How will Canada’s manufacturing sector perform in 2014? Analysts are pretty divided. RBC predicts Canada’s manufacturing sector will gain momentum in the coming year, as the U.S. economy continues to recover, meaning great things for Canadian exports.
On the other hand, The Globe and Mail is less optimistic. Recent plant closings and a shrinking labour force are both factors that might create some problems.
Then there’s Jason Langrish, the executive director of the Canada Europe Roundtable for Business, who claims that penetration of global markets through the support of the recently signed Canada-EU Comprehensive Economic and Trade Agreement (CETA) is essential for manufacturing growth to continue.
But, how do manufacturers feel? As it turns out, they’re fairly confident. Based on the 2014 Manufacturers’ Outlook Survey conducted by PLANT magazine, with 64% of respondents expecting orders to increase in 2014, there’s an overall positive outlook for the sector.
Looking at the big picture, our depreciating dollar and increased exports means Canada’s manufacturing sector is poised for growth. While companies seem to be a bit wary of exploring new markets, failing to step outside of their comfort zone could mean missed opportunities.
A shift towards new export markets is a future possibility and something we should be aware of when working with our mutual customers in this sector. One of the most important things to think about is, if the buying habits of the customers of your customers are changing, what does that mean and what can you do to support their understanding?
Sources: Reuters, The Globe and Mail, PLANT Magazine
