Is this the post-pandemic economy? Income for motor vehicle manufacturing down massive 45.8% with retail sector down 17.8%

According to Stats Canada’s fourth-quarter financial report, the income from the retail sector, manufacturing sector, petroleum and coal manufacturing, the food and beverage stores industry, exports of motor vehicles and parts and the motor vehicle and trailer manufacturing all showed income losses in the fourth quarter.

Top 4th quarter Income losers in 2020

The motor vehicle and trailer manufacturing-led those who experienced income losses in the fourth quarter with reported income losses of $536 million (-45.8%). The exports of motor vehicles and parts also experienced an income decline alongside their vehicle manufacturing counterparts – but nothing nearly as drastic. Exports of vehicles and parts were only down 9.9% comparably.

Retail – The retail sector also took a metaphorical beating with reported income losses of $776 million (-17.8%).

Food and Beverage Stores – The food and beverage stores industry led the decrease in net income in the retail sector down a gargantuan $2.6 billion (-187.8%).

Petroleum and coal manufacturing – Petroleum and coal manufacturing was down a massive $870 million (187.1%) as “expenses related to asset revaluations increased in the fourth quarter.”

Property and casualty insurance carriers – Normally, we think of the insurance industry as a safe industry. While 2020 benefitted almost all of the financial sector, property and casualty insurance carriers became another casualty of a large number of industries and businesses experiencing massive income losses in the Covid government controls too much era.

Income for property and casualty insurance carriers decrease by a jolting $1.4 billion (-50.7%) in the fourth quarter.

Manufacturing industry – Net income before taxes in the manufacturing industry was down by $120 million (-0.9%).

Those who saw profit increases

The Non-financial sector – Net income increased by 12.8% (or $6.0 billion) to $53.2 billion in the fourth quarter.

Oil and gas extraction – oil and gas extraction and support activities income increased by $3.7 billion (+56.5%) in the fourth quarter. This may seem like a big win for oil and gas – but the industry reported losses for the fourth consecutive quarter. They may have seen big income increases compared to previous quarters but still recorded a loss of $2.9 billion in the fourth quarter. This was an improvement however from the loss of $6.6 billion the industry experienced in the third quarter.

Motor vehicles and parts dealers – Although vehicle manufacturing experienced income losses – cars were selling extraordinarily well as people flocked to buy vehicles they can’t afford. Net income before taxes in this portion of the economy was up $755 million (+126.9%).

Wood and paper manufacturing – The wood and paper manufacturing industry played a major role in offsetting decreases experienced in other parts of the manufacturing sector. They saw income rise by $711 million (32.4%) in the fourth quarter as increased prices and robust demand in the panels segment helped them.

Financial corporations – The net income before taxes for financial corporations was up $37 million (+0.1%).

Life, health and medical insurance carriers – It has been a good time to be in the life, health and medical insurance game during the “pandemic” as the insurance carriers saw an increase of $873 million in the fourth quarter alone – up +56.2% because of “higher premium revenues.” In essence – the insurance carriers that provide life, health and medical are charging more for their services and have profited quite well from it as well.

The banking and depository credit intermediation industry –  The industry did just fine as fiat money continues to get printed in an attempt to compensate for the locking down of the Canadian economy to “combat Covid”. The industry saw net income before tax increase by $553 million (6.2%). Their total net income before taxes was $9.5 billion for the fourth quarter.

Is this the “new normal” politicians keep talking about?

Perhaps this is the “new normal” that our politicians keep referring to – one that will allow them to build back better in their own visions that give more and more power to the government to make decisions that effect industry? Either way many Canadian industries were beat down in the fourth quarter of 2020, experiencing massive losses as others profited. At least it’s a good time to be in health insurance and banking though.

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Photo by Anastasiia Chepinska on Unsplash

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Published by Greg Staley

Greg Staley is a husband, and a father to 3 beautiful girls. He is a concerned citizen who is closely watching his government's actions through critical thinking, and assessment of all qualified and relevant data. He believes in going to the Primary sources of data at all times if possible.