Canadian Electrical Wholesaler

June 17, 2022

CEW Statistics Canada Logo 2022 400Manufacturing sales rose 1.7% to $72.3 billion in April, mainly on higher sales in the petroleum and coal product (+3.7%), motor vehicle (+8.2%), and primary metal (+4.1%) as well as higher production of aerospace product and parts (+11.2%) industries. Meanwhile, wood product sales decreased the most (-6.0%).

Sales in constant dollars rose 0.9% in April, indicating that both prices and volume sold contributed to the gains in April. The Industrial Product Price Index rose 0.8% in April.

Petroleum sales continue to increase

Sales of petroleum and coal products marked a new record high, rising 3.7% to $10.1 billion in April, the fourth consecutive monthly gain. Higher prices were mainly responsible for the increase as real value sales increased 0.5%. The global disruptions of energy supply caused by the Russian invasion of Ukraine were responsible for the surge in prices of refined petroleum energy products (including liquid fuels), which increased 4.7% in April. Exports of refined petroleum energy products were up 14.4% in April.

Sales of motor vehicles increased 8.2% to $4.5 billion in April, the third month-over-month increase and the highest sales since August 2020. Year over year, sales in the motor vehicle industry were up 100.4%. Accordingly, sales of motor vehicle parts rose 2.0% to $2.7 billion. Exports of motor vehicles and parts rose 3.9% in April, the highest level since October 2020.

Following an 8.6% increase in March, primary metal sales rose 4.1% to $6.2 billion in April, on higher prices and volumes sold. The limited metal production in China due to the COVID-19 pandemic and global supply interruptions due to the Russia aggression against Ukraine led to an increase in prices of basic and semi-finished iron or steel products (+3.2%). Monthly sales in constant dollars rose 2.9% in April, while year over year, sales were up 26.0%.

Higher production of aerospace product and parts (+11.2%) and higher sales of food (+1.2%) and machinery (+3.0%) also contributed to the gains in the manufacturing sector in April.

Following seven consecutive monthly increases, wood product sales declined 6.0% to $4.5 billion in April, primarily on lower prices. Prices for softwood lumber were down 13.7%, while exports of lumber and other sawmill products decreased 2.6% in April. Wood product sales in constant dollars were down 1.3%.

Sales of paper products decreased 7.9% to $2.5 billion in April, following a 10.1% increase in March. Despite the decline in April, sales of paper products were up 4.1% compared with the same month a year earlier. Sales of paper in real terms fell 10.1% month over month in April.

Sales also declined in the non-metallic mineral product (-3.8%), beverage and tobacco product (-3.4%) and other transportation equipment (-16.0%) industries in April.

Sales in Alberta increase the most, mainly on higher petroleum sales

Manufacturing sales increased in six provinces in April, led by Alberta and Quebec. British Columbia posted the largest decline.

In Alberta, sales rose 6.5% to $9.5 billion in April, primarily on higher sales of petroleum and coal products (+15.5%) and chemicals (+15.1%). The gains were partially offset by lower sales of fabricated metal products (-13.1%). On a year-over-year basis, total sales in Alberta rose 37.6% in April.

In Quebec, sales increased 2.1% to $18.0 billion in April, the fourth consecutive month-over-month gain. The increase was mainly attributable to sales of primary metals (+8.2%) and production of aerospace product and parts (+27.6%). With the increase in April, total manufacturing sales in Quebec were up 20.0% year over year.

In British Columbia, following seven consecutive monthly increases, sales declined 2.9% to $5.8 billion in April, mainly on lower sales in the paper and wood product industries. Despite the decrease in April, total sales in British Columbia stood 7.3% higher compared with the same month a year earlier.

Edmonton marks the largest increase in sales among selected census metropolitan areas

Manufacturing sales increased in 7 of the 15 census metropolitan areas in April, led by Edmonton and Montréal. Sales in Québec declined the most.

Sales in Edmonton were up 12.2% to $4.9 billion in April, mainly on higher sales of petroleum products (+19.1%). The petroleum and coal product industry has been the main contributor to manufacturing sales in Edmonton since February 2022. Year over year, total sales in Edmonton rose 70.3% in April.

Sales in Montréal increased 3.9% to $7.9 billion in April, on higher sales in 10 of 21 industries. The gains were driven by higher production of aerospace product and parts (+72.8%) and sales of machinery (+21.5%) and computer and electronic products (+4.3%).

Sales in Québec fell 8.0% to $2.0 billion in April, following a 16.9% increase in March. Lower sales of petroleum and coal products were almost entirely responsible for the decline. Despite the decrease, total sales in Québec were up 58.8% year over year in April.

Record-high inventory levels continue

Total inventory levels increased 2.3% to $111.8 billion in April, mainly on higher inventories of the machinery (+5.6%), chemical (+3.8%) and miscellaneous manufacturing (+12.6%) industries. Meanwhile, inventories of motor vehicles declined 10.0% in April.

The inventory-to-sales ratio increased from 1.54 in March to 1.55 in April. 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 rise

The total value of unfilled orders rose 2.9% to $103.9 billion in April, the sixth consecutive monthly increase and the highest level since March 2020. The gains were mainly attributable to higher unfilled orders in the aerospace product and parts (+5.0%), fabricated metal (5.9%), and machinery (+3.9%) industries. The total value of unfilled orders rose 22.0% on a year-over-year basis in April.

The total value of new orders marked a new record high, rising 3.1% to $75.2 billion in April mainly on higher new orders of aerospace product and parts, fabricated metals and motor vehicles.

Capacity utilization rate declines on lower production

The capacity utilization rate (not seasonally adjusted) for the total manufacturing sector decreased from 81.9% in March to 79.9% in April on lower production.

The capacity utilization rates fell in 17 of 21 industries in April and were most noticeable in the transportation equipment (-2.7 percentage points), petroleum and coal product (-3.7 percentage points), machinery (-2.7 percentage points) and computer and electronic product (-6.0 percentage points) industries. The declines were partially offset by a higher production capacity rate in the non-metallic mineral product industry (+2.4 percentage points).

Source

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CEW-31-UNEnvironment-WorldAccreditation-400.jpgClimate change poses very real risks to people and the environment. Extreme weather events like the destructive storm we just saw in Ottawa that left thousands without electricity for days, and damaged homes and critical infrastructure, are a stark reminder that we must take action, now.

Countries around the world agree – achieving a more sustainable future is a top priority. Commitments like the UN’s Sustainable Development Goals (SDGs), the landmark Paris Agreement and the ISO London Declaration, bring nations into a common cause to undertake the ambitious efforts it takes to tackle one of our time’s most critical challenges.

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Selling ServicesBy David Gordon, President, Channel Marketing Group

As every distributor knows, there is a labor and driver crisis in every market. It affects hiring warehouse staff as well as drivers. Today’s competition for labor is further exacerbated by competitive environments that can pay $20 / hour plus benefits (aka Amazon and others.) Further, within the electrical industry, many electrical contractors are faced with their own staffing challenges.

Industries have talked about fee-based services and many industry leaders are seizing upon the opportunity to diversify their income stream, improve profitability AND add a valuable service to their customers.

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Eplan Elements CollaborationWhy Use Elements Collaboration

Elements Collaboration represents a new alternative to conventional Project Data Management softwares. It is is a low cost and effective alternative to your dedicated PDM. Here's why:

EPLAN is built from the ground up with features you value in a Project Data Management software. As such, it is faster and can be better integrated to your workflow. This means that you can potentially save on the cost of an additional software without sacrificing productivity.

 

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BirdRecently, Bird Construction Inc. was pleased to announce that it has been selected to lead the design and construction of a state-of-the-art, net-zero plant protein processing facility for Phyto Organix Foods Inc. in Strathmore, Alberta. The value of the progressive design-build contract is approximately $125 million.

Bird will lead the design and construction of the facility and the 3D connectivity to the processing equipment. The 100,000 square foot facility will be the first net-zero plant protein processing facility in North America, employing industry-leading technology solutions to recycle and reuse water, leverage low emission energy sources, and reduce overall energy consumption. 

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Statistics CanadaReal 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.

 

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Become a Wiser Approved Installer

SchneiderGet access to exclusive benefits, product discounts and resources that will help you drive more business, and lower energy bills for your clients.

 

 

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Changing Scene

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AD and TORBSAAD and Torbsa Limited are announcing an agreement to merge the two groups. The merger is expected to close July 1, 2022. Established in Ontario in 1966, Torbsa is a shareholder-owned group made up of twenty-seven independent building supplies distributors, with 48 locations across Canada.

Rob Dewar, president of AD Canada, discussed how Torbsa's strong leadership and financial success made the buying group an ideal match for AD. Rob Dewar, president of AD Canada, discussed how Torbsa's strong leadership and financial success made the buying group an ideal match for AD.

 

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IDEAThe Industry Data Exchange Association, Inc. (IDEA), in collaboration with the National Electrical Manufacturers Association (NEMA) and the National Association of Electrical Distributors (NAED), announces the launch of the Harmonized Data Model (HDM) Advisory Council.

The Harmonized Data Model (HDM) initiative is defining a unified data model in IDEA Connector that enables manufacturers to easily syndicate to multiple formats and empowers distributors’ eCommerce experiences with more consistent, normalized product data.

 

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AimliteAimLite is proud to announce that its Products Warranty has been awarded certification by the National Lighting Bureau’s (NLB) Trusted Warranty Program. The NLB Trusted Warranty Program recognizes excellence in lighting companies that meet objective quality standards and practices regarding their warranty administration.

In order to obtain that certification, AimLite was assessed based on five criteria: formal warranty process, warranty language, length of business/warranty insurance, technical evaluation, and claims review evaluation. By complying with the five evaluation criteria, AimLite clearly demonstrates its commitment to providing quality products and services to its customers.

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EIN FE LEED 400

Franklin Empire Inc., the largest independently owned electrical distributor in Canada, and MONTONI are excited to launch the construction of the company’s new headquarters designed to support future growth. This family-owned 4th generation company is also celebrating its 80th anniversary this year. In summer 2023, Franklin Empire employees will move into their new facility of nearly 190,000-square-feet, conveniently located along Autoroute 40 at the junction of Autoroute 13 in Saint-Laurent and close to the Ericsson and VSL campuses developed by MONTONI. The building, which will be targeting a LEED certification, will triple the firm’s warehouse space and double its office area, while improving the customer experience and providing employees with a work environment adapted to the new reality of today’s job market.

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S&C Electric CompanyS&C Electric Company recently announced Anders Hultberg as its new president of S&C Electric Canada Ltd. Hultberg will assume his new role as the existing president, Angelo Gravina, transitions into retirement.

Hultberg’s vast industry experience includes developing and executing strategies and aligning complex operations to achieve sustainable business growth. Before joining S&C, Hultberg was the senior vice president and managing director of the high-voltage business for North America at Hitachi Energy (formerly ABB Power Grids). Hultberg’s 27-year career with ABB provided him with a variety of operational experience in production, operation, marketing, sales, and R&D. He also held numerous ABB leadership roles across the world, including the past nine years in Canada.

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Peers & Profiles

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Larry SternThe Industry Data Exchange Association, Inc. (IDEA), the electrical industry-endorsed technology service provider and eBusiness standards body, announces its 2022 Board of Directors. Larry Stern, President of Standard Electric Supply, is the IDEA Board Chair for the coming year.

“Larry’s experience and strong leadership are a driving force to tackle industry challenges and pursue IDEA’s roadmap. Today, with the increasing complexity and the increasing volume of data that needs to be exchanged, IDEA is focused on our mission to facilitate the exchange of complete, high-quality transactional and eCommerce product content and serve as the standards body for the electrical industry.” said David Oldfather, President and CEO of IDEA.

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