January manufacturing sales best ever: Statistics Canada

January-manufacturing-sales-assembly-Canada-Statistics-sales-motor-vehicles-petroleum-Alberta-Ontario-EDIWeekly

A positive performance by Canada’s manufacturers has economists speaking of higher-than-forecast growth in the first quarter, and growing momentum in the manufacturing sector. Statistics Canada reports that manufacturing sales grew 2.3 per cent to a record $53.1 billion in January, the highest level on record. Ontario, where the auto industry played a big part in the gain, saw sales up 3.9 per cent, to $26.4 billion. Manufacturing sales were up in sixteen of the twenty-one industries reported on, making up more than 80 per cent of the sector.

Motor vehicle sales increased a hefty 9.6 per cent in January, to $6.6 billion, the highest level since November 2000. Two key factors were behind this strong growth, Statistics Canada says: changes in the industry toward higher-end models, and the lower Canadian dollar. A number of car makers retooled and upgraded their facilities last year to produce the higher-value models. While the number of cars produced did not change significantly, the average value of cars built has increased. Motor vehicles accounted for 12.5 per cent of all manufacturing in Canada in January, a level last seen in 2003.

The car parts industry also recorded an increase of 4 per cent, rising to $2.7 billion in sales, the fifth consecutive month to do so. Parts sales hit their highest level since December 2006, and the gains were widespread, Statistics Canada says.

January’s gains were widespread by region as well. Eight provinces reported higher sales, led by Ontario and Quebec. Only Alberta and Nova Scotia recorded declines. For Alberta, it was the sixth month out of seven in which sales fell. Lower sales of petroleum and coal products, and of fabricated metal products, were the reason for the decline. Manufacturing sales in Alberta fell by almost 16 per cent in 2015. About 80 per cent of the province’s manufacturing activity is petroleum industry related.

January-manufacturing-sales-Canada-Statistics-sales-motor-vehicles-petroleum-Alberta-Ontario-EDIWeekly
Manufacturing sales in January. Source: Statistics Canada

Unfilled orders rose in January for the first time in five months. Most of that gain was in aerospace products and parts, metal products, and clothing. New orders in those same industries also rose, rising 6.8 per cent.

The wholesale picture was at least partly positive in January as well. Higher sales were recorded in machinery and equipment, especially for the construction, forestry, mining and industrial equipment industries. Sales were up 6.4 per cent. Personal and household goods, food beverage and tobacco, and farm products all recorded higher sales in January. Sales of motor vehicles and parts decreased, however, by 2.8 per cent.

Did you miss this?

Other Popular Stories

  • Toronto researchers reveal spray-on photovoltaics
  • Bombardier has to delay CSeries first test flight again
  • With a 500 km range and 408 horsepower, Volvo's new Polestar EV may rival Tesla
  • Renault's autonomous float hover car by Yunchen Chai may be the automobile of the future — winner of a design competition from Renault
  • Magna International posts strong sales gains in third quarter
  • Twenty-kilometre tower would revolutionize space launches
  • Beam me up, Scotty. Teleportation is small step closer: researchers transport photon 500 kilometers: Micius satellite
  • Detect lung cancer with a nanotech breathalizer? It works, four out of five times, could revolutionize cancer screening
  • Canada's GDP strength was east, west and north, not central
  • Truckers hopeful about progress on border security, emissions, after Washington summit
  • Once more to the moon — NASA may use a commercial rocket to speed up the EM-1 moon mission planned for June 2020
  • World's fastest electric car sets new performance benchmark for EVs
  • Engineering positions: what's in demand, what does it pay, what do you need to qualify? Top seven engineering positions
  • Little certainty about toxicity of BPA in food cans despite new report
  • Solar energy a good investment, claims World Economic Forum
  • Toyota investment in Ontario brings new technologies, keeps jobs
  • Renewable energy use increased in US in 2012
  • Real-time oil leak tracking with PAH sensor from Norwegian Geotechnical Institute can precisely measure hydrocarbons in water around oil wells
  • World's first 3D printed auto manufacturing platform
  • Bombardier to hit business jet targets: aiming for US$8.5 billion annually by 2020
Scroll to Top