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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Carolina GalloAmong the recipients of the 2021 Clean50 Awards announced last month is Carolina Gallo, Vice President Government and Institutional Relations Canada, for Hitachi ABB Power Grids Canada. CEW reached out to Gallo, about the experience. But first, a little about the Clean50 Awards.

These annual awards recognize Canadian leaders in sustainability for their contributions over the prior two years. Created by Delta Management, Canada’s leading sustainability, ESG and clean tech focused search firm, the awards recognize remarkable and inspiring leaders and try to connect these leaders in order to bridge those gaps...

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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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Changing Scene

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It is with great emotion that after 40 years of combined service and leadership of Ideal Supply, ...
Managing change requires a set of soft skills that enables you to harness a growth mindset and the ...
Liteline has announced they will be establishing a Western Canada Regional Office and Distribution ...
Ideal Supply is proud to announce that as of January 1, 2021 they have appointed a new Sales ...
Omni Cable located in Brampton, ON, is proud to announce it received IMARK’s 2020 Order of the ...
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OmniCable was recently honored as a recipient of a Belden Value Award (Americas - North America, ...
adorne® Furniture Power Centers are now available with USB Charging.      
Chief PAC526 Series Wall Boxes are now available through Wiremold. Contractors have been frequently ...
Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible ...
 

 

Wayne Long and Jim BenderIdeal Supply is proud to announce that as of January 1, 2021 they have appointed a new Sales Manager for both the Electrical and Industrial divisions.

Wayne Long (left) will serve as thier Electrical Division Sales Manager. Wayne spent 11 years with Ideal Supply in the early years of his career, and was with Benshaw Canada for 20 years in senior sales management roles in Canada and the USA before re-joining Ideal in 2017, as thier Industrial Division Sales Manager. Long is a seasoned executive and has a proven track record of building strong relationships with customers and suppliers, and as a coach to sales teams to grow businesses.

 

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OmnicableOmni Cable located in Brampton, ON, is proud to announce it received IMARK’s 2020 Order of the Golden Maple Leaf Award in its first year eligible for the award.

The Order of the Golden Maple Leaf Award is an annual award that is presented to all IMARK suppliers who meet the set requirements, including supporting members and participating in IMARK Canada’s marketing programs.

 

 

 

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POW-R-Line CS Switchboards by EatonThe Solution to Your Switchboard Needs Now and for the Future.

Introducing Eaton’s Pow-R-Line CS switchboard, the most compact, expandable, service entrance and distribution solution in Canada. This versatile design allows for top or bottom service entrance cables, and expansion sections to the main structure to suit any design requirement.

Eaton’s Pow-R-Line CS switchboard provides a space-saving design advantage with a smaller footprint than any comparable switchboard in the market.

 

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LitelineLiteline has announced they will be establishing a Western Canada Regional Office and Distribution Center. Currently under construction in Langley, British Columbia, the new facility will service British Columbia to Saskatchewan in Canada, as well as the Pacific Northwest and California in the United States.

"As we lightly refer to the facility as “BC/DC”, the new operation will relieve some load for our 160,000 sq ft HQ in Richmond Hill, Ontario, and our other distribution points in Montreal, QC, and Dallas, TX," said the company via press release. 

 

 

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Eaton AR AppAdd or remove switchboard structures according to your construction needs, such as the main incoming with or without Canadian metering requirements, distribution loads, and submain sections. Verify your assembly footprint with thermal magnetic devices such as breakers and fusible switches (with or without meter sockets). Check for clearances and cable landing locations.

No need to guess what configuration will best suit your needs or wonder how the Pow-R-Line CS switchboard will fit in your location.

 

 

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Marcos SimardBy Line Goyette

Marcos Simard was recently appointed Managing Director of WESCO and Anixter EES Montréal (Electrical & Electronic Solutions). This young manager, a graduate of the University of Quebec in Trois-Rivières with a degree in business administration and holder of a post-graduate degree from Laval University in Information Technology Management, does not seem destined for a career without unexpected shifts.

Marcos has been with WESCO since 2015. We remember that in 2020, WESCO proposed a merger with Anixter...

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