IHS Canada Manufacturing PMI Nov 2018Click image to enlarge

The IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) for November hit a three-month high.

The index reached 54.9 for the month, up from 53.9 in October, the biggest improvement in business conditions since August. While growth rates for output and new orders remained softer than seen on average in the third quarter of 2018, job creation showed a “strong and accelerated” upturn. Manufacturers attributed this to rising business investment in plant capacity.

Input cost inflation moderated in November, with lower oil-related prices helping to offset higher costs for imported materials (particularly metals), IHS Markit said. Manufacturing production growth moved up from October's 22-month low, helped by a stronger upturn in new order books. The November data also signalled a solid rise in export sales, with survey respondents mainly commenting on rising sales to U.S. clients – despite which the overall rate of new export order growth remained much softer than seen in the first half of 2018.

While demand slowed relative to earlier in the year, manufacturers also reported renewed acceleration of employment growth in November. The latest expansion of payroll numbers was the fastest since the survey began in October 2010. Anecdotal evidence suggests that efforts to alleviate capacity constraints has encouraged greater business investment and additional staff recruitment.

Supply chain pressures continued in November, as evidenced by another sharp lengthening of delivery times for raw materials. Survey respondents cited low stocks among suppliers and ongoing shipping delays for items imported from Asia. Concerns about raw material availability led to another moderate increase in stocks of purchases across the Canadian manufacturing sector during November. However, latest data signalled the weakest rise in input buying since the end of 2017, partly reflecting more subdued projections for client demand.

While manufacturers are optimistic about growth prospects for the next 12 months, their confidence was up only slightly since October and still among the weakest seen over the past two years. Some firms noted that slower economic growth in Europe weighed on business sentiment in November.

Read and download the full press release here.

Federal Budget 2017: A Lackluster Budget with Some Promise

Anyone looking for specific support for manufacturing in the 2017 Federal Government's Budget will be disappointed. Indeed, there is little mention of manufacturing.

Manitoba economic leader in 2015 and 2016: Report

Manitoba will be one of the leading provincial economies in both 2015 and 2016, according to The Conference Board of Canada's Provincial Outlook-Winter 2015.

BLM Group announces new Canada regional sales manager

BLM Group USA has announced the appointment of Danyel (Dan) Benoit as regional sales manager, Eastern Canada. 

FANUC introduces M-1000iA robot to handle heavy products


FANUC America has introduced the new M-1000iA robot capable of handling very heavy products including automotive components, construction materials and battery packs for electric vehicles. 

Newfoundland and Labrador welding group holds inaugural event

The Newfoundland and Labrador chapter of the Canadian Welding Association held its inaugural event in late November with close to 70 people in attendance.

Bossard steps down at Salvagnini America

Bill Bossard will retire as president of Salvagnini America this year.

Ontario manufacturer gets financial boost from provincial government


MTM Automation and Aerospace, a manufacturer based in Guelph, ON, is getting financial help from the Ontario government to support a project valued at $1.75 million expected to be completed by 2018.

Rising auto demand boosts production in Canada

Stronger vehicle sales in Canada and the US and the recent free trade agreement with the European Union bodes well for Canada's automotive manufacturing industry according to a new "Global Auto Report" from Scotiabank.

Long-time Elliott-Matsuura employee Jack Craig dies

Jack Craig, a long time Elliott-Matsuura Canada employee, has died. He was 91 years old.

Collaborative Cutting


Faced with long setup times, low production volumes, and heavy, complex parts that are difficult to cut by hand, this Canadian manufacturer came up with a unique and highly automated solution

Zero-emission vehicle sales must reach 70 per cent by 2030: Report

Canada must see a complete transformation of its passenger vehicle market to hit Ottawa’s emissions targets, says a new report from the C.D. Howe Institute.

New wind turbine manufacturing plant in BC

Endurance Wind Power Inc., Surrey, BC, has opened a new 40,000 sq ft facility to manufacture wind turbines.

Selling Your Family Business

Selling a family business is a major decision that some might be considering as the economy transitions from recession to recovery.

Amada opens Toronto Technical Centre

Amada Canada Ltd. has opened a new technical centre to better service Canadian customers.

Airbus moves European Centre of Excellence to Quebec

Airbus Defence and Space has announced it is moving its Centre of excellence in encrypted radiocommunications R&D from France to Gatineau, QC.

Stay In Touch

twitter facebook linkedIn