For those sales professionals in Canada looking to capitalize on steady and emerging markets, there are several sectors of Canada’s economy that are gaining economic momentum in 2014. Reasons for Canada's emerging growth can be attributed to oil pipe lines finally coming online, demand for products in growing economic sectors, and most importantly, to the ever-steady Canadian banking system.
Here are five industries to keep your eye on in the coming year:
The manufacturing sector is gaining momentum and becoming one of the cornerstones of the Canadian economy. What was once viewed as one of the weakest links in the economy has posted sales that have stunned all the market's expectations. The month of November showed a 1% increase in overall factory shipments, and a 0.7% increase in volume. Overall, this increase marked the highest sales levels in more than 23 months*.
While the overall Canadian employment numbers plummeted, the manufacturing sector has been steadily adding jobs. This surge in the job market is not likely to change in the near future, as the factories continue to take advantage of the steady increase in export sales to countries like the United States. Economists are predicting that this market trend will continue through 2014, as the U.S. economy rises and Canadian firms take advantage of it.
The Canadian oil sector is experiencing a strong rise as well. A year ago, Canadian oil was viewed as a substandard brand by market experts, but today the same oil is trading at prices five times higher than last year's prices. The strong market prices that Western Canadian Select is enjoying are due to several factors including the opening of export lanes, refinery demand finally coming online, and the extreme northern weather that affected oil production out of Alberta.
While these factors are certainly helping to push up the price of Canadian oil, many experts believe that much of the increase in profits is due to the rising demand from the US for Canadian oil. As of right now, the Canadian oil company, TransCanada, is moving 700,000 barrels of oil per day to the Texas Gulf, and more plans are in the works to open the market to Port Arthur. With this increase in supply and demand, industry experts are predicting even higher profits for 2014.
Tourism and Hospitality
There is no doubt that the Canadian dollar is still on a decline, but that is not necessarily bad for all Canadian economic sectors. Just like with manufacturing, the Canadian tourism industry is benefiting from the currency's decline. Some experts worry though that the deflation could cause a sudden rise in inflation, but the majority believe that this is exactly what the Canadian economy needs.
With the dollar holding around 0.10 cents lower than the US dollar, Canada is seeing a rise in the number of American tourists coming through Canada. Market experts predict an increase in 2014, around 15%-20%, continuing this strong economic trend in the tourism sector.
The Canadian natural gas sector is also experiencing a rise in their pricing. This is due to several reasons, including the frigid arctic temperatures that much of the US is experiencing and Japan's seemingly unquenchable demand for natural gas. Canadian gas pipelines are also showing a rise in demand with the state of Maine exceeding the line's capacity.
With Canadian natural gas showing a strong profit, analysts are predicting a continuing strong turn around for the natural gas industry. Some industry experts are even going so far as to say that they are helping to bail out the United States natural gas industry.
Banking and Finance
While it is true that the dollar is down, the Canadian banking and finance sector is still seen as a safe investment. In fact, Canadian banks have been called by the World Economic Forum one of the last safe investment havens. This sentiment is in partly due to Canada's banking policy of economic stability.
In addition, Toronto is one of the banking capitals of the world since it is home to four of the strongest banks in the world. While other countries’ economies are suffering, the Canadian banking sector is becoming a symbol for economic security.
While the economic growth that Canada is beginning to experience may be slow and steady, it is experiencing an upward swing, and the global community is taking notice. What is impressing analysts and experts is how these five economic sectors are tied in with each other. They are financially stable enough to stand on their own, but are closely connected enough to stimulate each other’s profits. Investors and sales professionals alike are certainly keeping this in mind when looking at the strategic outlook of their organizations business development initiatives in Canada over the coming years.
*Vieira, Paul. "Canada Manufacturing Sector Gains Momentum." N.p., 21 Jan. 2014.Web.<http://blogs.wsj.com/canadarealtime/2014/01/21/canada-manufacturing-sector-gains-momentum/>.
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