RECORD EXPORTS
Foreign sales almost $33B in past year
Sask. posts $32.9B in 2013 export sales.
Saskatchewan’s diversified, growing economy helped the province set a new record for exports in 2013, posting $32.9 billion in export sales, ahead of the previous record of $31.4 billion set in 2012, according to Trade Minister Tim McMillan.
“We have set another record for exports — $ 32.9 billion worth of exports left Saskatchewan in 2013,’’ McMillan told reporters at Ralph McKay Industries in Regina.
“That is a 4.6 per cent increase over last year’s number.’’
McMillan noted that exports have increased by more than 70 per cent since 2007 when the province exported $19.3 billion worth of goods. “We know that exports are really a measure of the strength of your economy.’’
The largest year-overyear gains were in exports of consumer goods, which were up 64.0 per cent, energy (10.2 per cent) and forestry products (13.3 per cent). Other products that saw large increases in export sales last year were industrial chemicals, plastic and rubber products, industrial machinery, industrial equipment and parts.
McMillan noted that the province achieved record exports despite facing “some serious challenges” in potash production, oil exploration and development and grain shipments. In addition, the forestry industry saw a rebound due to the upswing in the U.S. housing sector, while exports of forestry products to Asia increased with the change of ownership in Saskatchewan’s forestry industry, McMillan said.
He added that the province posted record oil production of 177.9 million barrels last year, breaking the previous record of 172.9 million barrels set in 2012, as well as a record grains and oilseeds crop of 38.4 million tonnes in 2013.
He credited implement manufacturers, like Ralph McKay Industries, for helping to increase the province’s manufacturing exports. “This is a company that is very emblematic of what’s going in Saskatchewan. Ralph McKay has been operating here since the mid-1970s and has grown its business. Originally an Australian company, when an opportunity presented itself, (it) was bought out and is now based here in Regina.’’
Dwayne Chychrun, plant manager of Ralph McKay Industries at 130 Hodsman Rd., said the company exports 80 per cent of its production of agricultural tillage tools and rail fasteners “all over the world,’’ including Europe, the U.S., Australia and more recently Latin America.
“Our sales are on track to meet last year’s demand. Last year was a little lower than the prior year for us, so we’re expecting to see the same results as last year,’’ Chychrun said.
He said the falling loonie is a “double-edge sword’’ for Ralph McKay, as the lower dollar makes its products more competitive, especially in the U.S., but also increases the costs of raw material and plant equipment. “Anything we’re selling into the U.S. we’re recouping more money, but we do have suppliers in the U.S., so it’s hitting us on that side, as well.’’
Like other Canadian manufacturers, Chychrun said Ralph McKay is trying to diversify its markets to lessen its dependence on the U.S. “We’re expanding into other product lines in the U.S. and we’re also focusing a lot on Eastern Europe at the moment.”
Ralph McKay’s recent acquisition of Harvest Services Ltd. of Craik, which takes effect March 1, will diversify its product line to include combine parts, he added.