September was bleak for B.C. manufacturing, forestry sectors

B.C. manufacturers reeled from a series of sharp economic blows in September, Statistics Canada said yesterday.

The province's factory sales tumbled by 3.7 per cent to $3.52 billion -— the greatest percentage decline among Canada's large provincial economies, StatsCan said.

B.C.'s coastal forestry strike, poor lumber prices and feeble demand in the U.S. pushed sales by the province's wood-products manufacturers down 4.1 per cent in September. It was the segment's fifth consecutive monthly drop.
The province's paper-product manufacturers, sideswiped by the lumber strike, plunged 14.4 per cent.

The paper sector lost $75 million in production compared with August, the federal agency said.
"Paper product manufacturers use many byproducts from sawmills and as a result of the strikes in Western Canada some plants reported problems in procuring sufficient raw materials," StatsCan said.

The agency fingered the soaring loonie for the 0.9-per-cent slide in national shipments to $50.4 billion -— the fifth drop in six months.
"The U.S. exchange rate continued to play a major role in manufacturing sales as the Canadian dollar appreciated 3.1 per cent against the greenback compared to August," StatsCan said.
"On an industry-by-industry basis, 15 of 21 manufacturing industries decreased in September, representing about two-thirds of total sales."

The nation's transportation-equipment industry, however, posted a solid sales increase -— a performance that pushed Ontario manufacturers to a 0.7-per-cent increase.
Alberta's factory shipments fell 0.9 per cent, Manitoba's 0.3 per cent and Quebec's 1.7 per cent. Saskatchewan was the mirror image of B.C., with sales bounding 3.7 per cent to $1.03 billion.

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