1. Wholesale Turnover Statistics in Canada
23rd Voorburg Group Meeting
Mary Beth Garneau
Aguascalientes, Mexico
September 22nd to 26th, 2008

2. Wholesalers and their services
In-store or co-op promotions
Distribution
Banner wholesalers
Drop shippers
Rack jobbers
Wholesale merchants and distributors
Dealers of machinery & equipment Import-export merchants and agents
Manufacturing reps and agents
Wholesale commission agents
Dealer-owned cooperatives
Wholesale brokers
Buying groups
Shipping
Buy and sell
Packaging and labeling
Logistics
Product training
Inventory management
Handling of warranty claims
Marketing and support services
Statistics Canada • Statistique Canada
September 23, 2008

3. 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
Statistics Canada • Statistique Canada
September 23, 2008

4. 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.
Statistics Canada • Statistique Canada
September 23, 2008

5. 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
Statistics Canada • Statistique Canada
September 23, 2008

6. 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
Statistics Canada • Statistique Canada
September 23, 2008

7. Wholesale population and sample
# 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

8. 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
Statistics Canada • Statistique Canada
September 23, 2008

9. 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
Statistics Canada • Statistique Canada
September 23, 2008

10. Wholesale Origin & Destination of Goods
Data required for the National and Provincial Input-Output 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
Statistics Canada • Statistique Canada
September 23, 2008

11. Statistics Canada • Statistique Canada
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
Statistics Canada • Statistique Canada
September 23, 2008

12. Statistics Canada • Statistique Canada
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)
Statistics Canada • Statistique Canada
September 23, 2008

13. Statistics Canada • Statistique Canada
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
660.0
Statistics Canada • Statistique Canada
September 23, 2008

14. Statistics Canada • Statistique Canada
GDP estimates
Value-added is the sum of the following Input-output wholesale table input commodities:
Wages and salaries
Supplementary labour income
Mixed income
Other operating surplus
Indirect taxes and subsidies
Statistics Canada • Statistique Canada
September 23, 2008

15. Statistics Canada • Statistique Canada
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
Statistics Canada • Statistique Canada
September 23, 2008

16. Statistics Canada • Statistique Canada
Challenges ahead
Deflation
Updated accurate commodity data
Wholesale price indexes
Globalization-induced changes to the structure of multinational firms with operations in Canada
Accurately and consistently define, delineate and measure the wholesale industry.
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

17. Statistics Canada • Statistique Canada
Discussion
Statistics Canada • Statistique Canada
September 23, 2008