Canadian Electrical Wholesaler

Sept 16, 2020

CEW manufacturing 400Manufacturing sales increased for the third consecutive month, rising 7.0% to $53.1 billion in July on higher sales of motor vehicle and parts. Nevertheless, manufacturing sales remained 5.4% below February's pre-pandemic levels.

Excluding the transportation industry, manufacturing sales grew 3.3%.

Sales rose in 13 of 21 industries, representing more than two-thirds (68%) of total sales in the manufacturing sector.

Capacity utilization rates rose as many industries continued to ramp up production.

Manufacturing sales in constant dollars increased 6.1%, indicating a higher volume of products sold in July.

Motor vehicles and parts drive the sales growth

Sales in the transportation equipment industry rose by almost one-quarter (+24.1%) to $11.0 billion in July, mainly due to higher sales of motor vehicles and parts. Despite summer shutdowns, motor vehicle sales rose by one-third (+32.9%) to $5.3 billion, following a 282% increase in June. Many auto manufacturers shortened or skipped their summer shutdowns this year. Higher sales may also reflect lower inventories on hand. Sales of motor vehicle parts rose 38.9%, in tandem with the gain in the assembly industry. According to the Retail Trade Survey, motor vehicle and parts sales rose 53.4% in June as dealership closures ended in many regions. The Canadian international merchandise trade survey for July also shows that higher exports of motor vehicles and parts to the United States contributed to the trade gains observed for July.

Petroleum and coal product sales rose 13.0% to $3.7 billion in July on higher prices and volumes. Nevertheless, year-over-year sales were down 39.4%. Constant dollar sales of petroleum products rose 8.9% in July.

Sales in the plastic and rubber product industry increased for the third consecutive month, rising 15.1% in July—partly on increased demand for plastic and rubber auto parts. The capacity utilization rate in this industry stood at 75.9% in July, up from 53.4% in April and 3.9 percentage points above March at the onset of the pandemic.

Food sales declined 1.7% in July, following two consecutive monthly gains. The decline in July was attributable to lower seafood sales following a 28.4% increase in June, when fishing activities reached their peak. The unadjusted decline (-39.3%) in seafood in July was larger than previous years.

In June, the Chinese government enacted new testing measures for live and processed lobster imports before they can enter the country. The new measures disrupted lobster sales in July.

Following two consecutive monthly increases, sales in the primary metal industry declined 1.4% to $3.5 billion in July. Primary metal manufacturing has lagged other industries during the recent recovery, in part due to metal pricing and lower domestic demand. Year-over-year sales were down 15.1% in July. Sales in constant dollars decreased 3.0%.

Sales in Ontario continue to rebound, albeit at a slower pace

Manufacturing sales rose in seven provinces in July, led by higher sales in Ontario and British Columbia.

Sales in Ontario rose by 12.8% to $26.0 billion in July, following a 39.9% increase in June. Higher sales of motor vehicles and motor vehicle parts were primarily responsible for the gains. Many auto assembly plants in Ontario shortened their scheduled shutdowns and maintenance and increased capacity, which reduced the inventories that had accumulated during March and April.

British Columbia posted the second largest sales increase in July, with sales up 4.3% to $4.2 billion. Approximately half the gain reflected higher wood product sales (+11.8%). Wood product sales also rose in June (+19.0%), and these gains come amid a substantial rise in housing starts in both Canada and the United States since April. Sales in British Columbia were also up in the transportation equipment, and petroleum and coal product industries.

Manufacturing sales also rose 10.6% in Manitoba, reflecting higher transportation equipment sales. In Alberta, sales were up 3.0% largely as a result of higher petroleum and coal product sales.

Following a 16.4% increase in June, sales in Nova Scotia declined 6.1% to $712 million in July on lower transportation equipment.

Toronto leads the sales growth among selected census metropolitan areas

Manufacturing sales on an unadjusted basis rose in 7 of the 12 selected census metropolitan areas (CMAs) in July, led by Toronto (+1.7%) and Edmonton (+6.4%).

Chemical and food manufacturing drove the gain in Toronto, while in Edmonton the increase was attributable to petroleum and coal products. Sales in Toronto and Edmonton have been rising since April.

Manufacturing sales in Montréal were down 6.5% following two consecutive gains. The decline in July was due to lower sales in the transportation equipment industry and the primary metal industry.

Inventory levels decrease

Total inventories decreased 0.8% to $86.4 billion in July, their lowest level since February 2019. Inventories declined in 15 of 21 industries in July, led by the machinery and the aerospace product and parts industries.

Inventory levels started to decrease in April as production was disrupted at many manufacturing plants due to physical distancing measures. The transportation equipment industry alone has accounted for 45% of the decline in total inventories since the peak in March.

The inventory-to-sales ratio decreased for the third consecutive month, falling from 1.76 in June to 1.63 in July. Nevertheless, the ratio remains above February levels (1.56). This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.

Unfilled orders decline

Manufacturing unfilled orders decreased for the fourth consecutive month, falling 1.2% to $92.5 billion in July—its lowest level since September 2018. The aerospace product and parts industry (-1.4%) contributed the most to the decrease in unfilled orders in July.

The appreciation of the Canadian dollar relative to the US dollar, combined with the delivery of business aircraft, contributed to the drop in unfilled orders in the aerospace industry over the previous four months.

Unfilled orders were also down in the fabricated metal product (-2.6%) and computer and electronic product (-2.4%) industries.

Unfilled orders of primary metals rose 7.9%.

New orders rose for the third straight month, up 9.0% to $52.0 billion in July, partly on higher new orders of motor vehicles and parts.

Capacity utilization rate increases

The capacity utilization rate (not seasonally adjusted) for the total manufacturing sector rose from 74.3% in June to 74.9% in July. Data from the Labour Force Survey for July reported that employment in the manufacturing sector in Canada gained 29,000 in July, bringing employment to 93.6% of its February level.

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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Carol McGloganBy Carol McGlogan

EFC has just polled our members to determine the game changers that keep them up at night. Understandably, COVID-19 topped the list this year. However, talent remained the biggest issue outside of the pandemic. In September, members will have a chance to gather insights from EFC’s most recent research study: Talent for an Emerging Workforce. 

This is not intended as a spoiler alert, but “upskilling of current employees” is identified as one of the critical strategies that members need to employ...

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Manufacturing Sales - JuneManufacturing sales rose by a record 20.7% to $48.7 billion in June, following an 11.6% increase in May. Many factories operated at a much higher capacity in June, with the capacity utilization rate (not seasonally adjusted) for the total manufacturing sector increasing 10.9 percentage points to 73.3%.

Consistent with the increase in sales and capacity utilization in June, the May reference month release of the Canadian Survey on Business Conditions indicated that almost one-fourth (23.9%) of manufacturers expected to increase their number of employees over the next three months. Still, the capacity utilization rate remained 8.0 percentage points below the June 2019 level (81.3%). 

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WescoBy John Kerr

Last week Wesco held its first call detailing its results post merger with Anixter. This meeting followed Wesco’s agreement with Competition Bureau Canada to divest its legacy utility businesses (Trydor, Brews and Laprairie), along with its datacom business with annual revenues approaching CDN$200 million, according to the release of August 6.

Canadian Electrical Wholesaler estimates the merged group after divestitures will reach just under CDN$2 billion, making it the largest electrical distributor in Canada ahead of Sonepar and Rexel...

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Changing Scene

  • Prev
Late April 2020 ECM Industries acquired ILSCO. Since that time, they have been integrating the two ...
Since 1993, E.B. Horsman & Son(EBH) has been a proud supporter of BC Children’s Hospital ...
Southwire has aquired Construction Electrical Products (CEP) of Livermore, CA. Serving the ...
Salex has announced the expansion of its lighting agency to Southwestern Ontario.   ...
IDEA will be hosting a Webinar series that will feature a glimpse of the insight and valuable ...
On August 26th Sonepar Canada's divisions of Dixon, MGM, and Gescan Ontario launched their new web ...
Excellence in Manufacturing Consortium (EMC) recognizes the importance of maintaining high level ...
Stanpro have announced the retirement of Dennis O'Keefe, releasing the following statement ...
Mr. Steven Wright joins IMARK Electrical, Inc. as the Vice President of Supplier Relations and ...

CEW supplychain efc 400EFC’s 2nd Annual Supply Chain Summit will be held virtually. You won’t want to miss this event…where the electrical industry meets modern supply chain technologies and emerging trends.

Overview: Digital technologies have amplified the features and functionality of our electrical products and are fast-becoming mainstream in how we service our customers and partners. Learn how your organization can pivot its supply chain strategy towards a digitized and automated enterprise, optimizing supply chain management to reach new service levels, lower costs and improve overall operational effectiveness.

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EIN 55 AD NewCanadaWarehouse 400AD is announcing that its new Canada warehouse and meeting center, located in the greater Toronto area, is officially open for business. The new facility provides Canada-based AD members with redistribution of over 75 product lines of industrial, safety and janitorial items, including private-label brand Tuff Grade.

The original warehouse location came to AD as a part of its merger with IDI in 2019. Until now, it was available exclusively for use by members in the Industrial & Safety-Canada Division. The new facility, nearly double in size from the former location, broadens the scope of AD’s warehousing capabilities to all AD divisions in Canada, paving the way for growth and added services for members.

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Steven WrightMr. Steven Wright joins IMARK Electrical, Inc. as the Vice President of Supplier Relations and Development effective September 1, 2020.  Mr. Wright will report to Jerry Knight who is transitioning to President of IMARK Electrical as of November 1, 2020.

Mr. Wright comes to us with a varied background in wholesale distribution with Vallen / Sonepar, WESCO, Ace & True Value Hardware. 

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CEW Ricard Corinne 400The addition of a new member to Ricard Agency’s team is in line with the growth and development strategy the agency has envisioned for the province of Quebec and the Ottawa region.

As an outside sales representative, Corinne Galarneau will mainly cover the south shore of Montreal as well as the eastern side of the island. She will represent and support manufacturers in Ricard agency’s portfolio while developing strong, ongoing relationships with prospects and customers.

With over 12 years of experience in public relations and marketing, Galarneau excels in business development, more specifically in the sales of world-class products and services.

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Peers & Profiles

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Tim King, Southwire Canada’s new President and first Canadian to assume the role, has taken the ...
Mission Technical Solutions is a recently established sales agency founded by industry veteran ...
  Sonepar is excited to introduce Anju Uddin as the new Marketing Manager for their Ontario ...
Electro-Federation Canada’s Young Professional Network (YPN) is a fantastic tool for industry ...
Sean Bernard is the Intelligent Controls Manager, Canada for Ideal Industries. Sean resides in ...
Jenny Ng is a Business Development Manager for the Power Solutions Division of Schneider Electric. ...

CEW 18 PP TimKing 400By Line Goyette

Tim King, Southwire Canada’s new President and first Canadian to assume the role, has taken the helm in the midst of the midst of the COVID-19 health crisis.

Previously, Tim served as Southwire Canada’s Director of Finance, HR and Administration. He has a background in economics and finance from Wilfred Laurier University. As a student, he was convinced that having a solid understanding of finance and economics would be an essential foundation to build his professional future. Over the course of his career, he purposefully acquired a broad range of skills, experience and knowledge to succeed in his new role. “I’ve had the opportunity to have worked for two large Fortune 500 corporations and I was very fortunate to have been exposed to many areas of the business. In fact, I have held 9 different roles in 15 years, in finance, operations, marketing and sales.”

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Trevor ElliottBy CEW Editorial Team

Mission Technical Solutions is a recently established sales agency founded by industry veteran Trevor Elliott. Panduit announced it would move to an agent representation model across North America earlier this year and named MTS as its Canadian representative, outside of the Atlantic provinces.

In this role, Elliott brings a long history in both supply and electrical distribution in Canada and he and his team are experienced in the Panduit electrical product line. Joining Elliott are Jean Pierre La France, Dennis Wight, Keith McRobbie, Kevin Wilkinson and Paul Stoynich. 

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