Like most business owners right now, you might be looking at the newspaper each day with trepidation. What does the economy have in store for you and your organization? While you can find bleak news, there is indeed some cause for optimism, especially for manufacturing.
1. Manufacturing Winners
ATB Financial economist Nick Ford identifies the bright spots in Alberta’s manufacturing sector. In 2015, shipments of food manufacturing grew $30 million. Ford also identifies growth in “sales of electrical equipment, appliance and component manufacturers” of 22 per cent! Check out more industries making strides in Alberta’s backyard.
Is yours one of them?
2. Dollar Woes Can Translate to Benefits
Why does a decrease in the Canadian dollar’s value equate to optimism with manufacturers? Matt Bedard with National Leasing can tell you. “A devalued Canadian dollar means our products and services cost less for our neighbours to the south. We essentially are on sale.” If you are a manufacturers who produces supplies and equipment for industries such as the following, look to capitalize on an increased demand from the U.S.:
Bedard also points out that rather than importing products from the U.S., Canadian companies will look to purchase domestically. Read more here.
3. Reviving Canada’s Exports
Jacqueline Palladini, Senior Economist of the Global Commerce Centre at the Conference Board of Canada shares a similar train of thought as Bedard. Canadian manufacturers “will need additional space, machinery and technology, and/or people if they hope to further ramp up production in response to U.S. demand.” Although she recognizes some may not be poised to take full advantage of the U.S. economy and demand, those that do will have a “competitive edge” as they move forward.
Here are the manufacturing industries Palladini and the Conference Board of Canada have identified as being in a position to expand production capacity and workforce to take advantage of the opportunity of increased U.S. demand:
- Wood product
- Pharmaceutical and medicine
- Aerospace product and parts
- Rail and shipbuilding
- Motor vehicle parts
Being ready to seize the opportunities in the current economy. Your business is still growing and choosing an ERP suite that can adapt to your expanding needs can help you get to where you need to be.