Electrical Wholesaler

May 9, 2019

Economy GDPFollowing 0.3% growth in January, gross domestic product contracted 0.1% in February as both goods-producing and services-producing industries declined. The 20 industrial sectors were nearly evenly split between gains and losses.

Construction continues to grow

Construction (+0.2%) increased for the second month in a row in February, following seven consecutive months of decline. Leading the growth was a 1.2% expansion in residential construction due to gains in single, semi-detached, row and apartment type-dwellings. Non-residential construction edged up 0.1% as growth in industrial construction more than offset declines in public and commercial construction. Repair construction declined 1.0% in February, following three months of growth, while engineering and other construction activities edged down 0.1%.

The mining, quarrying and oil and gas extraction sector declines for the sixth consecutive month


Mining, quarrying and oil and gas extraction (-1.6%) was down for the sixth consecutive month, as all subsectors declined.


The largest impact on the sector’s decline in February came from a 4.4% decrease in mining and quarrying (except oil and gas), as nearly all types of mining were down due to lower international demand. Metal ore mining was down 4.8% with reduced output of most types of metals. Non-metallic mineral mining decreased 3.7% largely due to a 6.9% contraction in potash mining as exports to the United States declined. Coal mining was down 6.1%, the largest monthly decrease since November 2017.


Oil and gas extraction was down 0.6% in February, following a 2.6% decline in January. Oil and gas extraction (except oil sands) was down 1.1% as both natural gas and crude petroleum extraction fell. Following a 4.1% contraction in January, oil sands extraction edged down 0.1% in February as the Government of Alberta eased oil production cuts by 75,000 barrels a day on January 30. Support activities for mining, oil and gas extraction was down 0.6% in February as growth in support activities for oil and gas extraction was more than offset by a decline in support activities for mining. 


Transportation and warehousing contract as rail transportation drops


Transportation and warehousing was down 1.6% in February, the largest decline since June 2011, largely due to a 10.8% drop in rail transportation. There were widespread declines in rail movement of products, such as iron ore, potash and fuel oils and crude petroleum. Cold weather and heavy snowfalls across many parts of the country and a train derailment near Field, BC that closed an important rail line through the Canadian Rockies in the early part of the month all had adverse effects on rail transportation.


Transit, ground passenger, scenic and sightseeing transportation (-1.6%), support activities for transportation (-0.7%) and truck transportation (-0.5%) also contributed to the decline. Pipeline transportation (+1.1%) was up for the third consecutive month, as growth in pipeline transportation of natural gas more than offset a slight decrease in crude oil and other pipeline transportation.

Finance and insurance sector down 

The finance and insurance sector declined 0.6% in February, offsetting the previous two monthly increases. Decreased issuance of new securities and lower trading in the bond and money markets contributed to declines in financial investment services, funds and other financial vehicles (-2.2%) and depository credit intermediation and monetary authorities (-0.5%). Non-depository credit intermediation increased 0.2% in February, while activities related to credit intermediation declined 0.3%. Insurance carriers and related activities edged down 0.1%.


Manufacturing declines


Following January's growth (+2.1%), which was the largest in close to 15 years, the manufacturing sector contracted 0.4% in February as both durable and non-durable manufacturing declined.


Durable manufacturing contracted 0.4% in February, as 8 of the 10 subsectors declined. The largest contributions to the decline came from wood products (-4.2%), furniture and related products manufacturing (-6.3%) and primary metal (-2.7%). Gains were posted in machinery (+5.2%) and fabricated metal products (+3.1%) manufacturing.


Non-durable manufacturing was down 0.3% in February. The nine subsectors were relatively evenly split between gains and losses. Increases in plastic and rubber products (+4.6%) and petroleum and coal products (+3.2%) manufacturing were offset by declines in food (-2.3%) and chemical (-2.8%) manufacturing.


Utilities up due to record-setting cold weather in Western Canada

Utilities were up 1.5% in February, the fourth increase in five months. Record-setting cold temperatures in February in Western Canada, along with cooler temperatures in the rest of the country, contributed to higher demand for electric power generation, transmission and distribution (+1.6%), and natural gas distribution (+1.8%).


Other sectors


Real estate, rental and leasing declined 0.2%, the first decrease since February 2018. Activity at offices of real estate agents and brokers was down 6.6%, the fourth decline in five months, as there was lower housing resale activity in Ontario, Quebec and British Columbia.


Professional, scientific and technical services rose 0.4% in February with gains in most subsectors.


The public sector edged up 0.1%, with all three components (education, health care and public administration) rising.


Retail trade edged up 0.2%, partly offsetting the previous month's decline, as 5 of 12 subsectors grew. The largest gains were in general merchandise stores (+3.6%) and motor vehicle and parts dealers (+0.8%), while there were notable declines at clothing and clothing accessories stores (-1.7%) and building materials and garden equipment and supplies dealers (-1.9%). 


Wholesale trade edged up 0.1% as five of the nine subsectors increased. Motor vehicles and parts wholesalers increased 8.6%, mainly on higher imports of motor vehicles. Building materials and supplies declined 4.5% on lower sales of lumber. Farm product wholesaling declined 8.8%, reflecting in part rail transportation issues in Western Canada.


Accommodation and food services edged down 0.1%, as an increase in accommodation services was more than offset by a decrease in food services and drinking places.
Agriculture, forestry, fishing and hunting was essentially unchanged in February as the subsectors were relatively evenly split between gains and losses.

Source: Statistics Canada, www150.statcan.gc.ca/n1/daily-quotidien/190430/dq190430a-eng.htm

 

Rick McCartenBy Rick McCarten

What how much does the electrical industry have to improve to complete with upcoming disruptions in the supply chain?

In May of this year, the delegates at Electro-Federation Canada (EFC)’s annual conference voted on when our industry would be hit with supply chain disruption. The group collectively agreed that our industry in Canada has only three years to prepare for major disruption. We need to act fast!

 

 

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David GordonBy David Gordon

The rep alignment dilemma… whom to align with to generate sales? End-users? National chains? Independent supportive distributors? Any distributor who will support the manufacturer? The manufacturer? But, the bottom line becomes, what will generate sales to meet manufacturer expectations?

It’s complicated, and channel consolidation and channel diversification will make this more complicated.

 

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Stephanie MedeirosBy Blake Marchand

Stephanie Medeiros leads ABB Canada’s Electric Vehicle Charging Infrastructure team, as well as transit bus charging in the United States and Canada. She has been with ABB in various positions for 10 years, compiling a diverse skillset that includes work all over the world. 

After receiving a degree in Electrical Engineering from McGill University, Medeiros got her start in the industry by volunteering with the Canadian government as an electrical engineering intern, where she travelled to Peru to help improve their water treatment infrastructure. 

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Wholesale SalesWholesale sales rose 0.6% to $64.1 billion in June, partly offsetting the 1.9% decline in May. Sales were up in four of seven subsectors, representing 54% of total wholesale sales.

In dollar terms, two subsectors — miscellaneous, and machinery, equipment and supplies — contributed the most to the increase in June, while the motor vehicle and motor vehicle parts and accessories subsector posted the largest decline.

 

 

 

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Investment In Building ConstructionTotal investment in building construction decreased 0.9% in June to $15.1 billion, the first decline in eight months. A slight increase in non-residential investment (+1.0% to $4.8 billion) was offset by a decrease in the residential sector (-1.8% to $10.3 billion). On a constant dollar basis (2012=100), investment in building construction decreased 1.1% to $12.7 billion. Despite the monthly decrease, total investment grew 1.6% year over year in the second quarter.

 

 

 

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Changing Scene

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ImarkDuring the recently held IMARK Canada 2019 meeting in Niagara Falls, executives from 14 of the leading manufacturers in the Canadian electrical and lighting industry participated in the IMARK Canada Product Stampede on September 13th.

Select manufacturer executives had precisely five minutes to present a key product with superior growth potential to the members of IMARK Canada. Distributor member executives then rated each supplier based on the quality of the presentation and the perceived sales potential of the product being demonstrated.

 

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Endress+HauserEndress+Hauser has broken ground for its new $28 million Customer Experience Centre for Central and Eastern Canada. When construction of the approximately 47,000 sq ft facility in Burlington is completed late next year, it will provide customers from Manitoba to Atlantic Canada with a generously equipped, state-of-the-art training and support hub for selecting and familiarizing themselves with the company’s latest innovations for process automation.

Last week’s official groundbreaking included a traditional Land Acknowledgment Ceremony performed by Chief R. Stacey Laforme of the Mississaugas of the Credit First Nations.

 

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Ariel Technology Inc.Heritage Sales and Marketing Group was created in late 2015 by Jack Eva, the former owner and operator of Electra Supply Inc., a four-branch independent distributor in South Western Ontario, which he sold in 2012 to the Franklin Empire organization based in Quebec Canada. Heritage Sales is an active member at Electro Federation Canada (EFC) & Canadian Electrical Manufacturers’ Representatives Association (CEMRA).

 

 

 

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Peers & Profiles

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Jon Llewellyn is the Branch Manager City Electric Supply’s Nanaimo, BC location. “I've worn many ...
Stephanie Medeiros leads ABB Canada’s Electric Vehicle Charging Infrastructure team, as well as ...
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Canadian Electrical Wholesaler was able to catch up with Sonepar Canada’s Stacey Corley, which was ...
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On a regular basis, our publications profile members of our industry through their responses to a ...
First and foremost, sitting down with Susan Uthayakumar feels more like sitting down and conversing ...
Sales of electrical supplies from full-line electrical distributors capture the geographic ...
Laura Dempsey has been working as an outside sales representative for E.B. Horsman & Son for ...
Michael Gentile, President and CEO of Philips Lighting Canada, has had a long and distinguished ...

 

Lori BagazzoliBy Blake Marchand

Lori Bagazzoli, Regional Sales Manager for Viscor, is a 20-year industry veteran that has built an interesting career from the bottom up. Beginning as a 19-year old just out of college in customer service with EXM, she gained an intimate knowledge of the electrical and lighting supply business by working her way through various organizational levels.

“I was definitely able to learn the different roles, and understand all the different aspects of the business,” she said, “starting so young, I really had to put in my time to be able to move up.”

 

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Louis BeaulieuBy Line Goyette

Neither a Millennial nor a Baby Boomer, Louis Beaulieu embraces new technologies and new markets, but remains faithful to family traditions. He holds a bachelor’s degree in finance and a master’s degree in management from Laval University and is the General Manager of Ouellet Canada. A perfect profile for a career in the family business.

When I ask him if, as is often the case in a family business, he had always known that he was going to join the company, he replied, “Not at all. When I was young, I spent my school holidays at my older brother’s farm at Ile d’Orléans.

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Looking Back

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