Economist at PTDA Canadian Conference predicts recession

For the sixth year in a row, the Canadian Conference of the Power Transmission Distributors Association (PTDA) offered viewpoints on the latest trends in the Canadian market.

More than 280 attendees, consisting of Canadian power transmission/motion control (PT/MC) distributors and their manufacturer suppliers, participated in the conference in Quebec City, Que., at the Fairmont Le Chateau Frontenac on May 31 to June 2, 2007.

“The continuing 20% annual growth in attendance is a testament to the quality of the programming and the networking opportunities that the PTDA Canadian Conference offers,” said PTDA executive director Mary Sue Lyon.

Opening keynote speaker, Dr. Peter Andersen of Andersen Economic Research, focused on the ramifications of emerging economies on the global economy, including the price of commodities and market volatility.

Here are some of Dr. Anderson’s predictions for the future:

* The global economy in the next five years — expect a global recession.

* The effect of the U.S. housing market on the Canadian economy — a continuing slowdown in lumber and building supplies.

* The effect of an ever-stronger Canadian dollar on the PT/MC industry — the Canadian dollar will peak at 95 cents.

* The direction of interest rates — expect two increases from the Bank of Canada in 2007 (in July and September) and cuts from the U.S. Federal Reserve.

Panelists from key end-user industries paralleled Dr. Andersen’s forecasts.

Christian Van Houtte, president of the Aluminum Association of Canada, commented on the effect of emerging economies, noting that the new economies are driving the demand for aluminum, which is expected to increase by nearly 80% in the next 15 years.

Catharine Swift, president and CEO of the Canadian Federation of Independent Business, spoke of the strong entrepreneurial sector of the Canadian economy, leading to more aggressive pursuit of business opportunities within Canada.

Sean Whittaker, director of policy and technical affairs for the Canadian Wind Energy Association, presented compelling evidence of the exponential growth rate for wind energy and how the PT/MC industry can supply key components for the manufacturing and maintenance of wind turbines.

Closing keynote speaker Jean Marc Chaput held the audience captive with his life lessons in a presentation entitled “Put Your Heart Into It.” Chaput’s message of “stay hungry, stay foolish” was illustrated by many personal stories as well as examples of the corporate use of passion and enthusiasm in their messaging.

The next PTDA Canadian Conference will be held May 29-31, 2008, at the Fairmont Whistler, Whistler, B.C. The program is open to all PTDA members selling product in Canada — distributors and manufacturers — as well as non- members who qualify for membership. For details, visit www.ptda.org, call 312-516-2100 or e-mail ptda@ptda.org.

The photographs on this page include a selection taken during events at the 2007 PTDA Canadian Conference.