CFPA Industry Trends Survey

MARKET STATISTICS SURVEY - Industry Sales 2008

PARTICIPANTS

PNEUMATICS COMPANIES Asco Numatics Canada, Ltd. Bosch Rexroth Canada Festo Inc. Parker Hannifin Canada Inc. SMC Pneumatics (Canada) Ltd.

HYDRAULICS COMPANIES Bosch Rexroth Canada Eaton Hydraulics Oilgear Canada Inc. Parker Hannifin Canada Inc. Sauer-Danfoss

To view the market statistics survey, click here (pdf).

The amounts in this report reflect the sales (in Canadian dollars) of the named group of manufacturers of components or systems, e.g., hydraulic power units, either to their distributors or directly to end customers. They do not include distributor mark ups or distributor labour sales.

January 2009 Survey Results

What impact will the new U.S. administration have on the Canadian economy?

• Positive impact short-term (1-2 years) - 75%
  
• Positive impact long-term (3-4 years) - 25%

In light of recent economic conditions, how long do you feel the recession will last?

• 6 to 12 months - 50%
• 12 to 18 months - 25%
• 18 to 24 months - 25%

DR. JAYSON MYERS SPEAKS OUT - “Cashing in on Tough Times”
Dr. Jayson Myers, President, Canadian Manufacturers & Exporters
In addition to being President of Canada’s largest and most influential manufacturers association, Dr. Myers is one of Canada’s leading and most candid economists.

We’re all facing the challenges of these tough economic times – in both our business and personal lives. Sometimes it’s difficult to see past the uncertain predictions to the light at the end of the tunnel. Dr. Meyers will provide insight into what lies ahead and what roads you can take to avoid major pitfalls and come out on top.

Click here to view his Nov. 20, 2008 presentation and the Mar 5, 2009 video excerpts.

CME Business Conditions Survey - February 2009
CME, in partnership with member associations of the Canadian Manufacturing Coalition, is conducting monthly surveys of manufacturers and exporters across Canada to assess current market and financing conditions.

The February Business Conditions Survey was conducted between February 9th and February 23rd, 2009. A total of 620 companies with operations in all provinces of Canada participated in the February survey.

Click here to view the February report. (PDF Format)

CME's January Business Conditions Survey

Highlights from the January survey include:

• 66% of companies report that orders have fallen in value since October – 21% report that orders have fallen by more than 30%.
  
• The sharpest downturn in orders over the past three months has occurred in Ontario, Alberta, and British Columbia.
  
• 43% of firms say that orders are likely to decrease between January 2009 and April 2009.
  
• 42% of companies say that employment levels are likely to fall over the next three months.
  
• 48% of manufacturers and exporters report that they are experiencing difficulties accessing adequate levels of financing.
  
• 19% say that their line of credit is insufficient to meet current working capital requirements.
  
• 20% of firms report that they are using 90% or more of their full line of credit.
  
• 28% of companies report that they have asked their financial institution to increase their line of credit over the past three months.
  
• 44% of the companies that requested an increase in operating lines of credit over the past three months were declined.
  
• The companies whose requests were refused report a variety of reasons given by their financial institutions. The most common (reported by 40% of firms) is that their bank thinks that their industry sector is too risky. The second most common reason for refusal (reported by 17% of firms) is that the assets given as security do not meet the bank’s requirements.

Click here to view the January report. (PDF Format)

December 2008 Survey Results

What value would you think there would be in having a higher level of fluid power certification within Canada that would build on the existing IFPS (International Fluid Power Society) designation by adding requirements for formal education and/or work
experience?

• A lot of value - 50.0%
• Some value - 37.5%
• No value - 12.5%

November 2008 Survey Results

When do you feel the industry will start rebounding from the current economic downturn?

• 6 months to a year - 66.7%
  
• 1 to 2 years - 33.3%

September 2008 Survey Results

Are companion technologies to fluid power (such as electromechanicals) already part of your business?

• Yes - 70.0%
  
• No - 30.0%

If companion technologies to fluid power are not currently part of your business, when do you forsee adding them?

• Within 6 months - 0.0%
  
• Within 1 year - 10.0%
  
• Within 2-3 years - 10.0%
  
• We do not plan to add companion technologies - 10.0%
  
• We already promote companion technologies - 70.0%

August 2008 Survey Results

What is the biggest challenge facing your business in 2009?

• Finding good people - 66.7%
  
• Maintaining existing customers/loss of customers - 16.7%
  
• Diversification - 16.7%

What is the second biggest challenge facing your business in 2009:

• Price-based competition driven by the economy - 50%
  
• Controlling costs - 16.7%
  
• Finding new markets - 16.7%
  
• Diversification - 16.7%

What is the third biggest challenge facing your business in 2009:

• Competitive forces - 50.0%
  
• Strength of the Canadian dollar - 16.7%
  
• Maintaining existing customers/loss of customers - 16.7%
  
• Finding good people - 16.7%

Excerpts from 2008 Salary Survey
(based on a response rate of 31% of CFPA member companies)

Field Service Technician

• 33% of respondents provide a company car

Sales Manager

• 35% of respondents pay out profit sharing

Outside Technical Sales Representative

• 83% of respondents provide a laptop computer

Inside Sales/Customer Service Representative

• 38% of respondents provide a company pension plan

Be sure to participate in the 2009 salary survey to receive the complete results.

July 2008 Survey Results

What are your expectations of sales revenues for your entire company in the coming 12 months?

• Up more than 10% - 31%
• Up by no more than 10% - 12%
• Down by more than 10% - 0%
• Down by no more than 10% - 15%
• Flat - 31%

Do you have vacancies for entry and intermediate level positions that require technical competence because you can’t find qualified candidates?

• Yes – 54%
• No – 46%

If yes, how many positions are vacant? - from 1 to 6 positions