Canadian Electrical Wholesaler

July 31, 2020

Economy GDP MayReal gross domestic product (GDP) grew 4.5% in May, following two months of unprecedented declines when emergency measures to slow the spread of COVID-19 resulted in widespread shutdowns. In May, provinces and territories started reopening sectors of their economies to varying degrees. While May's gains offset some of the March and April declines, economic activity remained 15% below February's pre-pandemic level.

Both goods-producing (+8.0%) and services-producing industries (+3.4%) were up, as 17 of 20 industrial sectors posted increases in May. 

Given the unprecedented economic situation brought on by the COVID-19 pandemic and the demand for trusted information, Statistics Canada continues to provide an advanced aggregate indicator of the state of the Canadian economy. Preliminary information indicates an approximate 5% increase in real GDP for June. Output across several industrial sectors, including manufacturing, retail and wholesale trade, construction, transportation, accommodation and food services, and the public sector, increased. This flash estimate points to an approximate 12% decline in real GDP in the second quarter of 2020. Owing to their preliminary nature, these estimates will be revised on August 28 with the release of the official GDP for June and the second quarter.

Construction rebounds on gradual reopening

Construction rose 17.6% in May with all types of construction activity expanding in the month. The easing of COVID-19 construction restrictions in May, most notably in Ontario and Quebec, contributed to the largest monthly increase since the series started in January 1961.

Residential construction increased 20.4% following two months of reduced activity. Gains in multi-unit construction along with home alterations and improvements led the way, more than offsetting lower single-unit construction in May. Non-residential construction jumped 56.7% as all three components reported double-digit increases, largely offsetting the two previous months' declines. Repairs (+18.9%) and engineering and other construction (+2.8%) were also up.

Retail trade grows 

Retail trade grew 16.4%, the largest monthly increase since the series began in 1961, as 11 of the 12 subsectors were up. Motor vehicle and parts dealers contributed the most to the growth, with a 68.6% jump in May. If motor vehicle and parts dealers were excluded, retail trade would have increased 11.4%. General merchandise stores rose 19.8%, reaching a pre-pandemic level of activity. Clothing and clothing accessories (+94.8%), as well as sporting goods, hobby, book and music stores (+98.2%), bounced back as shopping malls and stores began to reopen. Furniture and home furnishings stores were up 64.2%, while retail activity at gasoline stations rose 10.9% spurred by higher demand from consumers and newly reopened businesses. Non-store retailers were up for the third consecutive month, rising 5.0% in May, as the shift toward online shopping continued. Food and beverage stores (-1.4%) were down in May after two months of elevated activity.

Manufacturing up as operations resume

The manufacturing sector rose 7.4% in May following a 22.4% decline in April, when many operations experienced full or partial shutdowns in response to local and provincial emergency measures introduced to slow the spread of COVID-19.

Durable manufacturing rose 11.2%, as 8 of the 10 subsectors increased. The transportation equipment manufacturing subsector (+30.5%) contributed the most to the growth, as all industries except aerospace products and parts manufacturing (-5.1%) were up. Most automotive plants gradually reopened midway through the month and the output of motor vehicles and motor vehicle parts slowly resumed. Miscellaneous transportation manufacturing was up 49.6%, fully offsetting the previous two monthly declines. The fabricated metal products (+9.1%) and furniture and related products (+42.5%) manufacturing subsectors were up as the majority of industries expanded, while declines in machinery (-10.3%) and primary metal (-0.4%) manufacturing offset some of the growth.

Non-durable manufacturing rose 4.0%, as seven of the nine subsectors grew. Petroleum and coal products manufacturing (+14.4%) led the growth as refineries (+13.3%) ramped up production. Plastic and rubber products (+16.7%) and beverage and tobacco manufacturing (+18.0%) were also up, while paper (-7.5%) and food manufacturing (-3.0%) declined.

Wholesale trade increases

A broad-based rebound in wholesaling activity in May led to 6.0% growth in the sector, following three months of contraction. Overall, eight of the nine subsectors were up, led by the higher output of building material and supplies merchant wholesalers (+14.4%) as construction activity restarted in many parts of the country. Personal and household goods wholesaling rose 10.7%, with the majority of industries in the subsector increasing their activity. The output of motor vehicle and motor vehicle parts and accessories merchant wholesalers jumped 28.0%, as the result of an increase in activity at motor vehicle and motor vehicle parts plants. Only machinery, equipment and supplies wholesaling (-0.9%) was down.

Healthcare and education up, while public administration contracts

The output of health and social services rose 3.3%, with increases in three of the four subsectors. Leading the growth was an 11.3% increase in ambulatory health care as offices such as physicians, dentists and diagnostic laboratories gradually reopened across the country. Output remained 35% lower than February's pre-pandemic level, as many offices opened at a greatly reduced capacity, limiting the number of appointments to limit the spread of COVID-19. Hospitals (+0.5%) and social assistance (+2.2%) were also up, while nursing and residential care facilities (-2.3%) declined. Educational services rose 6.7%, while public administration (-1.8%) contracted for the third consecutive month. 

Real estate and rental and leasing increase

Real estate and rental and leasing increased 1.5% in May following a 3.4% decline in April. Activity at the offices of real estate agents and brokers jumped 57.1% in the month, as home resale activity in nearly all major urban centres increased in conjunction with a large increase in the number of newly listed homes. Nevertheless, the output of real estate agents and brokers remained 44% below February's level.

Transportation and warehousing up for the first time in five months

The transportation and warehousing sector rose 1.7%, following four consecutive monthly declines. Overall, 6 of the 10 subsectors were up, led by a 6.0% increase in truck transportation and a 2.3% increase in transportation support activities, as demand increased after businesses began to reopen. Postal services, couriers and messengers (+5.8%), and warehousing and storage services (+2.8%) rose in May, as continued growth in online shopping and atypical holiday-like volumes of parcels kept demand high for these services.

While air transportation edged up 1.9% in May from April's all-time low, it was still 96% below January's level before the COVID-19-related travel advisories and restrictions began. Rail (-0.1%) and water (-2.2%) transportation remained low throughout May, as most of the domestic and international travel restrictions aimed at slowing the spread of COVID-19 remained in place. Transit, ground passenger and scenic and sightseeing transportation declined 12.0% in May. A decrease in urban transit services (-10.6%)—attributable to a decrease in ridership and service offerings by transit corporations contracted—and a continuing decline in other transit and ground passenger transportation and scenic and sightseeing transportation (-25.7%) more than offset a 25.8% bounce-back in taxi and limousine services.

Accommodation and food services up

Accommodation and food services rose 24.2%. Activity at food services and drinking places rose 35.1% in May as dining rooms and patios began to open in certain parts of the country, while other restaurants continued relying exclusively on take-out and delivery. Meanwhile, accommodation services dropped 2.3%, as ongoing restrictions on international and interprovincial travel kept most Canadians in their own beds.

Other industries

Mining, quarrying, and oil and gas extraction increased 2.4% in May primarily as a result of increased metal ore mining. Oil and gas extraction (-2.7%) decreased for the fourth time in five months as conventional crude oil production fell to its lowest level since December 2016, while natural gas extraction increased. Support activities for mining, and oil and gas extraction declined 5.9%, mainly because of lower drilling and rigging services.

The professional, scientific and technical services sector was up 1.8% in May, following two months of decline resulting from the restrictive measures implemented to contain the spread of COVID-19. Most industries increased in May.

Finance and insurance grew 0.7% as increases in depository credit intermediation and monetary authorities (+0.8%), and insurance carriers and related activities (+1.2%) offset a decline in financial investment services, funds and other financial vehicles (-0.7%).

Utilities edged up 0.5% in May as growth in electric power generation, transmission and distribution (+1.0%) more than offset lower natural gas distribution (-2.9%).

Arts and entertainment declined 2.9% in May because of a decline in performing arts, spectator sports and heritage institutions as sports arenas remained empty, with zero professional sports games played for the second consecutive month. Amusement and recreation activities were also down, while gambling activities increased.


Source: Statistics Canada, www150.statcan.gc.ca/n1/daily-quotidien/200731/dq200731a-eng.htm?CMP=mstatcan

David Gordon New 400Everyone is an expert in pricing. It’s either too high or too low based upon your role. Salespeople like it low. Management wants it high. The customer wants it “right” which, usually means “competitive” or “It’s reasonable for the value I am receiving.”

And the term “value” is intriguing as it infers that you understand
• the value that you bring
• the value that your product / service brings
• the competitive landscape (which also includes alternatives and inertia)

But I digress. 

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LDS Magiclite LS 400Magic Lite has announced the signing of Lightspec Canada Inc. as their Specification Sales Agent for the GTA.

As the Canadian Division of Lightspec, LLC, NY, this agency is headed by Steve Danzig as President and Neil Whiteford as Sales Manager. This talented sales team has over 150 years combined experience with Lighting Design, Applications, Lighting Controls, Distribution and Project Management. They are committed to bringing attentive service and expertise to their clients for their designs, projects, lighting requirements and acting as their trusted advisor and partner.

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COVID-19By Atul Minocha, Dawn Werry, and Kimberly Miller

When the pandemic first hit, the industrial manufacturing sector was changing daily. Now, at the start of the recovery phase, the whole industry is adapting. Some companies have had to find completely new markets for their products, while others have started making completely new products. Across the board, supply chains have been disrupted. Buyer behaviours have changed and go-to-market strategies have had to adjust in order to keep business moving. Here are four ways industrial manufacturing companies can recover from COVID-19:

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Gurvinder ChopraBy Gurvinder Chopra

In June 2019, the U.S. grid regulator, NERC, issued a warning that a major hacking group was conducting reconnaissance into the networks of electrical utilities. Just one month later, several major industrial firms announced they had been victims of a state-sponsored hacking campaign.

A year later, hackers targeted over 75 organizations around the world in the manufacturing, media, healthcare, and non-profit sectors, as part of a broad-ranging cyber espionage campaign.

 

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Value of Building Permits - JuneThe $687 million Oakridge Centre mixed use redevelopment project in the city of Vancouver helped raise the total national value of building permits 6.2% to $8.1 billion in June, to a level comparable to pre-COVID levels. Overall, seven provinces reported gains for the month.

Residential permits rise

The total value of residential permits was up 7.0% to $5.3 billion, with gains posted in six provinces. British Columbia posted its third largest value on record for residential permits in June, up 20.4% to $1.3 billion due to large projects such as the Oakridge Centre redevelopment. 

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Changing Scene

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SouthwireSouthwire has long held a commitment to sustainability, dating back to its first official sustainability report in 2007. Reflecting that commitment, the company recently launched its 2019 sustainability report, prepared in accordance with the Global Reporting Initiative (GRI) Standards, featuring an exciting new goal called Carbon Zero.

The 2019 report highlights all areas of sustainability at Southwire and showcases the company’s most significant impacts by focusing on its five key tenets – Growing Green, Living Well, Giving Back, Doing Right and Building Worth.

 

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CSAOn May 8, 2020, Gianluca Arcari was appointed Executive Vice President & Chief Commercial Officer at CSA Group, reporting to David Weinstein, President & CEO. In this role, Gianluca will be responsible for growing CSA’s global Testing, Inspection and Certification (TIC) organization. Leading a team of more than 200, Gianluca will guide and develop global commercial market sector strategies across CSA Group’s global business units in Home and Commercial, Industrial and Healthcare.

“Gianluca is widely known and respected for his technical and business skills both within CSA Group and in the global TIC market, making him an excellent choice for this role,” said David Weinstein.

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Robin Billingsley"It is with heavy hearts that we inform you of the passing of our longtime Marketing Manager, Robin Billingsley," said Beghelli General Manager, Bruno R. Ardito in a heartfelt letter to Beghelli customers.

"Robin had been battling breast cancer for the past few years and on July 23rd, Robin’s battle ended at 40 years young. We have had the pleasure of working with Robin for 13 years and in those 13 years, she executed many of the products and programs we have today. Robin truly represented Beghelli/Beluce ideals, philosophy and vision. 

 

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Peers & Profiles

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Jenny Ng is a Business Development Manager for the Power Solutions Division of Schneider Electric. ...

LDS CBC Lighitng logo 400By Blake Marchand

CBC Lighting has established itself as a premier lighting wholesaler in Canada as well as the U.S. During the pandemic they were able to leverage that expertise to help fill an increased demand for T-UV lamps and ballasts.

Obviously with the global pandemic there has been increased focus on PPE and other sanitary products like hand sanitizer, disinfectant wipes, as well as Ultraviolet light that kills germs. LDS has published several reports from industry organizations that have recently conducted research studies on the effectiveness of T-UV lamps on neutralizing the COVID-19 virus. 

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