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1. Manufacturing shipments
The value of goods produced and shipped by Canadian manufacturers has levelled off over the past two years, thanks in part to weakening production and downward pricing pressures, particularly affecting those who make finished goods. By the end of the first half of 2006, manufacturing shipments were only 0.8% higher than a year earlier.
2 & 3. Sector shipments
Shipments have declined in the beverage, textile, clothing, wood products, paper, transportation equipment, electronics, and furniture industries over the past year. The strongest gains were in refined petroleum, primary metals and non-metallic mineral products (building materials) sectors.
4. Province shipments
The strongest growth in manufacturing shipments is occurring in Western Canada and in Quebec where strong demand for energy and metals is driving higher levels of output and prices. Shipments have declined significantly in Ontario, Manitoba and Atlantic Canada over the past year.
5. Outlook: Exports and sales
Respondents to the Canadian Manufacturers and Exporters' 2006 Management Issues Survey are more upbeat about their overall sales performance than they are with exports going into 2007. While about a third of the companies report stronger export sales in 2006 and expect exports to increase in 2007, the outlook for total sales growth is considerably better. Forty-eight per cent see overall revenues picking up this year and next. For 18% of companies, however, sales have been declining in 2006—the highest percentage recording lower export and overall sales levels since 2001.
6. Outlook: Production & profit
While 49% of companies report higher production volumes in 2006, only 41% are seeing that growth translate into higher profits. On the other hand, 15% of firms have experienced production declines this year and a full 23% have seen lower profits. Meanwhile, companies expect 2007 to be much like this year. Fewer firms expect to see production or profit growth; yet fewer expect to see further declines.
Trends information is provided by Plant, Canada’s Industrial Newspaper. Source: Jayson Myers, chief economist with Canadian Manufacturers & Exporters. Purchasing b2b and Plant are both
published by Rogers Media.
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