An interesting report from Bloomberg following a survey conducted by KPMG of Canadian manufacturers. Keep in mind this is a survey of companies within Canada that do traditional manufacturing of products; this is not a survey of companies that assemble foreign goods for export – there is a substantial difference.
As noted within the report, approximately 10% of Canadian GDP comes from Canadian manufacturing. Within that sector there are multiple companies now planning or considering moving out of Canada into the United States.
Many will claim the trigger for the consideration is based on the potential elimination of the USMCA (CUSMA) trade agreement, and there is truth to that aspect. However, the systemic issues within Canada -including energy policy, regulation and corporate tax burdens- represent the larger problem; the termination of the USMCA is the straw that breaks their back.
The domestic hurdles to manufacturing, are the bigger issues that cannot be negotiated away in U.S-Canada trade agreements. Specifically, the low-price and stable energy policies are the core consistencies that are no longer present in Canada; that fundamental cannot be easily fixed.
BLOOMBERG – […] KPMG Canada said on Tuesday that 42 per cent of Canadian manufacturing companies indicated they have or are considering moving production to the United States. Of those considering relocating, 77 per cent expect to make the transition within the next two years.
[…] the issues go beyond the trade situation though, with Canada needing to create a competitive environment for manufacturers to grow.




