Canadian Electrical Wholesaler

July 26, 2021

Non-Mortgage Borrowing from Chartered Banks in March 2020The outstanding credit debt of private non-financial corporations doubled from the height of the financial crisis in 2008 to early 2020. At the onset of the pandemic in March 2020, businesses added a record $52.1 billion in credit debt to their balance sheets. However, according to a new study, as other sources of financing became available and businesses adapted to the pandemic, outstanding loan balances with banks declined for eight consecutive months.

The study Trends in Canadian business debt financing: Before and during COVID-19 looks at the types of credit debt private non-financial corporations incurred prior to and during the COVID-19 pandemic, and examines how they used that liquidity to weather the economic turbulence during this period.

Outstanding credit debt of private non-financial corporations doubles from 2008 to early 2020

Business credit prior to the 2008 financial crisis was growing at a more modest pace relative to gross domestic product (GDP). By the end of 2020, business credit had more than doubled, with the debt-to-GDP ratio accelerating sharply, even prior to the emergence of COVID-19.

In nominal terms, businesses owed $600 billion at the end of 2007. From 2008 onwards, the trajectory of debt-to-GDP steepened as economic growth slowed and new crises emerged, such as the oil shock beginning in 2014, and more recently, the global COVID-19 pandemic.

At the onset of the pandemic, the outstanding credit debt of private non-financial corporations totalled $1.7 trillion and represented just under 72% of GDP.

Businesses took on a record amount of credit debt at the onset of the pandemic…

… but the sources of funds have shifted dramatically. In March 2020, businesses added a record $52.1 billion in credit debt to their balance sheets. This financing was mainly in the form of bank loans, as businesses likely drew upon existing credit facilities with financial institutions to cover current and anticipated expenses in light of the high levels of uncertainty at the beginning of the pandemic.

The spike in non-mortgage borrowing from chartered banks of $50.1 billion in March 2020 shattered the previous record of $15.0 billion set the previous year. At the same time, currency and deposit assets rose $49.1 billion to $600.9 billion at the end of the first quarter, indicating that much of this cash may not have been spent immediately, and instead accumulated as a buffer in response to the emerging crisis.

However, as other sources of financing became available, outstanding non-mortgage loan balances with banks began eight consecutive months of decline, including record paybacks in May ($15.5 billion) and June ($20.2 billion). Government programs and other borrowing facilities filled the need for financing in the months following the initial stay-at-home orders, and in many cases, did so with attractive terms, including zero-interest rates and future loan forgiveness.

On a cumulative basis, from the start of the pandemic up to December 2020, business's non-mortgage loan liabilities with banks decreased $14.3 billion overall, despite the strong March borrowing, while total debt financing rose $89.3 billion over the same period. This was the result of increasing non-mortgage loan balances with government and the net issuance of debt securities.

Source: Statistics Canada, www150.statcan.gc.ca/n1/daily-quotidien/210726/dq210726c-eng.htm?CMP=mstatcan Study: Trends in Canadian business debt financing: Before and during COVID-19, 2020

Contribute Your Product Knowledge to Develop the Industry’s Harmonized Data Model (HDM)

IDEA Harmonized Data ModelHave you heard about the industry’s Harmonized Data Model (HDM) initiative? IDEA, in partnership with NAED, is calling all product experts to get involved and be recognized by the industry. People who join the Product Expert Task Force will impact the future of the electrical distribution channel.

In the next 6 months, subject matter experts (SMEs) will be harmonizing the categorization for dozens of product categories. It’s an opportunity for industry experts to participate as a SME in the HDM initiative.

 

 

 

For more information Go Here.


 

 

McKenna

By Rhonda Cox, Regional Sales Manager, Western Canada, EGLO Canada

It is with pleasure that EGLO Canada annouces the nomination of McKenna Agencies as our representation in the specification market as well as electrical distributor channel for the markets of Alberta, Yukon, Northwest Territories and parts of B.C.

Covering various interveners within the specification market (engineers, architechts and designers), McKenna Agencies is a privately-owned-andoperated company whose history under its current ownership dates back to 1988. 

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Sonepar CioffiRenato

Sonepar has officially signed an agreement for the acquisition of 100% of shares in CioffiRenato. Founded in 1974, CioffiRenato is a company active in the distribution of electrical material operating in the Lecce province, with its headquarters in Casarano.

In 2021, with its two branches serving all the area, the company recorded sales of around €10 million. It employs 17 associates and 2 sales representatives. Thanks to this acquisition, Sonepar, already present in Puglia with six branches, will strengthen its business in the region.

 

 

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Chris Farrah

Electrozad have recently announced the retirement of Sales Representative Chris Farrah, on July 29th, 2022. Chris began his career with Electrozad on February 20th, 1983. His first position was doing deliveries as a truck driver, then advanced to a warehouse position, then a Customer service/Counter sales representative.

Finally in 1991, Chris was promoted to the position of Sales Representative where he continued to excel and increase his relationships with customers and vendors for the remainder of his career. Chris had been a valuable member not only of Electrozad's business but of the Electrozad family too. 

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Franklin Electric

 

Franklin Electric Co., Inc. released its third annual Sustainability Report this month, once again providing transparency, insight and data related to the Company’s performance toward Environmental, Social and Governance (ESG) initiatives and goals. The commitment to these initiatives and goals led the Company to be named to Newsweek’s 2022 list of America’s Most Responsible Companies.

This year’s report includes several details related to product advancements, employee health and wellness programs, and manufacturing initiatives. 

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Doug Bunting

I am pleased to announce the appointment of Doug Bunting as Senior Sales Manager, Western Ontario District effective Aug 2nd, 2022. Doug will continue to report directly to me. Doug is a well-known industry veteran who has held many leadership positions over his 35 years with Westburne.

In this role, Doug will drive commercial sales activities and will help recruit, mentor, and develop our team of commercial account managers, branch staff, and project managers. He will focus on accelerating sales growth in the Western Ontario District and will play a key role in supporting vendor and customer relationships.

 

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Greg Parsons

It is with mixed feelings that Stanpro recently announced that Greg Parsons, Vice-President of Sales, will be retiring at the end of the year. Greg has been with Stanpro for the last 18 years as well as four years with Standard prior to joining Stanpro. Greg has been a key contributor to the success and growth Stanpro has known. He has been the face and leader of the sales force; he has built strong long-lasting relationships with customers and partners and he has been a pillar and mentor for many.

With Greg retiring, Stanpro are very pleased to announce the nomination of Adam Silverman as the National Sales Director. This nomination is effective immediately. 

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Jennifer Penton

Magic Lite is proud to announce the appointment of Jennifer (Jen) Penton to the position of National Sales Manager. Jen joins the team with a proven track record having spent the last 10 years in business development and project management with engineering consulting firm GHD.


Prior to this she earned a PhD at the University Of Western Australia. As the daughter of Magic Lite founder and CEO Tom Penton, Jen is very familiar with the company and its operations and is looking forward to bringing her passion and drive to the family company.

 

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AES Acquisition

RESA Power, LLC has recently announced the acquisition of Advanced Electrical Services, Ltd. Based in Alberta, Canada, Advanced Electrical Services (AES) is a NETA accredited company that has two locations in Calgary and Edmonton from which it has been providing electrical testing services since 2008 throughout Western Canada.

AES specializes in providing medium and high voltage services and products into the renewable energy, mining, commercial, utility, and oil & gas market segments in Western Canada. RESA Power was acquired by Investcorp, a leading global alternative investment firm, in December 2021 and this marks the first add-on acquisition under their ownership.

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