Canadian Electrical Wholesaler

 

Ontario wins in the transportation segment are a solid opportunity for the electrical market. With one of the largest concentrations of car and related transportation manufacturing in North America, the drivers to accelerate the purchase of electrical equipment and electrical retrofit are there. As well, positive news in machine tool orders generate related equipment sales in motor control, power and distribution equipment. With the fourth gain in 11 months, this sign is a solid indicator the future is getting a little more predictable. Take a close look at these figures.

Monthly Survey of Manufacturing: Sales Continue Rising


Manufacturing sales increased 1.0% in November to $50.5 billion, the sixth advance in seven months. With the latest rise, sales were at their highest level since December 2011. The increase in November largely reflected gains in the transportation equipment and machinery industries.


Sales advanced in 11 of 21 industries, representing about 58% of manufacturing. For durable goods, sales rose 2.9% to $25.6 billion. Sales declined 0.9% on the non-durable goods side of manufacturing.
Constant dollar manufacturing sales increased 0.7% in November, indicating a rise in the volume of goods sold.


Transportation equipment and machinery sales rise


Sales in the transportation equipment industry rose 6.1% to $9.5 billion, mostly as a result of gains in the aerospace product and parts as well as the motor vehicle industries.
In the aerospace industry, production rose 21.3% to $1.8 billion. An increase of this magnitude is not unusual for the industry, as aerospace production is substantially more volatile than the manufacturing sector as a whole.


Motor vehicle sales increased 5.0% to $4.8 billion, the highest level since November 2007. Since reaching a low of $1.6 billion in January 2009, sales in this industry have generally been on the rise. As a result, the motor vehicle industry comprised 9.6% of total Canadian manufacturing in November. By contrast, in January 2009, within the context of the last recession, the share of motor vehicle sales out of total manufacturing sales was 4.0%.


In the machinery industry, sales increased 5.4% to $3.0 billion, the fourth gain in 11 months.
Declines in the food and chemical industries offset a portion of these increases. Sales in the food industry were down 1.5% to $7.5 billion while chemical sales decreased 2.3% to $3.9 billion.


Chart 1: Manufacturing sales increase


manufacturing survey 1

 

 

 

 

 

 

 

 

 

 

 

 

 

In November, seven provinces posted higher sales with Ontario leading the gains.
Sales in Ontario increased 2.2% to $23.0 billion, largely as a result of gains in the transportation equipment industry. Motor vehicle sales were up 5.5% while aerospace production rose 44.9%. The increase in aerospace followed a 32.7% decline in October. The primary metal and machinery industries also contributed to the overall provincial advance.


In Newfoundland and Labrador, sales rose 33.1% to $559 million in November. Although large, this gain is not unprecedented. Sales for Newfoundland and Labrador tend to have greater volatility than the other provinces. The change in November, for example, is comparable in magnitude to a 31.4% rise in March 2013 and a 34.1% drop in February 2013.


Sales in BC's manufacturing sector rose 2.7% to $3.5 billion, the fifth consecutive monthly advance. In November, 14 of 21 industries posted higher sales in the province, primarily on the durable goods side of the sector. The primary metal, wood product and machinery industries led the gains.


The overall advance in national sales was partly offset by declines in New Brunswick and Quebec. New Brunswick manufacturing sales fell 8.9% to $1.8 billion in November, reflecting lower sales of non-durable goods. Sales by Quebec manufacturers were down 1.2% to $11.6 billion, reflecting decreases in 15 of 21 industries. In Quebec, petroleum and coal products as well as food industries posted the largest declines.
Chart 2: Inventories edge upwards


Manufacturing survey 2

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventories rose 0.2% to $69.3 billion in November. An increase in the aerospace product and parts industry was partly offset by a decline in petroleum and coal product inventories. In constant dollar terms, total inventories edged up 0.1%, indicating that the volume of inventories held by manufacturers was basically unchanged. In the aerospace product and parts industry, inventories rose 2.9% to $7.8 billion. Almost all of the gain stemmed from higher goods-in-process. Inventories of petroleum and coal products declined 1.4% to $5.9 billion, reflecting lower raw materials on hand.
Chart 3: Inventory-to-sales ratio declines


Manufacturing survey 3

 

 

 

 

 

 

 

 

 

 

 

 

 

The inventory-to-sales ratio declined from 1.38 in October to 1.37 in November. Although inventories were up slightly, the decline reflected the fact that the total rise in manufacturing sales was greater than the increase in inventories.
Chart 4: Unfilled orders rise


Manufacturing survey 4

 

 

 

 

 

 

 

 

 

 

 

 

 


Unfilled orders increased 0.4% to $72.2 billion in November. The rise stemmed from higher unfilled orders in the aerospace product and parts industry. Excluding the aerospace industry, unfilled orders were down 0.8%. The primary metal, electrical equipment, and computer and electronic product industries posted the largest declines.
In the aerospace industry, unfilled orders were up 1.3% to $41.9 billion. The increase was the eighth in 11 months and reflected the strengthening of the US dollar relative to the Canadian dollar. The majority of unfilled orders in this industry are held in US dollars.


In the primary metal industry, unfilled orders were down 6.3% to $1.4 billion, the first decline following six months of gains. Decreases in November were widespread in the industry. Lower unfilled orders were also posted by the electrical equipment (-3.7%) and the computer and electronic product (-2.2%) industries.


New orders rose 1.2% to $50.8 billion as a result of increases in the machinery, aerospace product and parts as well as the motor vehicle industries.
Monthly data in this release are seasonally adjusted and are expressed in current dollars unless otherwise specified.


Source: Statistics Canada http://www.statcan.gc.ca/daily-quotidien/140121/dq140121a-eng.htm

 

ABBDuring E.B. Horsman & Son’s (EBH) Annual General Meeting on March 5, 2019, ABB Canada was presented with the 2018 EBH Supplier of the Year award by Tyson Carvell, VP of Marketing. The award was received by Ed Atkinson, ABB Commercial & Construction Sales Manager for BC, on behalf of Rob Ruys, ABB Regional Manager for Western Canada.

Each year E.B. Horsman & Son monitors the sales and operations of each of their 600+ supplier partners. 

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SouthwireIn March 2018, Southwire announced the investment of more than US$9 million back into the lives of employees through one-time employee bonuses, expanded parental leave and a strengthened commitment to education through the Bridge Scholarship Program, a one-time opportunity for eligible hourly employees seeking to further their education through a two-year degree, four-year degree or technical certification. One year later, 64 employees have been awarded the Bridge Scholarship.  

“Building organizational capability is vital to maintaining our great culture and driving business results,” says Kelley Park, Executive Vice President of Human Resources.

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CEW 6 HR 400People with low levels of coping skills are at higher risk for mental health issues and mental illness than those with high levels. Gaps in coping skills inhibit the ability to solve problems and to make healthy and effective decisions.

To examine how coping skills can predict health outcomes, Dr. Bill Howatt facilitated a doctoral research study that examined the question: “What role does an individual’s coping skills have in predicting psychological and physical health outcomes?” The study found that coping skills mattered and were, in fact, a moderator that partially explains why some individuals had better physical and psychological health outcomes than others. The study concluded that when combining a person’s coping skills with their perceived stress levels, coping skills were significant in predicting which employees were at more or less risk for health issues.

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Changing Scene

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  The OmniCable Toronto branch recently completed its first customer order after opening ...
The Hannover Messe Trade Fair in Germany, held this year at the beginning of April, is the world’s ...
Global energy producer BP has selected Schneider Electric as one of its main electrical ...
The Stratford and District Chamber of Commerce has presented its 2019 Business Leader of the Year ...
The company’s wholesale locations will be branded Robinson Supply, and the lighting and bath ...
GE has completed the sale of its Current, powered by GE business unit to American Industrial ...
Omni Cable Corporation (OmniCable), headquartered in West Chester, PA, is proud to announce the ...
In preparation for the retirement of Gabriel Massabni in 2020, Jason Prevost has joined Leviton as ...
During E.B. Horsman & Son’s (EBH) Annual General Meeting on March 5, 2019, ABB Canada was ...
Desdowd Inc. has been chosen to serve as Thermon’s manufacturer's agent for the province of Quebec ...

CREECree, Inc. has signed an agreement to sell its Lighting Products business unit, which includes the LED lighting fixtures, lamps and corporate lighting solutions business for commercial, industrial and consumer applications, to Ideal Industries, Inc. for approximately US$310 million before tax impacts, including up-front and contingent consideration and the assumption of certain liabilities. Cree expects to receive an initial cash payment of US$225 million, subject to purchase price adjustments, and has the potential to receive a targeted earn-out payment of approximately US$85 million based on an adjusted EBITDA metric for Cree Lighting over a 12-month period beginning two years after the transaction closes.

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EHRC WLNElectricity Human Resources Canada is delighted to have announced its new partnership with Women Leadership Nation™ (WLN) on International Women’s Day.

Electricity Human Resources Canada is delighted to have announced its new partnership with Women Leadership Nation™ (WLN) on International Women’s Day. This strategic alliance will offer EHRC members and Leadership Accord signatories with training, development and strategy support in their efforts to make progress in closing the Gender Gap.

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ABB Showcases Its Vision of Leadership in Digital Industries at ABB Customer World 2019

Show ReportBy Line Goyette

Leaders and innovators from business, government and the education sector gathered for this ABB premier collaboration event. More than 11,000 delegates attended the bi-annual ABB Customer World Houston 2019 from March 4 to 7 in Houston, Texas. ABB’s latest pioneering technologies were displayed over 150,000 sq ft of a colourful, buzzy display of futuristic conveyor belts and robots, an ABB Formula E Generation 2 car, and much more groundbreaking technology.

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Peers & Profiles

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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 ...

 

National ManufacturingExcellence in Manufacturing Consortium EMC’s Advantage through Excellence: Future of Manufacturing Conference is a 2½ day event exploring the competitive advantages, opportunities and successes that can be achieved by manufacturers through a variety of learning forums — up to 40 workshops, panel sessions, keynote presentations and best practice plant tours — providing delegates with outstanding opportunities for benchmarking, peer networking, learning and sharing of hundreds of best practices. An estimated 500 to 900 manufacturing leaders and stakeholders from across Canada are expected to attend. 

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Rick McCartenBy Rick McCarten

I think it was Bill Gates who said the Internet will not have an effect on society short term, but will have a profound effect on us long term. 

Long term versus short term fascinates me. Making the call for one over the other can determine the success (or failure) of companies today. 

Using Bill Gates’ long-term Internet effect example, means that business decisions about the Internet will not necessarily show short-term gain, but will show “profound” gain in the long term.

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CEW 3 Perspective 400

We often learn how to look forward by first looking back, or at the very least we realize that despite our best efforts we have not truly advanced quite so much as we had thought. Sure, technology is rapidly advancing. That’s beyond question. But what about our approach to selling it? Have we changed that much in the last 20, 40, 60 years? Inevitably there have been advances and changes in marketing, the Internet causing the biggest shift, but many of the concerns and directives that have driven the distribution and marketing of industrial electrical products remain, or at least planted the roots of the concerns of manufacturers and distributors today. 

To gain perspective of the perceptions and directions of electrical product distribution in 1960, we turn to Edwin H. Lewis. In 1960 Lewis published “The Distribution of Industrial Electrical Products” in the Journal of Marketing.

To fully define electrical product distribution in 1960, Lewis broke his study into several categories. We will follow his direction and provide his insights on the industry in each of the categories he identified.

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Looking Back

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The best memory I keep from CEDA is the way that they accepted me when I came into the business. ...
In the 1930s to 1940s, CEDA’s Western Canada membership was very stable with old line independent ...
Prior to the late 1950s there was little if any involvement in CEDA by the so-called “national ...
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Bnei AkivaBy Blake Marchand


Lior Levy, along with Josh Kantrowitz, led a team of 21 students earlier this year as they travelled to Hartsville, South Carolina for the annual Bnei Akiva Habit for Humanity trip, in partnership with Legrand. As a frequent supporter of Habitat for Humanity, Legrand donated the funds required to purchase the construction materials for the project.

Ms. Levy, a pre-med student from Toronto who recently received her BA in Biology while attending Yishiva University in New York.

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Looking BackLooking BackIn the 1930s to 1940s, CEDA’s Western Canada membership was very stable with old line independent companies like Horsman, Ashdowns, Brettell, Marshall Wells, Electrical Supplies Ltd., etc.

Small electrical distributors just were not acceptable for membership as they did not carry the main-line manufacturers’ goods, publish a wiring device catalogue, or employ four to five salesmen as CEDA requested.

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Copper $US Dollar price per pound

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