OTTAWA, Ont. — Profits are expected to be down more than 20% this year across six Canadian industries covered by the Conference Board of Canada’s Canadian Industrial Profile-Autumn 2009, including transportation and warehousing.
The study found that profit levels for Canada’s transportation and warehousing industry have fallen 29% from $7.3 billion in 2008 to $5.2 billion in 2009. Officials said that the industry has been hit by diminishing global trade and manufacturing production, but is expected to experience a “robust” recoverypost-recession.
The profiles, produced in collaboration with the Business Development Bank of Canada (BDC), provide a five-year outlook for the following industries: accommodation; food and beverage manufacturing; food services; retail trade; transportation and warehousing; and wholesale trade.
“All industries are grappling with the effects of reduced demand and downward pressure on prices as a result of the recession. The end result is reduced sales and profitability in nearly every industry covered in these reports, with the transportation and wholesale trade industries being the most affected,” said Michael Burt, associate director of industrial economic trends. “On the upside, the recession has lowered input prices and limited wage growth, reducing cost pressures.”
“Periods of economic slowdown come with their share of challenges for entrepreneurs, but they also provide business owners an opportunity to take a step back, think of how they can improve the way they operate and take their business to the next level,” said Jérôme Nycz, vice-president of strategy and enterprise risk management at BDC. “These industry profiles not only allow entrepreneurs to become aware of the specific challenges in their own industry, but also to identify where opportunities reside.”
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