Canadian Electrical Wholesaler

March 16, 2021

CEW Int Investment 400Despite ongoing current account deficits and the corresponding need for foreign borrowing, Canada's net foreign asset position continued its upward trend in the fourth quarter to reach an unprecedented level of $1,360.6 billion. For a third consecutive quarter, the increase (+$248.1 billion) was attributable to higher foreign equity prices and was moderated by the revaluation effect resulting from fluctuations in exchange rates.

Over the quarter, changes in market prices led to a $345.3 billion increase in Canada's net foreign asset position. Major foreign stock markets outperformed the Canadian stock market in the fourth quarter. While the Canadian stock market increased by 8.1% over the quarter, the US stock market grew by 11.7%, the European stock market rose by 11.2%, and the Japanese stock market gained 18.4%. A much higher proportion of Canada's international assets (70.8%) are held in the form of equities than liabilities (39.7%). As a result, changing stock market conditions also tend to affect Canada's international assets more severely than its liabilities.

The revaluation effect resulting from fluctuations in exchange rates (-$92.9 billion) moderated the overall increase in Canada's net foreign asset position. Over the quarter, the Canadian dollar gained 4.8% against the US dollar, 0.1% against the euro and 2.3% against the Japanese yen, but lost 1.0% against the UK pound sterling. At the end of the fourth quarter, 96.4% of Canada's international assets were denominated in foreign currencies, compared with 40.3% of its international liabilities.

Net borrowing from abroad was negligible and therefore had a limited impact on the change in Canada's net foreign asset position in the fourth quarter. Nonetheless, both Canadian acquisitions of foreign assets and borrowing from abroad were strong and contributed to the increase in the value of Canada's international assets and liabilities.

Canada's international assets and liabilities increase significantly

Canada's international assets were up by $497.3 billion to a record high of $6,582.0 billion at the end of the fourth quarter. The upward revaluation attributable to market price changes (+$467.9 billion) and substantial investments (+$204.6 billion), mainly in the form of shares and currency and deposits, led the increase. However, the downward revaluation (-$168.4 billion) resulting from fluctuations in exchange rates moderated the overall growth.

On the other side of the ledger, Canada's international liabilities were up $249.3 billion to $5,221.5 billion, also on higher market prices (+$122.7 billion) and larger foreign borrowing activity (+$205.2 billion), mainly in the form of currency and deposits. The downward revaluation (-$75.5 billion) coming from the fluctuations of the Canadian dollar against foreign currencies moderated the overall increase.

Year 2020

Despite the volatility observed on global stock markets at the beginning of the year as a result of the uncertainty caused by the COVID-19 pandemic, Canada's net foreign asset position increased by $381.8 billion in 2020, the largest yearly increase since 2015. While the change in Canada's net foreign asset position in 2020 resulted mainly from revaluations attributable to market price fluctuations (+$456.7 billion), the change in 2015 resulted from revaluations attributable to fluctuations in exchange rates. While the European and the UK stock markets closed the year at a lower level than in 2019, the Canadian stock market gained 2.2% and the US stock market grew by 16.3% in 2020. At the end of 2020, 38.5% of Canada's international assets were held in the form of US equities.

Canada's gross external debt was up $246.0 billion to reach $3,147.4 billion at the end of 2020. It represented 136.4% of Canada's gross domestic product; this proportion was at 123.8% at the end of 2019.

About half of the increase in Canada's gross external debt stemmed from the government sector, whose gross external debt was up $119.1 billion to reach the unprecedented level of $589.2 billion at the end of 2020. To support enterprises and households affected by the COVID-19 pandemic, the federal government substantially expanded its overall borrowing activity in 2020, resulting in a record amount of debt securities being acquired by foreign investors.

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Jean-Pascal TricoireBy Jean-Pascal Tricoire

The challenges facing industry at the moment are tough: supply chain disruptions, recurring lockdowns and lingering travel restrictions, to name just a few. We’re all trying to find the balance between overcoming these challenges while working to a future where we are more resilient, sustainable and efficient.

But today’s efforts are not enough. We’re being too conservative. More of our collective energy needs to be spent on the practical “how” — the “how can we get there with immediate actions.” 

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RittalIt is April 1, 1961, when an international success story begins in a small weaving mill in central Hesse — the standardization of enclosures. Rudolf Loh founds the Rittal company and changes the industry with one idea. The standard enclosure is used in millions of product solutions in over 90% of all industries worldwide. Rittal is the innovation and world market leader for enclosure technology and IT infrastructure.

10,000 employees worldwide work on new innovations, industry solutions and business models. A small steel manufacturing company has become a global digital enterprise. 

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David GordonBy David Gordon

Electrical distributors are at a unique moment in time where they have an opportunity to leverage technology to utilize the data it can unleash to accelerate profitability and sales cost-effectively.

Being in an information age is only beneficial if the information is utilized. Enhanced sales models, sales opportunities and servicing systems are combining to help differentiate distributors. Aside from a distribution divide being created by digital and supplier selection, analytics can either widen or tighten the divide.

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GDP - January 2021Real gross domestic product (GDP) rose 0.7% in January, following 0.1% growth in December. This ninth consecutive monthly increase continued to offset the steepest drops on record in Canadian economic activity observed in March and April 2020. However, total economic activity was about 3% below the February level before the COVID-19 pandemic.

Both goods-producing (+1.5%) and services-producing (+0.4%) industries were up in January as the 20 industrial sectors were nearly evenly split between expansions and contractions.

 

 

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Swati Vora-PatelBy Swati Vora-Patel

April has been a flagship month for new milestones: it has been one full year since many of us began working from home; Zoom and other such virtual platforms have been in play for a year to keep us connected – and the reliance on digital systems has heightened over the past year to populate the influx of online catalogues and eCommerce sites.

April also marks one year since I took over the reins of EFC’s Supply Chain Network to support the electrical industry’s digital transformation journey. 

 

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Leviton

The Atlantic & Ontario YPN regions have joined forces to present YPNs with this professional development webinar. 

Date : May 5, 2021
Time : 2:00 pm to 3:30 pm EST
Location Zoom meeting
Cost : $20 (plus taxes)

More than ever, interpersonal relationships are a crucial factor in the success or the failure of an organization but also in the fulfillment of its individuals. Far away from being an easy competence to develop, soft skills might be the determining factor that will make the difference in your professional career. This webinar will give you tools to help boost your motivation and your performance in order to reach your goals, both professionally and personally.

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Bogdan BotoiE.B. Horsman & Son has transferred Bogdan Botoi from his PAC BC Manager position to lead EBH’s newly formed Industrial Services Group (ISG) as Manager.

With his vast knowledge and experience from the PAC world and his engineering background, Bogdan will lead the ISG team in continuing to provide value-added services such as proof of concept design support, MCP design, training, and other technical services and support for our customers.

 

 

 

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Canada's International Investment Position, Fourth Quarter 2020Despite ongoing current account deficits and the corresponding need for foreign borrowing, Canada's net foreign asset position continued its upward trend in the fourth quarter to reach an unprecedented level of $1,360.6 billion. For a third consecutive quarter, the increase (+$248.1 billion) was attributable to higher foreign equity prices and was moderated by the revaluation effect resulting from fluctuations in exchange rates.

Over the quarter, changes in market prices led to a $345.3 billion increase in Canada's net foreign asset position. Major foreign stock markets outperformed the Canadian stock market in the fourth quarter. 

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VerozzaUnderstanding the challenges of time-sensitive job situations, VEROZZA has introduced a Quick Ship Program for their most popular high-performance downlight collections. The program includes the ARIOBASIC and TAKEO 4.0, products, which will ship within 5-business days of receipt of order.

The process of selecting the correct fixture is easy. Select a housing and trim that include a few customized features to create the fixture Product Code. Orders can be placed at orders@verozza.com or by phone at 833.VEROZZA.

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BridgeportBridgeport Fittings’ patented Mighty-Align® Steel Slip EMT Couplings eliminate the need for additional components when installing Prefab EMT racks. The couplings can also be used to join two lengths of conduit in tight, limited space applications.

Bridgeport Fittings’ center set screw feature provides the UL-required conduit stop while a convenient sight window allows for visual inspection of proper assembly. The steel slip couplings’ ability to back out the center screw allows the coupling to be temporarily placed on one conduit end while the other conduit is moved into position. The slip coupling can then be slid into place, joining both conduits.

 

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David NathanielBy Line Goyette

Six years ago in February 2015, I interviewed David Nathaniel and called the profile I wrote “A Talent for Being There at the Right Time.” We met again this past February, this time virtually (without a cup of his wonderful expresso coffee). What follows is a summary of our conversation — “A Talent for Still Being There at the Right Time — Part 2.”

My first question to David was, what has happened in those six years? “Everything,” he said, and he started to laugh. “Obviously, we faced a lot of disruption from LED technology. 

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Rob DewarBy Line Goyette

Rob Dewar is President of AD Canada as of this past January, when AD announced it had made the strategic decision to establish AD Canada as a distinct business unit, serving the more than 150 members of its three Canada-based divisions. I recently had the chance to virtually meet Rob. I met a passionate leader about his new challenges.

“There are many projects in progress and specific to the Canadian industry and industry players. Interesting initiatives for the fall of 2021 will be announced shortly”. As Rob Dewar confirmed...

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