The manufacturing sectors that should boost capacity are…

By Staff | February 5, 2016 | Last updated on February 5, 2016
1 min read

Canadian manufacturers should be able to take advantage of the U.S. recovery. But, despite the dipping loonie and strong U.S. dollar, domestic exports are lagging.

That’s because manufactures are still recovering from “15 years of struggling with increased competition, sluggish demand and a high-valued Canadian dollar,” reports Canadian Business. Also, many firms don’t have enough capacity to compete with U.S. counterparts.

Read: Why trade between Canada, U.S. is a hassle

As a result, we’re entering a new export era, which “will offer trade patterns more in line with the 1990’s than the 2000’s,” according to Conference Board of Canada. It finds, “Demand from emerging markets is slowing [while] U.S. growth has rebounded, leaving many Canadian industries to wonder what can be expected for exports for the last half of the decade.”

Overall, the Conference Board says there are six Canadian industries that are benefiting from strong demand but don’t yet have the capacity to compete on a global scale. These are:

  • Wood Product Manufacturing;
  • Pharmaceutical and Medicine Manufacturing;
  • Aerospace Product and Parts Manufacturing;
  • Other Transportation Manufacturing (e.g. rail and shipbuilding);
  • Clothing Manufacturing; and
  • Motor Vehicle Parts Manufacturing.

In contrast, industries such as travel services and crop production are expected to profit from strong capacity and global demand in the near-term. Click here for more from the Conference Board.

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The staff of have been covering news for financial advisors since 1998.