How to resolve AdBlock issue? Ontario insolvencies declined sharply in 2020
- Details
- April 28, 2021
Click image to enlargeDespite the economic damage caused by the COVID-19 pandemic, insolvencies in Ontario declined by 24 per cent in 2020 to the lowest annual level since 2000, according to Ontario’s Financial Accountability Office (FAO).
The report says this significant drop in insolvencies is exceptional in a recessionary period and was likely the result of what the FAO calls “a number of unique temporary factors related to the pandemic.” These factors include lower interest rates that helped reduce debt payment obligations and federal and provincial government measures which helped the financial position of businesses during the pandemic.
Insolvencies declined in most industries in 2020, led by construction (-76 cases), professional, scientific and technical services (-24), and manufacturing (-24). The three industries hardest hit by the pandemic –– transportation and warehousing (-14), wholesale and retail trade (-10), and accommodation and food services (-7) –– all reported fewer insolvencies in 2020.
Insolvencies were up in three industries: educational services; information, culture and recreation; and real estate.
Total insolvencies fell in all Canadian provinces in 2020, with the Atlantic provinces generally registering the largest declines. Ontario reported the third-smallest rate of decline of total insolvencies in 2020 behind Alberta and Manitoba, according to the report.
We are not out of the woods yet, warns the FAO, which says insolvencies could increase over the medium term, depending on how quickly income support is phased out, as well as the impact of gradually rising interest rates.
Emuge Franken has announced the promotion of Scott Lowe to national sales manager for the US and Canada.
The Federal Government of Canada is investing $49 billion in aerospace innovation to support competitiveness in the sector.
Manufacturers report an intended increase of 2.4%, $20.9 B
The June 2022 Precision Metalforming Association (PMA) Business Conditions Report showed an increase in the percentage of metalforming companies expecting a decline in business conditions, the third straight decline since April.
Over the past several years the automotive industry has taken a serious interest in an innovative lab at the University of Windsor that is spearheading research into electric and connected vehicles.
Canada’s economy grew by 1.6 per cent in the final quarter of 2021, following a 1.3 per cent rise in the third quarter, according to Statistics Canada. Manufacturing growth helped lead the way.
More than 1,300 people attended DMG Mori's Manufacturing Days event, held November 12-15, held at the company's Davis, CA, facility.
Precision SF Tech, an aerospace landing gear manufacturer based in Terrebonne, QC, has secured a significant order with an American aerospace giant with the help of a loan guarantee from Export Development Canada (EDC).
Canadian merchandise trade continued to rise in November despite the significant transportation disruptions caused by flooding and landslides in British Columbia, Statistics Canada data revealed today.
The flooding in British Columbia had moderate impacts on manufacturing activities in December, Statistics Canada reports.
Canadian Pacific Railway Limited (CP) and Kansas City Southern (KCS) have agreed to merge.
National Steel Car, a Hamilton, Ont.-based manufacturer of rail cars and rail car parts, has voluntarily suspended operations because of a COVID-19 outbreak at its factory.
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
Recent aircraft deals valued at close to $1.5 billion
Bombardier Aerospace has had a recent slate of good news that is helping to spur growth in Canada’s aerospace parts manufacturing sector.
DiPaolo Machine Tools, Mississauga, ON, is the new distributor in Ontario, Quebec and New Brunswick for Grob Systems five axis universal machining centres, high volume production systems and assembly and testing equippment.
