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Labatt Brewing Company Limited acquires Lakeport Brewing Income Fund for cash offer of $28.00 per unit
Hamilton - The Board of Trustees of Lakeport Brewing Income Fund (the "Fund") (TSX: TFR.UN), an Ontario-based brewer of value-priced quality beer, announced February 1, 2007 that the Fund has entered into a support agreement (the "Agreement") with Labatt Brewing Company Limited ("Labatt") to acquire all of outstanding units of the Fund at a purchase price of C$28.00 per unit in cash for an aggregate price of just over $201.4 million (the "Offer").
Under the Agreement, the Board of Trustees unanimously recommends that
unitholders accept the Offer, which represents a premium of 36% based on the
$20.57 closing price for the Fund units on the Toronto Stock Exchange on
January 31, 2007.
The Board has unanimously determined that the Offer is fair to
unitholders and in the best interests of the Fund and its unitholders and
unanimously recommends that unitholders accept the Offer. In addition, the
Fund's financial advisor, RBC Capital Markets, has provided the Board of
Trustees with an opinion that the consideration to be received under the Offer
is fair, from a financial point of view, to unitholders of the Fund.
Roseto Inc., which is wholly-owned by Teresa Cascioli, the Chair and
Chief Executive Officer of the Fund, has agreed to tender all of its units to
the Offer.
"Labatt's offer represents exceptional value for unitholders and a
substantial premium to the recent trading price of our units. Further, we are
pleased to have a company of Labatt's global stature and experience recognize
the quality and value of Lakeport. We are confident that Labatt has the
financial resources to continue to grow the Lakeport brands. The Board and I,
as a significant unitholder, believe this is in the best interests of our
investors, employees and customers," said Teresa Cascioli.
Completion of the Offer is subject to certain customary conditions,
including, among other things, there being validly deposited under the Offer
and not withdrawn that number of units that constitutes at least 66 2/3% of
the issued and outstanding units of the Fund (calculated on a fully diluted
basis). If a sufficient number of units to meet the minimum tender condition
are tendered to the Offer, Labatt has agreed to pursue lawful means of
acquiring the remaining units, including, without limitation, through a
subsequent acquisition transaction. The parties will make a pre-merger filing
under the Competition Act as is customary for transactions of this size. The
parties will endeavour to close the transaction at the earliest possible date,
while allowing the Competition Bureau to review the transaction in the
ordinary course.
The take-over bid circular, containing the full terms of the Offer, will
be mailed to the Fund's unitholders together with the Board of Trustee's
circular and other related documents in connection with the Offer ("Offering
Documents"). The Offering Documents are expected to be mailed by the third
week of February. The proposed transaction is expected to close some time this
spring.
The Agreement also provides for, among other things, a non-solicitation
covenant on the part of the Fund. In certain circumstances, the Fund may
terminate the Agreement or withdraw its recommendation to unitholders to
accept the Offer. In such events, the Fund would be required to pay a
$5 million termination fee to Labatt. The parties have agreed to close into a
hold separate arrangement, if need be, whereby the business operations of the
Fund would be held separate from Labatt's business following take up to allow
the Commissioner of Competition to review the transaction on an orderly basis.
While the parties anticipate that the transaction will be completed in
accordance with its terms, in the event the Agreement is terminated by the
Fund due to the failure of Labatt to satisfy Competition Act conditions to
taking up and paying for tendered units, Labatt would be required to pay a
$5 million termination fee to the Fund. The Agreement also provides that
Labatt has the right to match any offer made by another bidder.
Further, the Agreement allows the Fund to declare and pay its regular
monthly distribution of up to $0.14 per month as well as any special
distributions necessary to ensure that the Fund is not subject to tax in
respect of the fiscal 2006 period.
Roseto Inc. and Teresa Cascioli have entered into a lock-up agreement
which provides that, subject to certain terms and conditions, they will
conditionally exercise all exchange rights and convert all Class B LP units in
Lakeport Brewing Limited Partnership for Fund units and will deposit all of
their Fund units (including any Fund units to be received pursuant to the
Fund's LTIP and the redemption of Class D LP units) to the Offer. In certain
circumstances, including where the Board of Trustees terminates the Agreement,
Roseto Inc. and Ms. Cascioli may withdraw the units tendered to the Offer. The
units subject to the lock-up agreement represent approximately 1,553,894 Fund
units, which represent approximately 21.6% of the fully diluted units of the
Fund.
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SMALL BUSINESS OWNER TESTIFIES ON HOW MANUFACTURERS STRENGTHEN THE ECONOMY, MIDDLE CLASS
Lack of Qualified Workers is Undermining Quality of Life, Johnson Says
WASHINGTON, D.C. – Testifying on January 31, 2007 before the House Committee on Education and Labor, National Association of Manufacturers board member Kellie Johnson, President of ACE Clearwater Enterprises (based in Torrance, CA), emphasized the important role manufacturers are playing in strengthening the middle class by providing high paying jobs and good benefits.
“My company, like many others, continues to find ways to provide generous benefits in a time when the costs of such benefits realize double-digit increases from year to year,” Johnson noted. “Like any manufacturer, at ACE, our employees are our greatest asset.”
However, Johnson warned the Committee that manufacturers are facing many challenges to find qualified and skilled employees. “Our nation’s need to maintain its global edge in technology and innovation hinges on our ability to educate and prepare people for the jobs of the 21st century,” Johnson said.
“As a third generation leading our company, I can say it is more difficult than ever to find the talent we require,” Johnson added. “ACE Clearwater is doing its part to remain vibrant despite a competitive global economy and ever increasing government regulations, but its ability to do so in the future is predicated on the availability of a highly skilled and adaptive workforce.”
A 2005 Skills Gap survey conducted by the NAM indicated that more than 80 percent of respondents could not find qualified workers to fill their job openings. The same survey also revealed that a startling 90 percent of respondents stated that they could not find enough skilled production employees, including front-line workers, such as machinists, operators, craft workers, distributors, and technicians, to fill their job openings.
Johnson also testified on the numerous initiatives her company is undertaking to attract, train and maintain a qualified workforce. As part of her efforts, Johnson has been named a Business Champion, an initiative by the NAM’s Manufacturing Institute/Center for Workforce Success, to expand educational opportunities at community/technical colleges for a broader range of students.
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Manufacturing 2007 - Hint of Getting Better But Long Way To Go
Despite rising satisfaction with current levels of new orders, manufacturers' prospects for production and employment for the first quarter of 2007 remained negative.
The Business Conditions Survey is a quarterly survey that requests manufacturers' opinions on production impediments, finished product inventory levels, new and unfilled order levels, production and employment prospects in the coming three months. The voluntary survey was conducted in the first two weeks of January and attracted over 3,000 responses from manufacturers.
Little change in manufacturers' production prospects
In January, 18% of manufacturers stated they would increase production over the next three months, up 2 points from the October 2006 survey. At the same time, manufacturers indicating they would decrease production in the first quarter increased 1 point to 23%. As a result, the balance of opinion stood at -5, a 1 point improvement from the October balance. The continuing negative production prospects were attributed to manufacturers in Ontario and Quebec, while most other provinces were positive. While the current reading was only slightly better than what was observed during the last quarter, it was 7 points better than the second quarter reading. A meaningful positive balance has not been seen since October 2004, when the balance stood at +11.
Producers of computer and electronic products, plastics and rubber products and transportation equipment were the major contributors to the negative balance. In all, 11 of the 21 manufacturing industries posted a negative balance for production prospects in the first quarter of 2007. Although not enough to offset declines, positive prospects were reported by manufacturers of primary metal, fabricated metal, petroleum and paper products.
The balance of opinion was determined by subtracting the proportion of manufacturers who expected production would be decreasing in the coming three months from the proportion who expected production would be increasing.
Satisfaction with level of new orders on the rise
While 25% of manufacturers stated the current level of new orders was increasing, those stating the level of new orders was decreasing remained at 23%. As a result, the January balance of opinion jumped 15 points from the October survey to +2. This was the largest quarter-to-quarter increase in balance since a 35 point jump in the April 2002 survey. The improvement in the balance was widespread, as 12 of the 21 industries indicated greater satisfaction with current levels of new orders. Producers in the transportation equipment, primary metal and chemical industries were the major contributors to the improved balance of opinion for orders received. According to November's Monthly Survey of Manufacturing, new orders for all manufacturing industries recovered 3.9% to just over $49.9 billion.
Manufacturers express fewer concerns with levels of unfilled orders
Although still negative, the January balance of opinion concerning the current level of unfilled orders increased 8 points to -11 from -19 in the October survey. Some 22% of manufacturers indicated that the current level of unfilled orders was lower than normal, while 11% claimed a higher than normal backlog. Producers in the transportation equipment and computer and electronic products industries were the major contributors to the improved unfilled orders balance of opinion. The balance of opinion for unfilled orders has remained negative since July 2004. According to November's Monthly Survey of Manufacturing, unfilled orders jumped 2.3% to just over $42.2 billion, an increase of $948 million over the previous month.
Manufacturers expressing more concern with finished product inventories
In January, 77% of manufacturers reported that the current level of finished product inventories was about right, down 4 points from October. Some 20% stated that inventories were too high, while 3% said inventories were too low. This left the balance of opinion at -17, an 8 point drop from the October balance. A year earlier, in the January 2006 survey, the balance of opinion for finished product inventories had also stood at -17. According to November's Monthly Survey of Manufacturing, finished product inventory levels stood at over $22.5 billion, up 3.3% from the level of over $21.8 billion posted one year earlier in the November 2005 survey. The finished product inventories to shipments ratio has been on the increase during the last five months.
Manufacturers' employment outlook remains negative
The balance of opinion for employment prospects for the next three months changed little, up 1 point to -4 in January. Two-thirds of manufacturers stated that they would keep their current work force, 15% indicated they would increase it and 19% indicated that they expected to decrease employment in the first quarter of 2007. Regionally, manufacturers expected slightly lower employment levels in Ontario (balance -15) and Quebec (balance -8), which offset positive balances in seven of the remaining provinces where manufacturers continued to express difficulty in finding skilled labour. According to the December Labour Force Survey, manufacturing employment declined by 2.7% (-59,000) in 2006, bringing total losses since the start of the decline in November 2002 to 9.0% (-216,000). In 2006, the losses were primarily in Ontario and Quebec. In contrast, large gains in manufacturing employment were seen in Alberta, British Columbia and Manitoba over the course of the year (+32,000).
Manufacturers report fewer production impediments
The number of manufacturers reporting production impediments decreased 5 points to 23% in the January survey. The value of the Canadian dollar, competition from cheap imports and skilled labour shortages were among the factors cited.
| Business Conditions Survey, manufacturing industries: Production prospects balance of opinion for select industries |
| |
January 2006 |
April 2006 |
July 2006 |
October 2006 |
January 2007 |
| Major group industries |
Seasonally adjusted |
| Non-durable goods |
-5 |
-5 |
15 |
1 |
12 |
| Food |
0 |
6 |
14 |
13 |
18 |
| Chemical |
19 |
-1 |
17 |
9 |
4 |
| Petroleum and coal products |
-63 |
15 |
54 |
57 |
15 |
| Paper |
-1 |
-2 |
-2 |
-13 |
18 |
| Plastic and rubber products |
13 |
0 |
5 |
-25 |
-28 |
| Durable goods |
13 |
-28 |
-9 |
-10 |
-2 |
| Transportation equipment |
-2 |
-33 |
-11 |
-10 |
-22 |
| Primary metal |
25 |
3 |
10 |
-22 |
14 |
| Wood products |
3 |
-2 |
-1 |
-12 |
-6 |
| Fabricated metal products |
3 |
11 |
0 |
-10 |
8 |
| Machinery |
8 |
3 |
-9 |
1 |
-1 |
| Computer and electronic products |
-28 |
12 |
-6 |
-18 |
-30 |
| Business Conditions Survey: Manufacturing industries |
| |
January 2006 |
April 2006 |
July 2006 |
October 2006 |
January 2007 |
| |
Seasonally adjusted |
| Volume of production during next three months compared with last three months will be: |
|
|
|
|
|
| About the same (%) |
69 |
58 |
60 |
62 |
59 |
| Higher (%) |
15 |
15 |
20 |
16 |
18 |
| Lower (%) |
16 |
27 |
20 |
22 |
23 |
| Balance of opinion |
-1 |
-12 |
0 |
-6 |
-5 |
| Orders received are: |
|
|
|
|
|
| About the same (%) |
70 |
64 |
68 |
67 |
51 |
| Rising (%) |
15 |
16 |
18 |
10 |
25 |
| Declining (%) |
15 |
20 |
14 |
23 |
23 |
| Balance of opinion |
0 |
-4 |
4 |
-13 |
2 |
| Present backlog of unfilled orders is: |
|
|
|
|
|
| About normal (%) |
65 |
70 |
82 |
71 |
68 |
| Higher than Normal (%) |
14 |
12 |
8 |
5 |
11 |
| Lower than Normal (%) |
20 |
18 |
10 |
24 |
22 |
| Balance of opinion |
-6 |
-6 |
-2 |
-19 |
-11 |
| Finished product inventory on hand is: |
|
|
|
|
|
| About right (%) |
75 |
83 |
84 |
81 |
77 |
| Too low (%) |
4 |
1 |
3 |
5 |
3 |
| Too high1(%) |
21 |
15 |
13 |
14 |
20 |
| Balance of opinion |
-17 |
-14 |
-10 |
-9 |
-17 |
| Employment during the next three months will: |
|
|
|
|
|
| Change little (%) |
73 |
71 |
68 |
65 |
66 |
| Increase (%) |
13 |
13 |
15 |
15 |
15 |
| Decrease (%) |
14 |
16 |
17 |
20 |
19 |
| Balance of opinion |
-1 |
-3 |
-2 |
-5 |
-4 |
| |
Unadjusted |
| |
% |
| Sources of production difficulties |
|
|
|
|
|
| Working capital shortage |
3 |
3 |
2 |
3 |
2 |
| Skilled labour shortage |
6 |
8 |
9 |
10 |
11 |
| Unskilled labour shortage |
4 |
4 |
5 |
6 |
4 |
| Raw material shortage |
4 |
4 |
5 |
4 |
4 |
| Other difficulties |
3 |
3 |
2 |
4 |
2 |
| No difficulties |
81 |
79 |
77 |
72 |
77 |
| 1. | No evident seasonality. |
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Note to readers
The Business Conditions Survey is conducted in January, April, July and October; the majority of responses are recorded in the first two weeks of these months. Results are based on replies from over 3,000 manufacturers and are weighted by a manufacturer's shipments or employment. Consequently, larger manufacturers have a correspondingly larger impact on the results than smaller manufacturers.
Except for the data on production difficulties, data in this release are seasonally adjusted.
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Monthly Survey of Manufacturing November 2006 Ontario and Quebec drive shipments increase
Factory shipments bounced back in November mainly because of a strong showing in the transportation equipment sector, which rebounded after hitting their lowest level in nearly two years in the third quarter.
Canadian manufacturers shipped goods worth an estimated $49.0 billion, up 2.3% from October.
Taking price fluctuations into account, the volume of shipments increased 2.0% to $44.7 billion, the largest single monthly constant dollar increase in 15 months, after trending downward for most of the year. Widespread price declines had little effect on the value of shipments, especially in the petroleum and coal industry, where the monthly drop in prices for petroleum and coal was the smallest in two years.
On a year-to-date basis, the volume of shipments fell 1.6% between January and November 2006, compared with the same period in 2005.
November's increase was widespread as 13 sectors, representing 73% of total output, increased.
Durable goods shipments increased for a second consecutive month following three months of decline, rising 3.1% to $26.8 billion, thanks to a strong showing in the transportation equipment sector.
In spite of softening commodity prices, higher volumes helped non-durable goods shipments increase by 1.3% to $22.2 billion in November. Lower commodity prices, were the main factor behind the declines observed in the previous three months.
Coincident with November's increase in shipments, the Labour Force Survey indicated that manufacturing employment also rebounded in November, rising an estimated 13,200 to over 2.1 million. Despite November's increase, year-to-date job losses in the industry totaled 72,000.
Transportation equipment shipments highest in eight months
Following the introduction of new model launches, motor vehicle shipments increased 13.7% to $5.2 billion, helping the transportation equipment sector bounce back from four consecutive losses. The sector shipped $9.7 billion worth of product in November, the highest level in eight months.
Aerospace shipments rose 9.5% to $1.3 billion following a similar sized decline in October. For the first 11 months of 2006, aerospace shipments were 1.8% lower than in the same period of 2005.
Shipments from Canadian refineries increased by 4.6% to $4.7 billion. Unlike the previous four months, price changes had little effect on the value of shipments with November's moderate price decline being the smallest in two years.
Food manufacturing, the second largest after transportation equipment, made up some lost ground in November with a 1.2% increase to $5.7 billion — the third highest level in two years.
Ontario and Quebec drive shipments increase
Shipments in Ontario and Quebec benefited from resurgence in the transportation equipments sector in November.
Ontario shipments increased 3.7% to just under $24 billion. Overall, 12 of the 21 industries registered increases but it was the transportation equipment sector that led Ontario's jump in shipments, contributing 84% of the $859 million increase. After four consecutive months of decline, when plant model change-overs were delayed, motor vehicles bounced back to the highest level since February of 2006. Excluding transportation, shipments would have risen 0.5%.
In Quebec, shipments increased 2.0% to $12.0 billion as petroleum and coal shipments rose by 8.4% to $1.2 billion. The province's largest manufacturing industry, primary metals, continued to post strong gains, bolstered by near record commodity prices. Shipments from the aerospace and chemical industries also contributed to the November increase.
Shipments from Alberta fell by 0.7% to $5.2 billion in November. While the price of petroleum and coal products fell slightly, shipments increased by 1.8% to $1.0 billion. At the peak of prices for petroleum and coal in August 2006, the value of shipments of petroleum and coal were neck and neck with chemicals. Since then, with commodity prices falling, chemical shipments, have declined, but at a slower pace, to $1.2 billion, now nearly 20% higher than shipments from petroleum and coal.
Shipments from British Columbia declined 1.5% to $3.5 billion. Declines in the shipments of paper accounted for roughly half of this total, falling 5.8% to $459 million. Overall, 12 of 21 industries in British Columbia declined while primary metals provided the largest off-setting increase, rising 5.9% to just under one-third of a billion dollars.
Inventories increase for fifth month in a row
Total inventories for manufacturers increased 0.3% to $63.6 billion in November, the fifth increase in a row and an increase of $1.5 billion since the start of the year.
Transportation equipment inventories increased 0.5% to $8.9 billion — the highest level since March 2006. Most of the increase was observed in the aerospace industry, which grew 2.6% to $4.2 billion.
Inventory levels in the petroleum and coal industry were also up, increasing 5.0% to $3.6 billion after falling for three months.
By stage of fabrication, goods in process inventories had climbed consistently over the past two years, but fell marginally in November. Inventories of raw materials and finished products rose marginally in November. Petroleum and coal finished product inventories rose on warmer weather in Eastern Canada and the United States, while aerospace inventories progressed from in-process to finished stages of manufacture.
Inventory-to-shipment ratio down from recent high
The inventory-to-shipment ratio fell to 1.30 from 1.33 in October. The ratio had risen for three consecutive months before turning back in November.
With shipments rising faster than finished goods inventories, the finished product inventory-to-shipment ratio fell back modestly to 0.46 from October's ratio of 0.47.
The inventory-to-shipment ratio is a key measure of the time, in months, that would be required to exhaust inventories if shipments were to remain at their current level.
New orders for motor vehicles and aerospace climb
In November, new orders jumped by more than a billion dollars, increasing 3.9% to $49.9 billion. The modest increase in October saw the manufacturing sector turn a corner after trending downward for the last 13 months. November's increase was almost entirely a result of a one and a half billion dollar surge in orders in the transportation equipment sector, divided between an $800 million increase in motor vehicle manufacturing and a $726 million jump in aerospace orders. Excluding transportation, new orders would have risen only slightly.
Unfilled orders for aerospace at highest level in over three years
Unfilled orders increased 2.3% to $42.2 billion. Because of the high value and time lags between the order of transportation equipment, aerospace and motor vehicles typically account for half of all unfilled orders in the manufacturing sector. Unfilled orders in the transportation equipment industry increased by three-quarters of a billion dollars in November. Strong order bookings in aerospace resulted in a one billion dollar increase in orders destined for delivery at a future date, to their highest level in over three years, while year-end orders for motor vehicles tailed-off to offset some of the gain.
Note to readers
Preliminary estimates are provided for the current reference month. Estimates, based on late responses, are revised for the three prior months.
Non-durable goods industries include food, beverage and tobacco products, textile mills, textile product mills, clothing, leather and allied products, paper, printing and related support activities, petroleum and coal products, chemicals, and plastics and rubber products.
Durable goods industries include wood products, non-metallic mineral products, primary metals, fabricated metal products, machinery, computer and electronic products, electrical equipment, appliances and components, transportation equipment, furniture and related products and miscellaneous manufacturing.
Unfilled orders are a stock of orders that will contribute to future shipments assuming that the orders are not cancelled.
New orders are those received whether shipped in the current month or not. They are measured as the sum of shipments for the current month plus the change in unfilled orders. Some people interpret new orders as orders that will lead to future demand. This is inappropriate since the "new orders" variable includes orders that have already been shipped. Readers should note that the month-to-month change in new orders may be volatile. This will happen particularly if the previous month's change in unfilled orders is closely related to the current month's change.
Not all orders will be translated into Canadian factory shipments because portions of large contracts can be subcontracted out to manufacturers in other countries. Also, some orders may be cancelled.
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CME and ITAC Collaborate to Address Technology Adoption in Manufacturing
TORONTO - Canadian Manufacturers and Exporters (CME) and the Information Technology Association of Canada (ITAC) have formed a joint committee that will formulate strategies and programs to foster more rapid and effective adoption of technology in the manufacturing sector.
Many economists believe that one of the principal causes of Canada's poor
productivity performance is our significant under-adoption of technology,
particularly in comparison to jurisdictions such as the United States. This
issue is a critical concern of both organizations. CME has recently led a
major industry coalition advocating a new strategy for Canada's manufacturing
sector that, among other things, calls for a two-year write-off for
investments in new manufacturing, processing and associated information and
communication, energy and environmental technologies. ITAC, which is a
participant in this coalition, has also advocated the need for incentives to
encourage ICT adoption, particularly among small and medium businesses.
"Canadian manufacturers and exporters face intense competition from all
around the world," said Dr. Jayson Myers, Sr. Vice President and Chief
Economist, CME. "They recognize that their short-term survival and long-term
success depend on their ability to lower business costs and provide new
products and services to their customers. And they understand that investments
in new technologies are essential. We advocate a tax and regulatory
environment that encourages these investments."
In addition to the public policy work of both organizations, the joint
committee will provide practical solutions to encourage well-informed adoption
of technology through best practice promotion, educational activity and
hands-on consultation. "It's important when we're asking government for
attention on an issue that we believe is critical to be activists in our own
cause," said Bernard Courtois, President and CEO of ITAC. "This committee will
deliver programs that address this issue from the shop floor. Our aim is to
make Canadian manufacturers smarter than any of their competitors in terms of
their use of technology."
The committee is composed of representatives from Plastiflex Canada, Taro
Pharmaceuticals and JMP Engineering from the manufacturing sector and Intuit
Canada and Intel Canada from the information technology sector, as well as IBM
Canada, Hewlett-Packard Canada and Microsoft Canada, which are members of both
CME and ITAC.
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NCR's Waterloo Manufacturing Operations Moving to a Contract Manufacturing Model
Facility to focus on research & development, product management, marketing and order fulfillment, 450 employees will be phased out over the 2007
WATERLOO – On January 11, 2007, NCR Corporation announced that it plans to move its Waterloo-based manufacturing to a contract manufacturing model as part of the company’s strategy to restructure its global operations.
As a result, it is anticipated that approximately 450 manufacturing and operations positions will be eliminated at the Waterloo facility, while more than 275 research and development, product management, marketing and Americas order fulfillment positions will not be impacted by this action, and will continue to support NCR’s self-service and payment solutions businesses.
The manufacturing and operations positions will be phased out gradually, with the majority of individuals leaving over the course of 2007.
“This plan represents a difficult but necessary response to evolving market demands,” said Bruce Langos, senior vice president, global operations, NCR Corporation. “By realigning our manufacturing operations, we can create a level playing field that enables us to become more competitive by freeing up resources to invest in more product innovation and revenue-generating activities, strengthening our competitive position.”
The strong Canadian dollar, coupled with the fact that a high percentage of NCR’s Waterloo-manufactured product is exported, has offset attempts to achieve a sustainable cost structure.
“This decision does not signal an end to our investment in Waterloo. We are committed to our remaining operations here. However, as with any business, the precise number of employees will continue to fluctuate according to operational needs,” Langos said.
The manufacture of automated teller machines (ATMs), self-checkout solutions and payment systems will be outsourced to a leading global contract manufacturer. By using a premier third-party manufacturer, NCR can reap economies of scale and better utilize assets. The manufacture of NCR’s cheque-processing module will be moved to NCR’s manufacturing facility in Puducherry, India.
“We understand that these proposed changes to our manufacturing operations will bring a challenging time for affected employees, and we are committed to helping these individuals with comprehensive support.
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ATS'S Photowatt Technologies signs letter of intent to jointly develop Spheral Solar(TM) Technology
CAMBRIDGE - ATS Automation Tooling Systems Inc. on January 11, 2007, announced that its subsidiary, Photowatt Technologies Inc., has signed a non-binding letter of intent to enter into a business relationship with Clean Venture 21 Corporation ("CV21") of Kyoto, Japan and Fujipream Corporation ("Fujipream") of Hyogo, Japan, in order to advance the development of its Spheral Solar(TM) Technology.
The goal of this proposed relationship is to share the significant
technology, knowledge and expertise of each of the parties in sphere-based
solar technologies which Photowatt believes may reduce the substantial
development risk and time to market for commercialization of sphere-based
solar technology. The letter of intent envisions Photowatt and CV21
cross-licensing certain intellectual property to each other, including rights
to manufacture and sell sphere-based solar cells and modules.
Under the letter of intent, it is intended that Photowatt will initially
supply CV21 with silicon spheres manufactured in its Cambridge, Ontario
facility and CV21, in conjunction with Fujipream, will use these spheres to
manufacture sphere-based solar cells and modules. It is contemplated that
Photowatt will have the option to purchase up to 50% of the resulting output
of solar cells and modules for the purposes of either selling or incorporating
into its own building integrated photovoltaic products. The three companies
also intend to work together to identify and secure additional sources of
silicon. The companies intend to enter into a definitive agreement as soon as
practical, subject to the completion of due diligence and the receipt of
certain approvals.
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Magna announces 2007 outlook
Magna International Inc. announced January 11, 2007, its financial outlook for 2007. All amounts are in U.S. dollars.
AURORA, ON For the full year 2007, we expect consolidated sales to be between $22.9 billion and $24.2 billion, based on full year 2007 light vehicle production volumes of approximately 15.5 million units in North America and approximately 15.6 million units in Europe. Full year 2007 average dollar content per vehicle is expected to be between $770 and $800 in North America and between $375 and $400 in Europe. We expect full year 2007 complete vehicle assembly sales to be between $3.4 billion and $3.7 billion. In addition, we expect that full year 2007 spending for fixed assets will be in the range of $850 million to $900 million.
In our 2007 outlook we have assumed no significant acquisitions or
divestitures, and no significant labour disruptions in our principal markets.
In addition, we have assumed that foreign exchange rates for the most common
currencies in which we conduct business relative to our U.S. dollar reporting
currency will approximate year end 2006 rates.
We are the most diversified automotive supplier in the world. We design,
develop and manufacture automotive systems, assemblies, modules and
components, and engineer and assemble complete vehicles, primarily for sale to
original equipment manufacturers of cars and light trucks in North America,
Europe, Asia and South America. Our capabilities include the design,
engineering, testing and manufacture of automotive interior systems; seating
systems; closure systems; metal body systems; vision and engineered glass
systems; electronic systems; plastic body, lighting and exterior trim systems;
various powertrain and drivetrain systems; retractable hard top and soft top
roof systems; as well as complete vehicle engineering and assembly.
We have approximately 83,000 employees in 228 manufacturing operations
and 62 product development and engineering centres in 23 countries.
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ATS adjusts North American ASG capacity as next step in improvement program
CAMBRIDGE - ATS Automation Tooling Systems Inc. today announced it is reducing its Automation Systems Group (ASG) workforce in North America as part of an aggressive ongoing improvement program to strengthen performance and improve global market positioning.
The rationalization will reduce ASG employment by approximately 180 in
North America (7% of the ASG global workforce), with approximately 100
positions impacted in Cambridge, Ontario. As a result, estimated severance and
related costs of approximately $5 million are expected to be expensed during
the fourth quarter of fiscal 2007 (three months ended March 31, 2007). The
workforce rationalization is expected to decrease ATS's annualized payroll
costs by an estimated $11 million pre-tax.
"The decision to further streamline our operations and reduce the costs
of underutilized capacity was arrived at carefully, giving full consideration
to our strategic roadmap, our long-term prospects and the need to reallocate
resources to high opportunity markets," said Jim Sheldon, President ASG North
America. "As a result, we are confident that this move, combined with other
cost savings and process improvements already implemented, will make ASG North
America a stronger, more competitive business, which is better able to achieve
our customer and shareholder goals."
<<
ATS implemented its long-term strategic roadmap in the fall of 2005 and
has made substantial operational headway since by:
- investing in new people, equipment, facilities and infrastructure in
China and South East Asia
- divesting or closing five under-performing or non-strategic
operations in North America and Europe
- reducing costs through aggressive supply chain management and value
engineering to improve profitability and combat foreign exchange
pressures
- implementing North American organizational restructuring
- employing comprehensive new global brand operational standards and
sales processes
- growing Repetitive Equipment Manufacturing and other capabilities to
serve healthcare markets
>>
"The actions we've taken today are necessary to help us further improve
overall performance as we address the significant negative impact of foreign
exchange, continuing restructuring in North American automotive markets and
migration of manufacturing to offshore markets," said Ron Jutras, ATS
President and CEO. "As a global company, we are committed to enhancing our
ability to serve the needs of our customers in North America and abroad and to
generating improved investment returns for ATS shareholders."
|
DaimlerChrysler to build all-new 2008 Dodge Grand Caravan and Chrysler Town & Country at Windsor Assembly Plant
- New model minivans revealed today at the North American International Auto Show in Detroit
- Investment in the award-winning plant will make it ready for new models and the future
- New minivan features promise continued market dominance
WINDSOR - The Chrysler Group announced January 7, 2007 that the all-new 2008 Chrysler Town & Country and Dodge Grand Caravan minivans introduced at the North American International Auto Show in Detroit will be built at DaimlerChrysler's Windsor Assembly Plant. The plant is getting extensive investment and remodeling to facilitate the production of the new vehicles. The vehicles will also be built at the St. Louis South Assembly Plant located in Fenton, Missouri.
"This is a very important product for DaimlerChrysler as we remain
committed to the minivan market and maintain our leadership position," said
Frank Ewasyshyn, Executive Vice President - Manufacturing, Chrysler Group.
"The Windsor Assembly Plant has been building world-class vehicles since 1928,
and keeping the new Chrysler and Dodge minivans in Canada demonstrates
DaimlerChrysler's commitment to the community."
Windsor Assembly Plant
Windsor Assembly, which manufactures current versions of the Dodge Grand
Caravan and Chrysler Town & Country minivans with the Stow 'n Go(R) seating
and storage system, along with the Chrysler Pacifica, is capable of building
two different vehicle platforms and piloting a third simultaneously on the
same production line. A $508 million investment to the plant has produced a
new, state-of-the-art paint facility capable of accommodating the dimensions
of at least 11 different body styles, and is scheduled to be operational first
quarter of 2007.
The new paint facility will increase manufacturing flexibility, quality,
capacity and productivity while reducing material costs, emissions, waste and
energy consumption. The 185,000-square-foot paint shop will be the most
flexible in the Chrysler Group system. The coatings process will be fully
automated, utilizing robots with seven axes of rotation. A new addition to the
paint process in Windsor will be a "paint sludge dryer," where the excess
paint in the system is captured, removed of moisture, and then reused.
The key to flexible manufacturing process is the order in which the body
is assembled, using a unique underbody pallet system in the body shop. This
means that the same production system may be used to build sedans,
convertibles, minivans, sport-utility vehicles and sports tourers.
Originally built in 1928, today the Windsor Assembly Plant is the largest
of the Chrysler Group's 14 assembly plants at 4.01 million square feet. In
2003 Windsor Assembly became one of the first Chrysler Group plants to
implement the flexible manufacturing strategy. This year marks the plant's
24th anniversary of minivan production and the 14th anniversary of three
shifts of operation. The plant received a J.D. Powers Silver IQS award and
employs 4800 people and is represented by CAW Local 444.
The Right Ingredients
The all-new 2008 Dodge and Chrysler minivans once again prove they have
the right ingredients to be the best vehicles to move people and cargo. With
35 new and improved features, the 2008 Dodge Grand Caravan and Chrysler Town &
Country aren't just practical vehicles, they also have the right mix to be
"family rooms on wheels," with something for everyone to enjoy.
The newest ingredient for functional family seating is the all-new Swivel
'n Go(TM) seating system. Swivel 'n Go offers second row seats that swivel 180
degrees to face the third row with a removable table that installs between the
two rows, covered storage bins in the floor of the second row, third-row
uncovered storage and fold-in-the-floor third-row seating. Swivel 'n Go also
offers an available industry-first integrated child booster seat in the
second-row quad chair and an available minivan-exclusive one-touch
power-folding third-row 60/40 bench seat.
The 2008 Dodge Grand Caravan and Chrysler Town & Country are expected to
be in Canadian dealerships in the fall of 2007.
|
Industrial product and raw materials price indexes remain unchanged
Prices for manufactured goods in November 2006 remained unchanged for a second consecutive month in November, while prices for raw materials increased after three months of significant declines.
Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were unchanged from October to November, as downward pressure from declining petroleum prices eased. Lower prices for primary metal products and petroleum products were offset by higher prices for chemical products, fruit, vegetables and feed products and pulp and paper products.
The 12-month change in the IPPI was up 1.9%, a higher rate of growth compared to the year-over-year increase of 1.2% in October. Upward pressure came mainly from higher prices for primary metal products, pulp and paper products as well as fruit, vegetable and feed products.
The Raw Materials Price Index (RMPI) was up 0.9% from October to November, following three months of declines. The increase was due to higher costs for mineral fuels, non-ferrous metals as well as vegetable products.
Compared to November of last year, raw materials cost factories 4.6% more, a significant change from the year-over-year increase of 2.2% in October.
The IPPI stood at 113.5 (1997=100) in November, unchanged from a revised level of 113.5 in October. The RMPI reached 157.1 (1997=100), up from a revised level of 155.7 in October.
IPPI: Prices remain unchanged
On a month-over-month basis, manufacturers' prices were unchanged, as downward pressure from declining petroleum prices eased. The decrease in prices for primary metal and petroleum products was offset by higher prices for chemical products, fruit, vegetable and feed products as well as pulp and paper products.
Prices for primary metal products fell 1.4% in November, following an increase of 3.8% in October. Prices for copper and copper alloy products were down by 10.3% while prices for nickel products declined by 9.6%, due to a slowdown in construction activity, lower demand and higher inventories. On the other hand, prices for aluminum products (+3.1%) rose for a second month in a row, due to lower supply.
Petroleum and coal products prices fell 0.3%, the lowest monthly decrease in the past four months. If petroleum and coal product prices had been excluded, the IPPI would still have remained unchanged from October.
However, there were some monthly increases. Prices for chemical products rose 0.9% as a result of higher prices for organic industrial chemicals. Higher prices were also observed for fruit, vegetables and feed products (+1.0%) as well as pulp and paper products (+0.5%).
IPPI: Primary metal products continue to be the major contributors to the 12-month change
The IPPI was up 1.9% in November compared with the same month a year earlier, an increase in the rate of growth compared to the previous two months. The higher rate of growth is mainly the result of the slowdown in the year-over-year decrease of petroleum products. If petroleum and coal product prices had been excluded, the IPPI would have increased 2.6%.
Prices for primary metal products were up 26.4% compared to November 2005. Prices for nickel products (+125.7%), copper products (+46.0%), refined zinc products (+143.6%) and aluminum products (+16.3%) were all higher compared with one year earlier.
Higher prices for pulp and paper products, fruit, vegetable and feed products, non-metallic mineral products, metal fabricated products, and tobacco products also contributed to the annual increase.
The annual rate of growth in the IPPI was dampened by lower prices for petroleum and coal products (-5.4%), as well as lower prices for motor vehicles and other transport equipment (-2.6%), lumber and other wood products (-5.5%) and chemicals and chemical products (-2.9%).
RMPI: Crude oil prices are up
Raw materials prices rose 0.9% in November, following three months of significant decreases.
Mineral fuels were the major contributor to this monthly increase with prices rising 0.8% compared to October. Prices for crude oil were up 0.8%, mainly as a result of the decision by oil producing countries to cut production. Crude oil prices remained 26.4% lower compared to the peak in prices registered in July 2006. If mineral fuels had been excluded, the RMPI would have risen 1.1% from October instead of 0.9%.
Non-ferrous metals prices were up 1.8% as prices for zinc, radio-active concentrates, gold and silver increased due to strong demand.
Prices for vegetable products rose 5.6% from the previous month, as prices for barley, corn, wheat, canola and soybeans increased. This was mainly the result of tight supply as well as strong demand.
Prices for animal and animal products decreased 1.1% as a result of lower prices for fish as well as cattle and hogs for slaughter.
On a 12-month basis, the price of raw materials rose 4.6% in November, a higher rate of growth compared to the 2.2% year-over-year increase in October. This rate of growth remains moderate compared to the annual change registered in the first three quarters of the year. If mineral fuels had been excluded, the RMPI would have increased 23.2% instead of rising 4.6%.
Non-ferrous metals were the major contributors to the 12-month increase with prices rising 73.6%, mainly the result of year-over-year price increases for zinc, radio-active concentrates, copper, nickel and lead.
Prices were also higher than one year ago for wood, vegetable products as well as non-metallic minerals.
Mineral fuels were down 11.2% with crude oil prices falling 11.0%. This was the third negative year-over-year change in a row. Prices for animals and animal products and ferrous materials were also down from a year ago.
Impact of the exchange rate
The value of the Canadian dollar against the US dollar was down 0.7% between October and November. As a result, the total IPPI excluding the effect of the exchange would have fallen 0.2% instead of remaining unchanged.
On a 12-month basis, the value of the Canadian dollar rose 3.9% against the US dollar. If the impact of the exchange rate had been excluded, producer prices would have risen 3.0% between November 2005 and November 2006, rather than their actual increase of 1.9%.
Prices for intermediate goods are unchanged
Prices for intermediate goods remained unchanged from October. Higher prices for chemical products, fruit, vegetable and feed products, pulp and paper products and motor vehicles were offset by lower prices for primary metal products as well as petroleum products.
Producers of intermediate goods received 3.5% more for their goods in November 2006 than in November 2005. Higher prices were registered for primary metal products, pulp and paper products, fruit, vegetables and feed products, metal fabricated products, non-metallic mineral products, electrical and communication products as well as meat, fish and dairy products.
These increases were partly offset by lower prices for petroleum products, lumber products, chemical products, motor vehicles and tobacco products.
Finished goods are up slightly
Prices for finished goods were up 0.1% from October. Higher prices for petroleum products, chemical products, electrical and communication products and fruit, vegetable and feed products were almost offset by lower prices for metal fabricated products and meat, fish and dairy products.
Compared with November 2005, prices for finished goods declined by 0.6%. Lower prices were registered for motor vehicles, petroleum products as well as machinery and equipment.
These decreases were partly offset by higher prices for tobacco products, fruit, vegetables and feed products, meat, fish and dairy products, chemical products, furniture and fixtures as well as beverages.
| Industrial product price indexes |
|
(1997=100) |
| |
Relative importance |
November 2005 |
October 2006r |
November 2006p |
November 2005 to November 2006 |
October to November 2006 |
| |
| | | |
% change |
| Industrial Product Price Index (IPPI) |
100.00 |
111.4 |
113.5 |
113.5 |
1.9 |
0.0 |
| IPPI excluding petroleum and coal products |
94.32 |
106.2 |
109.0 |
109.0 |
2.6 |
0.0 |
| Aggregation by commodities |
|
|
|
|
|
|
| Meat, fish and dairy products |
5.78 |
106.1 |
107.4 |
107.3 |
1.1 |
-0.1 |
| Fruit, vegetables, feeds and other food products |
5.99 |
103.0 |
104.6 |
105.6 |
2.5 |
1.0 |
| Beverages |
1.57 |
121.4 |
122.6 |
122.6 |
1.0 |
0.0 |
| Tobacco and tobacco products |
0.63 |
178.5 |
191.8 |
191.8 |
7.5 |
0.0 |
| Rubber, leather and plastic fabricated products |
3.30 |
118.7 |
118.3 |
118.5 |
-0.2 |
0.2 |
| Textile products |
1.58 |
99.9 |
100.5 |
100.5 |
0.6 |
0.0 |
| Knitted products and clothing |
1.51 |
104.3 |
104.3 |
104.5 |
0.2 |
0.2 |
| Lumber and other wood products |
6.30 |
88.8 |
84.0 |
83.9 |
-5.5 |
-0.1 |
| Furniture and fixtures |
1.59 |
116.5 |
118.1 |
118.1 |
1.4 |
0.0 |
| Pulp and paper products |
7.23 |
102.2 |
106.8 |
107.3 |
5.0 |
0.5 |
| Printing and publishing |
1.70 |
115.2 |
115.8 |
115.9 |
0.6 |
0.1 |
| Primary metal products |
7.80 |
114.9 |
147.3 |
145.2 |
26.4 |
-1.4 |
| Metal fabricated products |
4.11 |
121.2 |
123.8 |
123.5 |
1.9 |
-0.2 |
| Machinery and equipment |
5.48 |
107.2 |
107.0 |
107.2 |
0.0 |
0.2 |
| Motor vehicles and other transport equipment |
22.16 |
94.8 |
92.2 |
92.3 |
-2.6 |
0.1 |
| Electrical and communications products |
5.77 |
93.6 |
94.0 |
94.1 |
0.5 |
0.1 |
| Non-metallic mineral products |
1.98 |
115.3 |
120.0 |
120.0 |
4.1 |
0.0 |
| Petroleum and coal products1 |
5.68 |
207.5 |
196.9 |
196.3 |
-5.4 |
-0.3 |
| Chemicals and chemical products |
7.07 |
128.0 |
123.2 |
124.3 |
-2.9 |
0.9 |
| Miscellaneous manufactured products |
2.40 |
110.7 |
112.4 |
112.7 |
1.8 |
0.3 |
| Miscellaneous non-manufactured products |
0.38 |
185.9 |
279.8 |
295.6 |
59.0 |
5.6 |
| Intermediate goods2 |
60.14 |
113.8 |
117.8 |
117.8 |
3.5 |
0.0 |
| First-stage intermediate goods3 |
7.71 |
124.5 |
150.1 |
150.7 |
21.0 |
0.4 |
| Second-stage intermediate goods4 |
52.43 |
112.1 |
112.9 |
112.9 |
0.7 |
0.0 |
| Finished goods5 |
39.86 |
107.8 |
107.0 |
107.1 |
-0.6 |
0.1 |
| Finished foods and feeds |
8.50 |
112.2 |
113.6 |
113.6 |
1.2 |
0.0 |
| Capital equipment |
11.73 |
101.6 |
100.1 |
100.2 |
-1.4 |
0.1 |
| All other finished goods |
19.63 |
109.7 |
108.2 |
108.4 |
-1.2 |
0.2 |
| r | revised |
| p | preliminary |
| 1. | This index is estimated for the current month. |
| 2. | Intermediate goods are goods used principally to produce other goods. |
| 3. | First-stage intermediate goods are items used most frequently to produce other intermediate goods. |
| 4. | Second-stage intermediate goods are items most commonly used to produce final goods. |
| 5. | Finished goods are goods most commonly used for immediate consumption or for capital investment. |
|
| Raw materials price indexes |
|
(1997=100) |
| |
Relative importance |
November 2005 |
October 2006r |
November 2006p |
November 2005 to November 2006 |
October to November 2006 |
| |
| | | |
% change |
| Raw Materials Price Index (RMPI) |
100.00 |
150.2 |
155.7 |
157.1 |
4.6 |
0.9 |
| Mineral fuels |
35.16 |
255.9 |
225.3 |
227.2 |
-11.2 |
0.8 |
| Vegetable products |
10.28 |
79.0 |
86.0 |
90.8 |
14.9 |
5.6 |
| Animals and animal products |
20.30 |
105.4 |
104.2 |
103.1 |
-2.2 |
-1.1 |
| Wood |
15.60 |
73.0 |
81.3 |
81.4 |
11.5 |
0.1 |
| Ferrous materials |
3.36 |
125.3 |
122.0 |
121.8 |
-2.8 |
-0.2 |
| Non-ferrous metals |
12.93 |
131.3 |
223.9 |
227.9 |
73.6 |
1.8 |
| Non-metallic minerals |
2.38 |
134.4 |
141.2 |
141.1 |
5.0 |
-0.1 |
| RMPI excluding mineral fuels |
64.84 |
101.3 |
123.5 |
124.8 |
23.2 |
1.1 |
|
Note to readers
The Industrial Product Price Index (IPPI) reflects the prices that producers in Canada receive as the goods leave the plant gate. It does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including the transportation, wholesale, and retail costs.
Canadian producers export many goods. They often quote their prices in foreign currencies, particularly for motor vehicles, pulp, paper, and wood products. Therefore, a rise or fall in the value of the Canadian dollar against its US counterpart affects the IPPI.
The Raw Materials Price Index (RMPI) reflects the prices paid by Canadian manufacturers for key raw materials. Many of these prices are set in a world market. Unlike the IPPI, the RMPI includes goods not produced in Canada.
|
Tannoy Adds to In-Ceiling Line
Tannoy North America Inc. has added the CMS801 DC to its line of in-ceiling speakers, geared toward residential custom and commercial installations.
The CMS801 DC incorporates a 200mm Tannoy Dual Concentric point source, constant directivity drive unit, and offers 180 Watts programme (360 Watts peak) power handling. It delivers full bandwidth (47 Hz-30 kHz at -3 dB) and 92 dB sensitivity.
It is installed using a patented self-alinging clamp mechanism and supplied C-rings and tile bridge rails; while a plaster (mud) ring is available as an optional accessory.
Two versions are available: the “BM” blind mount has a low insertion loss 60W line transformer mounted within the integral back can. It is easily configurable for 70 or 100 Volt systems via a tapping switch mounted on the front baffle of the speaker. The pre-install model “PI” is supplied without back can or transformer. If the speaker is to be used without a back can, a 60W line transformer is available as an optional accessory for easy connection to the baffle mounted control switch circuit.
Additionally, an optional, zinc-plated steel pre-wire back can be used with the CMS801 PI, and is supplied with the transformer pre-fitted. It also incorporates an integrated, recessed termination box and removable locking connector with screw terminals for secure wire termination and "loop through" facility.
|
Canada's New Government Invests in Aerospace Centre of Excellence
AJAX, ON - The Honourable Jim Flaherty, Minister of Finance, on behalf of the Honourable Maxime Bernier, Minister of Industry, on December 19, 2006 announced a repayable investment of $27.75 million to develop advanced aircraft landing gear to be used in both civil transportation and military aircraft. Messier-Dowty is a centre of excellence in landing gear design and this funding will allow them to build on this world-class designation. The funding is part of a $96.3-million project being undertaken by Messier-Dowty Inc. to improve landing gear components by making them more durable and environmentally friendly.
"Innovation is essential to the growth of a strong economy," said Minister Bernier. "Companies like Messier-Dowty are maintaining a strong technology base supported by a highly skilled work force that will increase the technical competency within the industry, ensuring that Canada remains competitive in global markets."
"Today's investment in the aerospace industry is exactly what we had in mind when we developed our long-term economic plan for Canada, Advantage Canada," said Minister Flaherty. "Advantage Canada is designed to create a business environment that makes our strong economy even stronger by encouraging innovation and creating opportunity for hardworking Canadian families and businesses."
This investment will also provide engineering graduates with an opportunity to gain valuable work experience and develop their skills. Messier-Dowty employs new engineering graduates and is a training ground for those interested in becoming landing gear systems design engineers.
Canada is the world leader in the international landing gear sector. Markets are continuing to demand improved design/development cycle times at reduced costs. The R&D on this project will undertake early stage engineering development initiatives applied to the pre-competitive technology development environment to accelerate the landing gear design and manufacturing process. The result will be state-of-the-art, more durable landing gears that satisfy advanced aircraft platforms such as the new "more-electric-aircraft" concept.
Messier-Dowty will share a number of the techniques and methods developed with its suppliers to ensure a higher level of engineering design and overall technical competency with the supplier chain to complement its own capabilities.
"We are pleased to be partnering with the Government of Canada on this project," said Luigi Mattia, CEO Messier-Dowty Inc. "The technological benefits derived from this R&D allow us not only to draw on our past experience but to move into new areas of application possibilities."
This investment is being made through Technology Partnerships Canada, an agency of Industry Canada, using a new model contribution agreement that emphasizes enhanced transparency and accountability.
See backgrounder for further details on this project.
Canada's New Government Invests in Aerospace R&D Technology
Canada's New Government is making a repayable investment of $27.75 million in a $96.3-million research and development project for advanced prototype landing gears. Messier-Dowty Inc. is undertaking the work at their Ajax ON and Mirabel QC locations. This project will develop systems that will conform to the newer and emerging industry standards such as the "More Electric Aircraft" architecture.
Innovative manufacturing and engineering design technology that incorporates new composite materials will lead to the production of lighter, more durable and more cost effective landing gears. The project also aims at increased reliability and safety of military and civil transportation. The manufacturing and production phases will adhere to environmentally compliant standards towards reducing harmful emissions while introducing new environmentally friendly coatings to replace currently used cadmium and chrome plating.
Messier-Dowty employs new engineering graduates from a variety of disciplines. These new engineers will gain significant experience from this project. The company will also share a number of the techniques and methods developed with its suppliers to ensure a higher level of engineering design and overall technical competency with the supplier chain, to complement its own capabilities.
Messier-Dowty is the second largest of three domestic landing gear firms in Canada. The project is strategically aimed at sustaining the company's corporate landing gear design centre of excellence designation, while meeting long-term industry wide goals.
Messier-Dowty has been operating in Canada since its incorporation in 1949. It is a wholly owned subsidiary of Messier-Dowty International, which is owned by the SAFRAN Group (France). Messier-Dowty has two Canadian facilities located in Ajax ON and in Mirabel QC. They employ 760 people including 140 engineering, scientific and technical staff.
|
Monthly Survey of Manufacturing October 2006
Factory shipments hit their lowest level in nearly two years in October, mainly because of falling petroleum prices and a slowdown in the food and transportation equipment sectors.
Canadian manufacturers shipped goods worth an estimated $47.7 billion, down 0.1% from September and the lowest level since December 2004. While the rate of decline has eased, shipments have fallen for three consecutive months. As has been the case in three of the last four months, falling prices have been a major factor in the decline in shipment value.
After taking price fluctuations into account, the volume of shipments was down 0.6% to $43.7 billion, the lowest volume of shipments in nearly four years.
On a year-to-date basis, the volume of shipments fell 1.5% between January and October this year, compared with the same period last year.
Manufacturing shipments were essentially stuck in neutral with 10 of 21 manufacturing industries falling, 10 rising and 1 virtually unchanged in October.
Durable goods shipments turned around following three months of decline in the last four, rising 0.8% to $25.9 billion thanks to a strong showing in the machinery sector.
Non-durable goods shipments have declined on lower commodity prices for the past three months, falling by 1.1% to $21.9 billion in October.
According to the Labour Force Survey, manufacturing employment continued its downward trend in October, falling by 15,000 and down 83,000 over the first 10 months of 2006. The lion's share of the losses were experienced in Ontario and Quebec.
Lowest output in motor vehicle industry in over three years
Transportation equipment fell 1.4% to $8.8 billion, the fourth consecutive decline and seventh monthly drop this year.
Despite a relatively strong month of automotive sales on both sides of the border, shipments in the motor vehicle industry fell 1.0% to $4.5 billion, the lowest level in over three years. This was due, in part, to a late start launching some 2007 model vehicles.
A combination of a slowdown in auto assembly and increased sourcing of parts from off-shore suppliers resulted in shipments falling from auto parts suppliers by 2.4% to $2.1 billion. It was the fourth monthly decline and the lowest level of shipments since June 1998.
Aerospace shipments fell 9.4% to $1.2 billion following strong quarter-end deliveries in September. Due to the high value of product of the aerospace industry, monthly swings of plus or minus hundreds of million dollars are not unusual. For the first 10 months of 2006, aerospace shipments were 4.1% lower than in the same period of last year.
Canadian refineries continued to produce at normal levels, but at reduced prices. Consequently, shipments of petroleum and coal products fell 6.2% to $4.4 billion. Prices declined by 6.3% because of burgeoning inventories of gasoline and crude oil in the United States in October.
Machinery manufacturing shipments rebounded from their lowest level in 14 months, with the single largest increase in shipments in October, an 8.6% jump to $2.7 billion. The machinery sub sector includes a broad variety of industries engaged in manufacturing industrial and commercial machinery.
Food manufacturing returned to normal shipment levels after an exceptional month in September. Food shipments fell 2.4% to $5.6 billion.
Shipments increase in seven provinces
All Atlantic provinces but New Brunswick posted gains in October. New Brunswick, which accounts for nearly half of the region's manufacturing shipments, was more affected by lower prices for petroleum products and total shipments consequently fell 10.6%. Newfoundland and Labrador, Nova Scotia and Prince Edward Island registered small increases on the strength of modest increases in food shipments.
In Quebec, shipments increased 1.2% to $11.9 billion. The province's largest manufacturing industry, primary metals, experienced strong gains on record commodity price levels, rising 4.4% to $1.8 billion, the highest level on record. This increase, coupled with a 29.4% increase in shipments from the chemicals industry to $1.0 billion, offset declines in the aerospace and oil refining industries.
Declines in Ontario's manufacturing industries were modest but widespread as two-thirds of them lost ground. Total shipments slipped 0.4% to $23.0 billion in October. Transportation equipment, Ontario's largest manufacturing sector, edged down 0.8% to $7.0 billion. The value of petroleum refining fell by 5.9% to $1.3 billion, consistent with commodity price declines. The machinery industry bounced back from a two-month slide with a 14.3% increase to $1.4 billion.
In Alberta, a three-month slide in oil prices was behind a 1.9% drop in shipments to $5.2 billion. Shipments of petroleum and coal products fell 6.9% to $1.0 billion in October. Chemical production, Alberta's leading manufacturing industry, fell 4.5% to $1.2 billion in October.
On the Prairies, shipments fell 0.9% to $7.3 billion. Alberta's shipments accounted for nearly three-quarters of this total. Consequently, a 4.2% gain in shipments in Saskatchewan, which reached $857 million, was not able to offset the decline in Alberta. Shipments from Manitoba remained virtually unchanged at $1.1 billion.
Shipments from British Columbia increased 0.9% to $3.5 billion as increases in non-metallic minerals, primary metals and petroleum and coal products offset the declines for shipments of wood products and food.
| Manufacturing shipments, provinces and territories |
| |
September 2006r |
October 2006p |
September to October 2006 |
| |
Seasonally adjusted |
| |
$ millions |
% change |
| Canada |
47,781 |
47,737 |
-0.1 |
| Newfoundland and Labrador |
159 |
170 |
7.1 |
| Prince Edward Island |
127 |
130 |
2.6 |
| Nova Scotia |
725 |
771 |
6.4 |
| New Brunswick |
1,157 |
1,035 |
-10.6 |
| Quebec |
11,744 |
11,879 |
1.2 |
| Ontario |
23,041 |
22,959 |
-0.4 |
| Manitoba |
1,162 |
1,162 |
0.0 |
| Saskatchewan |
822 |
857 |
4.2 |
| Alberta |
5,344 |
5,242 |
-1.9 |
| British Columbia |
3,491 |
3,522 |
0.9 |
| Yukon |
3 |
3 |
15.8 |
| Northwest Territories including Nunavut |
7 |
7 |
6.3 |
|
Inventories increase for fourth straight month
Total inventories for manufacturers increased 0.3% to $63.5 billion in October, the fourth increase in a row.
Transportation equipment inventories increased 1.6% to $8.8 billion — the highest level since March 2006. The aerospace industry had the largest gain, rising 2.9% to $4.0 billion, followed by the automotive industry which increased 4.8% to $1.5 billion.
Chemical inventories were up for the ninth time this year, up 0.9% to a record $7.2 billion.
By stage of fabrication, inventories of raw materials fell marginally while goods in process and finished product inventories increased in October.
New orders for computers, machinery and metals jump
In October, new orders increased by 0.6% to $47.8 billion. Despite the modest increase in October, the series for new orders has generally been trending downward for the last 13 months. Contributing to October's increase were gains in the computer and electronic products industry (+14.1%), the machinery industry (+7.2%), fabricated metals (+9.6%) and primary metals, (+10.1%). Nearly offsetting these increases were declines in the transportation equipment industry, particularly in the aerospace industry, and a drop in year-end orders for heavy trucks.
Unfilled orders rise despite large drop in motor vehicles
Unfilled orders increased 0.2% to $40.6 billion. This occurred despite a 1.3% decline in the transportation equipment industry, where unfilled orders hit $20.3 billion. The drop was due mainly to declines in motor vehicles.
Transportation's decline was offset by increases in two industries: fabricated metal products, where unfilled orders rose $188 million, and computer and electronic products, where the gain was $136 million.
Unfilled orders in the motor vehicle industry slumped by more than a third to $633 million, a 23 month low and the largest single monthly decline on record.
Inventory-to-shipment ratio inches up
The inventory-to-shipment ratio continued to climb in October, increasing from 1.32 to 1.33 after rising from 1.28 to 1.32 in September. The current inventory to shipment ratio is the highest since reaching 1.38 in August 2003.
The combined effect of finished goods inventories rising 1.3%, and shipments dropping 0.1%, resulted in the finished-product inventory-to-shipment ratio increasing for the second straight month to 0.47 in October.
The inventory-to-shipment ratio is a key measure of the time, in months, that would be required to exhaust inventories if shipments were to remain at their current level.
| Shipments, inventories and orders in all manufacturing industries |
| |
Shipments |
Inventories |
Unfilled orders |
New orders |
Inventories-to-shipments ratio |
| |
Seasonally adjusted |
| |
$ millions |
% change |
$ millions |
% change |
$ millions |
% change |
$ millions |
% change |
|
| October 2005 |
50,350 |
1.2 |
62,118 |
0.4 |
41,646 |
1.3 |
50,883 |
2.5 |
1.23 |
| November 2005 |
49,319 |
-2.0 |
62,289 |
0.3 |
42,083 |
1.0 |
49,755 |
-2.2 |
1.26 |
| December 2005 |
50,098 |
1.6 |
62,051 |
-0.4 |
41,753 |
-0.8 |
49,769 |
0.0 |
1.24 |
| January 2006 |
49,668 |
-0.9 |
62,066 |
0.0 |
42,179 |
1.0 |
50,094 |
0.7 |
1.25 |
| February 2006 |
48,479 |
-2.4 |
62,216 |
0.2 |
42,183 |
0.0 |
48,483 |
-3.2 |
1.28 |
| March 2006 |
49,469 |
2.0 |
62,292 |
0.1 |
42,308 |
0.3 |
49,594 |
2.3 |
1.26 |
| April 2006 |
48,827 |
-1.3 |
62,003 |
-0.5 |
41,386 |
-2.2 |
47,905 |
-3.4 |
1.27 |
| May 2006 |
48,505 |
-0.7 |
62,495 |
0.8 |
41,154 |
-0.6 |
48,273 |
0.8 |
1.29 |
| June 2006 |
49,356 |
1.8 |
62,132 |
-0.6 |
41,298 |
0.4 |
49,474 |
2.5 |
1.26 |
| July 2006 |
49,805 |
0.9 |
62,898 |
1.2 |
41,485 |
0.5 |
49,992 |
1.0 |
1.26 |
| August 2006 |
49,347 |
-0.9 |
62,979 |
0.1 |
40,771 |
-1.7 |
48,633 |
-2.7 |
1.28 |
| September 2006 |
47,781 |
-3.2 |
63,279 |
0.5 |
40,499 |
-0.7 |
47,509 |
-2.3 |
1.32 |
| October 2006 |
47,737 |
-0.1 |
63,454 |
0.3 |
40,565 |
0.2 |
| | |
