MRO Magazine

Machinery and equipment wholesalers see boost of 3.4% in margins in first quarter

Ottawa, ON – Statistics Canada reports that its Wholesale Services Price Index (WSPI) rose 0.9% in the first quarter of 2012 compared with the fourth quarter of 2011.


Ottawa, ON – Statistics Canada reports that its Wholesale Services Price Index (WSPI) rose 0.9% in the first quarter of 2012 compared with the fourth quarter of 2011.

Wholesale margin increases were recorded in four of the eight wholesale sectors. Machinery, equipment and supplies wholesalers (+3.4%) posted the largest first quarter margin increase following a relatively stable 2011. The increase in the first quarter was a result of higher selling prices, which led to margin advances in all four subsectors: farm, lawn and garden machinery and equipment (+4.3%); construction, forestry, mining, and industrial machinery, equipment and supplies (+2.8%); computer and communications equipment and supplies (+7.5%); and other machinery, equipment and supplies (+1.0%).

Wholesalers of building material and supplies posted a margin decline of 1.9% in the first quarter compared with the previous quarter. The decline was mainly the result of margin decreases for wholesalers of electrical, plumbing, heating and air-conditioning equipment and supplies (-5.6%) and metal service centres (-2.8%).

Year over year, the WSPI advanced 1.8% in the first quarter. The largest contributors to the year-over-year margin increase were wholesalers of miscellaneous products (+10.0%) and wholesalers of farm products (+6.6%). Wholesalers of machinery, equipment and supplies reported a 3.8% year-over-year margin increase.

Advertisment

Wholesalers of building material and supplies recorded a margin decline of 1.9% in the first quarter compared with the same quarter in 2011. Wholesalers of motor and vehicle parts (-0.2%) also posted a year-over-year decrease.

The petroleum products margin fell 0.6% in the first quarter, marking the fifth consecutive quarter of year-over-year margin declines in this sector.