SEPTEMBER 1995 Edition
CANADA
According to the United Nations, Canada is still the No 1
country in the world in which to live, at least for men. In over-all human
development, measured by a combination of indicators such as life expectancy,
education and incomes, Canada tops 174 countries for the second straight year,
and for the third time in four years, edging out the U.S. and Japan which tied
for the second spot. But once the inequality in achievement between men and
women in terms of basic health, education and income is factored in, Canada
falls well back to No 9. When the advancement of women in the economic and
political life of the country is measured, Canada ranks fifth.
PERIODICALS
In 1993-94, there were 1,331 Canadian-based publications
circulating, a loss of 162 since 1989-90. For the Industry as a whole,
circulation and revenue also declined. The outlook is brighter for special
interest periodicals targeted at specific audiences such as computer and sports
enthusiasts, In 1993-94 their share of total circulation in Canada hit 30.4 per
cent compared with only 18 per cent four years earlier.
REDUCING
Japanese who hope to slim down are rushing to stock up on
a Chinese-made soap that is supposed to help people reduce weight. Officials
have seized more than 10,000 bars of Soft soap in the last two months from
travellers exceeding the limit of 24 bars a person. Demand for the soap swelled
after magazines reported it helps people slim down.
RELIGION
The Christian retail industry in the U.S. is worth an
estimated $3 billion annually, up from $1 billion in 1980. A group of Georgia
investors is planning to open a Christian Superstore in Alabama, the first in
the country. The shopping centre will be 25,000 square feet--more than 10 times
the size of the average religious bookstore.
A Chicago inventor has patented a collection plate with a
credit card slot. His device, with a privacy screen, has a radio transmitter
that beams the information to a vestry computer which logs the amount and
passes it on to the credit-card company.
B.C. EXPORTS
The U.S. continues to claim a growing share of principal
commodity exports from British Columbia while exports to Asia and Pacific Rim
countries slip. Latest figures show that 54 per cent of the value of B.C.
commodity exports--primarily softwood lumber, pulp and newsprint--went to U.S.
markets last year. Five years ago, the U.S. share was 42 per cent. While
housing starts fuelled the U.S. appetite for B.C. products, slowdowns in Japan
contributed to its slip from 27.8 per cent of the value of all exports in 1990
to 24.8 per cent last year. Over the same period, exports to other Pacific Rim
nations slipped slightly. The value of all B.C. commodity exports rose to $22.8
billion last year, an increase of 20 per cent over 1993.
FAST FOOD
Despite trends towards healthy eating, fried foods are
still hot sellers among restaurateurs and French fries top the popularity list
according to the Canadian Restaurant and Foodservices Association. The top 10
foods ordered in restaurants last year were pizza, salads, baked goods such as
bagels and breads (which stole fourth place from hamburgers), sandwiches,
sweetened baked goods, ice cream, soup and Chinese and stir-fry foods (which ousted
desserts from the top 10 list). Coffee has a strong lead over soft drinks as
the No 1 beverage.
PAYROLL TAXES
A study released by the Bank of Canada states that
federal and provincial governments may have killed as many as 130,000 jobs by
raising payroll taxes in the early 1990s. Governments effectively raised the
costs of labour at a time when the price of computers and computer-based
technology was plummeting. As a result, employers replaced higher-cost workers
with cheaper equipment. Payroll taxes rose substantially between 1990 and 1993,
sharply increasing the cost employers had to pay for benefits like unemployment
insurance, workers' compensation and Canada Pension. The cost of non-wage
benefits financed by employers amounted to 14.1 per cent in 1994, up from 10.6
in 1989.
ASSISTANCE
Canadian governments have dreamed up hundreds of programs
to assist business, from loans to research grants to export subsidies. But a
poll of 1,206 business owners and executives showed that only 20 per cent have
enquired about government assistance in the past two years. However, 71%
eventually received aid. Just 13% of companies with five or fewer employees
asked about assistance and 33% of those with more than 50 employees inquired
about aid. Leading sectors asking about assistance were Manufacturing, Services
and Agriculture.
SALMON
With or without agreements with Oregon, Washington and
Alaska, it is hard for the Department of Fisheries to allocate catches among
the component parts of the B.C. commercial salmon industry. Commercial sports
fishers argue that one-third of every tourism dollar is linked to sports
fishing. The commercial fleet (with 10,000 personal fishing licences and 5,900
fishing vessels) points to the 25,000 full- and part-time jobs linked to the
industry, the dozens of communities tied to the fishery and the $1 billion
wholesale value of the commercial seafood industry. Commercial processors
underline the importance of more than 200 processing plants along the B.C.
coast. And the B.C. Supreme Court has affirmed the right of aboriginals to fish
for subsistence and ceremonial purposes who want their access expanded to fish
salmon for resale. Last but not least are the 400,000 saltwater recreational
anglers who want their allocation preserved. Total B.C. salmon catches were
down in 1994 to the lowest level since 1983. Recently, federal fisheries said
they expect fewer than 3.5 million sockeye salmon to pass into the Fraser river
after predicting around 11 million; this represents a $100 million setback.
SAFETY
Deregulation, price competition and the manufacturing
sector's insistence on just-in- time delivery of parts and components are
blamed by the Ontario Trucking Association for the increasing number of
accidents involving trucks in that province. In 1988, the year deregulation
began, about 45,000 carriers were registered in Ontario each operating at least
one truck. The tally now is 72,000. Trucking companies rates have tumbled, in
some cases by 75%, and manufacturers and retailers routinely impose financial
penalties on suppliers whose shipments arrive late. In random inspections,
trucks ordered off the road pending repairs soared to 43% last year in Ontario.
Faulty or improperly adjusted air brakes are by far the biggest reason. Unsafe
steering systems would sideline 10% and unsafe tires 4 per cent of trucks on
the road.
PORT OF VANCOUVER
The port looks set for a record year, moving 37.9 million
tonnes of cargo in the first six months, an increase of 23 per cent over last
year. Container traffic increased 21 per cent to 2.3 million tonnes and there
were higher volumes of coal, sulphur, potash and forest products. The port's
best year to date was 1991 when it handled 70.7 million tonnes. Cruise
passenger traffic at this point in the Vancouver-Alaska season is keeping pace
with last year, but increased numbers in the third quarter are expected to
result in the 13th consecutive year of growth.
CORPORATE PROFITS
The boom is continuing for many large Canadian companies
as they report a steady stream of profits in the second quarter. An initial
survey of 76 companies by the Globe and Mail found that profits are up an
average of 72 per cent in the second quarter from a year earlier and they would
have climbed 90 per cent if the banks were excluded. The profit recovery has
been largely the domain of companies selling their products, especially
commodities such as newsprint to international buyers. The boom for exporters
has not resulted in similarly spectacular results for Canadian companies making
most of their sales at home. One example is the retail sector which has seen
weak sales this year.
DEBT
The U.S maintained its position as the largest debtor
country last year as the gap widened between foreign holdings in the U.S. and
American assets abroad. The Commerce department reports that the country's net
debtor position worsened by 24.9 per cent to $680.8 billion last year. At the
same time, the British replaced the Japanese as the largest holder of direct
U.S. investments, defined as ownership of 10 per cent or more of a company.
British holdings were $104.4 billion compared with $99.2 billion for the
Japanese. As recently as 1986, the U.S. was considered a net creditor with
$34.6 billion more in assets overseas than foreigners owned in the U.S.
SURFING
Canadian businesses don't seem to be rushing onto the
information highway. Just eight per cent have an E-mail address on the Internet
and only a further 10 per cent hope to have one in place within the next year.
A Report on Business survey shows Ontario-based firms seem the keenest on the
Internet--10 per cent already have an address and 18 per cent want one soon.
Dominant Canadian sectors on the Internet are: Services (13%), Finance (12%)
and Wholesaling (12%).
RECYCLING
The price for old newspaper and corrugated cardboard has
soared so high that individuals and small businesses have turned theft of these
commodities into a cottage industry. Prices for some grades of paper have shot
up by as much as 600 per cent. Municipal officials and people in the recycling
business say the money the scavengers are making is being stolen from the
taxpayer. They also warn that theft of old newspapers and cardboard from
recycling blue boxes is threatening the existence of recycling programs.
Currently, the City of Vancouver gets more than $300 for each tonne of old
newspaper it collects and sells. The City of Edmonton projects losses this year
of around $1 million and Toronto is said to be losing $25,000 a week and North
York $250,000 a month due to theft.
B.C.ECONOMY
The B.C. economy is expected to regain its No. 1 status
as Canada's top province this year and should hold that position next year as
well, according to the Conference Board of Canada. The Ottawa based non-profit
research institution forecasts real domestic growth of 3.2 per cent compared
with the national average of 2.2 per cent. Last year, B.C. lost its lead,
slipping to third place at 4.6 per cent behind Alberta, 5.7 per cent and P.E.I
at 5.0 per cent. Next year, B.C.'s economy will grow by a further 3.6 per cent
compared with a national average of 2.8 per cent. The report notes that
weakness in the U.S. has tempered B.C.'s economic growth.
GLOBAL DATA
Euromonitor, a market analysis company with
offices in Chicago and London has released its World Marketing Data and
Statistics for 1995 on CD-ROM. The program contains a global database of more
than a million facts and figures including GDP per capita, industrial resources
and cultural trends. Euromonitor says the CD-ROM will aid small
businesses by providing cost-effective access to research programs and
furnishing them with vital information on prevailing economic conditions in
far-flung countries. They may be contacted at (312) 922-1115.
TRIVIA
* In 25 years, Japan has
exported 40 million cars to the U.S. Only 40,000 have gone the other way.
* Maria Grazia Maio, a 35
year old postal worker from Turin, is the sickest employee in Italy. In nine
years of fully paid employment she has worked for just nine days.
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