Canadian Electrical Wholesaler

July 31, 2020

CEW Wholesale May 400Total May 2020 sales: $52.6 billion

Monthly change: +5.7% 

Following historic declines in April that saw wholesale sales plummet an unprecedented 21.4% due to the COVID-19 pandemic, wholesale sales increased 5.7% to $52.6 billion in May. Six of seven subsectors recorded higher sales, accounting for about 78% of total wholesale sales. In dollar terms, the building material and supplies and the motor vehicle and motor vehicle parts and accessories subsectors contributed the most to the gain.

Wholesale sales volumes increased 5.2%.

COVID-19 recovery and impacts

After rising 1.7% in January to $65.1 billion, sales in the wholesale trade sector fell sharply as a result of the COVID-19 pandemic and the railway shutdowns that preceded it. From February through April, sales of wholesale goods fell $15.3 billion. The increase of $2.8 billion in May amounts to a recovery of 18.4% of the 2020 decline. Wholesale sales in May remained $12.5 billion (-19.2%) below January's level.

About 60% of the difference in sales between January and May came from the motor vehicles and motor vehicle parts subsector. Sales in this subsector rose in February, despite the rail blockades, but fell $8.6 billion in March and April combined. While sales in the subsector rose $1.0 billion in May, they were still $7.5 billion below the recent high in February, and $7.2 billion (-63.2%) below January 2020. The sales pattern here largely reflects manufacturers being closed for all of April and parts of May—there was little inventory for most motor vehicle and motor vehicle parts wholesalers to sell as Canadian motor vehicle manufacturing sales fell 97.8% in April and only partially recovered in May. However, this pattern was not uniform across the wholesale motor vehicle subsector. Some motor vehicle and motor vehicle parts wholesalers were able to access inventory that was available or in transit to make sales in April. For these companies, the low point in sales came in May, not April, despite the fact that the economy started to re-open in May.

By comparison, the food and beverage subsector has not experienced the same size of shocks as other subsectors. Food, beverage and tobacco sales in May were only 2.1% lower than January sales. There are a number of factors for this. Food is traditionally less prone to economic shocks as the demand for food is largely stable. Indeed, grocery stores have largely been open throughout the pandemic. March was actually a strong month for food, beverage and tobacco wholesalers despite the onset of the pandemic, with sales rising 8.6%. This may be due in part to stockpiling by consumers at the beginning of the pandemic. After an 11.4% drop in April, sales in May rose 3.4% to $12.1 billion. Sales in May were $258.0 million below January's level, and $1.1 billion lower than the subsector's most recent high in March. Wholesale food and beverage sales throughout this period reflect similar activity in the retail sector, where sales from food and beverage stores rose 23.5% in March and only partially pulled back in April. In contrast, sales by food services and drinking places fell 58.6% from February to April.

May sales for the remaining subsectors were $5.0 billion (-12.2%) below January levels.

Notwithstanding the increases in sales in May, COVID-19 was still having a large negative effect on wholesalers, with 73% of them reporting that the pandemic had an impact on their businesses—only 7 percentage points lower than the month before. Moreover, no subsectors appeared to be shedding COVID-19 impacts in May, as the percentage of wholesalers reporting an impact from COVID-19 ranged from a low of 64% in the food, beverage and tobacco subsector to a high of 86% in the personal and household goods subsector.

Wholesalers estimated that COVID-19 caused a $16.5 billion drop in sales, with more than half of that coming from the motor vehicle and motor vehicle parts subsector.

Sales rise in six of seven subsectors

With the Canadian construction industry fully resuming in May, the building material and supplies wholesale subsector saw the largest gain in dollar terms in May, up 16.1% to $7.8 billion. While all three industries within the subsector saw their sales rise, the gains were largely attributable to higher sales in the lumber, millwork, hardware and other building supplies industry, where sales increased 20.4% to $4.2 billion.

Following a drop of 65.7% in April, the motor vehicle and motor vehicle parts and accessories subsector rebounded 33.4% to $4.2 billion in May. With most auto manufacturers resuming production in May, the wholesale sector saw growth in both the motor vehicle (+33.0%) and the new motor vehicle parts and accessories (+33.6%) industries.

Only machinery equipment and supply wholesalers reported lower sales in May, down 4.7% to $11.5 billion.

Sales higher in Ontario and Quebec

Seven provinces recorded higher sales in May, with Ontario and Quebec posting the largest increases.

Ontario sales rose 8.5% to $25.0 billion, following a 29.9% decline in April. Higher sales were recorded in six of seven subsectors, with the machinery, equipment and supplies subsector (-5.4% to $5.9 billion) posting the lone decline. The motor vehicle and motor vehicle parts and accessories subsector led the gain, recording a $1.1 billion increase from April, up 121.3% to $2.0 billion. The reopening of motor vehicle manufacturing plants and retail dealerships generated the higher sales.

Sales in Quebec rose 8.9% to $10.7 billion in May, following an 18.0% decline in April. Four of seven subsectors recorded higher sales, led by the building material and supplies subsector and the personal and household goods subsector. The building material and supplies subsector rose 39.6% to $1.7 billion in May, more than offsetting a 27.4% decline in April. Higher sales were recorded in each of the subsector's industries, led by the lumber, millwork, hardware and other building supplies industry. Sales in the personal and household goods subsector climbed 14.7% to $2.4 billion, following three consecutive monthly declines.

Alberta recorded the largest dollar-value decline in May, down 5.1% to $5.9 billion. Lower sales were recorded in four of seven subsectors, with the machinery, equipment and supplies subsector leading the decline (down 12.4% to $1.7 billion). Respondents stated that the reduction in sales was mainly attributable to closures of customer plants and non-essential business shutdowns.

Inventories drawn down in May

Wholesale inventories declined 1.0% to $91.9 billion in May. Five of seven subsectors recorded decreases, accounting for about 73% of total wholesale inventories. The last time inventories fell more than 1.0% was in November 2017.

In dollar terms, the machinery, equipment and supplies subsector led the declines in May, down 3.2% to $26.5 billion as decreases were seen in all four industries. Roughly two-thirds of the subsector's decline was attributable to the construction, forestry, mining, and industrial machinery, equipment and supplies industry, down 4.5% to $12.4 billion in May.

After rising to a record 1.87 in April, the inventory-to-sales ratio dropped to 1.75 in May. Five of seven subsectors recorded decreases in their inventory-to-sales ratios, with the motor vehicle and motor vehicle parts and accessories subsector contributing the most.

Source

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. 

Read More



 


                                            

LDS Magiclite LS 400Magic Lite has announced the signing of Lightspec Canada Inc. as their Specification Sales Agent for the GTA.

As the Canadian Division of Lightspec, LLC, NY, this agency is headed by Steve Danzig as President and Neil Whiteford as Sales Manager. This talented sales team has over 150 years combined experience with Lighting Design, Applications, Lighting Controls, Distribution and Project Management. They are committed to bringing attentive service and expertise to their clients for their designs, projects, lighting requirements and acting as their trusted advisor and partner.

Read More


 

COVID-19By Atul Minocha, Dawn Werry, and Kimberly Miller

When the pandemic first hit, the industrial manufacturing sector was changing daily. Now, at the start of the recovery phase, the whole industry is adapting. Some companies have had to find completely new markets for their products, while others have started making completely new products. Across the board, supply chains have been disrupted. Buyer behaviours have changed and go-to-market strategies have had to adjust in order to keep business moving. Here are four ways industrial manufacturing companies can recover from COVID-19:

Read More


 

Gurvinder ChopraBy Gurvinder Chopra

In June 2019, the U.S. grid regulator, NERC, issued a warning that a major hacking group was conducting reconnaissance into the networks of electrical utilities. Just one month later, several major industrial firms announced they had been victims of a state-sponsored hacking campaign.

A year later, hackers targeted over 75 organizations around the world in the manufacturing, media, healthcare, and non-profit sectors, as part of a broad-ranging cyber espionage campaign.

 

Read More


 

Value of Building Permits - JuneThe $687 million Oakridge Centre mixed use redevelopment project in the city of Vancouver helped raise the total national value of building permits 6.2% to $8.1 billion in June, to a level comparable to pre-COVID levels. Overall, seven provinces reported gains for the month.

Residential permits rise

The total value of residential permits was up 7.0% to $5.3 billion, with gains posted in six provinces. British Columbia posted its third largest value on record for residential permits in June, up 20.4% to $1.3 billion due to large projects such as the Oakridge Centre redevelopment. 

Read More


 

Changing Scene

  • Prev
Mr. Steven Wright joins IMARK Electrical, Inc. as the Vice President of Supplier Relations and ...
Competition Bureau Canada registered a consent agreement with the Competition Tribunal to address ...
Panduit has appointed Mission Technical Solutions as its representative for all of Canada outside ...
 In the 6th installment of this video series, HALO MINUTE, by Cooper Lighting Solutions, ...
After a successful and accomplished 50-year career, Gary Morrison, Vice President of Sales and ...
Northern Cables announced via their social media accounts that they have broken ground on the ...
Electro-Federation Canada (EFC) and ETIM North America (NA) have entered into a strategic ...
Southwire announced that Tim King has accepted the role of President of Southwire Canada. ...
Savant Systems has announced it has signed a definitive agreement to purchase GE Lighting, a ...
EFC’s Economic Forecast Series webinar will deliver global, national, and regional economic ...

SouthwireSouthwire has long held a commitment to sustainability, dating back to its first official sustainability report in 2007. Reflecting that commitment, the company recently launched its 2019 sustainability report, prepared in accordance with the Global Reporting Initiative (GRI) Standards, featuring an exciting new goal called Carbon Zero.

The 2019 report highlights all areas of sustainability at Southwire and showcases the company’s most significant impacts by focusing on its five key tenets – Growing Green, Living Well, Giving Back, Doing Right and Building Worth.

 

Read More


 

CSAOn May 8, 2020, Gianluca Arcari was appointed Executive Vice President & Chief Commercial Officer at CSA Group, reporting to David Weinstein, President & CEO. In this role, Gianluca will be responsible for growing CSA’s global Testing, Inspection and Certification (TIC) organization. Leading a team of more than 200, Gianluca will guide and develop global commercial market sector strategies across CSA Group’s global business units in Home and Commercial, Industrial and Healthcare.

“Gianluca is widely known and respected for his technical and business skills both within CSA Group and in the global TIC market, making him an excellent choice for this role,” said David Weinstein.

Read More


 

 

Robin Billingsley"It is with heavy hearts that we inform you of the passing of our longtime Marketing Manager, Robin Billingsley," said Beghelli General Manager, Bruno R. Ardito in a heartfelt letter to Beghelli customers.

"Robin had been battling breast cancer for the past few years and on July 23rd, Robin’s battle ended at 40 years young. We have had the pleasure of working with Robin for 13 years and in those 13 years, she executed many of the products and programs we have today. Robin truly represented Beghelli/Beluce ideals, philosophy and vision. 

 

Read More


 


LDS CBC Lighitng logo 400By Blake Marchand

CBC Lighting has established itself as a premier lighting wholesaler in Canada as well as the U.S. During the pandemic they were able to leverage that expertise to help fill an increased demand for T-UV lamps and ballasts.

Obviously with the global pandemic there has been increased focus on PPE and other sanitary products like hand sanitizer, disinfectant wipes, as well as Ultraviolet light that kills germs. LDS has published several reports from industry organizations that have recently conducted research studies on the effectiveness of T-UV lamps on neutralizing the COVID-19 virus. 

Read More

 


 

 

Kerrwil Publications Great Place to Work. Certified December 2019 - December 2020

538 Elizabeth Street, Midland,Ontario, Canada L4R2A3 +1 705 527 7666
©2020 All rights reserved

Use of this Site constitutes acceptance of our Privacy Policy (effective 1.1.2016)
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Kerrwil