February 2008

Raw material and energy costs topped the list of cost pressure concerns in 2008, according to a recent survey by Prime Advantage, a buying consortium for small and mid-sized manufacturers, focused on the top economic concerns in 2008. Respondents to the Group Outlook Survey included business owners, vice presidents of procurement and purchasing directors.
 
More than 46 percent of respondents agreed that raw materials (including stainless steel, nickel, copper and other metals and plastics) were a major concern in 2008. Energy costs were the second biggest concern, with 17.5 percent and logistics and supply chain costs followed closely at 16.4 percent in agreement.
 
Inflation (8 percent), labor (4 percent), foreign competition (3.4 percent), overhead costs (2.8 ...

Canadian manufacturing sales dropped 3.4% to $48.6 billion in December, the lowest level in three years. Longer-than-normal shutdowns at several motor vehicle plants were the primary source of the deep cut in sales.
 
Excluding the motor vehicle and parts industries, total manufacturing sales decreased a more moderate 0.8% in December.

December's decline was the largest since August 2003, when a widespread electrical blackout and its fallout thereafter impacted much of Ontario's production during that month.

Deep cuts in volumes manufactured
Despite ongoing strength in key price-driven industries, overall manufacturing activity decreased in four of the last five months, due in part to some significant cuts in the volume ...

Canadian wholesalers reported a sharp decline in sales in December, erasing all of the gains made over the previous months. Despite the drop in December, preliminary figures indicate that wholesalers put in another solid performance in 2007.
 
Sales fell 2.9% in December to $42.7 billion, ending a string of three consecutive monthly increases. The decline was the largest since April and brought monthly sales to their lowest level since November 2006.

Overall, five out of seven wholesale sectors reported weaker sales in December. The automotive products sector accounted for around half of the overall decline, dropping 8.1% during the month.

Wholesalers outside of the automotive products sector fared little better, ...