imprint canada november/december 2013

Get caught up on the latest industry news 4

Pulse Mircosystem's Claude Vlandis highlights

the benefi ts that automation can bring to your

decorating business 20

We showcase the latest in wearable fashions,

ad specialty items, supplies & equipment 22

Canada's Manufacturing Sales and International

Trade data for September are examined 34

WHAT'S INSIDE

Looking for the Perfect Gift this Holiday

Season? Think Apparel Options! By Elson Yeung, Ash City

The Perils of Sourcing Direct Advice from a veteran importerPart six of sixBy Adriano Aldini, Imprint Canada

With the holiday season in full swing, it's time to start thinking about gift -giving! With the vast selection of con-sumer products avail-able, the expectations of the quality of gift s are getting higher.

Employers can start to rethink the traditional corporate gift s and sur-prise their employees with on-trend appar-el products that they will be happy to utilize - not only in the work environment - but also outside of work hours.

Apparel is an excellent gift option this holiday season for several reasons: it has a very high perceived value; it's dur-able (meaning the gift will be utilized time and time again which provides ongoing corporate brand exposure); lastly, it's something virtually everyone enjoys receiving.

Choosing the perfect apparel item can vary - across price points and categories - but still can have mass appeal through added value and design details.

The Outer Layer: 3-in-1 Jackets, Insulated Jackets, All

Season JacketsIf your customer is thinking about incentive programs

during the holiday season, providing an outer layer piece would be a perfect choice.

Th roughout the course of 2013, Imprint Canada's article series on direct overseas sourcing has looked at the perils of bypassing established supply channels, the state of domestic manufacturing in Canada, the benefi ts of sourcing locally, and the impact that the rising cost of energy has on imports.

In this, our fi nal instalment, we sat down with an importing veteran who has been sourcing products from Asia for more than 50 years.

As buyer and quality broker for pro-motional suppliers and retailers, this importer has travelled Asia extensively, and on the condition of anonymity, has provided us with a fi rst hand narrative of how dangerous source direct really can be.

A Tristan Communications Ltd. Publication Volume 20, Issue 6

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Beam Me Up!My 11-year-old daughter asked me the other day if

time travel was possible as she had just seen a tele-

vision show where kids bounce from one time period

to another. Being a Trekkie, I responded lightheart-

edly that time travel would not be possible until we

developed warp speed and fi gured out the space time

continuum. Having never heard of Star Trek, she just

looked at me confusingly and walked away wondering

what kind of juice I was drinking.

I thought about the answer I had given her and curi-

ously decided to Google "warp speed," and what do

you think I found? It turns out that NASA Eagleworks

Laboratories reported in late 2011 that they had begun

researching advanced propulsion physics.

Whether time travel or warp speed is possible is not

the point to this editorial. Th e mere fact that resources

are being spent on this investigation exemplifi es the

technological search for all things fast and beyond

this world.

Th e ability to conduct online business transactions

continues to make our world a smaller place. I can

purchase an item online and have it delivered to my

door from Europe in three to four days. Also, pur-

chasing goods online is quickly losing its cybercrime

stigma as fi rms capitalize on providing services that

assure security.

Being able to capitalize or predict how quickly the

manner in which any industry can grow its business

depends on how adept one is in understanding the

power of technology. Retail has changed and will con-

tinue to do so quite rapidly. Business to business - the

same. All the while, social media and apps continue

to transform markets and consumer behavior.

What are the market opportunities that await? If

you've fi gured this out, the next questions are: will

the bullseye be there when you get there or will it

have moved (since it too can progress forward as does

your plan of action)? Or do you leapfrog tomorrow's

bullseye, because you think every one of your com-

petitors is going aft er it, and shoot for the one further

down the road?

Th ey say that technology is supposed to simplify

things. Yes, maybe it does in getting a consumer to

part with his or her dollar. But there is so much more

you have to wrap your

head around if you are

the one trying to get

that dollar. So many

more variables than

yesteryear to consider

in determining today's

and tomorrow's prefer-

ences of your current

and future customer.

Business - the entre-

preneurial frontier -

these are the voyages

of ......

NOVEMBER/DECEMBER 2013Follow us: twitter.com/imprint_canada

TM

GEO-KNIGHT

DK-20A

1 THE DANGERS OF SOURCING DIRECT: CONTINUED PG 6

1 THINK APPAREL THIS HOLIDAY SEASON CONTINUED PG 16

4 INDUSTRY NEWS

10 THE TORONTO IMPRINT CANADA SHOW

18 TRENDING TOWARDS AUTOMATION & PERSONALIZATION

34 BY THE NUMBERS

22 WEARABLES SHOWCASE

30 AD SPECIALTY SHOWCASE

32 SUPPLIES & EQUIPMENT SHOWCASE

Imprint Canada is published six times per year by Tristan

Communications Ltd. Th e contents of this publication may

not be reproduced either in part or in whole without the

consent of the copyright owner. Th e views expressed in this

publication are not necessarily those of the publisher. Request

for missing issues are not accepted aft er three months from the

date of publication.

TRISTAN COMMUNICATIONS LTD.Publications mail agreement no. 40025740Return undeliverable mail to:

190 Marycroft Avenue, Unit 16,

Woodbridge, Ontario, L4L 5Y2

Email: [email protected]

ISSN: 1480-1884 GST Registration #: RT892913294

IMPRINT CANADA

PUBLISHER Tony Muccilli : [email protected]

PRODUCTION MANAGEMENTAdriano Aldini : [email protected]

CONTRIBUTING WRITERSClaude Vlandis, Elson Yeung

MARKETING COORDINATORSteve Silva: [email protected]

OFFICE ADMINISTRATORMaria Natale: [email protected]

GENERAL [email protected], (905)856-2600

ADVERTISING SALESTony Muccilli (Toronto)

Tel: (905) 856-2600 Fax: (905) 856-2667

November/December 2013 - Volume 20, Number 6

IMPRINT CANADA

IMPRINT CANADA

Industry News

Gildan Activewear announces record results for fourth quarter Included in Dow Jones Sustainability Index; Appoints New Board Member

American Apparel announces preliminary October Sales

Gildan Activewear Inc. (GIL; TSX and NYSE)

announced results for its fourth fi scal quarter and full fi s-

cal year ended September 29, 2013.

Net earnings were $96.8 million (all fi gures US) for the fourth

fi scal quarter ended September 29, 2013, compared with net

earnings of $89.0 million for the fourth quarter of fi scal 2012.

Net earnings for the fourth quarter of 2013 included a

$4.7 million aft er-tax charge for the cost of unwinding inter-

est rate swaps, which was discussed in previous quarterly

press releases, and $0.5 million aft er-tax restructuring and

acquisition-related costs.

Before refl ecting these items in both years, adjusted net

earnings for the fourth quarter of 2013 were $102.0 mil-

lion, up 7.5 per cent compared to adjusted net earnings of

$94.9 million in the fourth quarter of the previous year.

Net sales in the fourth quarter amounted to $626.2 million,

up 11.5 per cent from $561.7 million in the fourth quarter of

2012. Net sales for the Printwear segment amounted to $423.9

million, up 12.5 per cent the fourth quarter of 2012.

Net sales for Branded Apparel were $202.2 million, up

9.4 per cent from the fourth quarter of last year.

Full Year ResultsNet sales for fi scal 2013 amounted to $2,184.3 million, up

12.1 per cent from 2012. Th e increase in net sales was due to

the acquisition of Anvil, organic growth in Printwear unit sales

volumes, and growth in sales of Gildan® branded activewear

and underwear to retail customers. Th ese factors were partially

off set by lower net selling prices for Printwear.

Net earnings for 2013 were $320.2 million compared to

$148.5 million in 2012.

Included in Dow Jones Sustainability IndexGildan has become one of only two North American com-

panies to be included in the Dow Jones Sustainability World

Index (DJSI) in the Textiles, Apparel and Luxury Goods sector.

Th e DJSI tracks the fi nancial performance of the leading

sustainability-driven companies worldwide. Th ese indices

serve as benchmarks for investors who integrate sustain-

ability considerations into their investment philosophy.

"We are proud to be recognized for our commitment

to sustainability by our inclusion in this prestigious global

index," commented Glenn Chamandy, President and Chief

Executive Offi cer. "All of our stakeholders can continue to have

confi dence that our vertical manufacturing and supply chain

business model allow us to ensure that the Gildan family of

branded products are manufactured in safe and responsible

working conditions, which is now further reinforced by our

inclusion in the Dow Jones Sustainability World Index."

New Memeber Added to Board of DirectorsGildan Activewear has appointed Russ Hagey to its Board

of Directors.

Hagey is a Senior Partner and the Worldwide Chief

Talent Offi cer of Bain & Company, Inc., one of the world’s

leading management consulting fi rms.

As Chief Talent Offi cer, Hagey oversees Bain’s recruiting,

professional development, training, and human resources

functions for nearly 6,000 global professionals and staff

across 50 offi ces in 32 countries.

With the addition of Mr. Hagey, Gildan’s Board of

Directors now comprises 10 members, of which nine are

independent of management.

American Apparel, Inc. (NYSE MKT:APP),

announced preliminary sales for the month of October 2013.

Total net sales were $59.5 million, an increase of 1 per

cent over the prior year. Comparable sales decreased 1 per

cent, including a 3 per cent decrease in comparable store

sales in the retail store channel and a 12 per cent increase

in net sales in the online channel. Wholesale net sales

increased 8 per cent for the month

"Although disappointed with the negative comparable

performance of our retail stores in October, we are encour-

aged by the strength in our online and wholesale businesses,

which grew sales 12 per cent and 8 per cent, respectively,"

said Dov Charney, Chairman and CEO.

"We are beginning to breathe a sigh of relief that we are

overcoming some of the challenges we were experiencing

at our new distribution center and we are pleased that our

stores and customers are now being shipped product in a

timely fashion. While we are aware of a weaker consumer

spending environment that has impacted traffi c levels across

the retail sector, our retail team is working around the

clock to produce results for shareholders for the Christmas

season," added Charney.

Th e 2013 SGIA Expo, which recently took place at the

Orange County Convention Center in Orlando, Florida

on October 23-25, showcased

the innovative technologies

that the specialty imaging

marketplace had to off er.

From high-speed fl atbed and

roll-to-roll printers, to digitally

printed textiles, and the latest in garment decoration tech-

niques, 534 exhibitors sent more than 22,000 attendees home with new

equipment, newfound knowledge, and new opportunities.

2013 SGIA Expo Exhibitor and Attendee Statistics:• Percentage increase in sign maker attendees: 45 per cent

• Percentage increase in lithographer attendees: 13 per cent

Registrants from Top 5 Countries (excluding US):• Canada, Mexico, China, Colombia, Brazil

Registrants from Top Five US States:• Florida, California, Georgia, Illinois, Texas

Th e 2014 SGIA Expo will be held in Las Vegas, October 22-24 at the

Las Vegas Convention Center.

More than 22,000 in attendance at

the 2013 SGIA Expo in Orlando

Technosport Canada bringing

Oakley to Canadian marketTechosport Canada is excited to announce the intro-

ducion of Oakley to the 2014 Canadian Market.

Technosport is focused on off ering and distributing

top branded products. Oakley will continue to add brand

value options for polos, headwear, accessories and life-

style apparel options to its exciting lineup.

Be sure to visit Technosport's website to see all their

great new products for 2014.

Stahls' Canada announces the addition of

new team membersStahls' Canada is proud to announce the addition of two new mem-

bers to its team.

Jessica Hoyle joins the customer service team, and Dough White is

the newest Stahls' Canada sales team.

"Both of these appointments continue to refl ect the level of commit-

ment and dedication to our customers that Stahls' Canada has become

renowned for in the marketplace, as a world leader in the Heat Printing

Industry," said G. Spencer Ritchie, national sales manager.

Ash City appoints Bobby Ramjist

as Dedicated Sales Rep for Ottawa

and Eastern OntarioAsh City is pleased to announce that Bobby Ramjist has

accepted the position of Dedicated Sales Representative,

for the Ottawa and Eastern Ontario Territory.

With over 12 years in the promotional and apparel indus-

try, Ramjist joined Ash City in 2010, and quickly advanced

in the organization from Inside Sales Representative to

Inside Sales Supervisor.

"Given Bobby’s wealth of experience in the industry

and solid relationships with our valued customers, we are

thrilled to have him take on this role,” said Craig Ryan,

Vice President of Canadian Sales, Ash City.

“Bobby not only brings strong expertise with regards to

Ash City product and systems, but we have no doubt that

he can provide an outstanding level of service and support

needed to excel in this position," added Ryan.

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IMPRINT CANADA

Industry News

"In a lot of instances, many of which have occurred over just the past several years, I've witnessed importers lose a lot money dealing with overseas manufacturers," says our verteran importer.

He recalls having witnessed buyers from North America go overseas on factory tours which are not owned by the parties giving the actual tours. "In essence these buyers are inspecting factories that will never actually produce their products."

Our contact explains that he too has fallen victim over the years to unethical behaviour from manufacturing par-ties and the agents who represent them.

"I remember being taken years ago to visit facilities that were claimed to be those of the manufacturer giving the tour, but aft er some additional research we discovered that we were being sold on something that they themselves did not own."

Another common pitfall that our importing veteran has been privy to is agreements in which a manufacturer will deliver one shipment according to order specifi cations. Once rapport has been established, the manufacturer will ask the buyer for payment in advance when future orders arise and once the money is received, the manufacturer subsequently vanishes.

Manufacturers take payment in advance. Th is amount typically varies from 1/3 to 2/3 of the order total. Before the product is shipped, the manufacturer sends an invoice with the remaining balance along with a detailed packing slip outlining the exact manner in which the order is crated.

"What happened to me is that I paid 30 per cent of the cost of the goods aft er approving a manufactured sample,"

explains our veteran importer. "A few weeks thereaft er I was sent a shipping label and packing slip along with an invoice for the balance."

When his freight forwarder went to pick up the ship-ment, he was informed that the goods weren't ready yet and it would require another week. In the meantime, the manufacturer was demanding payment on the balance in order to release the goods. At this point, our importer explains that he released the remainder of the payment so the goods could be shipped.

Several days passed and when the goods still weren't released, it turns out the manufacturer then denied ever receiving the funds. Aft er verifying with the banks in Canada and China that the money was in fact successfully transferred, he tried contacting the manufacturer, but was no longer able to; emails bounced back, his phone number was no longer valid, and faxes were not going through.

"We have tried every avenue; we now have lawyers and the Canadian Government involved. We are working with the Canadian Trade Commission in China as well as the RCMP in trying to fi nd this party," he says. "Th e Canadian Embassy also has a commercial attaché in China that is aware of this, but I think it is futile. Th ey will never fi nd him."

Aft er this happened, our importer brought his experiences to the attention of some of his former clients, who explained that they too had been victimized by a similar scheme.

"Th ese people being frauded are experienced import-ers, not beginners, and the scams are being perpetrated by companies overseas whose names have been around for some time. "

Another horror story happened to a personal friend of his who operated a company that imported fi ne woven shirts. He explains that his friend travelled to Italy to purchase fabric and shipped it to Hong Kong to the factory he vet-ted months prior on a tour he was given. When he fl ew to Hong Kong to oversee production, the factory was boarded up and his thousands of dollars in fi ne fabric was gone.

Th is type of suspect behaviour is not something that is new; it's been happening for years and will continue to occur.

Th ese are fi rst hand examples of how, even with years

of experience, importers can be subject to serious risks and get burned.

In addition to the risk of fraud, there's the potential for importers to incur large fi nes for any shipments that arrive but do not strictly comply with Canadian border service policies.

"Importers need to be wary of the penalties that can result from Canadian Border Services if there are any discrep-ancies between the packing slip and the actual shipment, or if the labelling of goods is not in complaince with our standards in Canada," stresses our importer. "Even the smallest discrepancy can result in large fi nes."

Advice from an ExpertWhen asked for his take on whether distributors should

consider sourcing direct, his answer was a resounding "DON'T!"

With more than fi ve decades of importing experience, he strongly recommends leveraging the safety of estab-lished suppliers because the all the risk has been factored out. "Th ey already have the inventory and the production quality is there with none of the aforementioned risks involved to the buyer."

For example, he explains, when you buy something from a supplier in this industry, you can send it back if you don't like it, or if something is not right, or if it doesn't fi t, and you have zero at risk of losing any money. Best of all the supplier will replace the product almost always immediately.

He stresses that common sense - not just the numbers on the bottom line - needs to be a critical element when making sourcing decisions.

"You may spend a bit more, but that is something that can be factored into your margins; it vastly outweighs avoiding the risks you must take when importing goods yourself."

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Prior to making a selection between an all-season, 3-in-1, or insulated jacket, it’s important to take note

of what performance, warmth and protection the jacket off ers.

Quality suppliers off er a variety of choices and oft entimes have incorporated warming technologies for the wearer’s comfort and peace of mind.

Many of the new winter jackets at both the retail and promotional apparel levels include a variety of eye-catching features that deliver performance and protection dur-ing the winter months.

Storm plackets are commonly utilized to prevent wind and rain from entering the jacket through the centre front zipper, while storm cuff s help keep the draft out from the sleeve openings. Shockcord systems retain warmth by com-fortably bringing the jacket closer to one’s body at areas such as the hood, waist and hem, to keep the cold where it belongs….OUT!

Some other things to look for are functional applica-tions - like a removable snow skirt which helps prevent snow and the cold from entering the jacket - or a moisture

wicking lining, which delivers added comfort during winter activities.

In addition to what the use may be for the end user, it’s important to also carry diff erent outer layer pieces for a variety of clientele. Active-driven companies may seek the ultimate in performance, dynamic colour and functionality, while executive-level fi rms may seek retail-inspired designs that feature sophisticated styling.

The Mid-Layer: Fleece Vests, Bonded Fleece

Jackets, Fleece JacketsAs changes in temperature continue to be unpredictable

and volatile, layering pieces have become more and more popular for the holiday season. Employees could wear these pieces not only around the offi ce, but on their own personal time as well.

Fleece options off er cozy style and warmth, while performance knits provide moisture wicking functionality to maintain comfort throughout your customers' entire day.

Vests off er warmth without committing to an entire jacket - and as an added bonus - they are easy to carry and comfortable to wear.

When the temperature dives a little lower, bonded fl eece jackets off er comfort along with practicality; many of these pieces off er chic active styling and eye-catching colour elements to keep staff standing out from the crowd.

Other examples of fl eece to look out for include textured fl eece, printed bonded-fl eece and mélange fl eece. Mid-layer options off er just the right amount of coverage for everyone’s

changing lifestyles during the cooler months.

The Base Layer: Woven Shirts, Performance Crew

Necks, Performance PolosAnd last but defi nitely not least, base layer styles off er

comfort against the body by using performance features

to keep the skin as dry as possible from perspiration. Performance long-sleeve tops off er comfort and ver-

satility to a casual business wardrobe or active regime. Performance long sleeve polos can complement almost any outfi t, especial-ly with an array of colours to choose from.

Many of the polos off ered in the market incorporate great technical features including moisture wicking and antimicrob-ial properties to keep the wearer feeling dry and fresh all day long.

If your client is seeking a functional garment that complements a busy out-door lifestyle, performance crew necks are perfect, especially on a breezy day. Th ese tops can be worn on their own or serve as a base layer to any of the other pieces mentioned above.

For those within an offi ce or corporate environment, woven shirts with wrinkle free or wrinkle resist-ant properties are always solid choices for gift s, especially when a professional look is a priority.

Whether the end user is commuting within the city or running around from meeting to meeting, they’ll no longer need to be worried about not looking their best throughout the day with a crisp and polished shirt that features tailored cuff s, back darts or removable collar stays.

Receiving a gift this holiday season will make anyone feel appreciated for their hard work throughout the year.

However, if your customer chooses the perfect garment as an appreciation gift , their staff will not only proudly wear and represent their company’s logo and colours with confi dence, but they will consider it as a piece of their personal wardrobe, while providing ongoing branded exposure for your company. Now that's a win-win!

Happy Gift Giving.

Elson Yeung is the Product Line Manager for Ash City, which provides customiz-able promotional apparel for corporate and casual markets. The company, an industry leader in quality, design and innovation, staff s over 500 employees worldwide, including Canada, the United

States, Malaysia and Bangladesh. Ash City manufactures and distributes apparel under brands North End Sport® , North End Sport® Blue, North End® , Extreme® and Core365™ .

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News

Th e garment decoration industry is in a period of rapid

technological innovation. Organizations are quickly adopt-

ing new technologies and business practices to help with

productivity and profi tability. One such change is the move-

ment toward garment personalization and the automation

of this process. It is becoming more and more diffi cult for

digital print and embroidery businesses to remain com-

petitive without off ering a mass personalization solution

to their customer base.

Personalization is a segment of the business that provides

a very high profi t margin. Th e automation process builds

on this, allowing you to keep costs low while maximizing

productivity. Together, personalization and automation

are making a large impact across both the digital print and

embroidery worlds.

Th e personalization process is very straightforward. Your

customer creates their design from scratch or based on a

defi ned template. Th ey can add their name, initials or a per-

sonalized message to the garment. A personalization solu-

tion gives the customer the opportunity to see a rendering

of the design and check for any mistakes before approving

it and submitting for production.

Once submitted, your ordering system will receive the

design and your operator will be able to send it to the machine

for production. Personalization is great for building a cus-

tomer base in sports teams, clubs, and events because a single

template can be the basis for hundreds of designs.

Th ere are several businesses that have already followed

the industry trend toward personalizing garments. Th is is a

great step in the right direction but the full potential of their

business is not realized until an automation solution is imple-

mented. Automation will improve effi ciency, consistency, and

profi tability in any area of apparel personalization.

A great aspect of the growing presence of automation in

the industry is the ability to seamlessly integrate into your

current production processes, no matter how large or small

your apparel decoration business is. An automation solu-

tion will save you time and labor costs, improving delivery

times and eliminating errors associated with manual input.

It is important for an automation solution be tailored spe-

cifi cally to your organization’s needs and strengths. Designs

can be created automatically according to your company's

guidelines and text generation rules, and can be automatic-

ally downloaded to your production machines.

Th e automation process runs through a text and design

creation engine that generates designs based on orders cre-

ated online, or on in-house. Th is part of the process is

completed without any user intervention.

Th e automation process will allow you to maximize

the effi ciency of your business and your employees. It

frees you from tedious tasks such as order processing

and manual entry, creating more time for you to focus

on other aspects of the business.

With digital print automation, Variable Data improves

productivity by reducing the time it takes to create mul-

tiple personalizations that are similar in appearance. Th e

design process only has to be completed once and you

can print many personalized items.

As for embroidery, new personalization solutions are

able to provide 3-D renderings of designs before they are

approved for production. Embroidery fi les are generated

automatically from the order information and by consult-

ing your own product-specifi c parameters such as the

size of the design and font selection. Th e entire process

becomes streamlined.

Automation will help your bottom line in several ways.

For one, it eliminates production errors, thus eliminating

the cost of lost products and unhappy customers. With an

automated solution in place there’s no need to worry about

spelling errors, spacing issues or crude language appearing

in any of your designs.

Automating your business maximizes the productivity

of your employees. Your machine operators will be able

manage multiple machines simultaneously. Instead of an

operator taking the design manually from the order and

inputting to the machine, the process is now as simple as

scanning a barcode with your machine and readying the

garment for production.

Companies that have implemented both personalization

and automation are sure to see a boom in businesses. When

a company experiences this type of phenomenal growth,

it must have the equipment and systems in place to keep

up with demand. A great automation solution is one that

is streamlined, allowing your organization to increase the

rate at which orders can be handled and processed. Th is will

allow you to scale up your business, meaning the automation

solution will grow alongside the organization.

When you are ready to automate your business, it is

important to look toward an organization with experience

and a reputation for quality.

This article was written by Claude Vlandis, Senior Vice President of Business Development at Pulse Microsystems. Pulse Microsystems is an industry leader in personalization automation and has been an innovator in the software business for over 30 years. Pulse is a Canadian company that has off ered its services to organiza-tions around the world.

Trending Toward Personalization and AutomationBy Claude Vlandis, Pulse Microsystems

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MANUFACTURING SALES & INTERNATIONAL MERCHANDISE TRADE

Clothing manufacturing sales in Canada

down 10 per centClothing manufacturing sales dropped 10 per cent in September to $189 mil-

lion, down from $210 million in September 2012. Textile mills saw an increase of

sales in September amounting to $151 million, up more than 16 per cent than a

year ago. Sales of leather and allied products dropped 22 per cent from last year

to $24 million (see Figure 1).

Overall manufac-

turing sales across all

sectors rose 0.6 per

cent to $49.9 billion in

September, which repre-

sents the fourth increase

in fi ve months. Th e gain

in September was largely

a result of higher sales

in the motor vehicle

assembly and food

industries. Total sales

in September were at

their highest level since

June 2012.

Sales increased in 11 of 21 industries, representing about 55 per cent of Canadian

manufacturing. Both the durable and the non-durable goods industries posted 0.6

per cent sales gains..

In Ontario, sales increased 1.4 per cent to $22.9 billion, largely a result of higher

sales in the motor vehicle assembly. In Alberta, sales fell 3.6 per cent to $6.3 billion.

Decreases in the petroleum and coal product as well as chemical industries were largely

responsible for the provincial decline. In Quebec, sales were down 1.0 per cent to

$11.5 billion, giving back some of the 3.8 per cent increase recorded in August.

Inventories decline in SeptemberTotal inventories across all sectors fell 0.9 per cent to $68.2 billion in

September. Inventories have been generally trending upwards over the past

several years. Th e decline in September however was the third in nine months.

Canada’s trade defi cit shrinks 60 per cent

as exports rise Canada’s merchandise exports grew 1.8 per cent while imports edged up 0.2

per cent in September. As a result, Canada’s international trade defi cit narrowed

from $1.1 billion in August to $435 million in September, a 60 per cent decrease

from the previous period (see Figure 2).

Exports increased to $40.6 billion on the strength of energy products as well

as aircraft and other transportation equipment and parts. Overall, volumes were

up 1.7 per cent.

Imports edged up to $41.1 billion, as gains in energy products and consumer

goods were partially off set by declines in basic and industrial chemical, plastic and

rubber products as well as air-

craft and other transportation

equipment and parts. Import

prices were up 0.4 per cent

while volumes were down 0.2

per cent.

Exports to the United States

increased 1.0 per cent to

$30.5 billion, while imports

from the US were up 0.9 per cent

to $26.2 billion. Consequently,

Canada’s trade surplus with the

United States rose from $4.2 bil-

lion in August to $4.3 billion in

September.

Exports to countries other

than the United States rose 4.2

per cent to $10.1 billion; the

European Union (+21.0 per cent) was the main contributor to the increase.

Imports from countries other than the United States declined 1.1 per cent to

$14.8 billion, with the largest decrease reported for the principal trading area “all

other countries”. As a result, Canada’s trade defi cit with countries other than the

United States narrowed from $5.3 billion in August to $4.7 billion in September.

Exports up on higher volumesExports of energy products rose 4.6 per cent to $10.2 billion in September, their

highest level since September 2008. Natural gas, refi ned petroleum energy products

as well as crude oil and crude bitumen all contributed to the section’s growth in

September. Exports of crude oil and crude bitumen have increased since May to

a record high of $7.3 billion in September. Overall, volumes were up 6.0 per cent.

Exports of aircraft and other transportation equipment and parts grew 17.4 per

cent to $1.6 billion, entirely on higher volumes. Aircraft exports were the main

contributor, increasing from $464 million in August to $646 million in September.

Energy products and consumer goods lead increase in importsImports of energy products grew 7.3 per cent to $3.9 billion in September, as

both volumes and prices were up, while imports of crude oil and crude bitumen

rose 12.7 per cent to $2.6 billion. Imports of consumer goods grew 2.2 per cent

to a record high of $8.4 billion, led by pharmaceutical and medicinal products

(+9.3 per cent). Overall, volumes rose 1.9 per cent.

Imports of electronic and electrical equipment and parts rose 2.5 per cent to

$4.8 billion.

Imports of aircraft and other transportation equipment and parts declined 12.7

per cent to $1.2 billion, as volumes fell 12.1 per cent. Aircraft was the only com-

modity grouping to register a decrease, down to $143 million in September from

$375 million in August.

SOURCE: STATISTICS CANADA

Exports & Imports

billions of dollars, seasonally adjusted

Source: Stats Canada

2008 2009

EXPORTS IMPORTS

2010 2011 2012 201327

29.25

31.50

33.75

36.00

38.25

40.50

42.75

$45

Figure 2

20

56

92

128

164

200

$

millions

of dollars

$130

million

$151

million

$210

million

$31

million $24

million

$189

million

TEXTILE MILLS

Source: Stats Canada

Sept 2012 Sept 2013

CLOTHING MANUFACTURING

Sept 2012 Sept 2013

LEATHER & ALLIEDPRODUCTS

Sept 2012 Sept 2013

Manufacturing Sales

(Textile mills, Clothing maufacturing, Leather & Allied Products )Figure 1

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