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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COVID ULConsumer UVC germicidal devices are entering the market rapidly because of an increased demand for sanitizing and germicidal capabilities in the face of COVID-19. But are they all safe?

UVC radiation (the most energetic in the UV spectrum; 180nm to 280 nm) is proven to have sanitizing and germicidal effects, and first proof of effectiveness against SARS-CoV-2 is emerging. Like many high energy devices, however, there are risks due to UVC exposure. For example, UVC over-exposure can cause damage to the eyes and skin, based on wavelength, intensity, proximity to the source, and time of exposure.

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Investment In Building Construction - July 2020Total investment in building construction increased 1.8% to $15.1 billion in July. Residential sector investment increased 4.9% to $9.9 billion, while non-residential investment decreased 3.7% to $5.3 billion.

Construction activity has rebounded in the last few months, with investment in building construction remaining slightly lower than February 2020 levels, before COVID-19 construction restrictions were first put in place. On a constant dollar basis (2012=100), investment in building construction increased 2.0% to $12.4 billion.

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Swati Vora-PatelBy Swati Vora-Patel

Personal protective equipment. We understand how important PPE is keeping us safe during this pandemic. While we continue to do our part to protect ourselves and those around us, counterfeit PPE is on the rise and has found its way into the supply chain: fraudulent COVID-19 testing kits, N95 masks, respirators, and even fake vaccines, which all pose a significant threat to the health and safety of unsuspecting global citizens.

Counterfeit activity and intellectual property crimes remain a growing issue in Canada and around the world. 

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Changing Scene

  • Prev
What better way to celebrate the 25th Anniversary of Rittal System Ltd. in Canada than to be ...
Electro-Federation Canada (EFC) is pleased to announce the 7th Annual 2020 Marketing Awards Program ...
Leviton announced that Jean Belhumeur, president and chief of operations of Leviton Canada, will ...
Ouellet Canada is proud to announce the acquisition of Britech, a manufacturer and supplier of ...
Recently Tim MacDonald, President of Ideal Supply announced the appointment of Mike Smith to the ...
Liteline Corporation has announced the addition of Martin Parilak to their Canadian Regional Sales ...
The Task Force for a Resilient Recovery recommends five bold actions to help Canada “build ...
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 ...
 

 

Martin Parilak  Liteline Corporation has announced the addition of Martin Parilak to their Canadian Regional Sales Team.

"Martin brings over 20 years of well respected electrical industry knowledge and experience to Liteline. Through his time spent in successful and progressive roles, as both a distributor and agent, Martin's experience will greatly compliment Liteline's growing product lines and will be of benefit to our agent network and customers of Western Canada," said National Sales Manager, Steve McMullen.

 

 

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New Project 1Ouellet Canada is proud to announce the acquisition of Britech, a manufacturer and supplier of electric radiant heating systems in Canada.

Britech specializes in heating cables (floor, concrete and snow melting), electric thermal storage heating and self-regulating heating cables (roof and gutter de-icing).

"With this acquisition, we are demonstrating our commitment to growing and consolidating our relationship with our current customer base. It also allows us to continue offering quality products, innovative product design and industry-leading brands," said Louis Beaulieu, General Manager with Ouellet Canada.

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Canadian College Task ForcesThe Task Force for a Resilient Recovery recommends five bold actions to help Canada “build back better” after the COVID-19 pandemic. Colleges can take the lead, to help meet the skills gap, and support communities transition to the low carbon economy.

What are the goals for the coalition? Rapidly implement and scale new curriculum and research initiatives relevant to a resilient recovery. Champion resilient recovery projects in line with the recommendations of the Task Force for a Resilient Recovery...

 

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EBH DonationsSince 1993, E.B. Horsman & Son(EBH) has been a proud supporter of BC Children’s Hospital Foundation (BCCHF), helping provide the bestcare for children across British Columbia.

In EBH’s 120th Anniversary year, their employees,suppliers, and customers worked together to doubletheir annual fundraising efforts and donated over $100,000 to BCCHF. This significantly contributed to EBH reaching its cumulative donation of $1 million dollars!

 

 

 

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Nathan SalmonNathan Salmon has been appointed General Manager, Rexel Atlantic. Nathan joined Rexel in 2016 and brought along over a decade of related distribution, management and supply chain experience. 


At first, he was responsible for the Dartmouth and Halifax locations where he was able to bring about significant growth and stability. In 2019, Nathan was promoted to a Regional Manager role leading and overseeing the Nova Scotia and Newfoundland branches. 

 

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Peers & Profiles

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Electrimat is an independent Quebec-owned company that has specialized for 40 years in the ...
In July, Eaton announced that Vice President, Channel – Electrical Sector, Matt Cleary would be ...
Tim King, Southwire Canada’s new President and first Canadian to assume the role, has taken the ...
Bogdan Botoi is Division Manager for Automation and Control with E.B. Horsman out of British ...
Mission Technical Solutions is a recently established sales agency founded by industry veteran ...

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.

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Will Green and Matt ClearyIn July, Eaton announced that Vice President, Channel – Electrical Sector, Matt Cleary (pictured on the left) would be retiring after 40 years with the company, and Will Green (pictured on the right) was appointed as his successor. CEW sat down with the colleagues and friends over the phone to discuss their relationship, the transition as well as gain insight into their views on the industry.

Cleary joined the company in 1981 as a sales engineer, working his way through various roles of increasing responsibility. Green, who previously served as Vice President, U.S. Channel Operations and U.S. Sales, North American Sales, has been through a number of customer-facing roles...

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