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Alberta Manufacturing & Industry News
Daily Economic Comment - Manufacturing Simmers Down
Refineries and factory floors throughout Alberta really ramped up production last year. But by the time December 2011 rolled around, it appears that some of them were ready for a bit of a break.
Sales from Alberta manufacturers slipped in December to $6.322 billion—down 3.5% from the previous month. But despite that drop, total shipments for 2011 were still higher by nearly 18%.
Total Canadian manufacturing shipments, on the other hand, rose 0.6% in December to $49.9 billion. Statistics Canada reports that 12 of 21 industries (representing about two-thirds of Canadian manufacturing) saw gains. December’s increase was concentrated in the durable goods industries—especially transportation equipment, where sales rose 2.1%.
Alberta’s manufacturing is concentrated in energy related products, including inputs into the oilsands and refined petroleum products. Food processing (i.e., beef and pork packaging) is also a major contributor.
The province’s dip at the end of 2011 is unlikely to be the beginning of a trend. Many factors can contribute to a one-month decline, including down-time at specific oil refineries. The overall 18% increase in 2011 manufacturing is due largely to strong oil prices and the resulting pace of activity in conventional drilling and oilsands investment. And so far this year, there is little to suggest a slowdown is imminent.
Daily Economic Comment - Alberta's Surging Population
The 2011 Census confirmed what most people already knew; Alberta's population is growing at almost twice the national rate. Ontarians should rest assured of their dominant place in confederacy because even at current growth rates it would take well over 150 years before Alberta is the most populace province.
Canada's population now stands at slightly over 33 million, 5.9% higher than it did when the last census was taken in 2006. The growth was very uneven across the country, with the Atlantic Provinces growing well below average and western Canada growing well above. Nova Scotia recoded the slowest growth rate in the nation, increasing just 0.9% in the five year interval.
Immigration plays an important role in Canada's population dynamics. Canada accepts about 250,000 immigrants annually in the greater Toronto and Vancouver areas ( and to a lesser extent Montreal). This has been contributed to B.C's population surging 7% between census periods and Ontario's to increase by 5.7%.
Although Alberta's population tends to be more influence by inter-provincial migration, increasingly immigrants are choosing to land in Alberta. In 2010 Alberta accepted 20,000 immigrants, nearly double the number who came in 2005, and it's hard to know how many immigrants land in Toronto/Vancouver and subsequently come to Alberta.
Of particular note is how the populations of Alberta's major cities surged between censuses; Calgary surged 12.9% and Edmonton by 11.8%. Most of the other areas of the province saw their populations increase at a tamer pace, with the exception of Wood-Buffalo which grew 15.8% thanks to the oil sands.
Pipeline Rejection Angers Manufacturing Groups
U.S. manufacturing groups ripped President Obama's decision Jan. 18 to reject a construction permit for the Keystone XL pipeline as a major setback to the nation's energy security.
"The decision to say no to a project that would create 20,000 manufacturing and construction jobs - with an additional 118,000 indirect jobs -- defies logic when the U.S. is suffering from high unemployment and a struggling economy," said National Association of Manufacturers President Jay Timmons in a prepared statement. "For America's future, it's always better to choose sound policy over politics. Instead, the administration followed the political winds and rejected a clear way to create jobs."
Daily Economic Comment - Manufacturing Rides the $100 Oil Highway
Across North America, a nascent recovery in manufacturing is raising some hopes fo the general economy returning to health. Factory floors and refineries in Alberta were doing more than their part to boost shipments towards the end of last year.
Daily Economic Comment - Canadian Businesses Less Optimistic
Economists track a lot of numbers - stock market movements, capital flows, and currency exchange rates - to get a sense of what the economy is doing. But much insight can be gained simply by going out and asking companies what they’re experiencing. And according to one survey Canadian firms are less optimistic.
In the most recent Business Outlook Survey (BOS) of the Bank of Canada, released this morning, companies are reporting lower expectations for sales growth in the next 12 months. It is the first time since the beginning of 2009 that more companies expect the rate of sales growth to fall rather than rise. (the BOS is a survey of about 100 firms across the country, and was conducted between Nov. 14th and Dec 14th, 2011)
Daily Economic Comment - Alberta Businesses Look to the Bright Side
As 2011 drew to a close, the Canadian economy appeared vulnerable to a myriad of global concerns, But according to a survey of members by the Canadian Federation of Independent Business, small and medium-sized enterprises are becoming somewhat more optimistic- a trend that is particularly evident in Alberta.
In December, the index of business optimism in this province stood at 73.6 - the highest in the country, and just ahead of second-place Saskatchewan (72.2). Nationally, the index has improved over the past few months, and stands at 65.0.
The CFIB's Business Outlook Survey in conducted monthly form a sample of 900 independent business participants across the country. The survey produces an index value between 0 and 100. Values above 50 indicate that business owners expecting their company's performance to be stronger in the next year outnumber those expecting weaker performance.
The nation-leading optimizing in Alberta is, perhaps, not a surprise. Growth in the province has outpaced most of the rest of North America, despite the growing worries in Europe and elsewhere. Strong expanding labor market have contributed to a healthy economy. As a result, Alberta's independent business owners are in a relatively buoyant mood going into 2012.
CARMA session to talk foreign workers
By The Associated Press
Published: January 04, 2012 7:33 PM
Too few young workers entering the labour market; too many older workers leaving it — the consequence could be a labour crunch that will threaten many companies’ ability to compete.
A solution might exist outside Canada in the form of foreign workers. And advice about how to tap into this source of human capital will be provided next Wednesday in Red Deer.
The Central Alberta Rural Manufacturers Cluster, a partnership between the Central Alberta Rural Manufacturers Association (CARMA) and Community Futures, is sponsoring an information session on planning for, selecting and securing foreign workers.
Daily Economic Comment - US Economy Closes 2011 on a Decent Note
Last year was a tough one for the world's largest economy, with unemployment remaining stubbornly high and political gridlock weighing on consumer confidence. However, according to a bellwether economic indicator, the United States was at least on the upswing by year end.
The institute for Supply Management's manufacturing index jumped 1.2 percentage points to 53.9 in December - its highest level in half a year. The ISM index is considered to be a leading indicator for the US economy, and hence the late year recovery bodes well for economic growth in the New Year.
Earlier in 2011 there were legitimate concerns that with the US economy growing so slowly, the European financial crisis may be enough to tip the US into recession.
With readings like today's on the ISM index, those US recession fears appear to have been mitigated for now.
Weak growth in the global economy was the biggest obstacle for Canada's economy in 2011. Hence, US reading such as this are positive and help life the mood for growth here as well.
While ending on a high note is always a good thing, the fact remains the US economy is having a very hard time recovering from the great recession of 2008-09. All in all, there is reason to be optimistic about the US in the New Year, although with the European financial crisis still percolating an the Chinese economy showing signs of cooling, a lot of uncertainty remains as well.
Daily Economic Comment - Albertan Wages Climb Faster then Average
Stock markets might be decidedly lower of late, making many households feel somewhat less wealthy, but Albertans can find some succor in their high and growing relative wages.
According to Statistics Canada's monthly payroll employment, earnings and hours survey, the year-over-year average weekly wage in Alberta increased 3.8%. Average weekly earnings in the province were $1,043 in September, 2011, which is actually 11% higher than where wages stood three years ago (when Lehman Brothers collapsed).
Daily Economic Comment - Manufacturing Soars in September
While manufacturing if often thought to be the realm of central Canada, an increasingly large value of good are being assembled and processed in Alberta. And in September, manufacturers in this province saw the value of their shipments soar.
Manufacturing shipments surged by 5.9% in September to $6.28 billion. The monthly increase was the largest since May 2008 and brings the value of shipments to their fourth highest monthly level ever. Only during the peak of the economic boom in 2008, when oil prices were up around $130, did manufacturers ship a higher value of product.
