Transcript Wholesale Turnover Statistics in Canada (ppp)

Wholesale Turnover
Statistics in Canada
23rd Voorburg Group Meeting
Mary Beth Garneau
Aguascalientes, Mexico
September 22nd to 26th, 2008
Wholesalers and their services
Banner wholesalers In-store or co-op promotions
Drop shippers
Rack jobbers
Shipping
Buy and sell
Wholesale merchants and distributors
Dealers of machinery & equipment
Packaging and labeling Import-export merchants and agents
Logistics
Manufacturing reps and agents
Wholesale commission agents
Dealer-owned cooperatives
Product training
Inventory management
Wholesale brokers
Buying groups
Distribution
Handling of warranty claims
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Marketing and support services
Statistics Canada • Statistique Canada
September 23, 2008
Definition of the service (1)
North American Industry Classification (NAICS) 2002
Classification 41  Wholesale Trade
• Establishments primarily engaged in wholesaling merchandise and
providing related logistics, marketing and support services.
 generally an intermediate step; many wholesalers are organized to sell
merchandise in large quantities to retailers, and business and institutional
clients.
 some wholesalers sell merchandise in single units to final users (particularly
those that supply non-consumer capital goods)
Note: Unlike ISIC, the 2-digit NAICS boundary includes
wholesale motor vehicles, parts and accessories
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Statistics Canada • Statistique Canada
September 23, 2008
Definition of the service (2)
Wholesale Merchants
 Buy and sell merchandise on their own account, take
title to the goods they sell.
Wholesale Agents and Brokers
 Buy and sell merchandise owned by others on a fee or
commission basis, do not take title to the goods they buy
or sell.
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Statistics Canada • Statistique Canada
September 23, 2008
Wholesale statistics in Canada
Distributive Trades Division
 Responsible for surveys of revenue and expenses
(turnover)
Prices Division
 Responsible for developing/producing SPPI
System of National Accounts
 Responsible for estimates of real and nominal GDP
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Statistics Canada • Statistique Canada
September 23, 2008
Survey program overview
Sub-Annual
Monthly Wholesale Trade Survey
Coverage: Merchants (except Grain &
Petroleum Wholesalers)
Excludes Agents and Brokers
Annual
Annual Wholesale Trade Survey
Coverage: All Merchants, Agents and Brokers
Irregular
Wholesale Origin and Destination of
Goods Survey
Module on Annual Survey
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Statistics Canada • Statistique Canada
September 23, 2008
Wholesale population and sample
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# Establishments
Monthly
Survey
Annual
Survey
Population on Business
Register
104,000
120,000
Sample
12,000
14,000
Mail-out (includes clusters of
establishments)
5,000
5,900
Statistics Canada • Statistique Canada
September 23, 2008
Monthly Wholesale Trade Survey
• A key indicator of the economic conditions of wholesale
industries in Canada
• 5% of GDP on a value added basis
• Provides values and growth rates for sales and
inventories by industry group and province/territory
• An analytical overview disseminated each month
describing current trends within the context of Canadian
economic environment
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Statistics Canada • Statistique Canada
September 23, 2008
Annual Wholesale Trade Survey
 A comprehensive program measuring the structural
composition of wholesale industries in Canada
 Designed to meet the needs of the SNA
 Collects detailed revenue and expense data such as
operating income, cost of goods sold, inventories and
expenses
 Characteristics data such as Class of customers,
outsourcing and types of merchants or agents and
brokers
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Statistics Canada • Statistique Canada
September 23, 2008
Wholesale Origin & Destination of Goods
 Data required for the National and Provincial InputOutput Table and constant dollar deflation
 Prior to RY 2008, collected on an occasional basis
 Most recent iteration was conducted for reference year
2001 with less than acceptable results stemming from
poor response rates
 Pilot survey to collect data as a module within the Annual
Wholesale Survey with fewer commodities
 New module will be launched to full sample for
Reference Year 2008
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Statistics Canada • Statistique Canada
September 23, 2008
Market conditions (1)
 In Canada, wholesaling is a multi-billion-dollar
industry, with sales totalling $660 billion in 2006.
 Canada’s wholesale industry accounts for about
5% of Canada’s GDP
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Statistics Canada • Statistique Canada
September 23, 2008
Market conditions (2)
 Import a large share of the goods they distribute
(typically from the United States)
 Quick to adopt new information and
communications technologies, have recorded
above-average growth in capital investments
 Globalisation, offshore outsourcing, and the
arrival of American-style retailing (big box stores
and club warehouses)
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Statistics Canada • Statistique Canada
September 23, 2008
2006 Sales by Wholesalers (billions $CDN)
Farm products
18.1
Petroleum products
121.2
Food products
82.4
Alcohol and tobacco
7.7
Apparel
9.6
Home and personal products
32.4
Pharmaceuticals
33.2
Motor vehicles
75.6
Motor vehicle parts and accessories
19.3
Building supplies
50.7
Metal products
18.7
Lumber and millwork
13.9
Machinery and equipment
51.0
Computers and other electronic equipment
31.5
Office and professional equipment
23.4
Other products
64.9
Agents and brokers
6.3
All wholesale trade groups
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Statistics Canada • Statistique Canada
660.0
September 23, 2008
GDP estimates
 Value-added is the sum of the following Inputoutput wholesale table input commodities:
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Wages and salaries
Supplementary labour income
Mixed income
Other operating surplus
Indirect taxes and subsidies
Statistics Canada • Statistique Canada
September 23, 2008
Deflation
 Constant price estimates of monthly industry output
• monthly indicator
• Monthly GDP by industry
 Annual deflation of commodity output
 Inputs:
• Commodity detail of industry
• Margins
• Combination of Industrial Product Price Indexes and Import Price
Indexes
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Statistics Canada • Statistique Canada
September 23, 2008
Challenges ahead
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Deflation
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Updated accurate commodity data
Wholesale price indexes
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Globalization-induced changes to the structure of multinational firms with operations
in Canada
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Accurately and consistently define, delineate and measure the wholesale industry.
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Wholesale activities can take place in a variety of areas of the economy (manufacturing
sales branches, head-office, logistics, warehousing,, etc.)
Consistent industrial classification of production units can be a challenge. For example, the
same activities of different firms may be classified in different industries based on each firm’s
most-recently profiled book-keeping practices.
Avoid volatility in the wholesale statistical series resulting from changes in classification that
may not reflect actual changes in economic activity.
Statistics Canada • Statistique Canada
September 23, 2008
Discussion
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Statistics Canada • Statistique Canada
September 23, 2008