CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

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CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

OUTLOOK 2023: Durable goods manufacturing helps Canadian economy post fifth straight quarter of growth

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Although durable goods manufacturing continues to grow, transportation equipment manufacturing remains constrained by limited semi-conductor availability. Which begs the question: How much pent-up demand remains hidden in the transportation equipment manufacturing sector and when will that demand hit the market? PHOTO courtesy GM.

The Canadian economy continued growing in September, despite fears of recession, led by many of the goods producing industries Canadian metalworking shops rely on as key customers.

Real gross domestic product (GDP) edged up 0.1% in September, according to figures released by Statistics Canada. The growth posted in September, the final month of the third quarter, contributed towards a 0.7% increase in real GDP for the quarter and marked the fifth consecutive quarter that the Canadian economy has expanded.

Statistics Canada also noted that “advance information indicates that real GDP was essentially unchanged in October”, ushering in the final quarter of the year on a positive note. The October GDP estimate will be updated December 23.

Metalworking shops serving the mining, quarrying and oil and gas extraction sector should be particularly happy with September’s GDP growth. That sector showed 1.2% growth during the month, the seventh increase in the last eight months.

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Although activity in the manufacturing sector decreased 0.1% in September — the fourth decline in five months – the drop was primarily due to declines in the non-durable goods manufacturing segment (meat and seafood product manufacturing in particular). The durable goods manufacturing segment, which is far more important to metalworking shops, grew 0.6% in September. This was a rebound from two consecutive monthly declines; however, the activity level remained below the 2022 peak recorded in June. On a year over year basis, durable goods manufacturing grew an impressive 9.9% this September compared to September 2021.

Machinery manufacturing drove growth, led by gains in agricultural, construction, and mining machinery manufacturing and industrial machinery manufacturing, Statistics Canada reports.

Transportation equipment manufacturing declined, as production remained constrained by limited semi-conductor availability, tempering the increase in durable goods manufacturing. Which begs the question: How much pent-up demand remains hidden in the transportation equipment manufacturing sector by supply chain challenges and when will that demand hit the market?

MORE ON OUTLOOK 2023

OUTLOOK 2023: North America’s metalformers forecast dip in activity for final quarter – Shop Metalworking Technology (shopmetaltech.com)

OUTLOOK 2023: More metalformers predicting drop in economic activity – Shop Metalworking Technology (shopmetaltech.com)

OUTLOOK 2023: Total manufacturing sales on the increase in October, according to StatsCan flash estimate – Shop Metalworking Technology (shopmetaltech.com)

OUTLOOK 2023: Small drop-off in equipment sales not a doom and gloom projection for 2023, Hasrouny tells CMTDA gathering – Shop Metalworking Technology (shopmetaltech.com)

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