Canadian Electrical Wholesaler

May 30, 2022

CEW Statistics Canada Logo 2022 400

Real gross domestic product rose 1.1% in February, the largest monthly growth rate since March 2021. Inflationary pressure remained in April 2022, when the Canadian Consumer Price Index (CPI) rose 6.8% year over year, a slight increase from March 2022 (+6.7%). After surging by nearly 340,000 in February, employment rose by an additional 73,000 in March as Omicron-related restrictions eased, and was little changed in April. After reaching a record low of 5.3% in March, the unemployment rate edged down 0.1 percentage points to 5.2% in April.

From April to early May 2022, Statistics Canada conducted the Canadian Survey on Business Conditions. The survey collects information on the environment businesses are currently operating in and their expectations moving forward.

The combination of inflationary pressures, labour challenges and supply chain issues has impacted businesses in a number of different ways. Businesses continued to expect to face a variety of obstacles over the next three months (see Note to readers) related to rising costs, hiring and recruitment, as well as those related to supply chains. Many businesses that were facing challenges maintaining inventory levels or acquiring inputs, products and supplies, either domestically or abroad, expected these challenges to worsen in the short term. Over the next three months, half of businesses expected their profitability to remain relatively unchanged, nearly two-fifths expected to increase the prices they charge, and over three-quarters expected their number of employees to remain the same.

Businesses are faced with a variety of obstacles and future unknowns

Businesses expected to face challenges related to rising costs. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index, decreased 2.0% on a monthly basis in April 2022, and rose 38.4% year over year. This followed an 11.8% increase on a monthly basis in March 2022. Meanwhile, average hourly wages for employees rose 3.3% (+$0.99) on a year-over-year basis in April, and energy prices increased 26.4% year over year. The rising cost of inputs, including labour, capital, energy and raw materials, was the most commonly expected obstacle over the next three months (see Note to readers), with 49.7% of businesses expecting it to be an obstacle, relatively unchanged from half (50.3%) of businesses in the first quarter of 2022. The rising cost of inputs was expected to be an obstacle for 3 in 4 businesses in agriculture, forestry, fishing and hunting (75.6%) and manufacturing (75.4%); and for nearly two-thirds of businesses in construction (64.7%) and accommodation and food services (64.0%).

Nearly two-fifths (39.3%) of businesses expected transportation costs to be an obstacle over the next three months. This was expected by nearly two-thirds (64.5%) of businesses in manufacturing and around three-fifths of businesses in wholesale trade (60.5%) and construction (59.8%).

Nearly one-third (32.8%) of businesses expected the cost of insurance to be an obstacle over the next three months. This was expected by about half of businesses in transportation and warehousing (51.3%) and agriculture, forestry, fishing and hunting (49.0%).

Supply chain challenges continue

Over one-quarter (28.2%) of businesses expected difficulty acquiring inputs, products or supplies domestically. Of these businesses, nearly three-fifths (57.3%) expected these challenges to continue for six months or more, up from the first quarter of 2022 (52.4%). Meanwhile, nearly one-third (30.8%) were uncertain how long these challenges will persist. Over half of businesses in agriculture, forestry, fishing and hunting (52.9%) and manufacturing (52.0%) expected difficulty acquiring inputs, products or supplies domestically over the next three months.

Of businesses that expected supply chain challenges (difficulty maintaining inventory levels, or acquiring inputs, products or supplies domestically or abroad) over the next three months, over two-thirds (67.9%) reported that challenges experienced by the business have worsened over the last three months. Leading factors that contributed to worsened supply chain challenges were increased delays in deliveries of inputs, products or supplies (84.1%); increased prices of inputs, products or supplies (78.5%); and supply shortages resulting in fewer inputs, products or supplies being available (75.7%).

While 8.1% of businesses expected supply chain challenges to improve over the next three months, over half (56.0%) expected the situation to remain about the same. Over one-third (35.9%) of businesses expected supply chain challenges to worsen.

More businesses expect to raise prices over the next three months compared with the first quarter of 2022

The CPI rose 3.4% on an annual average basis in 2021, following an increase of 0.7% in 2020. In April 2022, Canadian consumer prices rose 6.8% year over year following a 6.7% increase in March. This was the largest increase since January 1991 (+6.9%). When asked about their expectations over the next three months, nearly two-fifths (39.0%) of businesses expected to raise prices, a continued increase from just over one-quarter (25.9%) of businesses that expected to do so in the fourth quarter of 2021, and over the one-third (35.7%) of businesses that expected to do so in the first quarter of 2022. Over half of businesses in manufacturing (60.3%), retail trade (56.6%), accommodation and food services (54.0%), construction (52.6%), and wholesale trade (52.4%) expected to raise prices over the next three months.

Over half (52.5%) of businesses expected profitability to remain relatively unchanged. Nearly 3 in 10 (29.5%) expected their profitability to decrease over the next three months, while 15.3% expected their profitability to increase. Expectations on future profitability differed by industry. Nearly half (49.3%) of businesses in accommodation and food services and over two-fifths (43.6%) of businesses in transportation and warehousing expected profitability to decrease. Meanwhile, nearly one-quarter of businesses in arts, entertainment and recreation (23.9%) and manufacturing (22.0%) expected profitability to increase.

Over three-quarters (76.9%) of businesses expected to retain the same number of employees over the next three months, similar to 77.8% during the first quarter of 2022. Conversely, 5.0% of businesses expected their number of employees to decrease, down from 8.1% in the first quarter. In accommodation and food services, 8.3% of businesses expected a decrease in the number of employees over the next three months.

Businesses have recruitment, retention and training plans to address workforce-related obstacles

Businesses have been facing obstacles related to the workforce. The labour force participation rate—that is, the share of the population aged 15 and older who are either employed or unemployed—was 65.3% in April 2022. Excluding a dip in January 2022, the participation rate has hovered around its pre-COVID-19 February 2020 level since September 2021. Recruiting skilled employees was expected to be an obstacle over the next three months for nearly two-fifths (36.9%) of all businesses, led by those in construction (49.5%), manufacturing (47.4%), and accommodation and food services (46.3%). In addition, shortage of labour force was expected to be an obstacle for over one-third (35.0%) of businesses, while retaining skilled employees was expected to be an obstacle for over one-quarter (27.6%).

Of businesses that expected to have labour-related obstacles (shortage of labour force, recruiting skilled employees or retaining skilled employees) over the next three months, over half (54.6%) expected these obstacles to lead to management working increased hours, while nearly half (47.3%) expected existing staff to work increased hours as a result. Further expected impacts of labour-related obstacles included limitation on the businesses' growth (39.4%), hiring less-suitable candidates (37.4%), and delays in providing orders to customers (28.5%).

In terms of vacant positions, 8.8% of businesses expected to have more job vacancies over the next three months. However, 24.6% of businesses in accommodation and food services expected to have more vacant positions, nearly triple the proportion of all businesses.

Businesses anticipate inflation to be a bigger issue when discussing wage increases with employees

In the context of a tightening labour market, average hourly wages for employees rose 3.3% (+$0.99) on a year-over-year basis in April, similar to the growth observed on a year-over-year basis in March (+3.4%). Meanwhile, in April, the CPI was up 6.8% on a year-over-year basis. Over half of businesses (55.2%) expected inflation to be a bigger issue when discussing wage increases with employees over the next 12 months, with over three-quarters (76.1%) of businesses in accommodation and food services and 7 in 10 (70.9%) businesses in manufacturing expecting the same.

Businesses expect increases in energy expenses

Year over year, consumers paid 36.3% more for gasoline in April. Meanwhile, prices for natural gas rose 22.2% and prices for fuel oil and other fuels rose 64.4% year over year in April. Overall, consumer energy prices increased 26.4% year over year. Nearly half (44.0%) of businesses expected increases in energy expenses over the next three months. Some of the leading strategies these businesses planned to adopt in light of any increases were raising prices of goods and services offered (56.8%); changing business practices or processes to reduce energy consumption (18.7%); investing in or switching to energy-efficient technologies (8.8%); and reducing purchases of inputs, either energy- or non-energy-related (8.0%).

Overall position now compared with 2019

Two-thirds (36.9%) of businesses reported that they were in a similar position now compared with 2019, led by businesses in real estate and rental and leasing (47.3%), construction (41.1%), and health care and social assistance (41.0%). Over one-quarter (27.3%) of businesses reported that they were in a better position overall now compared with 2019, led by businesses in professional, scientific and technical services (38.4%); manufacturing (34.7%); and finance and insurance (33.4%). Meanwhile, 27.7% of businesses reported that they were in a worse position overall now compared with 2019. This was led by businesses in accommodation and food services (46.0%); transportation and warehousing (35.1%); and arts, entertainment and recreation (34.3%).

Source

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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