Quote:
Originally Posted by Highinthesky
You guy are completely ignoring the impact of currency on you manufacturing discussion. Over the past 5 to 10 years the Canadian dollar has steadily appreciated against not only the U.S., which just so happens to be our largest market, but also most other major currencies. As this happens it makes our good comparatively more expensive compared to our places like Mexico and even against good produced in the very country Canada is trying to sell their goods in. As long as this trend continues simply reducing labor costs won't solve the problem. Canada either has to increase productivity, which Canada has a poor track record in, to make general good most cost competitively or ship up stream to higher end production that requires a more educated work force.
You can see the inverse in the U.S. where the manufacturing sector has been growing since 2009. Many jobs Americans thought they had lost decades ago for good are coming back due to the U.S. dollar tanking against many other major foreign currencies. Adding to this trend is that China, one of the U.S.'s largest competitors, has seen their currency appreciate great overly the past 4 years against other major currencies.
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You sir hit the nail on the head, our dollar plays a HUGE factor in what is manufactured in Canada and what is not at the moment. This will continue unless companies either change tactics or change how they go to market. It is interesting however see some manufacturing slowly coming back as China's wages and prices are increasing. That said China has a strangle hold on the majority of the market and can often dictate the price as they have the tooling and people to work.
I am a purchasing manager for an electronics distributor so I see first hand on a daily basis our customers (we sell to companies that are manufacturing in Canada) either moving to or from off shore for certain jobs they have.
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