The largest increases were in the motor vehicle and motor vehicle parts industries. PHOTO: Ford Motor Co.Click image to enlargeManufacturing sales increased 10.7 per cent to $40.2 billion in May following a record 27.9 per cent decline in April, according to Statistics Canada’s Monthly Manufacturing Survey.

Even though many manufacturers resumed operations following full or partial shutdowns related to COVID-19 during the previous month, total manufacturing sales in May were 28.4 per cent below their pre-pandemic level in February.

Sales were up in 18 of 21 industries, led by motor vehicle, motor vehicle parts and petroleum and coal products industries.

In volumes terms, manufacturing sales rose 8.8 per cent, indicating a higher volume of products sold in May.

Four-fifths (80.9 per cent) of establishments in the manufacturing sector reported that their activities were affected by COVID-19, but only 24.3 per cent of establishments reported having a recovery plan in place.

The largest estimated impacts of COVID-19 on manufacturing sales in dollar terms were in the transportation equipment (-$6.7 billion), petroleum and coal product (-$1.8 billion), fabricated metal product (-$836 million), food (-$806 million), plastic and rubber product (-$791 million), machinery (-$760 million) and primary metal (-$710 million) industries. 

Sales in the transportation equipment industry rose 81.7 per cent to $3.6 billion in May, partially recovering from the record 74.9 per cent drop in April. The largest increases were in the motor vehicle (+$983.5 million) and motor vehicle parts (+$439.8 million) industries, as most plants re-opened and gradually resumed production by mid-May. Despite this monthly increase, sales of motor vehicles and parts were down 79.1 per cent compared with May 2019.

Sales of fabricated metal products rose 14.8 per cent to $2.7 billion in May following two consecutive monthly decreases. The gains were widespread but more pronounced in the architectural and structural metal industry.

Machinery and paper sales decline

Machinery sales were down for the fourth consecutive month, declining 6.9 per cent to $2.6 billion in May. Many machinery manufacturers indicated that they experienced lower demand as some customers postponed some orders due to COVID-19. In May, declines were mostly concentrated in commercial and service industry machinery.

Ontario and Quebec lead the gains

Sales increased in eight provinces in May, led by Ontario and Quebec.

Following a record 37.0 per cent decline in April, manufacturing sales in Ontario rose 17.5 per cent to $16.4 billion, mostly reflecting higher sales of motor vehicles (+$958.9 million) and motor vehicle parts (+$421.4 million).

In Quebec, sales rose 9.1 per cent to $10.6 billion in May, following a 25.1 per cent decline in April. Sales increased in 17 of 21 industries, led by the fabricated metal product (+37.9 per cent), wood product (+43.3 per cent), furniture and related product (+108.0 per cent) and transportation equipment (+18.2 per cent) industries.

CMTS keynote: Why Canada is a great place to grow a manufacturing business

Canadian manufacturers can compete and win on a global scale if they devote themselves to innovation in their products and processes, and efficiency in their operations. That’s the message from the keynote speaker at the Canadian Manufacturing Technology Show (CMTS) Linda Hasenfratz, CEO Linamar Corp.

Wilson Tool celebrates new Canadian manufacturing plant

Wilson Tool's newest manufacturing plant in Canada, a 4,366 sq m (47,000 sq ft) facility in Toronto, is one of seven production facilities the company operates around the around the globe, and it's one of two operations in Canada.

Business conditions decline, manufacturers remain optimistic: Manufacturing PMI

Despite the downturn in business conditions, manufacturers remain upbeat regarding future output, according to the latest IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI). . 

CWB announces online training, education initiative

CWB Group has enacted plans to ensure academic progress of students isn’t affected by Canada’s national lockdown to combat the Covid-19 virus.

Feds grant $650K to Quebec 3D printer

Additive manufacturing firm Solaxis Ingéniosité Manufacturière Inc. has been granted $650,000 in federal money to invest in new, state-of-the-art computer equipment and machines.

Ottawa boosts B.C. metal companies with $1.6 M

The federal government has announced funding for two Lower Mainland companies as part of its Steel and Aluminum Initiative.

Hamilton rail car maker hit with COVID outbreak

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.

Locweld wins $50m contract from Hydro-Québec

Locweld, a Candiac, Que.-based metal fabricator, has been awarded a major contract by Hydro-Québec for the new Micoua-Saguenay 735 kV transmission line.

All Toyota models to have electric versions by 2020-2030

Toyota has announced that it plans to make electrified vehicles available across the entire Toyota and Lexus vehicle lines by around 2025.

Inventory edged up, unfilled orders down in March: Statscan

Statistics Canada has offered up the first glimpse of the COVID-19’s economic impact on Canada’s manufacturing sector as the data agency released figures for the March Manufacturing Survey.

US manufacturing orders grow

US manufacturing data shows 5.3% growth over 2011

US manufacturing technology orders climbed 5.3 per cent over 2011, a good sign of an economy finally turning the corner, albeit slowly.

Federal government invests $16 M in Tenaris

The federal Ministry of Innovation, Science and Economic Development has announced a $16 million investment to help Tenaris upgrade mills in Ontario and Alberta.

$300,000 for BC welding programs

BC high schools with welding programs are getting a $300,000 boost after the Canadian Welding Association Foundation (CWA Foundation) announced it's expanding secondary school welding and education support programs across the province because of a donation from the Dennis and Phyllis Washington Foundation in conjunction with Seaspan, an association of Canadian companies in the coastal marine transportation and shipbuilding sectors.

3000+ attend HaasTec open house in California

Close to 3,300 people attended Haas' four-day open house, HaasTec, held March 17-20 at its Oxnard, CA, headquarters and manufacturing facility.

GM Canada and Unifor reach “transformation agreement” on Oshawa

GM Canada and Unifor, the union representing workers at GM’s Oshawa assembly plant, have reached an agreement to transition the plant’s vehicle assembly operations to parts manufacturing and advanced vehicle testing.

Stay In Touch

twitter facebook linkedIn