OTTAWA, Feb. 27, 2012 /CNW/ - The financial prospects of Canadian
manufacturers in three industries - chemicals, non-metallic mineral
products, and plastics and rubber products - are improving. Expanding
industrial activity in North America has been a key driver of growth,
but the ongoing development of new markets and innovative new products
have also contributed to stronger performances.
These findings are from the Canadian Industrial Profile-Winter 2012, published by The Conference Board of Canada in association with the
Business Development Bank of Canada (BDC).
"What we are seeing with BDC clients in these manufacturing sectors
corroborates the conclusions of the industrial profiles: companies are
in better financial health today than they were two years ago. Also, a
high percentage of new BDC loans to these companies was for the purpose
of increasing their production capacity and improving their
productivity. That's an encouraging sign," said Pierre Cleroux,
Vice-President, Economic Analysis, Business Development Bank of Canada.
"The market opportunities are there. The performance of companies in the
manufacturing sector will, however, depend on their leaders' ability to
identify and take advantage of these opportunities. Because of the
prevailing global competition, it is crucial for entrepreneurs to
continue their efforts to offer innovative products, find new markets
and introduce ways of improving their productivity."
"The manufacturing sector in North America is growing, which bodes well
for these three industries. Much of their output supplies other
industries and manufacturers. However, with the Canadian dollar at
parity, manufacturers will need to be innovative with their product
offerings and where they are selling if they are to fully benefit from
improving market conditions," said Michael Burt, Director, Industrial
Economic Trends, The Conference Board of Canada.
Plastic and Rubber Products Industry
While dependent on construction activity and the manufacturing sector -
notably motor vehicles - for much of its sales, the industry has found
new markets both in terms of customers and products. Technological
development continues to broaden the potential uses of plastic as a
substitute for other materials. Moreover, Canadian firms are looking
outside North America for growth opportunities. Plastics companies are
also partnering with chemical producers to develop and use bioplastics.
The industry's improving performance will allow profitability to double
in 2012, to $831 million.
Non-Metallic Mineral Products Industry
Industry demand primarily comes from the Canadian construction industry.
The near-term outlook for the construction sector is mixed -
residential construction remains solid, but government stimulus
programs are coming to an end, which is dragging on non-residential
expenditures. As a result, the industry will experience only modest
growth in 2012, but will improve progressively along with construction
demand in the following years.
Total output and employment will not return to its pre-recession
production until 2013, but the industry is poised for steady growth
throughout the next five years. Rising demand for a variety of
chemicals used in different manufacturing processes bodes well for the
industry. Emphasis on the development of advanced specialty chemicals
will help the industry stay competitive since they often benefit from
This edition of the Canadian Industrial Profile Service also includes
outlooks for Pharmaceutical Products and Computer and Electronic
Product Manufacturing. Part of The Conference Board of Canada's
Industrial Economic Trends research, the service provides a five-year
(2011-2015) production, revenue, cost and profitability forecast for
six industries each quarter. In all, outlooks for 23 industries are
completed each year.
The publications are available at www.e-library.ca. BDC clients who wish to receive a copy of the profiles free of charge
can contact their BDC account manager.
Canada's business development bank, BDC, puts entrepreneurs first. With
almost 1,900 employees and more than 100 business centres across the
country, BDC offers financing, subordinate financing, venture capital and consulting services to 29,000 small and medium-sized companies.
Their success is vital to Canada's economic prosperity. For more
information, visit www.bdc.ca.
SOURCE CONFERENCE BOARD OF CANADA
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Tel.: 613- 526-3090 ext. 448
Media Relations, BDC