Truck News

News

Outlook for Canadian transportation and warehousing sectors stronger than other industries

OTTAWA, Ont. -- Weak economic growth is slowing demand for air, truck, rail and water transportation, but industry profitability will rise by 30% this year to $6 billion thanks to better cost control and rising transportation prices.


OTTAWA, Ont. — Weak economic growth is slowing demand for air, truck, rail and water transportation, but industry profitability will rise by 30% this year to $6 billion thanks to better cost control and rising transportation prices.

That’s the assessment of the Conference Board of Canada and the Business Development Bank of Canada, which just published their latest Canadian Industrial Profile report.

The paper warns a weak economic outlook and cautious consumers will leave many Canadian industries with no significant growth in 2013. Transportation and warehousing is the rare exception, with price increases and cost control practices driving strong profit growth going forward, according to the report.

“Canada is not immune to the economic uncertainty that has weakened global demand for goods and services. Modest employment growth is limiting Canadians’ income gains. Consumer confidence remains weak and household debt continues to mount – all of which dampen the willingness of shoppers to spend on retail items, food and drink, dining out and travel,” said Michael Burt, director, industrial economic trends at the Conference Board of Canada.

“In the current business environment, characterized by strong competitive pressures, small and medium-sized businesses who invest in information technology will be better equipped to navigate the challenging economic times ahead,” added Pierre Cleroux, vice-president and chief economist, BDC.


Truck News

Truck News

Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.
All posts by

Print this page

Related Posts



1 Comment » for Outlook for Canadian transportation and warehousing sectors stronger than other industries
  1. Rahul Gopinadhan says:

    Im curious to know how bad Freight Forwarding Market will get impacted during 2013

Have your say:

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>