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

Swati Vora-PatelTalent availability continues to be a key concern among business leaders in the electrical industry: in fact, over 60% of EFC members surveyed said they do not have a robust talent pipeline in place. This pipeline is even further constrained as a result of ongoing employment challenges spurred on by the pandemic.

A global phenomenon known as “The Great Resignation” is underway which reflects a wave of workers who are strongly considering leaving their jobs in search for work that is more closely aligned with their interests with employers who provide flexible accommodations and serve a strong purpose. 

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Building Permits - September 2021The total value of building permits rose 4.3% to $10.1 billion in September, led by Ontario (+6.3%). Construction intentions in the residential sector were up 8.2%, while the non-residential sector decreased 3.2%.


On a constant dollar basis (2012=100), building permits increased 3.4% to $6.9 billion.

Ontario drives residential permits up

High-value permits for two new condo buildings valued at over $300 million in the cities of Mississauga and Toronto helped push Ontario's multi-family permits up 40.4% to $1.7 billion in September. 

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Gross domestic product by industry - August 2021Real gross domestic product (GDP) rose 0.4% in August, led by increases in accommodation and food services, retail trade and transportation. The continued easing of public health restrictions and further reopening across the country increased demand across many close contact service industries.


Overall, 15 of 20 industrial sectors were up as growth in services-producing industries (+0.6%) more than offset a decline in goods-producing industries (-0.1%).

 

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Changing Scene

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AD GrowthAD’s Electrical-Canada Division virtually welcomed members and supplier partners for its five-day 2021 Virtual North American Meeting on Oct. 25 - 29, 2021 with the goal of facilitating strategic conversations that help the division devise new ways to stay ahead of the competition.

The event facilitated over 1,200 face-to-face meetings with 40 member companies and 62 supplier companies, cultivating relationship, allowing participants to share best practices and enabling open communication.

 

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EvolutionExpanding its North American footprint, leading control and automation manufacturer RTI today announced that it has named Evolution Home Entertainment Corp., a wholesale distributor of residential technology products, as the second RTI distribution partner for the Canadian market.


Evolution serves over 500 dealers across Canada, who now have the opportunity to get certified for the full line of RTI smart home control and automation products. With products shipping nationwide from its warehouse in Concord, Ontario, Evolution will also offer training and local dealer support to its dealers installing RTI systems.

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SignifyThird quarter 20211


• Signify's installed base of connected light points increased from 86 million in Q2 21 to 92 million in Q3 21

• Sales of EUR 1,643 million; Comparable Sales Growth of -4.8%, impacted by global supply chain disruptions

• Order book increased by 90% in Q3 21 vs. Q3 20

• LED-based sales represented 83% of total sales (Q3 20: 82%)

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Peers & Profiles

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Kerith RichardsBy Alyssa Kerslake

This past July, Kerith Richards, who has worked for Service Wire Company for the last seven years, was selected as one of tED Magazine's prestigious "30 under 35" winners. 

"I was so surprised and totally honored. It meant a lot to me that my boss, and my company, thought highly of me to nominate me - and then to be compared and chosen from the other surely incredible nominees was pretty cool, too," said Richards of earning the distinction. "I was running out of time, I'll be 35 at the end of this year, but I feel like I'm just getting started in this industry." 

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