In these very challenging economic times, CME and our partners PLANT, Canada's Industry Newspaper and the Canadian Manufacturing Coalition are trying to keep our members, government officials and financial institutions apprised of business conditions affecting Canada’s manufacturing and exporting industries on a regular and timely basis.
Data from Statistics Canada are two months out of date when published. That is unacceptable given the fast paced developments in financial and industrial markets today. For that reason, we are undertaking a monthly survey of our members across Canada. Our goal is to provide real time statistical information to business leaders and government officials – intelligence that they can use to help formulate business and policy responses to current economic and credit market problems.
I invite you to participate in this month’s Business Conditions Survey. Your response will be treated confidentially. Only aggregate data will be published. Participants will receive a copy of the final report.
Thank you for your input and your support.
Jay Myers President & CEO, Canadian Manufacturers & Exporters Chair, Canadian Manufacturing Coalition
To receive the monthly Business Conditions Survey and results directly, please email cme-mec@cme-mec.ca.
Survey results
December 2009 Optimism, challenge and change in store for 2010: CME survey
OTTAWA –A new decade, new challenges and a new sense of optimism. That’s how Canadian manufacturers and exporters are viewing business operations in 2010, according to a survey of 688 respondents this month.
“2009 was anything but normal for Canada’s manufacturers and exporters,” explains CME President & CEO Jayson Myers. “In fact, the past 12 months have reset and rewritten the instruction manual to business success in Canada.”
Consider the record for 2009:
·30 per cent evaporation in sales to our largest export market
·Loss of more than 200,000 jobs in Canada’s largest business sector, five per cent in January 2009 alone
·20 per cent reduction in manufacturing sales across Canada
·A volatile currency and continued appreciation of the Canadian dollar
·Ongoing credit/financing problems
“The lesson of 2009 is that business as usual is simply not an option,” says Myers. “We have hit the reset button and now we have to define the new normal.”
According to a CME survey of 688 CEOs, Canada’s manufacturers and exporters believe that 2010 will be better than 2009, but all companies, regardless of size, are struggling to find their niche in the new normal.
The recession took its toll on Canada’s largest business sectors. Only 18 per cent of companies were able to increase employment over the past year while 62 per cent reduced their workforce and almost one-fifth cut their number of employees by more than 30 per cent.
Looking forward to the end of the first quarter of 2010, 56 per cent of companies expect to maintain their current levels of employment while 27 per cent plan to expand to their workforce. Only 17 per cent estimate that they will have to trim employees in the first three months of the year.
In terms of sales, 43 per cent anticipate new orders to increase in the first quarter of the New Year with 41 per cent expecting to maintain the existing volume levels as today. Only 16 per cent expect orders to decrease further, with just three per cent expecting a reduction of more than 30 per cent.
“I do believe that in comparison to 2009, manufacturers and exporters do have reason to be more optimistic about 2010,” Myers says. “In reality, could it be any worse than the last 12 months? – I really don’t think so.”
Nevertheless, there are still many causes for concern in the economy that could hinder companies’ abilities to take advantage of the fledgling recovery.
The most pressing challenges identified by Canadian companies include:
·Keeping costs under control
·Responding the strength and volatility of Canadian dollar
·Expanding into new markets
·Improving workforce productivity
“A volatile currency acts like a direct price cut on export sales,” says Myers. “It’s wreaked havoc on the profitability of Canadian companies this year. I am warning our members that the Canadian dollar could reach and even exceed par by June 2010.”
With respect to business planning, the priorities for manufacturers and exporters in 2010 are:
·Improving cash management and profitability
·Expanding sales and developing new markets
·Developing and marketing new and improved products
“Manufacturers and exporters realize that they operate in a global economy where the new normal has been reset,” Myers explains. “They understand that not just diversifying markets, but products as well, are critical to their future business success.
“The new normal for Canadian manufacturing and exporting is innovative; creative; market driven and efficient,” says Myers. “Leadership will make the difference in the next 12 months as we lay the foundation for the future of the Canadian economy. We have to ensure we get it right, because our future prosperity depends on it"
Despite numerous looming challenges to their bottom line, Canadian manufacturers and exporters are optimistic about the first quarter of 2010, according to CME’s November Business Conditions Survey.
Three-quarters of the 727 respondents expect business to improve with new orders increasing over the next three months, while 79 per cent expect they won’t shed jobs in the first two months of 2010.
“We are slowly moving into the recovery phase,” said CME President & CEO Jayson Myers. “It appears as if we will start 2010 on a positive note and that’s encouraging, but manufacturers and exporters across Canada are facing a number of significant challenges that are constraining their ability to take advantage of the fledgling recovery.”
In November, the economic health of Canada’s largest business can be depicted as:
·Business is beginning to pick up – Thirty-one per cent of companies have seen customer orders increase since August, 32 per cent have seen orders remain at the same level, while 37 per cent have seen orders decline over the past three months.Eight per cent of companies saw orders fall off by 30 per cent since August.This result is a significant improvement since June when two-thirds of companies were reporting that orders were in decline.
·Markets are stabilizing but the outlook is for a slow and faltering recovery – Thirty-one per cent of companies expect orders to increase over the next three months, while 38 per cent say orders will remain the same and 31 per cent expect orders to decline further.Only two per cent report that orders will fall over the next three months.
·Manufacturers are working inventories down – Although 29 per cent of companies say that inventories are still too high, 68 per cent report that inventory levels are just about right.
·Job recovery will be slow – Twenty-one per cent of companies report that they will be reducing employment levels, 63 per cent say that job levels will remain stable, while 16 per cent say that they will increase employment over the next three months.
Overall, the recession has taken its toll on manufacturing and exporting. These results underestimate the impact of recession on the Canadian economy as a whole because they do not take into account those firms that have gone out of business or have closed operations in Canada as a result of consolidation.According to November’s survey and over the past 12 months:
·Sixty-eight per cent of small and medium-sized manufacturers and exporters have cut employment levels over the past year – 16 per cent of companies have cut employment by more than 30 per cent.Only 10 per cent of companies have increased the size of their workforce while 22 per cent are employing around the same number of people today than at the beginning of the recession.
·Forty-two per cent of companies have reduced capital investments in machinery and equipment, and 20 per cent have cut investment by 30 per cent or more, over the past year.On the other hand, 22 per cent have increased investments in new technology while 36 per cent have held their capital spending budgets at about the same level as last year.
·Twenty-seven per cent of companies have reduced spending on new product research and development, but 23 per cent of firms have increased R&D spending and 50 per cent have held product innovation budgets steady.
October 2009 Dollar, credit and protectionism threaten green shoots in economy: CME survey October 30, 2009 Click here to view the report.
OTTAWA – Green shoots may be sprouting in the economy, but a volatile currency could delay budding a full-grown recovery, according to Canadian Manufacturers & Exporters’ October Business Conditions Survey.
“Manufacturers and exporters are optimistic that that the green shoots sprouting in the economy will bud into a recovery,” said CME President & CEO, Jayson Myers. “However, threats like a volatile and appreciating currency, higher commodity and energy costs, increasing protectionism in our major export market and continued difficulties accessing credit, are threatening a recovery.”
The October numbers highlight the continued “glimmers of hope” that have appeared in previous months.
This month, 727 companies participated in the survey conducted the last three weeks of October.
It may not be an economic turnaround, but the good news is 38 per cent of respondents indicate orders have fallen over the past three months, down from 50 per cent in September. Last April, 65 per cent of manufacturers and exporters reported orders had fallen.
Three-quarters of companies report that they expect the value of new orders to stay the same or increase in value over the next three months. This is a markedly more optimistic outlook than March’s 49 per cent of respondents who expected new orders to decrease and only 18 per cent expected to see orders increase.
Companies are also reporting lower inventories this month with 28 per cent of responding manufacturers indicate that inventory levels of components and raw materials are currently too high. This is an improvement from 31 per cent reported the last three months.
The looming challenges facing manufacturers and exporters, namely a volatile currency, is impacting the outlook for employment.Approximately 24 per cent per cent of firms plan are expecting to trim their workforce.
“The manufacturing sector has lost more than 200,000 jobs so far this year and still, and almost one-quarter are still planning to shed jobs in the next three months."
And the credit crunch continues to be a major obstacle for manufacturers and exporters, with 66 per cent unable to secure financing for working capital purposes, operating a line of credit, capital investment purposes and investments in new technology.
This is a subtle improvement from the 70 per cent of firms that have consistently reported difficulties in accessing adequate financing every month.
“Financing constraints are one of the biggest threats to a recovery,” Myers added. “Credit is the oxygen that firms need to grow. Without secure access to financing, forget any hope of a strong recovery anytime soon.”
August 2009 Markets stabilizing, but challenges still threaten to stall recovery: CME Business Conditions Survey
OTTAWA – The vital signs of Canada’s manufacturing and exporters continue to stabilize but the economic prognosis is for a slow and painful recovery, according to Canadian Manufacturers & Exporters’ August Business Conditions Survey.
“Technically, the recession appears to be over. Most manufacturers and exporters are no longer seeing customer orders in freefall. But, in reality, Canadian companies still have many challenges to face on the road to recovery,” says CME President & CEO, Jayson Myers. “The threats of a volatile and appreciating currency, higher commodity and energy costs, increasing protectionism in the US and other export markets, and continued difficulties accessing credit may all endanger the recovery that is now getting underway.”
The results of CME’s August survey reinforce the glimmer of hope that has appeared in previous months.
A total of 692 manufacturers and exporters participated in the survey which was conducted the last three weeks of August. Approximately 51 per cent of respondents indicate that orders have fallen over the past three months, down from 65 per cent in April.
Three-quarters of companies report that they expect the value of new orders to stay the same or increase in value over the next three months, up three percentage points from July. Only 26 per cent say that orders are likely to decrease between August and October of this year, down three points from last month.
This is a markedly more optimistic outlook than in March when 49 per cent of companies were expecting new orders to drop in the coming three months, and only 18 per cent expected to see orders increase.
However, the more optimistic outlook for orders will not immediately translate into stronger economic growth. Approximately 24 per cent per cent of firms plan to cut their workforce over the next three months. In July, 21 per cent were planning layoffs.
“The manufacturing sector has lost more than 194,000 jobs so far this year. Unfortunately, we see lay-offs continuing throughout the second half of the year.
The credit crunch continues to be a major obstacle for manufacturers and exporters, with 71 per cent of companies responding to the survey reporting difficulties in obtaining financing for working capital purposes, operating lines of credit, capital investment purposes and investments in new technology.
Since the beginning of the year, we have had more than 70 per cent of firms consistently reporting greater difficulties in accessing adequate financing.
“Financing constraints are one of the biggest threats to this recovery,” Myers added. “Credit is the oxygen that firms need to grow. Without secure access to financing, forget any hope of a strong recovery.”
July 2009 Warming up for the fall, survey points to bottom of recession; slow recovery: CME Business Conditions Survey
OTTAWA – End of the recession? Not yet, but amidst a sense of continued stability, Canadian manufacturers and exporters are optimistic that this economic warming effect will continue into the fall, according to the data in Canadian Manufacturers & Exporters’ July Business Conditions Survey.
“The good news is that it appears the recession is bottoming out, with a number of firms seeing orders remain the same or increase over the next three months, but it’s premature to say the sector is on the way to a strong recovery,” says CME President & CEO, Jayson Myers.
The July data reinforces the signs of stability that appeared in the last three monthly surveys.
This month, 583 companies participated in the survey conducted the first three weeks of July. While most manufacturers and exporters surveyed this month report the value of their orders is lower than it was three months ago, there is a strong indication that the downward slide has stabilized.
Over this period, 53 per cent of companies report that orders have fallen in value compared to three months ago, a 12 per cent improvement since April.
The positive trend identified for new orders the past two month continues. A majority -- 71 per cent -- of firms report that they expect the value of new orders to stay the same or increase in value over the next three months, a slight increase of two per cent from June.
“According to this data, there may be increased gains in production levels in the final quarter,” adds Myers.
But employment prospects, while stabilized, are not as bullish. Only 12 per cent of companies expect to increase employment the next three months, which is on par with the results from the previous four surveys. The number of firms who are planning layoffs hovers around 21 per cent.”
And the credit crunch is still a major obstacle for manufacturers and exporters. Still, 73 per cent of manufacturers and exporters report that they are experiencing difficulties in accessing or are unable to access financing; with the hurdles being financing for working capital purposes, operating a line of credit, capital investment purposes and investments in new technology. That’s a slight improvement over last month’s 77 per cent, but on par with the previous five months’ data.
“The difficulties in accessing financing may thwart the pace of recovery,” says Myers. “If this trend continues, my fear is that we will see a very long, drawn-out recovery.”
June 2009 Optimistic outlook: CME Business Conditions Survey
OTTAWA – Despite challenges like a soaring Loonie in the earlier part of the month and tightening credit conditions, the economic outlook for Canadian manufacturers and exporters is cautiously optimistic, according to the data in Canadian Manufacturers & Exporters’ June Business Conditions Survey.
“This sentiment is a little surprising considering the wild rollercoaster ride manufacturers and exporters had in June, courtesy of a volatile currency,” explains CME President & CEO, Jayson Myers. “The outlook for orders and employment continues to be positive and I hope this trend continues.”
The June numbers reinforce the signs of stability that appeared in the last three monthly surveys.
This month, 608 companies participated in the survey conducted the first three weeks of June. While most manufacturers and exporters surveyed this month are still reporting the value of their orders is lower than it was three months ago, results this month reinforce the beginning of a positive trend that started in May.
Over this period, only 51 per cent of companies report that orders have fallen in value compared to three months ago, a six per cent improvement over May.
The positive trend identified for new orders last month continues. A majority -- 69 per cent -- of firms report that they expect the value of new orders to stay the same or increase in value over the next three months, a slight increase of three per cent from May. Only 31 per cent say that orders are likely to decrease between June 2009 and September 2009 (a slight improvement over 34 per cent last month), and 24 per cent expect to see orders increase, a slight drop from 28 per cent last month.
And there’s some good news for job seekers – 13 per cent of companies expect to increase employment the next three months, which is on par with the results from the previous three surveys. The number of firms who are planning layoffs has decreased from 38 to 27 per cent.
“The manufacturing sector has lost more than 135,000 jobs so far this year, so this is encouraging,” said Myers. “However, we still have more than one-fifth of companies who are planning on shedding jobs.”
And the credit crunch is still a major obstacle for manufacturers and exporters. An increase over last month, 77 per cent of manufacturers and exporters report that they are experiencing difficulties in accessing or are unable to access financing; with the hurdles being financing for working capital purposes, operating a line of credit, capital investment purposes and investments in new technology.
“Credit cannot continue to be an issue or it will jeopardize any type of recovery.”
May 2009 Survey shows signs of stability in manufacturing and exporting: CME Business Conditions Survey
OTTAWA – Stabilizing and getting healthier, but still in intensive care. That’s the prognosis of Canada’s manufacturing and exporting sectors according to the data in Canadian Manufacturers & Exporters’ May Business Conditions Survey.
“It appears Canada’s manufacturers and exporters are seeing a new and needed period of stability in their operations,” said CME President, Jayson Myers, in reference to third consecutive month of positive numbers. “The outlook for orders and employment continues to improve. I’m cautiously optimistic and hope this trend continues. But we need to address the ongoing credit issue and give companies the oxygen they need to breathe.”
The May numbers reinforce the glimmer of hope that appeared in March and April surveys.
This month, 629 companies participated in the survey conducted during the first two weeks of May. Most manufacturers and exporters surveyed this month still report the value of their orders is lower than it was three months ago, with 57 per cent of companies saying that orders have dropped in value compared to February. But, that represents an eight per cent improvement over April.
The positive trend identified for new orders last month continues in May. A majority -- 66 per cent -- of firms report that they expect the value of new orders to stay the same or increase in value over the next three months, a slight increase of three per cent from April, while 34 per cent say that orders are likely to decrease between May 2009 and August 2009 (a slight improvement over 37 per cent last month). In May, 28 per cent of companies expect to see orders increase over the next three months, a solid improvement over 22 per cent reported in April.
This is a markedly more optimistic outlook than in March when 49 per cent of companies were expecting new orders to drop in the coming three months, and only 18 per cent expected to see orders increase.
And there’s better news for job seekers -- 12 per cent of companies expect to increase employment the next three months, which is on par with the both April and March results. The number of firms who are planning layoffs has also stabilized with last month, approximately 38 per cent.
“The manufacturing sector has lost more than 135,000 jobs so far this year, so this is a glimmer of hope,” said Myers. “The bad news is that while the number of companies who will be reducing their workforce has stabilized, more than one-third are still planning to cut jobs.”
And the credit crunch is still a major obstacle for manufacturers and exporters. Like last month, 73 per cent of manufacturers and exporters report that they are experiencing difficulties in accessing or are unable to access financing; with the hurdles being financing for working capital purposes, operating a line of credit, capital investment purposes and investments in new technology.
“If this is in fact the beginning of a positive trend in the economy, we are running the risk that securing adequate financing will jeopardize any type of recovery,” concluded Myers.
OTTAWA – Eye of the storm or the beginning of a recovery? Neither, just yet.
After six months of plummeting orders and job losses, manufacturers and exporters are beginning to see some stability in their business operations, according to survey data from Canadian Manufacturers & Exporters’ April Business Conditions Survey.
“The April numbers reinforce the glimmer of hope that appeared in our March survey,” said CME President, Jayson Myers. “While this is encouraging, I don’t think we are out of the woods just yet. There are still many risks ahead for the Canadian economy including more job losses, difficulty in obtaining financing and growing protectionism in our major export market, the US.”
This month, 577 companies participated in the survey conducted the first two weeks of April. Exactly 63 per cent of firms expect orders to increase between April and July, up 12 percentage points from March’s figure of 51 per cent. And there’s some good news for job seekers -- 13 per cent of companies expect to increase employment the next three months, which is on par with the March results. The number of firms who are planning layoffs also shrunk over the past month, decreasing 42 to 36 per cent.
“The manufacturing sector has lost 135,000 jobs so far this year, so this is a ray of hope,” said Myers. “ The bad news is that while the number of companies who will be reducing their workforce is down, one-third are still planning to cut jobs. Current orders have fallen off significantly the past three months and many companies are reporting that inventories are too high.”
But the most worrisome element of this month’s survey is an indication the credit crunch is still an issue for all manufacturers and exporters. Approximately 56 per cent of businesses still reporting difficulties accessing adequate levels of financing, including working capital, extending lines of credit and accessing financing for new technologies and product development. That’s improvement of only three per cent over March.
“If this is in fact the beginning of a positive trend in the economy, we are running the risk of that the failure to secure adequate financing will jeopardize any type of recovery.”
March 2009 Economic decline slowing: CME Business Conditions Survey
OTTAWA – It’s not a signal the recession is over yet, but more Canadian manufacturers and exporters are optimistic about business conditions over the next three months than they have been since the beginning of 2009, according to the Canadian Manufacturers & Exporters’ March Business Conditions Survey.
“It’s a glimmer of hope in an otherwise bleak outlook,” said CME President, Jayson Myers in response to the survey results. “I believe the real economic impacts are still to be felt, but it is encouraging news that the economic decline appears to be slowing.”
This month, 717 companies participated in the survey conducted during the first two weeks of March. Exactly 49 per cent of firms expect orders to decrease between March and June, down seven percentage points from February’s figure of 56 per cent. And there’s some good news for job seekers -- 13 per cent of companies expect to increase employment over the next three months, up from 11 per cent in February. The number of firms who are planning lay-offs also shrunk over the past month, decreasing from 45 to 42 per cent.
Despite the sliver of good news in terms of sales and employment, the credit crunch is still an issue for all manufacturers and exporter with 59 per cent of businesses reporting difficulties accessing adequate levels of financing, including working capital, extending lines of credit and accessing financing for new technologies and product development.
“Accessing credit continues to be a major hurdle for companies of all sizes to overcome during this major economic downturn,” Myers added. “We need to put pieces of the credit puzzle together quickly or we will see more companies, even very innovative and productive companies, laying off more workers and going out business.
“If companies cannot access credit soon, the financial meltdown could translate into a Canadian industrial meltdown.”
February 2009 Economic Outlook continues to deteriorate – CME Survey
OTTAWA -- Canadian manufacturers and exporters are not seeing signs of economic recovery yet, according Canadian CME’s February Business Conditions Survey.
“Unfortunately, the economic tsunami hasn’t loosened its grip on the economy and more storm clouds are still on the horizon,” said Jayson Myers, CME president. “We are now starting to feel the full brunt of the downturn in customer demand and the outlook for the next three months is still bleak.”
The February Business Conditions Survey was conducted between February 9-23, with a total of 620 companies, from all regions of Canada, participating. This month’s survey reveals an additional decrease in new orders over the next three months; a further reduction in employment and a tighter credit squeeze for all companies, regardless of size.
Key trends from the survey include:
·A majority of manufacturers and exporters expect the value of new orders to fall over the next three months – 56 per cent say that orders are likely to decrease between February and May. This is a less optimistic outlook than in January when only 43 per cent of companies were expecting new orders to drop in the coming three months.
·45 per cent of companies say that employment levels are likely to fall. This is slightly higher than the 42 per cent of companies that expected their employment levels to fall in the January survey.
The credit crunch is affecting smaller companies the most, but larger companies are now reporting difficulty accessing financing. 60 per cent of manufacturers and exporters report difficulties accessing adequate levels of financing including obtaining working capital, extending lines of credit, accessing financing for new technologies and product development.
“The findings indicate that we haven’t hit financial rock bottom just yet,” Myers added. “Unfortunately we will see more layoffs and more plant closures making this downturn the worst economic recession since the Great Depression.
“This reinforces the need for federal budget measures, specifically access to credit, to be implemented on an urgent basis to help innovative and creditworthy companies survive this economic downturn – our industry and our standard of living are at stake. We will not see the Canadian economy recover without a recovery in our vital manufacturing and exporting sectors.”
January 2009 Weakening economy, falling orders and more job losses in 2009
OTTAWA – Falling orders combined with a weakening economy translates into further job losses in the Canadian manufacturing and exporting sectors in 2009, according to the January Business Conditions Survey conducted by Canadian Manufacturers & Exporters (CME).
“We are seeing a very serious meltdown in customer demand that is ricocheting throughout business sectors connected to our major export market, the US,” says CME President Jayson Myers. “Companies are finding it more difficult to access the financing they require to invest in new products and new technologies, grow their business, and in some cases simply stay in business.”
Canadian Manufacturers & Exporters, in partnership with member associations of the Canadian Manufacturing Coalition, surveyed manufacturers and exporters, between January 13th and 21st. A total of 379 companies with operations in all provinces of Canada participated in the survey. This is a monthly series of business conditions surveys that CME will conduct across Canada’s manufacturing and exporting sectors to provide real-time feedback from businesses at the front line of the economic storm.
Highlights from the January survey include:
66% of companies report that orders have fallen in value since October – 21% report that orders have fallen by more than 30%.
The sharpest downturn in orders over the past three months has occurred in Ontario, Alberta, and British Columbia.
43% of firms say that orders are likely to decrease between January 2009 and April 2009.
42% of companies say that employment levels are likely to fall over the next three months.
48% of manufacturers and exporters report that they are experiencing difficulties accessing adequate levels of financing.
19% say that their line of credit is insufficient to meet current working capital requirements.
20% of firms report that they are using 90% or more of their full line of credit.
28% of companies report that they have asked their financial institution to increase their line of credit over the past three months.
44% of the companies that requested an increase in operating lines of credit over the past three months were declined.
The companies whose requests were refused report a variety of reasons given by their financial institutions. The most common (reported by 40% of firms) is that their bank thinks that their industry sector is too risky. The second most common reason for refusal (reported by 17% of firms) is that the assets given as security do not meet the bank’s requirements.
“Based on the outlook that our survey suggests, it’s going to be a tough year ahead. That’s why it is vitally important that the federal budget address issues of business credit and liquidity and take steps through adjustments in the tax system to encourage Canadian companies to invest in the new products, technologies, skills, and markets that will allow them to emerge from the recession in a stronger competitive position.”
December 2008 Manufacturers prepare for dramatic drop in sales - Urgent action required to ensure liquidity
OTTAWA – Canadian manufacturers and exporters are experiencing a sharp contraction in customer demand that is likely to continue to into the first quarter of 2009, according to the latest Business Conditions Survey conducted by CME.
“The message we are hearing from manufacturers and exporters across the country is that ‘we ain’t seen nothing yet,’” says CME President Jayson Myers.“New orders are down sharply in most manufacturing and exporting sectors as a result of the credit market meltdown we have seen in the United States.Now it is becoming more difficult to access financing in Canada as well.Our members tell us that there are more production closures and job losses to come.We need urgent action to ensure financing continues to flow to creditworthy businesses if we are to avoid an industrial meltdown that would take Canada into deep recession.”
Canadian Manufacturers & Exporters surveyed its members, as well as the members of the Canadian Manufacturing Coalition, between December 9th and 16th.A total of 327 companies with operations in all provinces of Canada participated in the survey.It is the first of a monthly series of business conditions surveys that CME will conduct across Canada’s manufacturing and exporting sectors to provide real-time feedback from businesses at the front line of the economic storm.
Highlights from the December survey include:
59% of companies report that orders have fallen in value since September, 27% say that orders are about the same as in September, while only 14% of firms report that orders have increased.A full 17% of companies report that orders have fallen by more than 30% since September.
A majority of manufacturers and exporters also expect that the value of new orders to fall over the next three months – 52 % say that orders are likely to decrease between December 2008 and March 2009.
38% of companies say that employment levels are likely to fall over the next three months.
More than one-third of manufacturers and exporters report that they are experiencing difficulties accessing adequate levels of financing. Working capital and financing for capital investments and acquisitions are relatively more difficult to obtain than other forms of credit.
“The situation for Canadian industry and the Canadian economy is very serious.2009 will be an extremely challenging year.Addressing immediate liquidity problems must be the top priority for governments – other economic measures and policy initiatives will be academic if companies have closed their doors.”
For more information contact Jeff Brownlee, vice president public affairs at 613-238-8888 ext. 4233 or email: jeff.brownlee@cme-mec.ca.
