Three of six industrial sectors in Canada to rebound: report

Ottawa – Three of Canada’s six main industrial sectors are set for a rebound and two aren’t, says the Conference Board of Canada in its fall 2010 edition of the Canadian Industrial Profile Service.

The Conference Board of Canada jointly published the report with Business Development Bank of Canada (BDC).

In it, the report predicts that food and beverage manufacturing, and transportation and warehousing are the two industries that can expect declines in profits in 2010, reports the Canadian Press.

Three of the sectors, foodservice, retail, and accommodation, can expect to see profits rebound by more than 20 per cent this year.

The story explains that weaker economic growth in the second half of 2010 will dampen profitability in 2011 for most of the industries covered.

The story goes on to say that despite signs of recovery, entrepreneurs have had difficulty accessing working capital and the BDC has responded by increasing its financing activities.

For the food and beverage manufacturing sector, the report says a stable domestic market and growing exports to emerging economies contributed to the industry’s expansion.

But agricultural and energy prices are on the rise and this is expected to lead to a modest correction in industry profits this year and next.

The report provides a five-year production, revenue, cost and profitability forecast for six Canadian industries:

• Accommodation;
• Food and beverage manufacturing;
• Foodservice;
• Retail trade;
• Transportation and warehousing; and
• Wholesale.