Eagle Vision Quarterly Newsletter

March 2012

Richard L. Simms
President, Black Eagle Executive Search


A recently released 2012 survey by the Bank of Canada of about 100 major Canadian companies revealed some very interesting results:

COMPANIES SURVEYED BY THE BANK OF CANADA THIS SPRING:

58% - Expect increased sales over the next year

Orders and contracts for future sales have improved compared with a year ago as expectations for U.S. economic growth improve and fears about the global economy start to subside. The spillover effect from stronger commodity prices and market share battles have also contributed.

 

46% - Intend to buy more machinery and equipment over the next year

Investment in machinery and equipment remains solidly positive, although many companies reported that their investment spending is still focused on ways to reduce costs and increase productivity.

 

55% - Plan to add staff over the next year

This level is essentially unchanged. Most firms that expect to expand their work forces are doing so to support current or expected sales growth and expand market share.

 

63% - Expect inflation of 2 to 3 per cent over the next two years

The vast majority expect CPI inflation to be within the central bank’s inflation-control range of 1 to 3 per cent. Most, however, expect it to be in the upper half of this range given the recent strength in oil prices.

Source: Bank of Canada, Business Outlook Survey Spring 2012

Commentary from the April 10, 2012 edition of the Globe and Mail on the Bank of Canada survey:

“Canada is at a crucial point in the recovery, as governments cut back spending and consumers turn their attention to their sizable debts. That has put the heavy lifting in the hands of corporations that are flush with cash but have so far remained cautious, having been burned before by disasters both human-made and natural. Now, as signs point to a modestly improving U.S. economy and stability in Europe, Canadian companies appear committed to ramping up efforts to expand not just inside the country but abroad, according to a Bank of Canada survey released Monday.”

So for our particular home improvement industry, this is good news for growth in 2012 which will result in more available jobs and an encouraging employment market.

And this was reinforced by the employment figures for March 2012 as reported by Statistics Canada:

“Following four months of little change, employment increased by 82,000 in March, mostly in full-time work. This brought the unemployment rate down 0.2 percentage points to 7.2%. Compared with 12 months earlier, employment was up 1.1% or 197,000. Almost all of this growth was in full-time employment, up 181,000 (+1.3%), while part-time employment edged up.”

 

Contact Black Eagle

Telephone: (416) 458-9969
Email: info@blackeagle.ca