Industry growth in 2005 is expected to continue in key sectors – financial services, transportation, and printing. Industries affected by cyclical sensitivity, such as machinery manufacturing, mineral extraction, and motor vehicle parts should also do well as Canada’s economic expansion continues during the next three years. According to the Bank of Montreal (BMO) Financial Group (www.bmo.com/economic) the following sectors will experience a strong expansion:
The inventory-shipment ratio in this sector is well below the five year average, increasing demands for new shipments. Although influenced by industries, such as non-residential construction and vehicle production, in which forecasts show slowing down, experts claim the negative impact on the demand for and production of plastic products used in home construction should be offset by continued renovation activity and a gradual strengthening of non-residential construction and motor vehicle assembly.
This industry includes services within the software, legal, tax, consulting, engineering, advertising, waste remediation, and accounting sectors. According to BMO, this industry has recorded solid growth during the past several years, averaging 6.6% since 1997. Strong growth is attributable to the inclination of businesses to outsource non-core processes to improve operating efficiency. Experts predict that stronger economic expansion, growth in corporate profits, and continued outsourcing should continue to stimulate the demand for business services in 2005.
Machinery & Equipment Manufacturing
At the start of 2005 most business will see their capacity at its maximum. As this industry is recovering from three years in decline, capital spending is on the rise. Favorable interest rates and balance sheets will drive an increase in capital investment over the next several years. BMO forecast manufacturers of construction, mining, and oil and gas machinery will benefit from a strong energy sector, above average gas prices, and increased expansion within the non-residential construction sector. Experts also predict that pressure to compete in the international market will motivate industries to improve production efficiency thus increasing capital investments.
Having emigrated from the United States, Aimee Guillote Pao began working as an International Trade Specialist with the Canadian Trade Representative of the Council of Great Lakes Governors (CGLG) in August 2004. Prior to employment with CGLG, Aimee volunteered and worked with the American Chamber of Commerce in Canada (AMCHAM) to assist with the Doing Business in Canada CD Rom.
Aimee completed her Bachelor of Science in International Trade and Finance from Louisiana State University (LSU) and her Masters of Public Administration from LSU’s Public Administration Institute.