GE Capital sees positive trends in Canadian market
August 29, 2014
Filed under News
ISSISSAUGA, Ontario -- GE Capital’s Commercial Distribution Finance (CDF) business sees positive trends in the Canadian motorsports and recreational vehicle (RV) industries through the first half of the year, while the marine industry is experiencing a slight slowdown after last year’s accelerated growth.
“Weather once again has had an impact on the recreational industries in Canada, but the RV and motorsports industries are experiencing healthy growth,” said Howard Shiebler, president of CDF in Canada. “We are seeing marine dealers proactively adjusting their ordering patterns to maintain a healthy level of inventory.”
As a leading inventory financing provider to the Canadian recreational products market, CDF periodically provides market intelligence that may help companies throughout the supply chain manage their businesses.
After a 17 percent increase in wholesale volume financed by CDF in 2013, many dealers decreased their orders of new inventory during the first half of the year to focus on sound inventory management. Regionally, the Western provinces of British Columbia and Alberta continued with robust ordering, while orders in the Prairies, Ontario and Quebec declined.
“Dealers ordered a lot of product last year, and the long winter this year has shortened the selling season fairly significantly,” Shiebler noted. “Dealers are being prudent by focusing on selling their current inventory in order to keep their businesses healthy.”
Although aging has increased slightly to 18%, it is still within the acceptable level that is considered healthy. “We consider aged inventory under 20% healthy, so we work closely with our customers to help them maintain the right balance of inventory,” said Shiebler.