Pratt and Whitney engineClick image to enlarge

While the rate of improvement in business conditions lost some momentum in August, Canada's manufacturing industry continued to show signs of modest growth with firms taking on more workers, spurred by further business expansion and rising production, according to the IHS Markit Canada Manufacturing Purchasing Managers' Index (PMI).

The headline seasonally adjusted IHS Markit PMI registered 54.6 in August, above the neutral 50.0 threshold for the eighteenth consecutive month. Although down slightly from 55.5 in July, the index signalled a rate of improvement that remained above the long-run series average.

“The latest PMI data pointed to a slight moderation in the overall rate of growth of the Canadian manufacturing sector.," says Alex Gill, economist at survey compilers IHS Markit. "The slowdown largely reflected weaker rises in output and new orders, which in turn led to a softer expansion in purchasing activity. Nonetheless, growth rates remained impressive and above their respective long-run averages. “Manufacturers remained firmly optimistic that the resurgence in output growth seen so far in 2017 would be maintained over the coming 12 months. This, combined with robust client demand, contributed to the sharpest round of job creation in the series history, thereby providing a strong indication that the renaissance in the Canadian manufacturing sector has far from run its course.”

Central to the latest overall improvement was an eleventh successive monthly expansion in new orders. Although the weakest recorded in 2017 so far, the rate of growth remained strong and above the long-run series average. New export order growth meanwhile weakened from the previous month and was only modest.

Firms responded to rising workloads by hiring additional staff members for the eleventh successive month. Moreover, the latest round of job creation was the most marked since data collection began in October 2010. This contributed to a fall in unfinished work, thereby ending a four-month period of backlog accumulation.

Demand for raw materials among manufacturers continued to strengthen, albeit at the weakest pace since May. Pre-production inventories, however, stagnated after five months of growth.

Manufacturers’ sentiment towards future output remained firmly positive in August amid upbeat sales forecasts, according to the report.

M&A high on agenda for SMEs, large corporations

KPMG’s 2021 CEO Outlook survey finds that Canadian companies of all sizes see mergers and acquisitions as a key element in their growth plans.

Canada shuts door on cheap metal imports

One day after a phone meeting between Canadian Prime Minister Justin Trudeau and US President Donald Trump, Ottawa announced measures to prevent Canada being used as a back door for the import of cheap offshore steel imports destined for the US.

Canadian firm expands high speed robotic cladding technology

A Canadian firm with an innovative high speed robotic weld cladding process has received a Japanese patent and is on its way to obtaining a European patent to expand the use of the process around the globe.

Magna partners with RocketSpace for automotive innovation

Tech startups now have a new route to bring their inventions to life in the automotive industry, thanks to a new collaboration between Magna and RocketSpace. 

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.

Irving Oil $200 M project a boon to Atlantic Canada

Irving Oil has announced plans to invest $200 million in a turnaround project at its Sain John, NB, facility that is expected to generate approximately 3,000 jobs for onsite workers.

CenterLine nabs 2020 National Manufacturing Leadership Award

CenterLine (Windsor) Ltd. has been awarded the National Manufacturing Leadership Award by the National Association of Manufacturers (NAM) for outstanding achievement in the Engineering and Production Technology Leadership category.

Ontario eyes manufacturing to lead the comeback

As the world licks its wounds and begins planning a return to work, the province of Ontario is looking at manufacturing to be its ace in the hole.

U.S. firm Leviton acquires Canadian lighting manufacturer

Canada’s largest independent lighting manufacturer, Toronto-based Viscor, has been acquired by Leviton, a diversified U.S. lighting, energy management and engineering company.

AK Motor reaches out to partners for Canadian EV

As AK Motor International develops its plans for the Canadian Maple Majestic Canadian all-electric vehicle (EV) the company is now reaching out to recruit parts suppliers and technology developers.

Trip to India could boost local and Canadian manufacturing

Two agencies in Windsor, ON, say they hope new agreements signed in India will boost the local and Canadian manufacturing industries.

Toyota Canada sets new annual electrified vehicle sales records

Toyota Canada (TCI) says it is continuing to build on its annual electrified vehicle sales record with 3,498 units sold, up 56 per cent in October compared to the same period last year, setting a new record for the month.

Manufacturing PMI signals growth for start of 2018

The latest IHS Markit Canada Purchasing Managers’ Index (PMI), released at the beginning of this month, indicates that 2018 is off to a strong start for Canadian manufacturing.

Mazak expands spindle rebuild centre

Mazak has announced that it is expanding and updating the Spindle Rebuild Department at its Kentucky Manufacturing Campus.

Thomas Skinner celebrates 30th anniversary

Thomas Skinner's Edmonton location hosted an open house on October 4 to celebrate its 30th anniversary and showcase its new showroom and training facility. 

Stay In Touch

twitter facebook linkedIn