Manufacturing values stronger in May

OTTAWA — Current dollar manufacturing sales rose 2.7 percent to $51.4 billion — this was the largest increase since March 2007 and the fourth increase in five months.

Sales increased for 16 of 21 industries, representing 94 percent of total manufacturing sales, reports Stats Canada.

Despite these gains, though, May’s sales remained below year earlier levels and well below the peak of $53.1 billion in March 2007.

It’s no surprise that petroleum and coal products (+9.2%) accounted for almost half of the growth. Sales climbed to $7.7 billion, and have increased by almost 20 percent since March 2008.

Primary metal manufacturers had another strong month, with sales rising 3.1 percent. Sales have increased within this industry for seven consecutive months, increasing by 13.3 percent since October 2007. Sales were up on a combination of price and volume, as exports for copper, iron, steel and aluminum products have grown significantly in recent months.

Manufacturing in the Prairies advanced on
the back of primary metals, coal, and petroleum.

Chemical products were also strong, gaining 3.5 percent on the heels of 2.3 percent growth in April. Much of the increase in sales was attributable to fertilizer manufacturers, where prices have increased for 10 consecutive months.

The only notable decrease for the month was a 13.1 percent drop in sales by textile product mills, which continued to struggle as they faced increased international competition, with sales falling by as much as 50 percent since 2003.

Cross-Country:

Provincially, manufacturers reported healthy sales gains in nine provinces. Only Prince Edward Island reported a decrease in May, with most of the weakness in the non-durable goods manufacturing sectors.

The prairie provinces led the advance, with Saskatchewan up 8.6 percent, Alberta up 8.5 percent, and Manitoba increasing by 2.6 percent. Primary metal and chemical manufacturers supplied most of the sales gains in Saskatchewan and Manitoba, while in Alberta, petroleum and coal product manufacturers, as well as machinery manufacturers (many of whom supply oil-field projects), drove sales higher.