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Statistics for Business Planning

Accessing Canadian data for industry, market and financial analysis

Special Libraries Association Conference - June 8, 2005

Presented by Peter Lys, Director General,

Business and Trade, Statistics Canada

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Agenda

• 1) Overview of Key Macroeconomic Indicators

• 2) Statistics for Business Planning

• 3) Overview of Free/Cost Recovery Data/Services

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The “Daily”• Free,automated subscriptions to all or by 26 subjects, for example:• Business enterprises • Communications • Construction • Energy • Environment • Labour • Manufacturing • National accounts • Prices and price indexes • Science and technology • Trade • etc.

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CANSIM

• On-line Data Warehouse

• Detailed Time Series data

• Wide range of macroeconomic and socioeconomic subjects

• Cost recovery service through our website

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2) Statistics for Business Planning

• a) Industry size growth and employment

• b) Market size, characteristics, location

• c) Financial Analysis

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a) Industry Analysis

• How big is the industry your business operates in?

• How big are the businesses that compete in your territory?

• How fast is the industry growing?

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There are different ways to measure industry size and

growth…For example, industries can be measured by:

– Total sales in the industry– Number of businesses in the industry– Total employment in the industry

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Data used for Industry Analysis

Canadian Business PatternsLabour Force SurveyCensus

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Canadian Business Patterns Variables

• Number of establishments by:– Industry: by NAICS codes (2,3,4, +6

digit)– Employee size ranges (8)

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Canadian Business Patterns Geography

• Standard tables available for Canada, the provinces, Census Divisions (e.g. regional gov’t) and Census Subdivisions (municipalities)

• Custom tables available for Census Tracts and Dissemination Areas

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Sample Data by Employee Size Range -Canadian Bus. Patterns

Construction-Hamilton CMA

Total 1-4 5-9 etc 500+

5172 1252 345 … 2

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Where to find CBP data?

• www.statcan.ca or call 1-800-263-1136• The Daily – Tues. September 28, 2004 • CDROM available through Regional Offices

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Measuring Employment in an Industry

Major Sources of Employment data by Industry–Labour Force Survey–Census of Population

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Employment in Construction in Kitchener CMA

8,000

9,000

10,000

11,000

12,000

13,000

14,000

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Source: Statistics Canada - Labour Force Historical CD

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Where to find Labour Force Survey data?

• www.statcan.ca – Canadian Statistics module• The Daily –first Friday of the month has data from previous

month

• CANSIM tables 282-0001 to 282-0042 and 282-0047 to 282-0095

• 1-800-263-1136

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Census of Population

–Conducted every 5 years–Unlike monthly Labour Force

Survey, provides employment data by detailed industry and for small geographic areas (e.g. municipalities, neighborhoods, etc.)

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Where to find Census data?

• www.statcan.ca– Community Profiles module• www.statcan.ca– 2001 Census module• Large Public and University Libraries• Toll Free:1-800-263-1136 • Regional Offices for more detailed and custom

data

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b) Market Analysis

• Market Size

• Market Characteristics

• Market Location

• Exports/Imports

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Popular Sources used for Market Analysis

Survey of Household Spending (SHS)Census of Population Small Area Administrative Data (SAAD)Canadian International Merchandise

Trade

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Survey of Household Spending (SHS)

• This survey collects information about expenditures by households in Canada on over 250 separate goods and services including another 100 groups of items

• Contains data on dwelling characteristics and ownership of household equipment

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Survey of Household Spending

• Spending categories include:• Shelter expenses • Furnishings & Equipment• Communications• Child Care• Food & Alcohol• Clothing• Transportation & Travel• Others….

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SHS Tables

• The expenditure information is cross tabulated by…– Geography (selected CMA’s)

– income quartiles

– tenure (own / rent)

– household type (family structure)

– size of area of residence (urban / rural)

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Where to find SHS data?

• www.statcan.ca• The “Daily” – Dec. 13, 2004 • Spending patterns in Canada Cat. No 62-202-XIE.

• CANSIM• 1-800-263-1136• Customized tables through Regional Offices

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Example: Survey of Household Spending

Market Size - Ottawa (CMA)

Pet Food $110/household = A

Estimated # of households 320,050 = B

Estimated Sales = A x B = $35,205,500

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Market Location Analysis

• Find / Analyze Target markets using variables from:– Census Data– Small Area Administrative Data

income

agesex

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Census

• Provides data for small geographic regions such as neighbourhoods (Census Tracts), Forward Sortation Areas, and Dissemination Areas

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Census Variables by Topic

• Population and Dwelling Counts• Age, Sex and Marital Status• Ethno-cultural, language, religion• Income • Labour force • Family and Households• Education• Mobility and Migration

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Small Area and Administrative Data (SAAD)

• Because SAAD data are based on the post office areas, it is especially popular for use with direct mail campaigns.

• The database contains economic and demographic information based on personal income tax returns (aggregated data stripped of all identifying information)

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Small Area Admin.Data: Variables

• Financial and Family Data Income and Sources of Income

Charitable Donations

Age

Sex

Family Structure

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SAAD Geography

• SAAD data available for small areas by Canada Post geographies:– Forward Sortation Areas (e.g. B3H)– Letter Carrier Walks– Rural 6-digit postal codes

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Lake Ontario

M5J

M1CM1CM1CM1CM1CM1CM1CM1CM1CM1EM1EM1EM1EM1EM1EM1EM1EM1E

M9CM9CM9CM9CM9CM9CM9CM9CM9C

M9NM9NM9NM9NM9NM9NM9NM9NM9N M6MM6MM6MM6MM6MM6MM6MM6MM6M

M3JM3JM3JM3JM3JM3JM3JM3JM3J

M3MM3MM3MM3MM3MM3MM3MM3MM3M

M2RM2RM2RM2RM2RM2RM2RM2RM2R

M2MM2MM2MM2MM2MM2MM2MM2MM2M

M1TM1TM1TM1TM1TM1TM1TM1TM1T

M2KM2KM2KM2KM2KM2KM2KM2KM2K

M2JM2JM2JM2JM2JM2JM2JM2JM2J

M3HM3HM3HM3HM3HM3HM3HM3HM3H

M4WM4WM4WM4WM4WM4WM4WM4WM4WM5RM5RM5RM5RM5RM5RM5RM5RM5R

M4YM4YM4YM4YM4YM4YM4YM4YM4Y

M1GM1GM1GM1GM1GM1GM1GM1GM1G

M1HM1HM1HM1HM1HM1HM1HM1HM1H

M4JM4JM4JM4JM4JM4JM4JM4JM4J

M9BM9BM9BM9BM9BM9BM9BM9BM9B

L4XL4XL4XL4XL4XL4XL4XL4XL4X

M4XM4XM4XM4XM4XM4XM4XM4XM4X

M5NM5NM5NM5NM5NM5NM5NM5NM5N

M4RM4RM4RM4RM4RM4RM4RM4RM4R M4PM4PM4PM4PM4PM4PM4PM4PM4P

M5VM5VM5VM5VM5VM5VM5VM5VM5V

M4MM4MM4MM4MM4MM4MM4MM4MM4M

M4KM4KM4KM4KM4KM4KM4KM4KM4K

M6KM6KM6KM6KM6KM6KM6KM6KM6K

M6SM6SM6SM6SM6SM6SM6SM6SM6S

M5PM5PM5PM5PM5PM5PM5PM5PM5P

M6NM6NM6NM6NM6NM6NM6NM6NM6N

M3LM3LM3LM3LM3LM3LM3LM3LM3L

M4NM4NM4NM4NM4NM4NM4NM4NM4NM4AM4AM4AM4AM4AM4AM4AM4AM4A

M4CM4CM4CM4CM4CM4CM4CM4CM4C

M4EM4EM4EM4EM4EM4EM4EM4EM4E

M8XM8XM8XM8XM8XM8XM8XM8XM8X

M9MM9MM9MM9MM9MM9MM9MM9MM9M

M1EM1EM1EM1EM1EM1EM1EM1EM1E

L4KL4KL4KL4KL4KL4KL4KL4KL4K

M8VM8VM8VM8VM8VM8VM8VM8VM8V

M1WM1WM1WM1WM1WM1WM1WM1WM1W

L3TL3TL3TL3TL3TL3TL3TL3TL3T

L4JL4JL4JL4JL4JL4JL4JL4JL4JM1BM1BM1BM1BM1BM1BM1BM1BM1B

M8WM8WM8WM8WM8WM8WM8WM8WM8W

York

North York

Toronto

Scarborough

Etobicoke

East York

M2HM2HM2HM2HM2HM2HM2HM2HM2H

M1SM1SM1SM1SM1SM1SM1SM1SM1S

M2NM2NM2NM2NM2NM2NM2NM2NM2N

M1PM1PM1PM1PM1PM1PM1PM1PM1PM3NM3NM3NM3NM3NM3NM3NM3NM3N

M1RM1RM1RM1RM1RM1RM1RM1RM1R

M9LM9LM9LM9LM9LM9LM9LM9LM9L

M3AM3AM3AM3AM3AM3AM3AM3AM3AM2LM2LM2LM2LM2LM2LM2LM2LM2L

M2PM2PM2PM2PM2PM2PM2PM2PM2P

M1JM1JM1JM1JM1JM1JM1JM1JM1JM3BM3BM3BM3BM3BM3BM3BM3BM3B

M3KM3KM3KM3KM3KM3KM3KM3KM3K

M1KM1KM1KM1KM1KM1KM1KM1KM1K

M5MM5MM5MM5MM5MM5MM5MM5MM5M

M3CM3CM3CM3CM3CM3CM3CM3CM3CM1MM1MM1MM1MM1MM1MM1MM1MM1MM6AM6AM6AM6AM6AM6AM6AM6AM6A

M1LM1LM1LM1LM1LM1LM1LM1LM1L

M6LM6LM6LM6LM6LM6LM6LM6LM6L

M4GM4GM4GM4GM4GM4GM4GM4GM4G

M6BM6BM6BM6BM6BM6BM6BM6BM6B

M1NM1NM1NM1NM1NM1NM1NM1NM1N

M4BM4BM4BM4BM4BM4BM4BM4BM4BM4HM4HM4HM4HM4HM4HM4HM4HM4H

M9PM9PM9PM9PM9PM9PM9PM9PM9P

M4SM4SM4SM4SM4SM4SM4SM4SM4S

M9RM9RM9RM9RM9RM9RM9RM9RM9RM6CM6CM6CM6CM6CM6CM6CM6CM6C

M6EM6EM6EM6EM6EM6EM6EM6EM6EM4VM4VM4VM4VM4VM4VM4VM4VM4V

M4TM4TM4TM4TM4TM4TM4TM4TM4T

M9AM9AM9AM9AM9AM9AM9AM9AM9A

M6GM6GM6GM6GM6GM6GM6GM6GM6GM4LM4LM4LM4LM4LM4LM4LM4LM4L

M6HM6HM6HM6HM6HM6HM6HM6HM6H M5SM5SM5SM5SM5SM5SM5SM5SM5S

M5AM5AM5AM5AM5AM5AM5AM5AM5AM6PM6PM6PM6PM6PM6PM6PM6PM6P

M5TM5TM5TM5TM5TM5TM5TM5TM5T

M6RM6RM6RM6RM6RM6RM6RM6RM6RM6JM6JM6JM6JM6JM6JM6JM6JM6J

M8YM8YM8YM8YM8YM8YM8YM8YM8Y

M8ZM8ZM8ZM8ZM8ZM8ZM8ZM8ZM8Z

Forward Sortation Areas

1996 FSA

1996 Census Sudivision

Produced by Statistics Canada, Ontario Region, Source: 1996 Census and 1999 SARTRE.

Forward Sortation Areas in Toronto

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Letter Carrier Walk Geography

K1R

K1R5S1 K1R5S2 K1R5S3 K1R5T4 K1R5T5 K1R5T6 K1R5T7 K1R5T8 K1R6E2 K1R6E3 K1R6E4 K1R6E5 K1R6E6 K1R6E7 K1R6E8 K1R6E9 K1R6G1 K1R6G2 K1R6G3 K1R6G4 K1R6G5 K1R6J7 K1R6J8 K1R6J9K1R6K1 K1R6K2 K1R6K3 K1R6K4 K1R6K8 K1R7A1 K1R7A2 K1R7A3 K1R7N3 K1R7Y9

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A retailer planning a direct mail campaign targeting areas with large concentrations of high income males in Calgary

Example: SAAD for Target Marketing

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SAAD - Example

T2W

T3H

T3A

RESULTS: By mapping the data 3 FSAs stand out:

T3A, T3H and T2W

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SAAD Benefits

Lower the direct mail costs by avoiding those areas with low numbers of potential customers

Can further fine- tune beyond the FSA level by extracting only those letter carrier walks with high concentrations of the target market

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Where to find SAAD data?

• www.statcan.ca – some data tables available on CANSIM (higher geography)

• Custom extractions through Regional Offices

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Canadian International Merchandise Trade

• Import and Export Data by month, by country

• Widely used for analysis of Export markets and estimates of potential Import Substitution.

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Example: the Export Market

2002 2003 2004 % Chg

Newsprint $6.3 B $5.6 B $5.3 B -16%

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Example: Imports from all Countries2002 2003 2004 % Chg

Road Tractors (Semi-trailers)

$1.3 B $1.5 B $1.9 B 46%

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Where to find import/export data?

• www.statcan.ca – data available in Canadian Statistics, on CANSIM and through the Canadian International Merchandise Trade module

• 1-800-263-1136

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c) Financial Analysis• How does your firm’s finances compare to the

industry as a whole?• What are the operational characteristics of

profitable vs. unprofitable firms in an industry?

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Selected Data used for Financial Analysis

Small Business Profiles (SBP)Financial Performance Indicators

(FPI)

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Small Business Profiles vs Financial Performance Indicators

SBP• Small businesses only - under

$5 million revenue• reports for total, incorporated,

& unincorporated businesses• 2,3,4, & 5 digit NAICS coded

industries • Percent of total revenue and

thousands of dollars formats• One year of data per report

FPI• All business sizes: small,

medium and large• Only incorporated businesses• Selected industries / industry

groups – NAICS coded• Financial ratios and balance

sheet structure formats• Industry ranking tables – enter

your data to compare your firm• Three years of data on CD-

ROM

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Financial Ratios

Using income statements and balance sheet information businesses can calculate:

Liquidity Ratios

Solvency Ratios

Profitability Ratios

Efficiency Ratios

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Financial Performance Indicators

• Financial ratios provide a means of creating financial report cards, assessing business risk and market viability

• Particularly useful for Business Plans

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FPI CDROM feature, Example for Hypothetical Boat Builder

Builder Boat Industry Median

Better than -% of firms

Worse than -% of firms

Net profit margin

0.0 1.2 25% 50%

Return on equity

26.3 10.0 50% 25%

Debt to equity 9.1 0.6 … 75%

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Where to find FPI data?

• CD-ROM product available from Regional offices

Cat. No. 10-3010XKB

• Custom data available from Regional offices

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3) Free vs. Cost Recovery Products

and Services

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Free

Website: www.statcan.ca– “contact us” box– The “Daily” (including automatic subscriptions

by subject)– Many Internet publications/articles– Canadian Statistics Module– Community Profiles Module– 2001 Census Module (higher geography)

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Visits and Page Views from 1997 to 2004 FY

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000

10,000,00011,000,00012,000,00013,000,00014,000,00015,000,000

1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-20050

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

110,000,000

120,000,000

Total Visits

Page Views

Vis its Page View s

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2004-2005 Page Views ('000)- Main Modules

16,534

13,539

11,963

16,1857,255

8,659

8,198

36,389Census

Com m unity Profile

Canadian Statis tics

Downloadable Pubs .

Daily

Search

Education

Others

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Free Services (cont’d)

• General inquiries/consultation: Toll-free number: 1-800-263-1136 (Canada and U.S.)

• Outside Canada/U.S. (long distance)

1-613-951-8116

• Public and Academic Libraries listed on website

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Cost Recovery Services

• Customized requests (eg. detailed geography, non-standard cross tabulations, customized maps, workshops, etc.)– Available through Account Executives in the Regional

Offices (1-800-263-1136)• Website (with credit card):

-CANSIM-Some Internet publications-CDROM and paper publications-Canadian International Merchandise Trade

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Cost Recovery (cont’d)

• Prices will vary depending on the product/ service

• Prices for products are usually quoted along with hyperlinks on our Website

• Cansim prices are $3 per time series

• Prices for services are based on time and processing costs and are normally provided through the Regional Offices

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Note of Appreciation

Canada owes the success of its statistical system to a long-standing co-operation involving Statistics Canada,

the citizens of Canada, its businesses, governments and other institutions.

Accurate and timely statistical information could not be produced without their continued

co-operation and goodwill.

Thank you for your participation.