Manufacturers added to their workforces for the eighth month in a row, with the overall rate of job creation higher than January’s dataClick image to enlargeStrong expansion in new orders pushed the Canadian manufacturing sector to another solid improvement in February, according to the most recent report from IHS Markit.

The IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) registered 54.8 in February, up from 54.4 in January, indicating a strong improvement in overall operating conditions.

"Latest PMI data highlights another solid improvement in the overall health and resilience of Canada's manufacturing sector. An improving domestic demand picture, greater purchasing activity and a sustained period of employment suggests firms expect greater output in the months ahead,” said Shreeya Patel, Economist at IHS Markit.

"Meanwhile, foreign demand for Canadian goods was relatively weak as international markets continue to face business closures amid restrictions. Nevertheless, Canada's manufacturing sector extended its uninterrupted sequence of expansion to eight months. Moreover, firms remain widely upbeat about their growth prospects with vaccination news underpinning optimism during February."

The boost in demand, along with a rise in backlogs, encouraged firms to add to workforces, while sustained growth in output led to another increase in purchasing activity.

However, the data shows intense supply chain pressures which are having a marked impact on delivery times. Restrictions put in place to curb the spread of COVID-19, are causing continued material shortages and transportation delays, which are hitting manufactures in the form of higher costs through supplier surcharges.

It was domestic demand that forced another solid increase in new orders. However, IHS Markit says foreign demand for Canadian manufactured goods rose only fractionally at the start of the year, as pandemic restrictions continued to hamper exports.

Output volumes rose along with demand, although the rate of expansion was the lowest in eight months. Production schedules were supported by higher new order volumes, although pandemic restrictions again weighed on output.

Manufacturers added to their workforces for the eighth month in a row, with the overall rate of job creation higher than January’s data.

Data suggests that transportation bottlenecks and stock shortages led to deterioration in vendor performance, with lead times longer than at any point since Q4 2010.

Intense cost pressures persisted, with the rate of input price inflation accelerating in February, with higher material (mainly metals) and transportation costs to blame.

However, overall sentiment regarding production over the next 12 months was upbeat, with the degree of optimism reaching a five-month high with hopes of reduced virus-related restrictions.

Machining group to launch skills training centre

The Canadian Tooling and Machining Association (CTMA) has announced the creation of a new training and development centre to address the skilled trades shortage.

Brand neutral manufacturing resource platform

A new online manufacturing resource platform called “A Faster Horse” has launched.

Praxair Canada is now Linde Canada

Linde has announced that its Canadian subsidiary, Praxair Canada Inc., has changed its name to Linde Canada Inc.

Major expansion for Quebec metrology firm

Creaform, Levis, QC, a metrology and engineering services company that specializes in portable 3D measurement solutions, is expanding its operations and recruiting new people for its worldwide offices in Canada, the US, Europe and India.

Canadian economy back on growth track: Statistics Canada

Real gross domestic product grew 3.3 per cent in January, says Statistics Canada.

New advanced manufacturing show for Canada

The Canadian manufacturing industry will have a new trade show to attend this year: Advanced Manufacturing Canada (AMC), which takes place in Montreal November 18-19.

Honda Canada donates $100,000 for Quebec flood relief

Honda Canada Foundation has donated $100,000 to the Canadian Red Cross in support of the Spring Flood Appeal for relief and recovery efforts in Quebec.

Mazak congratulates Team Penske NASCAR win

Mazak Corp., a Team Penske technical sponsor, congratulates owner Roger Penske, driver Joey Logano and the No. 22 Shell-Pennzoil Ford Fusion on winning the Monster Energy NASCAR Cup Series Championship, securing the team's second Cup Series title.

Bank of Canada holds key rate, downgrades economic forecast

The Bank of Canada, citing the sharp drop in oil prices and consequent softness in the economy, is holding its benchmark interest rate steady at 1.75 per cent.

MicroStep expands North American footprint

MicroStep is expanding its North American presence with the launch of a new subsidiary, MicroStep USA. The Slovakian based manufacturer of CNC cutting machines such as plasma and oxyfuel machines, laser utting, waterjet and pipe and profile cutting machines, expanded in Canada in 2015 with the opening of its Canadian subsidiary, MicroStep Canada, headed by president Kal Shergill and based in Burlington, ON.

Federal and provincial support for businesses impacted by COVID-19

The global coronavirus pandemic has put a pause on the world’s economy, creating unprecedented concerns for shop owners and their employees. The following is a list of support programs put in place to help keep businesses solvent during this crisis.

Algoma Steel to go public in $1.3B deal

Algoma Steel Inc. in Sault Ste. Marie, Ont., has agreed to go public in a merger with Legato Merger Corp. in an all-stock deal estimated to be worth $1.3 billion.

First friction stir welding robotic crawler repairs internal pipelines

Researchers in the UK have introduced what they say is the first ever friction stir robotic crawler for internal repair and restoration of inaccessible pipelines.

3D manufacturing good for environment: EOS, Airbus study

EOS of North America Inc., Nov, MI, and aerospace giant Airbus Group Innovations have partnered together in a study to illustrate the environmental and cost saving benefits of 3D printing in aerospace manufacturing.

Fives acquires aerospace engineering firm

Fives has acquited Lund Engineering, a Seattle, OR, business that designs and builds electro mechanical equipment for composite aerospace structures and components. The acquisition expands Fives' offerings in the aerospace industry.

Stay In Touch

twitter facebook linkedIn