Retail Sales Still Growing but Does Trouble Lay Just Ahead?
With the US fiscal cliff crisis seemingly resolved and the global economy stabilizing somewhat, is our manufacturing sector in for a better year ahead?
What is your situation now and your prognosis for the coming year? What are your keys to business improvement this year? Share your views and issues with us.
After a very promising start to the year, stats were showing a moderating trend in Canadian retail sales. 2nd quarter sales were down 2.8% from the previous quarter, although August’s retail growth was a surprising positive. It was the best month for manufacturing in Canada since last March. Year end stats aren’t available yet, however there are reports the Xmas season and boxing day sales were positive.
Rising prices, cross border shopping, high consumer debt, US fiscal cliff crisis, and online cross border shopping are playing on the minds of most Canadian consumers and manufacturers. Despite the worries, there is an air of optimism about 2013.
Canadian manufacturers are a hearty lot too. Despite battles with cheap imports, high Canadian dollar, cross border shopping, our manufacturers manage to compete very well. Canadian manufacturers are an optimistic group with one third expecting to increase their workforce this year. When economic conditions improve, Canada’s manufacturing sector should roar like a lion.
From the Financial Post
“While Canada’s economy is being affected by the global angst, the key areas of uncertainty abroad are all points of justifiable confidence here at home,” Mr. Carney said in a speech Monday in Nanaimo, B.C.
From a recent report from the Canadian Press, the picture is reasonably bright. Ontario’s manufacturing growth was 2.5% in August and July’s totals were revised up slightly so the summer wasn’t as bad as thought. With the banks reporting they won’t raise interest rates, manufacturers have one business positive going for sure.
US Manufacturing Rising
At the same time, the US retail monster has grown legs with two consecutive months of increases. Reports said there were gains in 12 of 13 retail categories as shoppers were heartened by higher stock prices and home values. Furniture, health food, and building materials were the big gainers during the late summer. With the US housing market showing strength, that should continue, and the latest reports of US manufacturing production show a .4% rise. Should the US housing recovery continue, Canadian manufacturers might see new orders from south of the border.
Retail in Canada started the year strongly – $3.8 billion in the January to June 2012 period – that’s up 5.2% compared to the same time period in 2011. Alberta, is Canada’s strongest region and its sales will increase by 8.6% this year to $69.5 billion and will up 8.2% again in 2013 to $75.2 billion.
If your 2013 sales forecast is causing you concerns, then you’ll want to ensure you will do more with your retail marketing budget – in particular your POP promotions.
Consider bringing all your marketing and fulfillment services under one roof. Ravenshoe Group offers packaging, printing, online marketing, and fullfillment services for its clients. Working with one marketing and fulfillment partner should help you control your costs and get far better results.
Find out how to get more out of your packaging dollar and create POP that makes a promotional impact and will create high brand value. What should you be looking for when choosing your next packaging company?