Mftg shipments jump to highest level in ’06

OTTAWA — The manufacturing sector in Canada is managing to maintain a steady level of shipments despite the challenges of a rising Canadian dollar and increased global competition.

Manufacturing shipments increased 1.9 percent to $51.4 billion in June, the highest level since January 2006., Stats Canada reports in its monthly manufacturing survey.

Gains were posted in 13 of 21 manufacturing industries in June, accounting for 80 percent of total shipments.

The transportation equipment industry perked up with a 1.5 percent increase after months of decline or marginal growth. American consumers’ increasing appetite for smaller, more fuel-efficient vehicles may bode well for automotive manufacturers in Canada and reverse the negative trend observed over the past nine months, Stats Canada suggests.

Alta, BC, Ont, Que post big manufacturing
hikes; while Prairies, Atlantic Canada slip

Shipments of motor vehicles increased 3.0% to $5.1 billion while aerospace slipped by 3.1 percent to $1.1 billion.

Meanwhile, non-durable goods increased 2.8 percent to $22.6 billion, led by increased production of petroleum and coal products. Petroleum increased 13.5 percent to $5.2 billion and was largely volume driven.

In Ontario, the transportation industry, which accounts for nearly a third of Ontario’s manufacturing output, increased 2.2 percent to just under $8.0 billion. This was the main reason behind Ontario’s 1.2 percent jump in shipments to $25.2 billion.

Also, popular new models are assembled in southern Ontario plants, along with smaller more fuel-efficient vehicles, states the report.

Alberta petroleum refiners increased shipments by 6.1 percent to $1.1 billion, even though prices rose only marginally. Overall, shipments from Alberta manufacturers increased 3.3 percent to $5.4 billion while in British Columbia, total shipments improved by 1.1% to $3.9 billion, led by increases in shipments of paper, petroleum and coal.

However, Saskatchewan, Manitoba and the Atlantic provinces suffered declines in shipments of manufactured goods. Lower prices for seafood products and a break from record shipments of primary metals resulted were the main reason for the decline in the Maritimes.

Inventories down:

Manufacturers’ total inventories fell $454 million to $65.8 billion in June, a 0.7 percent decrease. June’s decrease was the largest drop since September 2005 and followed a 0.8 percent increase in May.

New aerospace orders continue to lead all industries:

New orders rose by 2.5 percent to $51.5 billion in June. Aerospace products were the catalyst behind the rise with a 45.4 percent increase in new contracts in June.

Unfilled orders increase slightly but the overall trend negative:

After declining for two months, unfilled orders strengthened, states Stats Can. The backlog of orders rose 0.1 percent to $42.5 billion, a turnaround from the 0.6 percent drop in May.

New orders in the aerospace industry were up substantially and were responsible for an increase in the overall level of unfilled orders. Excluding aerospace, unfilled orders would have declined by 0.0 percent.