Supply Chain Has Major Impact On Manufacturing

Manufacturing sales declined three per cent to $58.5 billion in September, the lowest level since May 2021, says Statistics Canada. Sales decreased in 12 of 21 industries, with most of the decline attributable to lower sales of motor vehicles. The decrease was partially offset by higher sales in the petroleum and coal industry. Sales in constant dollars decreased 4.2 per cent, indicating a lower volume of goods sold. Month over month, the Industrial Product Price Index rose one per cent in September, while the Raw Materials Price Index increased 2.5 per cent. The global supply chain disruption continues to slow down recovery in many industries. The lack of computer chips, shortage of shipping containers, port congestion, and environmental disasters present serious challenges to many manufacturers and distributors of goods and the supply chain disruption is expected to continue into 2022. However, sales of wood products rose 1.5 per cent to $3.5 billion in September, mainly on higher volumes sold. Prices for lumber and other wood products decreased 1.3 per cent, while sales on a constant dollar basis were up 2.4 per cent. Despite the month-over-month increase, sales of wood products were down 29.6 per cent in the third quarter. Total manufacturing sales decreased in eight provinces, led by Ontario and Quebec. Meanwhile, Newfoundland and Labrador posted the largest increase.