56 per cent of firms in province experienced revenue growth of at least five per cent last year
MONTREAL—Québec’s manufacturing sector continued to show signs of growth in 2012 despite global economic challenges, according to a new study.
Released by industry association Sous-Traitance Industrielle Québec (STIQ), the Baromètre industriel québécois study found 56 per cent of small- and medium-sized manufacturers in the province experienced revenue growth of at least five per cent last year.
Those numbers matched the study’s 2011 results, according to STIQ.
The study found 36 per cent of SMEs increased their respective number of employees by five per cent in 2012.
2012 was a very active year for many Québec-based prime contractors, especially in industries with highly-structured supply chains, such as aeronautics, transportation, mining and electrical energy.
The study shows manufacturers were able to capitalize on this dynamism and increase their sales volumes with prime contractors.
In 2012, 44 per cent of SMEs attributed more than 25 per cent of their sales to prime contractors, compared with 36 per cent in 2011.
Meanwhile, 49 per cent of respondents saw at least a five per cent rise in sales attributable to prime contractors, against 44 per cent in 2011.
Despite the solid numbers, SMEs in Québec could have sustained even higher growth in 2012 by investing more in research and development and acquiring advanced equipment, according to STIQ.
Only 55 per cent of firms invested more than two per cent of their revenues in R&D, while 68 per cent spent more than two per cent on equipment purchases.